Archivos de la etiqueta: Derecho Informático Corea del Sur

15Nov/21

Act nº 6614, Jan. 19, 2002, Framework Act on Electronic Documents and Transactions

Act nº 6614, Jan. 19, 2002, Framework Act on Electronic Documents and Transactions. (Amended by Act nº 7440, Mar. 31, 2005; Act nº 7796, Dec. 29, 2005; Act nº 7988, Sep. 27, 2006; Act nº 8371, Apr. 11, 2007; Act nº 8362, Apr. 11, 2007: Act nº 8387, Apr. 27, 2007; Act nº 8466, May 17, 2007; Act nº 8461, May 17, 2007; Act nº 8802, Dec. 27, 2007; Act nº 8852, Feb. 29, 2008; Act nº 8979, Mar. 21, 2008; Act nº 8932, Mar. 21, 2008; Act nº 9246, Dec. 26, 2008; Act nº 9429, Feb. 6, 2009; Act nº 9504, Mar. 18, 2009; Act nº 9705, May 22, 2009; Act nº 9708, May 22, 2009; Act nº 10220, Mar. 31, 2010; Act nº 10250, Apr. 12, 2010; Act nº 10629, May 19, 2011; Act nº 10854, Jul. 14, 2011; Act nº 11461, jun. 1, 2012; Act nº 11688, Mar. 23, 2013; Act nº 11690, Mar. 23, 2013; Act nº 12781, Oct. 15, 2014; Act nº 12875, Dec. 30, 2014; Act nº 13347, jun. 22, 2015; Act nº 13587, Dec. 22, 2015; Act nº 13768, Jan. 19, 2016; Act nº 14839, Jul. 26, 2017; Act nº 14907, Oct. 24, 2017).

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to contribute to the development of the national economy by clarifying the legal relevance of electronic documents and electronic transactions, ensuring the security and reliability of electronic documents and electronic transactions, and creating infrastructure for facilitating the use thereof.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows:

1. The term “electronic document” means information, prepared, transmitted, received, or stored in an electronic form by an information processing system;

2. The term “information processing system” means an electronic mechanism or system capable of processing information used for preparing, converting, transmitting, receiving, or storing electronic documents;

3. The term “originator” means a person who prepares and transmits an electronic document;

4. The term “addressee” means another party to whom an originator transmits an electronic document;

5. The term “electronic transaction” means a transaction fully or partially conducted by an electronic document when buying and selling goods or services;

6. The term “electronic transaction business entity” means a person who conducts electronic transactions;

7. The term “electronic transaction user” means a person, other than an electronic transaction business entity, who makes electronic transactions;

8. The term “certified electronic address” means an address registered pursuant to Article 18-4, which is information comprised of letters and numbers to identify a person who sends or receives an electronic document;

9. The term “certified electronic document center” means a person designated under Article 31-2 (1), who conducts the following affairs (hereinafter referred to as “storage of electronic documents, etc.”) for others:

(a) Storage or certification of electronic documents;

(b) Other affairs related to electronic documents;

10. The term “certified electronic document intermediary” means a person designated under Article 31-18, who sends, receives, or relays electronic documents (hereinafter referred to as “distribution of electronic documents“) for others.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 3 (Scope of Application)

This Act shall apply to all electronic documents and electronic transactions, except as otherwise expressly provided for in other Acts.

(Article Amended by Act nº 11461, Jun. 1, 2012)

CHAPTER II.- ELECTRONIC DOCUMENTS

Article 4 (Validity of Electronic Documents)

(1) No electronic document shall be denied legal effect as a document solely because it is in an electronic form, except as otherwise expressly provided for in other Acts.

(2) An electronic document showing the intent of guaranty which has been drawn up by the guarantor for the purpose of his/her business or project shall, notwithstanding the proviso to Article 428-2 (1) of the Civil Act, be deemed a document under the main sentence of the same paragraph. (Inserted by Act nº 13768, Jan. 19, 2016)

(3) Where acts of recording, reporting, preservation, keeping, preparation or otherwise under any Act as specified in attached Table have been conducted in the form of electronic documents, it shall be deemed that acts pursuant to such Act have been conducted.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 5 (Storage of Electronic Documents)

(1) Where an electronic document meets the following requirements, the storage of such electronic document may take the place of the storage of the document provided for in the relevant statutes:

1. That the content of the electronic document shall be available for public perusal;

2. That the electronic document shall be kept in the same form as when prepared, transmitted, or received or in a form reproducible same as the afore-mentioned form;

3. Where matters concerning an originator, an addressee, and the time of transmission or receipt of the electronic document are included therein, such matters shall remain therein.

(2) Where a document converted to a form processible by an information processing system (hereinafter referred to as “digitized document“) from a paper document or other document not prepared in an electronic form (hereinafter referred to as “document to be digitized“) meets the following requirements, the storage of such digitized document may take the place of the storage of a document provided for in the relevant statutes: Provided, That this shall not apply where expressly provided for otherwise in any other statutes:

1. That a digitized document shall be identical to a document to be digitized in its content and form;

2. That a digitized document shall meet all requirements referred to in the subparagraphs of paragraph (1).

(3) Requirements for the identity of the content and form of a digitized document and a document to be digitized, methods and procedures for preparing a digitized document and other necessary matters shall be determined and announced by the Minister of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(4) For the purposes of paragraphs (1) and (2), a part needed only for transmission or receipt may not be deemed an electronic document or digitized document.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 6 (Time and Place of Transmission or Receipt of Electronic Documents)

(1) An electronic document (including a digitized document; hereinafter the same shall apply) shall be deemed sent at the time the electronic document is entered into an information processing system through which an addressee or his/her agent can receive the electronic document.

(2) An electronic document shall be deemed received in any of the following cases:

1. Where an addressee has designated an information processing system through which he/she will receive the electronic document: When it is entered into the designated information processing system: Provided, That where it is entered into an information processing system other than the designated information processing system, referring to the time the addressee prints it out;

2. Where an addressee has not designated an information processing system through which he/she will receive the electronic document: When it is entered into the information processing system he/she manages.

(3) An electronic document shall be deemed sent from or received at the location of the place of business of an originator or addressee; where at least two places of business exist, the electronic document shall be deemed sent from or received at the location of the place of business where the relevant electronic document is mainly controlled: Provided, That the originator or addressee has no place of business, such electronic document shall be deemed sent from or received at his/her habitual residence.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 7 (Where Originator is Deemed to have Sent Electronic Documents)

(1) An expression of intent contained in any of the following electronic documents shall be deemed sent by an originator:

1. An electronic document sent by his/her agent;

2. An electronic document sent by a computer program developed to send or receive electronic documents automatically or by other electronic means.

(2) In any of the following cases, an addressee of an electronic document may do an act, deeming an expression of intent contained in the electronic document to be the expression of intent of an originator:

1. Where the addressee has followed the procedure on which he/she agreed upon in advance with the originator in order to verify whether the electronic document was originated from the originator;

2. Where an electronic document received has been sent by a person who is deemed by the addressee to have sent such electronic document according to the intent of the originator or his/her agent, in view of his/her relationship with the originator or his/her agent.

(3) Paragraph (2) shall not apply in any of the following cases:

1. Where an addressee has received a notice from an originator that the electronic document is not originated from him/her, and there is a reasonable time to take necessary measures according thereto;

2. In a case falling under paragraph (2) 2, where an addressee has become aware that the electronic document did not originate from an originator or he/she might have become aware that he/she paid due attention thereto or followed the procedure on which he/she agreed upon with the originator.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 8 (Independency of Electronic Document Received)

Any electronic document received shall be deemed independent from each other document: Provided, That the same shall not apply where the addressee might have become aware that the same electronic document has been repeatedly transmitted if he/she had followed the procedure for verification agreed upon with the originator or paid due attention thereto.

Article 9 (Acknowledgement of Receipt)

(1)  Where an originator has transmitted an electronic document on condition that the receipt thereof shall be acknowledged, no such electronic document shall be deemed sent until the originator receives a notice of acknowledgment of receipt. In such cases, Article 534 of the Civil Act shall not apply.

(2) Where an originator requests a notice of acknowledgment of receipt without specifying the acknowledgment of receipt as a condition, if the originator has not received any notice of acknowledgment of receipt within a reasonable period (referring to a period if such period is designated by the originator or the period agreed upon between the originator and the addressee), the originator may withdraw the transmission of such electronic document.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 10 (Alteration under Agreement between Originator and Addressee)

An originator and an addressee may conclude an agreement on terms different from the provisions of Articles 6 through 9, except as otherwise expressly provided for in other statutes.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 11 (Matters Concerning Digital Signatures)

Matters concerning digital signatures in electronic transactions shall be governed by the Digital Signature Act.

(Article Amended by Act nº 11461, Jun. 1, 2012)

CHAPTER III.- ENSURING SECURITY OF ELECTRONIC TRANSACTIONS AND PROTECTION OF CONSUMERS

Article 12 (Protection of Personal Information)

(1) The Government shall formulate and implement policies to protect personal information of electronic transaction users in order to ensure the security and reliability of electronic transactions.

(2) Every electronic transaction business entity shall comply with related regulations, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., when collecting, using, providing or managing personal information of electronic transaction users.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 13 (Protection of Trade Secrets)

(1) The Government shall formulate and implement policies to protect trade secrets of electronic transaction users in order to ensure the security and reliability of electronic transactions.

(2) Every electronic transaction business entity (including any person entrusted with the operation of an information processing system; hereafter the same shall apply in this Article) shall take measures to protect trade secrets of electronic transaction users.

(3) No electronic transaction business entity shall, without obtaining the consent of an electronic transaction user, provide or divulge a trade secret of the relevant user to any third person.

(4) Matters necessary for the scope of trade secrets, protective measures, etc. under paragraphs (1) through (3) shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 14 (Use of Encryption Products)

(1) Any electronic transaction business entity may use an encryption product to ensure the security and reliability of electronic transactions.

(2) If the Government deems it necessary for national security, it may restrict the use of encryption products, and take necessary measures to gain access to the original text of encrypted information or encryption technology.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 15 (Formulation and Implementation of Consumer Protection Policies, etc.)

(1) The Government shall formulate and implement policies to protect the basic rights and interests of consumers relevant to electronic transactions and to ensure consumer credibility on electronic transactions pursuant to related statutes, such as the Framework Act on Consumers and the Act on the Consumer Protection in Electronic Commerce, Etc.

(2) The Government may recommend electronic transaction business entities and trade associations to voluntarily establish a code of conduct to prevent unfair conduct related to electronic transactions.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 16 (Prevention of Losses to and Remedies for Consumers)

(1) The Government shall formulate and implement policies on the provision of information to consumers and the proliferation of education, etc., in order to prevent the occurrence of loss to consumers related to electronic transactions.

(2) The Government shall formulate and implement necessary measures so that it may promptly and fairly deal with complaints from and losses to consumers related to electronic transactions.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 17 (Matters to be Generally Observed by Electric Transaction Business Entities)

Every electric transaction business entity shall comply with the following matters in order to protect consumers related to electronic transactions and to ensure the security and reliability of electronic transactions:

1. Provision of its trade name (including the name of the representative of a corporation, if applicable), information on itself and accurate information on goods, services, the terms of a contract, etc.;

2. Provision and preservation of contractual terms and conditions so that consumers may easily have access to or recognize them;

3. Formulation of procedures by which a consumer may cancel or change his/her order;

4. Formulation of procedures for easy withdrawal of an application, cancellation or termination of a contract, exchange, return of goods and refund of payments, etc.;

5. Formulation of procedures to promptly and fairly deal with consumer complaints and requests;

6. Preservation of transaction records required for the verification of transactions for a fixed period.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Articles 18 through 18-3 Delelted (By Act nº 14907, Oct. 24, 2017)

Article 18-4 (Registration of Certified Electronic Addresses)

(1) Any person who intends to send or receive electronic documents using his/her certified electronic address shall register his/her certified electronic address with the exclusively responsible agency under Article 22 (1).

(2) Upon receipt of an application for registration under paragraph (1), the exclusively responsible agency under Article 22 (1) shall confirm whether a certified electronic address applied for registration conforms to international standards, etc., and enter and store the details thereof in an information processing system.

(3) The exclusively responsible agency under Article 22 (1) may collect fees from persons who apply for registration pursuant to paragraph (1).

(4) Matters necessary for registration and storage of certified electronic addresses and registration fees under paragraphs (1) through (3) shall be prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Inserted by Act nº 11461, Jun. 2012)

Article 18-5 (Generation and Issuance of Distribution Certificates, etc.)

(1) Where an electronic document is sent, received or read through a certified electronic address, the exclusively responsible agency under Article 22 (1) shall generate and store information including the following matters (hereinafter referred to as “distribution information“):

1. Time the electronic document is sent and received;

2. The sender and the addressee of the electronic document;

3. Other matters prescribed by Presidential Decree concerning transmission and receipt of electronic documents.

(2) An originator and a sender may be issued a distribution certificate from the exclusively responsible agency under Article 22 (1), which stores distribution information.

(3) Where the exclusively responsible agency under Article 22 (1) has issued a distribution certificate according to the method and procedure prescribed by Presidential Decree, such distribution certificate shall be presumed true and correct.

(4) Matters necessary for the generation, storage and issuance of distribution certificates under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11461, Jun. 2012)

Article 18-6 (Prohibition of Collection, etc. of Certified Electronic Addresses through Automated Programs, etc.)

(1) No one shall collect certified electronic addresses through an automated program or technical mechanism that collects certified electronic addresses.

(2) No person shall sell or provide any collected certified electronic address in violation of paragraph (1).

(Article Inserted by Act nº 11461, Jun. 2012)

Article 18-7 (Prohibition of Sending Advertisements)

No one shall send any advertisement to the certified electronic address of any addressee for the purpose of profit-making or public relations.

(Article Inserted by Act nº 11461, Jun. 2012)

CHAPTER IV.- FORMULATION OF BASIC POLICIES ON ELECTRONIC DOCUMENTS AND ELECTRONIC TRANSACTIONS AND PROMOTION SYSTEM

Article 19 (Principles of Basic Policies on Electronic Documents and Electronic Transactions and Responsibility of Government)

The Government shall formulate and implement basic policies on electronic documents and electronic transactions according to the following principles to facilitate the use of electronic documents and the conduct of electronic transactions:

1. Performance led by the private sector;

2. Minimizing regulations;

3. Ensuring the security and reliability of electronic documents and electronic transactions;

4. Strengthening international cooperation.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 20 (Formulation and Implementation of Plan to Facilitate Use of Electronic Documents and Conduct of Electronic Transactions)

(1) The Government shall formulate and implement a plan including the following matters are included (hereinafter referred to as “plan to facilitate the use of electronic documents and the conduct of electronic transactions”) according to the principles of basic policies on electronic documents and electronic transactions formulated under Article 19:

1. Basic direction-setting for a plan to facilitate the use of electronic documents and the conduct of electronic transactions;

2. Matters concerning international norms related to electronic documents and electronic transactions;

3. Matters concerning the electronic payment system;

4. Matters concerning the protection of intellectual property rights;

5. Matters concerning the protection of the rights and interests of parties to electronic documents and electronic transactions;

6. Matters concerning ensuring the security and reliability of electronic documents and electronic transactions;

7. Matters concerning the development and standardization of technologies relating to electronic documents and electronic transactions;

8. Matters concerning the creation of an environment to facilitate the use of electronic documents and the conduct of electronic transactions and the generation of demand therefor;

9. Matters concerning international cooperation related to electronic documents and electronic transactions;

10. Matters concerning support for creating infrastructure necessary for facilitating the use of electronic documents and the conduct of electronic transactions;

11. Matters concerning the establishment of high-speed information and communication networks and the revitalization of the use thereof;

12. Other matters necessary for facilitating the use of electronic documents and the conduct of electronic transactions.

(2) The head of a central administrative agency related to a plan to facilitate the use of electronic documents and the conduct of electronic transactions (hereinafter referred to as “related central administrative agency“) shall formulate sectional plans for matters referred to in the subparagraphs of paragraph (1) under his/her jurisdiction, and take such plans into consideration when formulating and implementing major policies.

(3) The Minister of Science and ICT shall formulate a plan to facilitate the use of electronic documents and the conduct of electronic transactions by integrating sectional plans of each related central administrative agency. (Amended by Act nº 11688, Mar. 23, 2013; Act nº 11690, Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 21 Deleted (By Act nº 9504, Mar. 18, 2009)

Article 22 (Agency Exclusively Responsible for Promoting Use of Electronic Documents and Conduct of Electronic Transactions)

(1) The Ministry of Science and ICT may designate an exclusively responsible agency to implement the following projects in an efficient and systematic manner for facilitating the use of electronic documents as well as the conduct of electronic transactions: (Amended by Act nº 13347, Jun. 22, 2015; Act nº 14839, Jul. 26, 2017)

1. Deleted (By Act nº 14907, Oct. 24, 2017)

2. Research and development and dissemination projects of standards related to electronic documents and electronic transactions under Article 24, and activities related to the international standardization of such standards;

3. Support for technical development under Article 25;

4. Support for fact-finding surveys of statistics on electronic documents and electronic transactions under Article 28;

5. Support for duties of designating certified electronic document centers under Article 31-2;

6. Support for reporting of working rules, such as the storage of electronic documents, under Article 31-8;

7. Support for technologies on measures for protecting electronic documents by certified electronic document centers under Article 31-9 (3);

8. Acquiring stored documents, etc. under Article 31-15 (3);

9. Support for duties of designating certified electronic documents intermediaries under Article 31-18;

10. Operation of the Mediation Committee of Disputes on Electronic Documents and Transactions under Article 32.

(2) Delelted (By Act nº 14907, Oct. 24, 2017)

(3) The Government may fully or partially subsidize expenses incurred by the exclusively responsible agency in performing projects to facilitate the conduct of electronic transactions and the use of electronic documents within budgetary limits or within the Information and Communication Technology Promotion Fund established under Article 41 of the Information and Communications Technology Industry Promotion Act.

(Article Amended by Act nº 11461, Jun. 1, 2012)

CHAPTER V.- FACILITATING USE OF ELECTRONIC DOCUMENTS AND CONDUCT OF ELECTRONIC TRANSACTIONS AND CREATING INFRASTRUCTURE

Article 23 (Facilitating Use of Electronic Documents, etc.)

(1) The Government shall formulate and implement necessary policies, such as amending various statutes, in order to facilitate the use of electronic documents.

(2) The Minister of Science and ICT may determine and announce standard guidelines for requirements, methods and procedures for the preparation, transmission, receipt and storage of electronic documents to facilitate the use thereof. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) through (6) Delelted (By Act nº 14907, Oct. 24, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 24 (Standardization of Electronic Documents and Electronic Transactions)

(1) The Government shall promote the following activities to efficiently use electronic documents and conduct electronic transactions and to ensure the compatibility of related technologies:

1. Establishment, amendment, and repeal of standards related to electronic documents and electronic transactions and the dissemination thereof;

2. Research, study, and development of domestic and overseas standards related to electronic documents and electronic transactions;

3. Other activities necessary for standardization related to electronic documents and electronic transactions.

(2) The Government may, if necessary for efficiently implementing a project falling under each of paragraph (1), request any related agency or private organization to conduct such projects on its behalf. In such cases, the Government may subsidize expenses incurred while the project is conducted by proxy as prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 25 (Promotion of Technical Development for Electronic Documents and Electronic Transactions)

The Government shall promote the following to develop technology required for facilitating the use of electronic documents and the conduct of electronic transactions and to improve technical standards:

1. Matters concerning surveys of technical levels related to electronic documents and transactions, research and development of technology, and utilization of developed technologies;

2. Matters concerning technical cooperation, technical guidance, and technology transfer related to electronic documents and electronic transactions;

3. Matters concerning the smooth distribution of technical information related to electronic documents and electronic transactions and industry-science-research cooperation;

4. Other matters necessary for technical development related to electronic documents and electronic transactions.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 26 (Training of Professionals in Electronic Documents and Electronic Transactions)

(1) The Government shall endeavor to train professionals required for facilitating the use of electronic documents and the conduct of electronic transactions.

(2) In order to train professionals pursuant to paragraph (1), the Government may fully or partially subsidize expenses incurred in conducting such task to research institutes, such as government-funded research institutions, under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes, Etc., schools under the Higher Education Act, private educational institutions, and other related institutions.

(3) Matters necessary for subsidizing expenses to institutions training professionals under paragraph (2) and other matters shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 27 (Promotion of Electronic Transactions by Public Sectors)

The State agencies, local governments, public institutions defined in Article 4 of the Act on the Management of Public Institutions, public organizations, etc. (hereinafter referred to as “State agencies, etc.”) shall formulate and implement a plan to procure goods or services necessary for the operation thereof, or to perform their projects through electronic transactions.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 28 (Fact-Finding Surveys of Statistics on Electronic Documents and Electronic Transactions)

(1) The Minister of Science and ICT may conduct a fact-finding survey of statistics on electronic documents and electronic transactions, etc. in order to effectively formulate and implement policies for facilitating electronic documents and electronic transactions. In such cases, the Statistics Act shall apply mutatis mutandis to the compilation of statistics on electronic documents and electronic transactions. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) If necessary for conducting a fact-finding survey of statistics on electronic documents and electronic transactions under paragraph (1), the Minister of Science and ICT may request any of the following entities to submit data or state its opinion: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. A State agency, etc.;

2. An electronic transaction business entity;

3. A corporation or organization related to electronic documents or electronic transactions.

(3) Any person in receipt of a request to submit data, etc. under paragraph (2) shall comply therewith.

(4) Matters necessary for conducting a fact-finding survey of statistics on electronic documents and electronic transactions shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 29 (Internationalization of Electronic Documents and Electronic Transactions)

(1) In order to promote international cooperation in electronic documents and electronic transactions, the Government may provide support for activities, such as exchanges of information, technology or human resources on electronic documents and electronic transactions, joint surveys, research and technical cooperation and international standardization.

(2) The Government shall endeavor to fully participate in discussions related to electronic documents and electronic transactions in international organizations and to respond thereto, and to revitalize entry of electronic transaction business entities and business entities related to electronic documents into overseas markets.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 30 (Electronic Commerce Resource Centers)

(1) The Government shall formulate and promote policies required for facilitating electronic transactions conducted by small and medium enterprises.

(2) In order to facilitate electronic transactions conducted by small and medium enterprises, the Minister of Science and ICT may designate an institution which supports education and training, technological guidance, management consulting, provision of information, etc. related to electronic transactions as an electronic commerce resource center (hereinafter referred to as “resource center“). (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) Matters necessary for criteria for designation of a resource center, reporting outcomes from performing activities, subsidization of expenses and other matters shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 30-2 (Revocation of Designation of Resource Centers)

If a resource center falls under any of the following, the Minister of Science and ICT may revoke the designation thereof: Provided, That if it falls under subparagraph 1, he/she shall revoke the designation thereof: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where it has obtained designation as a resource center by fraudulent or other unlawful means;

2. Where there is no outcome from activities for at least two consecutive years without just cause;

3. Where it fails to comply with any of the criteria for designation under Article 30 (3).

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31 (Support for Facilitating Use of Electronic Documents and Conduct of Electronic Transactions)

(1) In order to facilitate the use of electronic documents and the conduct of electronic transactions, the State or a local government may provide taxation support, such as tax reductions and exemptions, and financial support and other necessary administrative support, as prescribed by tax-related Acts, including the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act.

(2) Where a corporation or organization related to electronic documents and electronic transactions implements a project specified in a plan to facilitate the use of electronic documents and the conduct of electronic transactions, the Government may fully or partially subsidize the relevant project cost within budgetary limits.

(Article Amended by Act nº 11461, Jun. 1, 2012)

CHAPTER V-II.- CERTIFIED ELECTRONIC DOCUMENT CENTERS AND CERTIFIED ELECTRONIC DOCUMENTS INTERMEDIARIES

SECTION 1.- Certified Electronic Document Centers

Article 31-2 (Designation of Certified Electronic Document Centers)

(1) The Minister of Science and ICT may designate an entity specialized in the storage of electronic documents, etc. as a certified electronic document center and require it store electronic documents in order to ensure safety and accuracy in the storage of electronic documents. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) Only corporations, State agencies, etc. prescribed by Presidential Decree may be designated as a certified electronic document center.

(3) An entity intending to be designated as a certified electronic document center shall apply for designation to the Minister of Science and ICT upon being equipped with human resources, technical ability, financial ability and independence in human and physical aspects under Article 31-9 (6) and other facilities, equipment, etc. necessary for the storage of electronic documents. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(4) Matters necessary for human resources, technical ability, financial ability and the criteria, methods and procedures for designation of facilities, equipment, etc. of a certified electronic document center under paragraphs (1) and (3) shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-3 (Grounds for Disqualification as Certified Electronic Document Centers)

None of the following persons or entities shall be designated as a certified electronic document center: (Amended by Act nº 12875, Dec. 30, 2014; Act nº 13587, Dec. 22, 2015)

1. An entity employing any of the following persons among its executive officers and staff members prescribed by Presidential Decree (hereinafter referred to as “executive officers, etc.”), who directly conduct the storage of electronic documents:

(a) A person under adult guardianship or person under limited guardianship;

(b) A person declared bankrupt, and not yet reinstated;

(c) Any person for which two years have not passed since his/her sentence of imprisonment without labor or heavier punishment was completely executed (including where the execution is deemed completed) or exempted as declared by a court;

(d) Any person who is subject to a suspended sentence of imprisonment without labor or heavier punishment as declared by a court;

(e) Any person disqualified or whose qualification was suspended by court ruling or by other Acts;

(f) Any person for whom two years have not passed since his/her designation as a certified electronic document center or certified electronic document intermediary was revoked (excluding cases where his/her designation has been revoked in accordance with the subparagraph 3 of Article 31-22 because he/she falls under subparagraph 1 (a) or (b)), who was an executive officer, etc. of the person whose designation was revoked pursuant to Articles 31-5 (1) and 31-22 (limited to a person directly responsible for the occurrence of the ground for revocation thereof or responsible therefor correspondingly, who is prescribed by Presidential Decree);

2. Any person for who two years have not passed since its designation was revoked (excluding cases where its designation has been revoked in accordance with the subparagraph 3 of Article 31-22 because he/she falls under subparagraph 1 (a) or (b)) pursuant to Articles 31-5 (1) and 31-22.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-4 (Correction Orders)

Where a certified electronic document center falls under any of the following, the Minister of Science and ICT may order it to make a correction within a fixed period not exceeding six months: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where it fails to comply with any of the criteria for designation of a certified electronic document center under Article 31-2 (4);

2. Where an executive officer, etc. falls under any of the items of subparagraph 1 of Article 31-3;

3. Where it fails to report on working rules for the storage of electronic documents, etc., in violation of Article 31-8 (1);

4. Where it fails to report on any amendment to working rules for the storage of electronic documents, etc., in violation of Article 31-8 (2);

5. Where it refuses to provide services of storing electronic documents, etc., in violation of Article 31-9 (1);

6. Where it discriminates unfairly against a user, in violation of Article 31-9 (2);

7. Where it fails to take measures necessary for preventing the content of any stored electronic document from being damaged or altered, in violation of Article 31-9 (3);

8. Where security in the storage, transmission, or receipt of electronic documents or the accuracy of proof concerning electronic documents is at risk of being compromised because the method or procedure of a certified electronic document center for conducting its affairs is inappropriate;

9. Where it fails to purchase insurance, in violation of Article 31-16 (2).

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-5 (Revocation of Designation and Penalty Surcharges)

(1) Where an entity designated as a certified electronic document center pursuant to Article 31-2 falls under any of the following, the Minister of Science and ICT may revoke its designation or order it to fully or partially suspend within a fixed period not exceeding one year, as prescribed by Ordinance of the Ministry of Science, ICT and Future Planning: Provided, That where it falls under subparagraph 1 or 2, he/she shall revoke its designation: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where it has obtained designation under Article 31-2 (1) by fraudulent or other unlawful means;

2. Where it has continued its affairs during a period for which its affairs are suspended;

3. Where it fails to begin operations for at least one year from the date it has obtained designation under Article 31-2 (1), or fails to conduct its affairs, such as the storage of electronic documents, for at least one consecutive year after beginning operations;

4. Where it fails to comply with a correction order issued under Article 31-4 within a fixed period.

(2) Where the Minister of Science and ICT must impose the suspension of operations because an entity designated as a certified electronic document center falls under paragraph (1) 3 and 4 and he/she deems that the suspension of operations will cause serious inconvenience to users of a certified electronic document center, or harm public interests, he/she may impose a penalty surcharge not exceeding 100 million won in lieu of the suspension of operations. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) The amount of a penalty surcharge depending on the type and severity of an offense on which a penalty surcharge is imposed pursuant to paragraph (2) and methods for computing the penalty surcharge and other necessary matters shall be prescribed by Presidential Decree.

(4) When any person liable to pay a penalty surcharge under paragraph (2) fails to pay it by the payment due date, the Minister of Science and ICT shall collect it in the same manner as delinquent national taxes are collected. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-6 (Effect of Storage through Certified Electronic Document Centers)

Where a certified electronic document center stores electronic documents, such electronic documents shall be deemed stored under Article 5 (1) or (2).

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-7 (Presumption of Content of Electronic Documents, etc.)

(1) The content of electronic documents stored in a certified electronic document center shall be presumed unmodified during the period of storage.

(2) Where a certified electronic document center issues a certificate of matters on the storage, an originator, an addressee and the date and time of transmission and receipt of an electronic document stored in the relevant certified electronic document center according to methods and procedures prescribed by Presidential Decree, matters stated on the certificate shall be presumed true and correct.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-8 (Reporting on Working Rules for Storage of Electronic Documents, etc.)

(1) Any certified electronic document center shall establish working rules for the storage of electronic documents, etc. (hereinafter referred to as “working rules for the storage of electronic documents, etc.”) before it begins operations, as prescribed by Ordinance of the Ministry of Science and ICT, and report to the Minister of Science and ICT. In such cases, the following matters shall be included in working rules for the storage of electronic documents, etc.: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Types of business affairs;

2. Methods and procedures for conducting business affairs;

3. Terms and conditions of use of services of storing electronic documents, etc. and user fees;

4. Other matters prescribed by Ordinance of the Ministry of Science and ICT and necessary for conducting business affairs.

(2) Where a certified electronic document center intends to modify matters reported pursuant to paragraph (1), it shall report in advance to the Minister of Science and ICT, as prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) Where the Minister of Science and ICT deems that the content of working rules for the storage of electronic documents, etc. reported pursuant to paragraph (1) is at risk of compromising security and accuracy in the storage of electronic documents, etc. or harm interests of users (hereinafter referred to as “user“) of services of storing electronic documents, etc., he/she may order the relevant certified electronic document center to amend the working rules for the storage of electronic documents, etc. within a fixed period. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(4) When a certified electronic document center has changed facilities or equipment used for the storage of electronic documents, etc., it shall report to the Minister of Science and ICT, as prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-9 (Matters to Observe)

(1) No certified electronic document center shall refuse to provide services of storing electronic documents, etc. without just cause.

(2) No certified electronic document center shall discriminate unfairly against any user.

(3) A certified electronic document center shall take necessary measure, as prescribed by Presidential Decree, to prevent the content of stored electronic documents from being damaged or altered.

(4) No certified electronic document center shall provide or disclose any electronic document stored in the relevant information processing system or other related information to any third person without following due process or without the consent of the originator, the addressee and the relevant user of the electronic document.

(5) A certified electronic document center shall maintain independence in human and physical aspects in the relationship with its users in order to store electronic documents, etc., in a reliable manner and the specific criteria therefor shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-10 (Regular Inspections, etc.)

(1) A certified electronic document center shall undergo regular inspections by the Minister of Science and ICT on the safety of the facilities and equipment it possesses. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) Where a certified electronic document center has reported a change under Article 31-8 (4) or succession under Article 31-14 (3), it shall undergo an inspection by the Minister of Science and ICT on the safety of the relevant facilities or equipment. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) Standards, timing, subject matter of, and procedures for inspections under paragraphs (1) and (2) and other necessary matters shall be prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-11 (Reporting, Inspections, etc.)

(1) If deemed necessary, the Minister of Science and ICT may require a certified electronic document center to submit related data or file a report in writing or by electronic document, and require related public officials to enter an office, a place of business and other related place of the certified electronic document center to inspect facilities, equipment, documents or other articles relating to the storage of electronic documents, etc., as prescribed by Presidential Decree. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) Any public official who conducts an inspection under paragraph (1) shall carry a certificate of identification indicating his/her authority, and produce it to interested parties.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-12 (Security of Related Information, Such as Electronic Documents)

(1) No one shall forge or falsify any electronic document or other related information stored in a certified electronic document center, or use forged or falsified information.

(2) No one shall be issued a false certificate referred to in Article 31-7 (2) by entering false information or a false command into an information processing system of a certified electronic document center.

(3) No one shall destroy or damage any electronic document or other related information stored in a certified electronic document center, or infringe on its confidentiality.

(4) No current or former executive officer or employee of a certified electronic document center shall divulge the content of any electronic document or other related information he/she has become aware of in the course of performing his/her duty, or use it for himself/herself or allow any third party to use it.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-13 (Protection of User Information)

Every certified electronic document center and certified electronic document intermediary shall protect personal information of users in relation to the storage of electronic documents, etc. and the distribution of electronic documents, as prescribed by related statutes.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-14 (Transfer, Acquisition, etc. of Business of Certified Electronic Document Centers)

(1) Any certified electronic document center may fully or partially transfer its business to any third certified electronic document center or merge with any third certified electronic document center. In such cases, the certified electronic document center shall notify its users of such transfer or merger by no later than 60 days prior to the date it intends to transfer or merge, as prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) Any certified electronic document center which has transferred its business pursuant to paragraph (1) or any certified electronic document center surviving a merger or established in the course of a merger shall succeed to the status of the previous certified electronic document center.

(3) Any entity that has succeeded to the status of the previous certified electronic document center pursuant to paragraph (2) shall report to the Minister of Science and ICT, as prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-15 (Discontinuance of Business of Storing Electronic Documents, etc.)

(1) Where a certified electronic document center intends to discontinue its business of storing electronic documents, etc., it shall notify its users of the discontinuance of its business and report such fact to the Minister of Science and ICT, as prescribed by Ordinance of the Ministry of Science and ICT, by no later than 60 days prior to the date it intends to discontinue its business. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) A certified document center which have reported pursuant to paragraph (1) shall transfer electronic documents that it stores and other records on the storage of electronic documents, etc. (hereinafter referred to as “stored documents, etc.”) to any third certified electronic document center: Provided, That where it cannot transfer stored documents, etc. due to inevitable reasons, such as the refusal of any third certified electronic document center to acquire such stored documents, etc., it shall, without delay, report such fact to the Minister of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) Where any of the following cases arises and the Minister of Science and ICT deems an emergency measure necessary to ensure the continuity and security of its affairs, such as the storage of electronic documents, he/she may require the exclusively responsible agency to acquire the relevant stored electronic documents, etc. or may require it to take other necessary measures: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where he/she has received a report under the proviso to paragraph (2);

2. Where he/she has revoked designation of a certified electronic document center pursuant to Article 31-5;

3. Where there arises an inevitable reason making it impossible for a certified electronic document center to conduct its affairs, such as the storage of electronic documents.

(4) Matters necessary for reporting the discontinuance of business, and transfer and acquisition of stored documents, etc. under paragraphs (1) through (3) and other matters shall be prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-16 (Liability for Compensation and Purchasing Insurance)

(1) When a certified electronic document center has inflicted a loss on a user in connection with the storage of electronic documents, etc., it shall compensate the user for such loss: Provided, That where the certified electronic document center has proved that there is no intention or negligence on its part, this shall not apply.

(2) A certified electronic document center shall purchase insurance, as prescribed by Presidential Decree, in order to compensate for losses under paragraph (1).

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 31-17 (Fees, etc.)

A certified electronic document center may impose necessary charges, such as fees, on applicants for issuance of certificates or its users.

(Article Amended by Act nº 11461, Jun. 1, 2012)

SECTION 2.- Certified Electronic Document Intermediaries

Article 31-18 (Designation of Certified Electronic Document Intermediaries, etc.)

(1) The Minister of Science and ICT may designate an entity specialized in the distribution of electronic documents as a certified electronic document intermediary to distribute electronic documents in order to ensure stability and reliability in the distribution of electronic documents. In such cases, he/she may first designate a person who represents each field of finance, health care, national defense, etc. where necessary to protect personal information and trade secrets. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) Only corporations, State agencies, etc. prescribed by Presidential Decree may be designated as a certified electronic document intermediary.

(3) Any person who intends to be designated as a certified electronic document intermediary shall apply for designation to the Minister of Science and ICT up being equipped with human resources, facilities, equipment and financial ability and technical ability necessary for distributing electronic documents (hereinafter referred to as “requirements for certified electronic document intermediaries”). (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(4) The Minister of Science and ICT may announce the working rules of certified electronic document intermediaries in order to ensure stability and reliability in the distribution of electronic documents. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(5) Where the Minister of Science and ICT designates a certified electronic document intermediary pursuant to the latter part of paragraph (1), he/she may attach a condition necessary to ensure stability and reliability in the distribution of electronic documents. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(6) Matters necessary for requirements for certified electronic document intermediaries and procedures for the designation thereof under paragraph (1) and (3) and other matters shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11461, Jun. 2012)

Article 31-19 (Grounds for Disqualification as Certified Electronic Document Intermediaries)

None of the following entities shall be designated as a certified electronic document intermediary: (Amended by Act nº 13587, Dec. 22, 2015)

1. An entity, any of the executive officers of which falls under any of the items of subparagraph 1 of Article 31-3;

2. An entity for which two years have not passed since its designation was revoked (excluding cases where its designation has been revoked in accordance with the subparagraph 3 of Article 31-22 because he/she falls under subparagraph 1 (a) or (b)) pursuant to Article 31-5 (1) or 31-22.

(Article Inserted by Act nº 11461, Jun. 2012)

Article 31-20 (Reporting by Certified Electronic Document Intermediaries on Changes)

When a certified electronic document intermediary has changed facilities or equipment used for distributing electronic documents, he/she shall report to the Minister of Science and ICT, as prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Inserted by Act nº 11461, Jun. 2012)

Article 31-21 (Regular Inspections, etc.)

(1) Every certified electronic document intermediary shall undergo regular inspections by the Minister of Science and ICT on the safety of the facilities and equipment it possesses. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(2) When any certified electronic document intermediary has reported changes under Article 31-20, it shall undergo an inspection by the Minister of Science and ICT on the safety of the relevant facilities or equipment. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(3) Matters necessary for standards, timing, subject matter of, and procedures for inspections under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Science and ICT. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Inserted by Act nº 11461, Jun. 2012)

Article 31-22 (Revocation of Designation of Certified Electronic Document Intermediaries)

Where any certified electronic document intermediary falls under any of the following, the Minister of Science and ICT may revoke its designation, as prescribed by Ordinance of the Ministry of Science and ICT: Provided, That where it falls under subparagraph 1, he/she shall revoke its designation: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where it has obtained designation by fraudulent or other unlawful means;

2. Where it fails to meet requirements for certified electronic document intermediaries under Article 31-18 (3);

3. Where its executive officer falls under subparagraph 1 of Article 31-19: Provided, That this shall not apply where it appoints another executive officer replacing such executive officer within three months;

4. Where it fails to comply with a correction order issued under Article 31-23 within a fixed period.

(Article Inserted by Act nº 11461, Jun. 2012)

Article 31-23 (Correction Orders)

Where any certified person replaying electronic documents falls under any of the following, the Minister of Science and ICT may order it to make a correction within a fixed period not exceeding six months: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where it violates any provision of working rules under Article 31-18 (4);

2. Where it fails to comply with a condition attached pursuant to Article 31-18 (5);

3. Where stability and reliability in the distribution of electronic documents is at risk of being substantially compromised because the method or procedure for conducting its affairs is inappropriate.

(Article Inserted by Act nº 11461, Jun. 2012)

CHAPTER VI.- MEDIATION COMMITTEE OF DISPUTES ON ELECTRONIC DOCUMENTS AND ELECTRONIC TRANSACTIONS

Article 32 (Establishment and Composition of Mediation Committee of Disputes on Electronic Documents and Electronic Transactions, etc.)

(1) There is hereby established a Mediation Committee of Disputes on Electronic Documents and Electronic Transactions (hereafter referred to as the “Committee” in this Chapter) to mediate disputes on electronic documents and electronic transactions.

(2) The Committee shall be comprised of at least 15 up to 50 members, including one Chairperson.

(3) Members shall be appointed or commissioned by the Minister of Science and ICT from among any of the following persons, and the Chairperson shall be elected by the Committee from among its members: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. A current or former associate professor or higher, or person in a position equivalent thereto in a university or officially-recognized research institution, who majored in the field related to electronic documents or electronic transactions;

2. A current or former Grade IV public official or higher (including a public official in general service belonging to the Senior Civil Service) or a person in a position equivalent thereto in a public agency, who has experience in electronic documents or electronic transactions;

3. A qualified judge, public prosecutor or attorney-at-law;

4. A person recommended by a non-profit, non-governmental organization as defined in Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act;

5. Other person who has knowledge and experience in electronic documents or electronic transactions, and the mediation of disputes.

(4) The members shall be non-standing members, and the terms of office of members shall be three years, and renewable for only one further term.

(5) No member shall be dismissed or de-commissioned against his/her will except in any of the following cases: (Amended by Act nº 14907, Oct. 24, 2017)

1. Where he/she is sentenced to the suspension of qualification or heavier punishment;

2. Where he/she is no longer able to perform his/her duties due to a mental or physical disorder;

3. Where any illegality exists relating to his/her duties;

4. Where he/she is deemed ill-fitted as a member due to neglect of duty or injury to dignity;

5. Where he/she fails to abstain even though he/she falls under any of the subparagraphs of Article 32-2 (1) or the former part of Article 32-2 (2).

(6) The secretariat shall be established within the exclusively responsible agency to support the affairs of the Committee.

(7) Except as otherwise expressly provided for in paragraphs (1) through (6), matters necessary for the operation of the Committee and other matters shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 32-2 (Abstention, Recusal or Withdrawal of Members)

(1) Where a member of the Committee falls under any of the following, he/she shall abstain from the mediation of the relevant mediation case:

1. Where the member or his/her current or former spouse becomes a party to the case or is in the relationship of a joint titleholder or co-obligor with the party to the case;

2. Where the member a current or former relative of a party to the case;

3. Where the member bore witness in or assessed the relevant case;

4. Where the member is or was involved in the relevant case as an agent of the party to the case.

(2) Where a party to the case is in a circumstance that he/she anticipates unfairness in mediation, he/she may apply for recusal of the relevant member to the Committee; and the Committee shall determine thereon by voting. In such cases, the member against whom the recusal is applied for shall not participate in the voting. (Amended by Act nº 14907, Oct. 24, 2017)

(3) Where a member falls under a ground referred to in paragraph (1) or (2), he/she shall voluntarily withdraw from the mediation of the relevant case. (Amended by Act nº 14907, Oct. 24, 2017)

(Article Inserted by Act nº 11461, Jun. 2012)

Article 33 (Mediation of Disputes)

(1) Any person who intends to obtain a remedy for any loss or seek mediation of a dispute related to an electronic document or electronic transaction may apply for mediation of the dispute to the Committee: Provided, That this shall not apply where the mediation of the dispute has been completed in accordance with other Acts.

(2) The Mediation Board (hereinafter referred to as the “Mediation Board“) comprised of not more than three members shall conduct mediation: Provided, That the Committee shall conduct mediation if the Committee has resolved to mediate for itself.

(3) Members of the Mediation Board shall be appointed for each case by the Chairperson from among the members of the Committee, and at least one person falling under Article 32 (3) 3 shall be included as a member.

(4) The Committee or the Mediation Board shall prepare a draft mediation within 45 days after receipt of an application for mediation of a dispute under paragraph (1), and recommend the draft mediation to the parties to the dispute (hereinafter referred to as “parties“): Provided, That where it intends to extend such deadline due to extenuating circumstances, it shall notify the parties of its intention, specifying the grounds therefor and the new deadline.

(5) A draft mediation referred to in paragraph (4) may include restoration, compensation and other measures necessary to remedy damage within the limit not contrary to the purport of the application. (Inserted by Act nº 13347, Jun. 22, 2015)

(6) The parties concerned upon receipt of a recommendation under the main sentence of paragraph (4) shall notify the Committee or the Mediation Board of whether they consent to the draft mediation within 15 days from the date of receipt of such recommendation. In such cases, if any party fails to express his or her intention within 15 days, he/she shall be deemed to have accepted the draft mediation.

(7) Except as otherwise provided for in paragraphs (1) through (6), necessary matters concerning procedures for mediation shall be prescribed by Presidential Decree. (Amended by Act nº 13347, Jun. 22, 2015)

(Article Amended by Act nº 11461, Jun. 1, 2012)

 Article 33-2 (Notification of Illegal Acts, and Other Related Matters)

Where the Committee deems that any party or person concerned has violated any statute while conducting dispute mediation, the Committee shall notify the relevant agency of such violation and make a request that the agency take an appropriate measure: Provided, That this shall not apply in any of the following cases:

1. Where any of the parties to dispute has agreed to compensate for damage and has redressed the violation of the statutes;

2. Where the relevant agency has already become aware of and investigated into the violation of the statutes.

(Article Inserted by Act nº 13347, Jun. 22, 2015)

Article 34 (Requests for Data, etc.)

(1) The Committee may request the parties or a witness to provide data required for the mediation of a dispute. In such cases, the relevant parties shall comply with such request unless they have just cause.

(2) Where the Committee deems it necessary, it may require the parties or a witness to attend a meeting of the Committee to hear their opinions.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 34-2 (Refusal and Suspension of Mediation)

(1) The Committee may refuse to mediate the case in any of the following cases:

1. Where the mediation of a dispute has been completed in accordance with other Act;

2. Where it is deemed inappropriate for the Committee to mediate a dispute in light of the nature of the case;

3. Where the Committee deems that an application for the mediation of a dispute has been filed for any unlawful purpose.

(2) Where a party brings a lawsuit against the other party before the mediation of a dispute finishes, the Committee may suspend such mediation.

(3) Where the Committee refuses to mediate the case pursuant to paragraph (1) or suspends mediation pursuant to paragraph (2), it shall notify the parties of the fact and grounds therefor.

(Article Inserted by Act nº 11461, Jun. 2012)

Article 35 (Completion of Mediation)

(1) Mediation shall be completed in any of the following cases:

1. Where parties consent to a mediation plan under Article 33 (4);

2. Where parties submit a mediated agreement to the Committee.

(2) Where mediation is completed pursuant to paragraph (1), the Committee shall send to the parties a protocol of mediation signed and sealed by the Committee Chairperson and each party.

(3) A protocol of mediation referred to in paragraph (2) shall have the same effect as a consent judgment under the Civil Procedure Act.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 36 (Cessation of Mediation)

The Committee shall notify the parties of the cessation of mediation in any of the following cases:

1. Where an application for mediation is withdrawn, or any of the parties fails to comply with the mediation of a dispute;

2. Where the parties refuse a mediation plan of the Committee.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 36-2 (Interruption of Extinctive Prescription)

An Application for mediation of a dispute under Article 33 (1) shall have an effect of interrupting extinctive prescription: Provided, That this shall not apply where the application for mediation of a dispute is withdrawn.

(Article Inserted by Act nº 12781, Oct. 15, 2014)

Article 37 (Expenses for Mediation, etc.)

(1) The Committee may require an applicant for mediation of a dispute to bear expenses for mediation, as prescribed by Presidential Decree.

(2) The Government may subsidize expenses incurred in the operation of the Committee within budgetary limits.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 37-2 (Confidentiality)

No person who conducts or has conducted affairs related to the mediation of a dispute of the Committee shall divulge confidential information he/she has become aware of in the course of performing his/her duty to any third person or appropriate it for any purpose other than the official purpose: Provided, That this shall not apply where expressly provided for otherwise in any other Acts.

(Article Inserted by Act nº 11461, Jun. 2012)

CHAPTER VII.- SUPPLEMENTARY PROVISIONS

Article 38 (Prohibition of Use of Similar Names)

(1) No entity, other than one designated as a certified electronic document center, shall use a certified electronic document center or similar in its name.

(2) No entity, other than one designated as a certified electronic document intermediary, shall use a certified electronic document intermediary or similar in its name.

(3) No one shall use a certified electronic address or similar for non-certified electronic address.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 39 (Delegation or Entrustment of Authority)

The Minister of Science and ICT may delegate part of his/her authority under this Act to the head of an agency under his/her jurisdiction or the head of a local government, or entrust such authority to the head of a related central administrative agency or an specialized institution, as prescribed by Presidential Decree. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 40 (Reciprocity)

This Act shall also apply to foreigners and foreign corporations: Provided, That with respect to foreigners or foreign corporations of a State which does not provide protection corresponding to this Act to citizens or corporations of the Republic of Korea, protection under this Act or treaties to which the Republic of Korea acceded or concluded by the Republic of Korea may be restricted commensurately therewith.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 41 (Hearings)

Where the Minister of Science and ICT falls under any of the following, he/she shall hold a hearing: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Where he/she intends to revoke the designation of a resource center pursuant to Article 30-2;

2. Where he/she intends to revoke the designation of a certified electronic document center pursuant to Article 31-5 (1);

3. Where he/she intends to revoke the designation of a certified electronic document intermediary pursuant to Article 31-22.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 42 (Deemed Public Officials for Purposes of Penalty Provisions)

Any of the following persons shall be deemed a public official for the purposes of applying Articles 129 through 132 of the Criminal Act to his/her business affairs:

1. An executive officer or employee of a certified electronic document center;

2. An executive officer of a certified electronic document intermediary;

3. A non-public official member of the Committee among its members.

(Article Amended by Act nº 11461, Jun. 1, 2012)

CHAPTER VIII.- PENALTY PROVISIONS

Article 43 (Penalty Provisions)

(1) Any of the following persons shall be punished by imprisonment with labor for not more than ten years or by a fine not exceeding 100 million won:

1. A person who forges or falsifies an electronic document or other related information stored in a certified electronic document center or uses forged or falsified information, in violation of Article 31-12 (1);

2. A person who is issued a false certificate under Article 31-7 (2) by entering false information or a false command into the information processing system of a certified electronic document center, in violation of Article 31-12 (2).

(2) An attempted offender referred to in paragraph (1) shall be punished.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 44 (Penalty Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won:

1. A person who destroys or damages an electronic document or other related information stored in a certified electronic document center, or infringes on its confidentiality, in violation of Article 31-12 (3);

2. A current or former executive officer or employee of a certified electronic document center, who divulges the content of an electronic document or other related information he/she has become aware of in the course of performing his/her duty, or uses such content for himself/herself or allows any third party to use such content, in violation of Article 31-12 (4);

3. A person who divulges confidential information he/she has become aware of in the course of performing his/her duty to any third person or appropriates it for any purpose other than the official purpose, in violation of Article 37-2.

(Article Amended by Act nº 11461, Jun. 1, 2012)

Article 45 (Joint Penalty Provisions)

If the representative of a corporation, or an agent, an employee or any other servant of a corporation or an individual has committed an offense under Article 43 or 44 in connection with the affairs of the corporation or individual, not only shall a relevant offender be punished accordingly, but the corporation or individual shall also be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision of the relevant affairs to prevent such offense.

(Article Amended by Act nº 9246, Dec. 26, 2008)

Article 46 (Administrative Fines)

(1) Any of the following persons shall be punished by an administrative fine not exceeding 30 million won:

1. A person who collects, sells or provides any certified electronic address, in violation of Article 18-6;

2. A person who sends any advertisement to the certified electronic address of an addressee for the purpose of profit-making or public relations, in violation of Article 18-7;

3. A certified electronic document center that provides or discloses any electronic document or other related information, in violation of Article 31-9 (4).

(2) Any of the following persons shall be punished by an administrative fine not exceeding ten million won: (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

1. Deleted (By Act nº 14907, Oct. 24, 2017)

2. A person who fails to report working rules for the storage of electronic documents, etc., in violation of Article 31-8 (1);

3. A person who fails to report any amendment made to working rules for the storage of electronic documents, etc., in violation of Article 31-8 (2);

4. A person who fails to comply with an order to amend working rules for the storage of electronic documents, etc., in violation of Article 31-8 (3);

5. A person who fails to report the change of facilities or equipment, in violation of Article 31-8 (4);

6. A person who refuses to provide services of storing electronic documents, etc. without just cause, in violation of Article 31-9 (1);

7. A person who discriminates unfairly against a user, in violation of Article 31-9 (2);

8. A person who fails to take measures necessary for preventing the content of electronic documents stored in a certified electronic document center from being damaged or altered, in violation of Article 31-9 (3);

9. A person who fails to undergo an inspection, in violation of Article 31-10 (1) or (2);

10. A person who fails to submit data or a report, who submits false data or a false report, or who refuses, interferes with or evades entry or inspection of a related public official under Article 31-11 (1);

11. A person who fails to notify users of the transfer or merger of business of storing electronic documents, etc., in violation of the latter part of Article 31-14 (1);

12. A person who fails to report succession to the status of a certified electronic document center, in violation of Article 31-14 (3);

13. A person who fails to notify users of the discontinuance of business of storing electronic documents, etc. or fails to report such fact to the Minister of Science and ICT, in violation of Article 31-15 (1);

14. A person who fails to transfer or report stored documents, etc., in violation of Article 31-15 (2);

15. A person who fails to purchase insurance, in violation of Article 31-16 (2);

16. A person who fails to report the change of facilities or equipment, in violation of Article 31-20;

17. A person who fails to undergo an inspection, in violation of Article 31-21;

18. An entity who uses a certified electronic document center or similar in its name, in violation of Article 38 (1);

19. An entity who uses a certified electronic document intermediary or similar in its name, in violation of Article 38 (2);

20. A person who uses a certified electronic address or similar, in violation of Article 38 (3).

(3) Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Science and ICT, as prescribed by Presidential Decree. (Amended by Act nº 11690; Mar. 23, 2013, Act nº 14839, Jul. 26, 2017)

(Article Amended by Act nº 11461, Jun. 1, 2012)

ADDENDA

(1) (Enforcement Date) This Act shall enter into force on July 1, 2002.

(2) (Transitional Measures for Designation of Electronic Commerce Resource Center) Electronic commerce resource centers designated under the former provisions as at the time this Act enters into force, shall be deemed electronic commerce resource centers under Article 30.

(3) (Relations with other Statutes) Where the former Framework Act on Electronic Commerce or its provisions are cited in other statutes at the time of enforcement of this Act, if there exist any corresponding provisions in this Act, this Act or the corresponding provisions in this Act shall be deemed to have been cited.

ADDENDA (Act nº 7440, Mar. 31, 2005)

(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.

(2) (Transitional Measures for Council on Electronic Commerce Policy) The Council on Electronic Commerce Policy established and composed under the former provisions at the time of enforcement of this Act shall be deemed to be the Committee on Electronic Commerce Policy established and composed under the amended provisions of Article 21.

(3) (Transitional Measures for Korea Electronic Documents Exchange Committee) The Korea Electronic Documents Exchange Committee established and composed under the former provisions at the time of enforcement of this Act shall be deemed to be the sectional committee on standards of electronic documents of the Committee on Electronic Commerce Policy established and composed under the amended provisions of Article 21 (5).

ADDENDA (Act nº 7796, Dec. 29, 2005)

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2006.

Articles 2 through 6 Omitted.

ADDENDA (Act nº 7988, Sep. 27, 2006)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 13 Omitted.

ADDENDA (Act nº 8362, Apr. 11, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA (Act nº 8371, Apr. 11, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA (Act nº 8387, Apr. 27, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDUM (Act nº 8461, May 17, 2007)

This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 5 (2) through (4) shall enter into force on the date of its promulgation.

ADDENDA (Act nº 8466, May 17, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 5 Omitted.

ADDENDA (Act nº 8802, Dec. 27, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 7 Omitted.

ADDENDA (Act nº 8852, Feb. 29, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDUM (Act nº 8932, Mar. 21, 2008)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 8979, Mar. 21, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 6 Omitted.

ADDENDUM (Act nº 9246, Dec. 26, 2008)

This Act shall enter into force on the date of its promulgation.

ADDENDUM (Act nº 9429, Feb. 6, 2009)

This Act shall enter into force six months after the date of its promulgation.

ADDENDUM (Act nº 9504, Mar. 18, 2009)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 9705, May 22, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDA (Act nº 9708, May 22, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 12 Omitted.

ADDENDA (Act nº 10220, Mar.31, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force on January 1, 2011.

Articles 2 through 5 Omitted.

ADDENDA (Act nº 10250, Apr. 12, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDA (Act nº 10629 May 19, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force two months after the date of its promulgation. (Proviso Omitted.)

Article 2 Omitted.

ADDENDA (Act nº 10854, Jul. 14, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 and 3 Omitted.

ADDENDA (Act nº 11461, Jun. 1, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation.

Article 2 (Applicability to Terms of Office of Members of Mediation Committee of Disputes on Electronic Documents or Electronic Transactions)

The amended provisions of Article 32 (4) shall apply from the first members appointed or commissioned after this Act enters into force.

Article 3 (Applicability to Mediation of Disputes on Electronic Documents or Electronic Transactions)

The amended provisions of Articles 33, 34-2, 35 and 36 shall apply from the first application for mediation of a dispute filed after this Act enters into force.

Article 4 (Transitional Measures concerning Certification of Exemplary Electronic Transaction Business Entities)

The certification of exemplary electronic transaction business entity obtained under the former provisions as at the time this Act enters into force shall be deemed the certification of exemplary electronic transaction business entity obtained under the amended provisions of Article 18.

Article 5 (Transitional Measures concerning Basic Policies on Electronic Transactions)

Basic policies on electronic transactions formulated under the former provisions as at the time this Act enters into force shall be deemed basic polices on electronic documents and electronic transactions formulated under the amended provisions of Article 19.

Article 6 (Transitional Measures concerning Plans to Facilitate Electronic Transactions)

A plan to facilitate electronic transactions formulated under the former provisions as at the time this Act enters into force shall be deemed a plan to facilitate electronic documents and electronic transactions formulated under the amended provisions of Article 20.

Article 7 (Transitional Measures concerning Certified Electronic Document Depositories)

A corporation designated as a certified electronic document depository under the former provisions before this Act enters into force shall be deemed a certified electronic document center designed under the amended provisions of Article 31-2.

Article 8 (Transitional Measures concerning Grounds for Disqualification)

Where any executive officer of a certified electronic document center as at the time this Act enters into force newly falls under grounds for disqualification under the amended provision of subparagraph 1 (e) of Article 31-3 due to a ground which arose before this Act enters into force, notwithstanding the said amended provision, the former provision shall apply.

Article 9 (Transitional Measures concerning Electronic Commerce Dispute Mediation Committee)

The Electronic Commerce Dispute Mediation Committee established under the former provisions as at the time this Act enters into force shall be deemed the Mediation Committee of Disputes on Electronic Documents and Electronic Transactions established under the amended provisions of Article 32.

Article 10 Omitted.

ADDENDA (Act nº 11688, Mar. 23, 2013)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 Omitted.

ADDENDA (Act nº 11690, Mar. 23, 2013)

Article 1 (Enforcement Date)

(1) This Act shall enter into force on the date of its promulgation.

(2) Omitted.

Articles 2 through 7 Omitted.

ADDENDA (Act nº 12781, Oct. 15, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Applicability)

The amended provisions of Article 36-2 shall apply beginning with the first case with respect to which an application for mediation of a dispute is filed after this Act enters into force.

ADDENDA (Act nº 12875, Dec. 30, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures concerning Disqualification of Incompetent Persons, etc.)

Notwithstanding the amended provisons of the subparagraph 1 (a) of Article 31-3, former provisons shall apply to the person who has already been declared as incompetent or quasi-incompetent by a court at the times when such amended provisons enter into force and for whom the effectiveness of the declaration of incompetence or quasi-competence is maintained in accordance with Article 2 of Addenda to the Civil Act partially amended by Act nº 10429.

ADDENDA (Act nº 13347, Jun. 22, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Notification of Illegal Acts and Other Related Matters)

The amended provisions of Article 33-2 shall apply with the first dispute mediation for which an application is filed in accordance with Article 33 after this Act enters into force.

Article 3 (Transitional Measures concerning Transfer of Duties)

Any acts conducted by or toward the National Information Technology (IT) Industry Promotion Agency, duties regarding which are transferred to an exclusively responsible agency designated by the Ministry of Science, Information and Communications Technology (ICT) and Future Planning in accordance with the amended provisions of Article 22 (1), shall be deemed conducted by or toward the relevant exclusively responsible agency.

ADDENDUM (Act nº 13587, Dec. 22, 2015)

This Act shall enter into force on the date of its promulgation.

ADDENDUM (Act nº 13768, Jan. 19, 2016)

This Act shall enter into force on February 4, 2016.

ADDENDA (Act nº 14839, Jul. 26, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Provso Omitted.)

Articles 2 through 6 Omitted.

ADDENDUM (Act nº 14907, Oct. 24, 2017)

This Act shall enter into force six months after the date of its promulgation.

11Nov/21

Act. nº 6687, March 30, 2002. Consumer Protection Act on Electronic Transaction, Mar. 30, 2002

Act. nº 6687, March 30, 2002. Consumer Protection Act on Electronic Transaction, Mar. 30, 2002 (Amended by Act nº 7315, Dec. 31, 2004; Act nº 7344, Jan. 27, 2005; Act nº 7487, Mar. 31, 2005; Act nº 8538, Jul. 19, 2007; Act nº 8635, Aug. 3, 2007; Act nº 10172, Mar. 22, 2010; Act nº 10303, May 17, 2010; Act nº 11326, Feb. 17, 2012; Act nº 11461, jun. 1, 2012).

ACT ON THE CONSUMER PROTECTION IN ELECTRONIC COMMERCE, ETC.

Article 1 (Purpose)

The purpose of this Act is to protect the rights and interests of consumers by prescribing matters relating to the fair trade of goods or services by means of electronic commerce transaction, mail order, etc. and to contribute to the sound development of national economy by enhancing market confidence.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows: (Amended by Act nº 11461, Jun. 1, 2012)

1. The term “electronic commerce transaction” means conducting commercial activities by means of electronic commerce (referring to the electronic commerce as defined in subparagraph 5 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply);

2. The term “mail order” means providing information on the sale of goods or services (including the right to use a specific facility or to be provided with services; hereinafter the same shall apply) by means of mail, telecommunications or other methods prescribed by Ordinance of the Prime Minister and selling goods or services (hereinafter referred to as “goods, etc.”) after receiving a consumer’s order: Provided, That sale by telemarketing as defined in subparagraph 3 of Article 2 of the Door-to-Door Sales, etc. Act shall be excluded from the scope of mail order;

3. The term “mail order distributor” means a person who conducts sales by mail order as a business, or other person who is engaged in the mail order business in accordance with a contract with the former;

4. The term “mail order brokerage” means the act of intermediating mail order between both parties to a transaction by allowing the use of a cybermall (referring to a virtual shopping mall established to transact goods, etc. by using computers, etc. and information communications facilities; hereinafter the same shall apply), or by other methods prescribed by Ordinance of the Prime Minister;

5. The term “consumer” means any of the following persons:

(a) A person who consumes (including using; hereinafter the same shall apply) goods, etc. supplied by the business operators for everyday consumption;

(b) A person prescribed by Presidential Decree, who is not the one provided for in item (a) but conducts transactions virtually on the same standing and conditions as the one provided for in item (a);

6. The term “business operator” means a person who manufactures (including processing or packaging; hereinafter the same shall apply), imports, or sells goods or provides services.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 3 (Exclusion of Application)

(1) The provisions of this Act shall not apply to any transaction in which a business operator (excluding a multi-level salesman as defined in subparagraph 6 of Article 2 of the Door-to-Door Sales, etc. Act; hereafter the same shall apply in this paragraph) buys for the purpose of commercial activity: Provided, That this shall not apply where the transaction is actually conducted under the same terms of transaction as other consumers in the capacity of consumer despite being a business operator.

(2) The provisions relating to the duty to deliver documents (including electronic documents; hereinafter the same shall apply) on the contents of the contract pursuant to Article 13 (2) shall not apply to the following transactions: Provided, That in the case falling under subparagraph 1, the contents or the methods of delivery of the documents on the contents of contract may be made differently, as prescribed by Ordinance of the Prime Minister:

1. Transactions that the consumers conduct at any time in accordance with the already familiar terms and conditions, or standard methods of transaction, which are prescribed by Ordinance of the Prime Minister;

2. Transactions stipulated in other Acts (excluding the Civil Act and the Door-to-Door Sales, etc. Act) that the duty, etc. to deliver a contract document shall be fulfilled by a method different from the ones provided for in this Act.

(3) Articles 13 through 15 and 17 through 19 shall not apply to a mail order distributor conducting the mail order brokerage between persons, other than mail order distributors.

(4) Articles 12 through 15, 17 through 20, and 20-2 shall not apply to the transactions of securities by investment traders and investment brokers under the Financial Investment Services and Capital Markets Act, transactions of financial instruments by financial companies, etc. prescribed by Presidential Decree, and transactions for sale of daily necessities, food, beverage, etc. in the neighborhood.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 4 (Relations with other Acts)

Where this Act and other Acts are conflicting with each other in the consumer protection in the electronic commerce transactions or mail orders, this Act shall apply in preference: Provided, That where the application of other Acts is advantageous to consumers, such Acts shall apply.

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER II.- ELECTRONIC COMMERCE TRANSACTIONS AND MAIL ORDERS

Article 5 (Utilization of Electronic Documents)

(1) Notwithstanding Article 6 (2) 2 of the Framework Act on Electronic Documents and Transactions, where a business operator fails to send an electronic document (referring to the electronic message as defined in subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions; hereinafter the same shall apply) to the address (referring to the data processing system as defined in subparagraph 2 of Article 2 of the Framework Act on Electronic Documents and Transactions) designated beforehand in the agreement to make a transaction by means of electronic document), the business operator shall not assert his/her right out of such electronic document: Provided, That this shall not apply to cases prescribed by Presidential Decree, such as where it is of great urgency, the consumer also already anticipates the transaction shall be made by an electronic document, or the consumer has already printed the electronic document. (Amended by Act nº 11461, Jun. 1, 2012)

(2) Where a business operator intends to use an electronic document with a digital signature (referring to the digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act; hereinafter the same shall apply), he/she shall notify the consumer of the validity, procedures and methods necessary for receipt, etc. of the relevant electronic document, as prescribed by Presidential Decree.

(3) In using electronic documents, a business operator shall neither compel (including de facto compulsion of any specific digital signature due to employment of special standards, etc.) the consumer to use a specific method of digital signature, and nor unreasonably limit the use of a certain method of digital signature chosen by the consumer.

(4) Where a business operator who conducts electronic commerce transactions makes it possible for a consumer to join a membership, to subscribe for a contract, or to provide information related to the consumer, etc. through an electronic document, he/she shall also make it possible to withdraw a membership, cancel an order, terminate, revoke or change a contract, or withdraw consent to the provision and use of information, etc. through an electronic document.

(5) If a business operator who conducts electronic commerce transactions is requested by a consumer to provide confirmation or certification concerning the transaction of goods, etc. through an electronic document, he/she shall comply with such request.

(6) Paragraphs (4) and (5) shall not apply where a business operator who conducts electronic commerce transactions notifies consumers beforehand of the difficulty of providing electronic documents due to any apparent technical or security reason.

(7) When a business operator who conducts electronic commerce transactions fulfills the obligations under paragraphs (4) and (5), business operators who are related to the establishment and operation of the relevant cybermall shall cooperate with him/her by taking measures for fulfilling such obligations or other necessary measures therefor.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 6 (Preservation, etc. of Transaction Records)

(1) A business operator shall preserve the records on transactions, such as marks, advertisements in the electronic commerce transactions and mail orders, contents of contracts and execution thereof, for a substantial period of time. In such cases, an easy way of perusal and maintenance for consumers shall be provided.

(2) Notwithstanding the provisions of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and other Acts related to the protection of personal information prescribed by Presidential Decree, a business operator may preserve the transaction records that he/she is liable to preserve under paragraph (1), and personal information (limited to the information to identify the subject of a transaction, such as name, address and resident registration number) relating thereto, even if the consumer withdraws consent to the use of personal information.

(3) Necessary matters regarding the object, scope, and period of transaction records to be preserved by a business operator under paragraph (1) and methods of perusal and maintenance made available to consumers shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 7 (Prevention of Errors in Manipulation, etc.)

A business operator shall prepare procedures necessary for the confirmation and correction of contents, before the time of imposition of transaction amount or the placement of an order by a consumer, in order to prevent damage caused by discrepancies, etc. in the declaration of will due to consumer’s error in manipulation, etc. in the electronic commerce transaction.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 8 (Securing Confidence in Electronic Payment)

(1) Where a business operator uses an electronic means prescribed by Presidential Decree in the payment of transaction amount (hereinafter referred to as “electronic payment“), the persons related with the electronic payment who are prescribed by Presidential Decree, such as the business operator, issuer of means of electronic settlement and provider of electronic settlement service (hereinafter referred to as “electronic settlement business operator, etc.”) shall take measures necessary for maintaining security of the relevant information.

(2) Where an electronic payment is made, the business operator, electronic settlement business operator, etc. shall clearly notify the following matters to confirm whether the consumer’s intent of subscription is the declaration of his/her true will and shall prepare procedures for the consumer to confirm the notified matters, as prescribed by Presidential Decree:

1. Contents and kind of goods, etc.;

2. Prices of goods, etc.;

3. Service period.

(3) Where an electronic payment is made, the business operator, electronic payment business operator, etc. shall notify the consumer of such fact by a method prescribed by Ordinance of the Prime Minister, such as transmission of an electronic document, and make the consumer’s perusal of data on the electronic payment available at any time.

(4) An issuer of the means of settlement by way of making advance payment of the price for the purchase or use of goods, etc. as means of electronic payment used in a cybermall shall indicate or announce matters regarding the confirmation of confidence of such means of payment, restriction on the use, or other matters that require attention, as prescribed by Ordinance of the Prime Minister.

(5) Where a dispute between a business operator and a consumer arises on the electronic settlement, the electronic settlement business operator, etc. shall cooperate with the settlement of such dispute by allowing the perusal, etc. of the information regarding payment, as prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 9 (Cooperation of Delivery Business Operators, etc.)

(1) A business operator who conducts delivery (including electronic transmission through the information communications network (hereinafter referred to as “information communications network“) pursuant to Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.) of goods, etc. consequent upon electronic commerce transaction or mail order, shall cooperate in the settlement of dispute, as prescribed by Presidential Decree, if a dispute arises out of an accident or obstruction, etc. of delivery.

(2) Where a person who provides hosting services (referring to the services for the establishment of cybermalls, management of servers, etc. for business operators to conduct electronic commerce transactions; hereafter the same shall apply in this Article) concludes a contract for the use of hosting services with a business operator, he/she shall take measures for confirming the personal identity of the business operator.

(3) Where any dispute arises between a business operator and a consumer, a person who provides hosting services shall, upon request of any of the following persons, shall cooperate for the settlement of such disputes by providing the data prescribed by Presidential Decree, such as personal identification information of the business operator:

1. The Fair Trade Commission;

2. Any of the Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors or the Governor of a Special Self-Governing Province (hereinafter referred to as “Mayor/Do Governor“) or the head of a Si/Gun or Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply);

3.  An investigation agency;

4. The consumer who is a party to the dispute;

5. Other entities prescribed by Presidential Decree as necessary for settlement of dispute.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 10 (Operation of Cybermalls)

(1) The operator of a cybermall conducting the electronic commerce transaction shall indicate the following matters, as prescribed by Ordinance of the Prime Minister, so that consumers can easily identify the business operator’s identity, etc.:

1. Trade name and name of the representative;

2. Address of the location of the business place (including the address where consumer’s complaint can be settled);

3. Telephone number and e-mail address;

4. Business registration number;

5. Contractual terms and conditions of service of the cybermall;

6. Other matters prescribed by Presidential Decree as necessary for consumer protection.

(2) The operator of a cybermall provided for in paragraph (1) shall cooperate in the measures necessary for correction in the part where the operator should take measures, if any violation of this Act is committed in the cybermall.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 11 (Utilization, etc. of Information on Consumers)

(1) When a business operator collects or utilizes information (including provision of such information to a third party; hereinafter the same shall apply) on consumers for an electronic commerce transaction or mail order, he/she shall fairly collect or utilize it pursuant to the relevant provisions, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.

(2) Where property damage occurs to consumers or any special grounds exist for the possibility of occurrence of such damage due to fraudulent use of information on consumers in the transaction of goods, etc., the relevant business operator shall take necessary measures prescribed by Presidential Decree, such as verification of the person himself/herself or recovery from damage.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 12 (Reporting, etc. by Mail Order Distributors)

(1) A mail order distributor shall file a report on each of the following matters to the Fair Trade Commission, a Special Metropolitan City Mayor, or the head of a Si/Gun/Gu, as prescribed by Presidential Decree: Provided, That this shall not apply where the frequency, scale, etc. of mail order transactions falls below the criteria determined by the Fair Trade Commission in a public notification:

1. Trade name (including the name and resident registration number of the representative in the case of a corporation), address, and telephone number;

2. E-mail address, Internet domain name, and location of host server computers;

3. Other matters prescribed by Presidential Decree as necessary for the verification of identity of the business operator.

(2) Where a mail order distributor intends to modify the matters reported pursuant to paragraph (1), he/she shall report thereon, as prescribed by Presidential Decree.

(3) When a mail order distributor who has filed a report pursuant to paragraph (1) suspends or closes his/her business, or resumes his/her business after suspension, he/she shall report thereon, as prescribed by Presidential Decree.

(4) The Fair Trade Commission may make public the information on the mail order distributor who has filed a report pursuant to paragraph (1), as prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 13 (Provision of Information on Identity and Terms of Transaction)

(1) In placing indications or advertisements to take orders for transaction of goods, etc., a mail order distributor shall include therein each of the following matters:

1. Trade name and name of the representative;

2. Address, telephone number and e-mail address;

3. Matters by which the fact of reporting can be verified, such as the number of a report filed with the Fair Trade Commission, a Special Metropolitan City Mayor, or the head of a Si/Gun/Gu under Article 12 and the name of the agency which has accepted such report.

(2) A mail order distributor shall indicate, advertise, or notify the following matters in an appropriate manner so that the consumers can understand the terms of transaction of goods, etc. accurately before concluding a contract and make such a deal without any error or discrepancy, and, if the contract is concluded, issue documents stating the following matters regarding the contents of such contract to the other party of the contract before supplying the goods, etc.: Provided, That where any ground prescribed by Presidential Decree exists, the documents may be issued to a person who receives the goods, etc. in lieu of the other party to the contract to the extent that does not infringe upon the rights of the latter:

1. Trade names of the supplier and seller of the goods, and names, addresses, telephone numbers, etc. of representatives thereof;

2. Name, kind and contents of the goods, etc.;

2-2. Matters concerning the information on the goods, etc. In such cases, the description marked on the product may substitute the written description on the contents of contract;

3. Price (where the price is not decided, detailed method of decision thereof) of the goods, etc., method of payment and time to make payment;

4. Method and date of supply of the goods, etc.;

5. Matters regarding the time limit, method of excercise, and effect, of cancellation of an order or revocation of a contract (hereinafter referred to as “cancellation, etc. of an order“) (including forms necessary for exercising the right to withdraw an order, etc.);

6. Exchange, return and guarantee of the goods, etc., terms and procedures of refund thereof, and the payment of the compensation for delay of the refund;

7. Technical matters necessary for the electrical transmission, installation, etc. of the goods, etc. which can be supplied by means of electronic medium;

8. Matters concerning handling of compensation to consumers’ damage, settlement of complaint on the goods, etc. and settlement of dispute between consumers and business operators;

9. Terms and conditions of the transaction (including the ways to verify the details of such terms and conditions);

10. Fact that the consumer may choose to deposit funds for settling the price of goods, etc. with a third party prescribed by Presidential Decree until he/she is supplied with the goods, etc. (hereinafter referred to as “escrow system“) or to require the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance under Article 24 (1) for the purpose of securing the safety of purchase (limited only to the prepaid mail order under Article 15 (1) and excluding a transaction falling under any subparagraph of Article 24 (3));

11. Other terms of transaction that may affect the consumer’s decision on the purchase or other matters prescribed by Presidential Decree as necessary for the relief of damage to consumer.

(3) When a mail order distributor concludes a contract on the transaction of goods, etc. with a minor, he/she shall inform the minor of the fact that if his/her legal representative does not agree to the contract, the minor himself/herself or his/her legal representative can cancel the contract.

(4) The Fair Trade Commission may determine and publicly notify the matters concerning the trade name, etc. of mail order distributors under paragraphs (1) and (2), the matters concerning the information on goods, etc. and contents and methods of indication, advertisement and announcement of the terms of transaction. In such cases, methods of indication, advertisement and announcement may be determined differently in consideration of the method of transaction or the characteristics of the goods, etc.

(5) A mail order distributor shall execute conscientiously with honor the terms of transaction indicated, advertised, or announced to the consumers pursuant to paragraph (2).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 14 (Confirmation, etc. of Orders)

(1) A mail order distributor shall promptly notify the consumer of the information regarding the confirmation of receipt of the declaration of will of order, and possibility of sale, if he/she takes an order from a consumer regarding the transaction of goods, etc.

(2) A mail order distributor shall have the adequate procedures that enable consumers to confirm, correct or cancel the contents of order before concluding a contract.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 15 (Supply, etc. of Goods, etc.)

(1) A mail order distributor shall take measures necessary for the supply of goods, etc. within seven days from the day the consumer orders, and, in the case of a mail order for which the consumer pays all or part of the price of such goods, etc. before being supplied with them (hereinafter referred to as “prepaid mail order“), he/she shall take measures necessary for the supply of the goods, etc. within three business days from the day the consumer pays all or part of the price: Provided, That this shall not apply where there is a separate agreement upon the supply timing of goods, etc. between the consumer and the mail order distributor.

(2) When finding difficulties in the supply of ordered goods, etc., a mail order distributor shall inform the consumer of the reason without delay, and, in the case of a prepaid mail order, refund the price or take the measures necessary for refund within three business days from the day the consumer pays all or part of the price.

(3) A mail order distributor shall take adequate measures so that consumers can confirm the supply procedure of goods, etc. and the processing status. In such cases, the Fair Trade Commission may determine and publicly notify matters necessary for such measures.

(4) Article 18 (1) through (5) shall apply mutatis mutandis to refunding or taking necessary measures for refund in the prepaid mail order under paragraph (2).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 16 Deleted (By act nº 7487, Mar. 31, 2005)

Article 17 (Cancellation, etc. of Orders)

(1) A consumer who has concluded a contract with a mail order distributor on the purchase of goods, etc. may cancel, etc. the order relating to the relevant contract within the period provided for in the following subparagraphs (referring to the period agreed by the parties to a transaction, if it exceeds the period prescribed in the following subparagraphs):

1. Seven days from the day a document on the contents of the contract provided for in Article 13 (2) was received: Provided, That where the supply of the goods, etc. has been performed later than the delivery of document, seven days from the day the goods, etc. have been supplied, or the supply of the goods, etc. has begun;

2. Where a document on the contents of a contract provided for in Article 13 (2) has not been handed over, a document not stating the address, etc. of the mail order distributor has been received, or the cancellation, etc. of order cannot be made within the period of subparagraph 1 due to the change of address of the mail order distributor or other reasons, seven days from the day he/she knew or he/she could have known the address.

(2) In any of the following cases, no consumer is entitled to cancel the order, etc. under paragraph (1) contrary to the will of a mail order distributor: Provided, That when the mail order distributor fails to take the measures under paragraph (6), the consumer may cancel the order, etc. even in cases falling under subparagraphs 2 through 4:

1. Where the goods, etc. have been destroyed or damaged due to a cause attributable to the consumer: Provided, That this shall not apply where the package, etc. has been damaged to confirm the contents of the goods, etc.;

2. Where the value of the goods, etc. has substantially decreased due to a cause attributable to the consumer;

3. Where the value of the goods, etc. has substantially decreased as to cause difficulty in resale due to the elapse of time;

4. Where the package of the reproducible goods, etc. has been destroyed;

5. Other cases prescribed by Presidential Decree for the safety of the transaction.

(3) Notwithstanding paragraphs (1) and (2), where the contents of the goods, etc. are different from the contents of indication or advertisement, or have been performed contrary to the contents of the contract, the consumer may cancel the order, etc. within three months from the day the goods, etc. have been supplied, or within 30 days from the day he/she knew or could have known the fact.

(4) Where the cancellation, etc. of order pursuant to paragraph (1) or (3) are made in writing, the declaration of will shall come into force on the day the document bearing the declaration of will was sent.

(5) In applying paragraphs (1) through (3), if a dispute arises as to whether the consumer is responsible for the damage to the goods, etc., whether and when the contract on the purchase of the goods, etc. was signed, and whether and when the goods, etc. were supplied, the mail order distributor shall testify it.

(6) In the case of the goods, etc. that are impossible to cancel the order thereof under paragraphs (2) 2 through 4, a mail order distributor shall employ the methods, such as writing expressly the fact on the package of the goods, etc. or a place where the consumer can easily recognize, or supplying test goods, or other methods, and take necessary measures not to encumber the exercise of right to cancel, etc. the order.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 18 (Effect of Cancellation, etc. of Orders)

(1) Where a consumer has performed the cancellation, etc. of an order pursuant to Article 17 (1) or (3), he/she shall return goods, etc. already supplied to him/her.

(2) A mail order distributor (including a person who has been paid the price of goods, etc., or a person who has concluded a contract on mail order with a consumer; hereafter in paragraphs (2) through (10), the same shall apply) shall refund the price of goods, etc., which was already paid, within three business days from the date he/she has received the returned goods, etc. In such cases, if the mail order distributor delays the refund of the price of the goods, etc. to the consumer, the mail order distributor shall pay interest on delay calculated by multiplying a delayed period by the interest rate prescribed by Presidential Decree within 40 percentage per annum (hereinafter referred to as “compensation for delay“), taking into consideration an overdue interest rate applied by banks under the Banking Act and economic situation.

(3) In refunding the price of goods, etc. pursuant to paragraphs (1) and (2), when a consumer has paid the price of goods, etc. with a credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act, or other means of settlement prescribed by Presidential Decree, a mail order distributor shall promptly request a business operator who has supplied the relevant means of settlement (hereinafter referred to as “settlement business operator“) to stop or cancel the request for the price of the goods, etc.: Provided, That if the mail order distributor has already received the price of the goods, etc. from the settlement business operator, he/she shall promptly refund it to the settlement business operator, and notify the consumer of this fact.

(4) A settlement business operator who has received the refund of the price of goods, etc. pursuant to the proviso to paragraph (3) shall promptly refund it to a relevant consumer or take measures necessary to refund.

(5) A mail order distributor who falls under the proviso to paragraph (3) and who had a consumer pay a price due to a delayed refund, shall pay compensation for delay for the delayed period to the consumer.

(6) Notwithstanding the proviso to paragraph (3), where a mail order distributor fails to refund a price to a settlement business operator without any justifiable ground, a consumer may request the settlement business operator to offset the amount to be refunded by other debt he/she owes to the relevant mail order distributor. In such cases, the settlement business operator may offset by other debt that he/she owes to the relevant mail order distributor, as prescribed by Presidential Decree.

(7) Where a settlement business operator delays an offset under paragraph (6) without any justifiable ground, the consumer may refuse to settle the price to the settlement business operator. In such cases, neither mail order distributor nor the settlement business operator shall do any act that gives disadvantage to the consumer, such as dealing the relevant consumer as a person who fails to fulfill his/her obligation within an agreed period because of the refusal of such settlement.

(8) In cases falling under paragraph (1) where goods, etc. have already been partially used or consumed, a mail order distributor may request a consumer to pay the amount within the extent prescribed by Presidential Decree equivalent to the profit the consumer gained by use or consumption of part of the goods, etc., or equivalent to the expense incurred in the supply of the goods, etc.

(9) In cases of cancellation, etc. of an order under Article 17 (1), the expense incurred in returning supplied goods, etc. shall be borne by a consumer and a mail order distributor shall not request the consumer either the penalty for breach of contract, or compensation for damage.

(10) In cases of cancellation, etc. of an order under Article 17 (3), the expense incurred in returning goods, etc. shall be borne by a mail order distributor.

(11) Where a mail order distributor, a person who has been paid the price of goods, etc., or a person who has concluded into a contract on a mail order with a consumer is not the same person, each one shall be liable jointly and severally to the fulfillment of obligation relating to the refund of the price of the goods, etc. pursuant to paragraphs (1) through (7) consequent upon the cancellation, etc. of an order pursuant to Article 17 (1) and (3).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 19 (Restriction, etc. on Amount of Compensation for Damage)

(1) Where a contract on the sale of goods, etc. is cancelled due to a cause attributable to the consumer, the compensation for damage the mail order distributor claims against the consumer shall not exceed the amount computed by adding the compensation for delay following the nonpayment of price to the amount classified in the following:

1. Where the supplied goods, etc. are returned: The amount whichever is bigger between the following items:

(a) The usual rental fee of the returned goods, etc. or the amount equivalent to the usual benefit from the use of them;

(b) The amount computed by subtracting the price of the returned goods, etc. at the time of return from the selling price of the goods, etc.;

2. Where the supplied goods, etc. are not returned: The amount equivalent to the selling price of the goods, etc.

(2) In order to smoothly resolve disputes following the claim on the compensation for damage between mail order distributors and consumers, the Fair Trade Commission may, if necessary, determine and publicly notify the standards to calculate the compensation amount for damage pursuant to paragraph (1).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 20 (Announcement, Provision of Information, etc. by Mail Order Brokers)

(1) Each mail order broker shall announce beforehand the fact that he/she is not a party to the mail order, in the manner prescribed by Ordinance of the Prime Minister for consumers to easily recognize it.

(2) If a person who has requested the mail order brokerage (hereinafter referred to as “requester of mail order brokerage“) is a business operator, a mail order broker who is a mail order distributor shall confirm the name (where the business operator is a corporation, the name thereof and the name of its representative), address, telephone number and other matters prescribed by Presidential Decree, and provide them to consumers before concluding an order, and if a requester of mail order brokerage is not a business operator, he/she shall confirm the name, telephone number and other matters prescribed by Presidential Decree and provide each party to the transaction with the method to inspect the information on the other party.

(3) In order to resolve complaints or disputes occurring from the use of cybermalls, etc., a mail order broker shall find out the cause thereof, comprehend damage and take other necessary measures promptly. Detailed contents and method, etc. of measures to be taken in such cases shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 20-2 (Responsibility of Mail Order Brokers and Requesters of Mail Order Brokerage)

(1) Where a mail order broker fails to make an announcement under Article 20 (1), he/she shall be jointly responsible with the requester of mail order brokerage for the compensation for the damage caused intentionally or negligently by the latter to the consumer’s property.

(2) A mail order broker shall be jointly responsible with the requester of mail order brokerage for the compensation for the damage caused to the consumer’s property by failing to provide information or a method to inspect information under Article 20 (2), or by providing untruthful information: Provided, That this shall not apply where he/she has paid due attention to prevent any damage to the consumers.

(3) Notwithstanding an announcement made under Article 20 (1), no mail order broker who is a mail order distributor shall be exempted from the responsibilities of a mail order distributor provided for in Articles 12 through 15, 17 and 18: Provided, That in conducting mail order brokerage on the mail order distributor’s request, the requester shall be responsible for the part agreed and announced to the consumer that the requester shall take the responsibility for such part.

(4) No requester of mail order brokerage (limited to business operators) shall be exempted from the damage caused intentionally or negligently by a mail order broker to the consumer’s property on the ground that the act has been done by the latter: Provided, That this shall not apply where he/she has paid due attention to prevent any damage to the consumers.

(Article Inserted by Act nº 11326, Feb. 17, 2012)

Article 21 (Prohibited Acts)

(1) Neither a business operator who conducts electronic commerce transactions nor a mail order distributor shall do any of the following acts:

1. Inducing or making a deal with consumers or interfering with cancellation, etc. of orders or termination of contracts by telling falsehood or exaggerated fact or using deceptive methods;

2. Changing or closing the address, telephone number, Internet domain name, etc. with the purpose of interfering with cancellation, etc. of orders;

3. Neglecting deficiency of human resources needed to resolve disputes or complaints, or lack of facilities as it stands for a considerable time, thereby inflicting damage on consumers;

4. Unilaterally supplying the goods, etc. without the consumer’s order and requesting the price thereof, or requesting only the price of the goods, etc. without supplying the goods, etc.;

5. Enforcing the consumer to buy goods or to receive services through telephone, facsimile, computer communications, electronic mail, etc. even though the consumer made clear that he/she had no intention to buy the goods or receive the services;

6. Using the information on a consumer without obtaining consent from the relevant person, or beyond the extent of such consent: Provided, That any of the following cases shall be excluded:

(a) Cases prescribed by Presidential Decree as inevitable for the execution of the contract with the consumer, such as delivery of the goods, etc.;

(b) Cases where such act is necessary for the settlement of accounts following the transaction of the goods, etc.;

(c) Cases prescribed by Presidential Decree as necessary for the confirmation of the person himself/herself to prevent any illegal use;

(d) Cases where any inevitable causes provided for in the provisions of the Act or in any Act exist;

7. Making computer programs, etc. installed without the consumer’s consent or without explanation and announcement to the consumers in an easy and distinctive way in accordance with the method prescribed by Ordinance of the Prime Minister.

(2) To prevent violations of this Act and damage to consumers, the Fair Trade Commission may determine and publicly notify the standards that the business operators of electronic commerce transaction or mail order distributor should observe.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 22 (Execution, etc. of Affairs Related to Cancellation, etc. of Orders during Closure, etc. of Business)

(1) A mail order distributor shall continue the business of cancellation, etc. of orders under Article 17 (1) and (3), and the business related to the refund of price following the cancellation, etc. of order under Article 18 (1) through (5) even during closure or suspension of business.

(2) Where a mail order distributor is deemed unable to practically continue business due to being declared bankrupt, etc. without reporting the closure of business, the Fair Trade Commission or the Governor of a Special Self-Governing Province or the head of a Si/Gun/Gu who has accepted reports filed under Article 12 (1) may cancel the reported matters ex officio.

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER III.- PROTECTION OF CONSUMERS’ RIGHTS AND INTERESTS

Article 23 (Formulation, etc. of Consumer Protection Guidelines in Electronic Commerce Transactions, etc.)

(1) The Fair Trade Commission may hear the opinions of the parties to transactions, agencies and organizations of the related fields, and formulate guidelines (hereinafter referred to as “consumer protection guidelines“) to induce the spontaneous observance of business operator for the sound transaction order and consumer protection in the execution of electronic commerce transactions or mail orders.

(2) Where the terms and conditions of a contract that the business operator employs are more disadvantageous to the consumers than the contents of consumer protection guidelines, the business operator shall indicate or announce the terms and conditions of the contract formulated differently from the consumer protection guidelines so that the consumers can easily recognize them.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 24 (Contracts, etc. of Consumer Damage Compensation Insurance)

(1) The Fair Trade Commission may encourage the related business operators to conclude any of the following contracts (hereinafter referred to as “contract, etc. of consumer damage compensation insurance“) for the purpose of consumer protection in the electronic commerce transaction or mail order: Provided, That the issuer of settlement referred to in Article 8 (4) shall conclude a contract, etc. of consumer damage compensation insurance:

1. An insurance contract under the Insurance Business Act;

2. A contract of guarantee for payment against debt with the institution under Article 38 of the Act on the Establishment, etc. of Financial Services Commission to secure payment of consumer damage compensation;

3. A mutual aid contract with the mutual aid association established pursuant to paragraph (10).

(2) Notwithstanding paragraph (1), where a consumer chooses to use the escrow system under Article 13 (2) 10 or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance with respect to a prepaid mail order, the mail order distributor shall allow the consumer to use such system or conclude the contract, etc. of consumer damage compensation insurance.

(3) Paragraph (2) shall not apply where a consumer performs any of the following transactions:

1. A transaction of buying goods, etc. the price of which does not exceed the amount prescribed by Presidential Decree within the limit of 100,000 won;

2. A transaction of paying the price of goods, etc. by using a credit card as defined in subparagraph 3 of Article 2 of the Specialized Credit Finance Business Act. In such cases, if a consumer fails to receive the goods, etc., the credit card company as defined in subparagraph 2-2 of Article 2 of the Specialized Credit Finance Business Act shall cooperate for the prevention and recovery of damage to the consumer, such as cancellation of the settlement of purchase price;

3. A transaction of buying goods, etc. which are sent through information and communications networks or the forwarding of which is not confirmable by a third party referred to in Article 13 (2) 10;

4. A transaction of buying goods, etc. supplied by installments for a certain period of time;

5. Other transactions determined and publicly notified by the Fair Trade Commission as not requiring the escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance or as having difficulty in the utilization of such escrow system or the conclusion of such contract because the safety of purchase is firmly secured by any other Act or there exists any other cause similar to those provided for in subparagraphs 1 through 4.

(4) Matters necessary for the use of the escrow system or the conclusion of a contract, etc. of consumer damage compensation insurance under paragraph (2) shall be prescribed by Presidential Decree.

(5) A contract, etc. of consumer damage compensation insurance shall reach an adequate level for the compensation of damage to consumers following any violation of this Act, or for securing the confidence of issuer of settlement means under Article 8 (4). In such cases, the detailed standards thereof shall be prescribed by Presidential Decree.

(6) A person who is responsible to pay the consumer damage compensation pursuant to the contract, etc. of consumer damage compensation insurance shall pay it without delay when a cause of payment arises, and, if he/she delays the payment, he/she shall pay the compensation for delay.

(7) A business operator who intends to conclude a contract, etc. of consumer damage compensation insurance shall not submit false data in submitting data on sales amount, etc. to conclude a contract, etc. of consumer damage compensation insurance.

(8) A business operator who has concluded a contract, etc. of consumer damage compensation insurance under paragraph (1) may use a mark indicating the fact, but the business operator who has not concluded such contract, etc. shall not use a mark as provided for in the former part, or make or use any other similar mark.

(9) Paragraph (8) shall apply mutatis mutandis to the use of the escrow system under paragraph (2).

(10) Business operators who conduct the electronic commerce transaction or the mail order distributors may establish a mutual aid association to protect consumers pursuant to paragraph (1). In such cases, Article 35 of the Door-to-Door Sales, etc. Act shall apply mutatis mutandis to the establishment and operation of the mutual aid association on condition that, in Article 35 (1) of the said Act, “business operators” who have filed the report under Article 5 or had each of their business registered under Article 13 shall be construed as “business operators who conduct the electronic commerce transaction or the mail order distributors” and “Article 34 (1) 3“, “Article 24 (1) 3 of the Act on the Consumer Protection in Electronic Commerce, Etc.”, and, in Article 35 (9) and (10) of the Door-to-Door Sales, etc. Act, “this Act” shall be construed as “the Act on the Consumer Protection in Electronic Commerce, Etc.”, respectively.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 24-2 (Matters to be Observed, etc. When Sending Commercial Advertisements)

(1) When a business operator or a mail order distributor does an act to solicit for the purchase of goods or being provided with services by means of telephone, facsimile, electronic mail, etc. (hereinafter referred to as “spam messages“), he/she shall comply with this Act and the provisions of related Acts, such as the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.

(2) In order to take corrective measures against a business operator conducting electronic commerce transactions or a mail order distributor who has sent spam messages in violation of paragraph (1), the Fair Trade Commission may request the Korea Communications Commission or other related agency to provide the identification information of the violator. In such cases, the request for identification information shall be allowed only where it is difficult for the Fair Trade Commission to secure the identification information of the violator, and the Korea Communications Commission or other related agency may provide the identification information of the violator to the Fair Trade Commission, notwithstanding Article 64-2 (1) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 25 (Assistance to Consumer Organizations on Electronic Commerce Transactions, etc.)

The Fair Trade Commission may, within budgetary limits, assist the agencies or organizations executing the business for the establishment of fair trade order and protection of consumers’ rights and interests in the electronic commerce transactions and mail orders.

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER IV.- INSPECTION AND SUPERVISION

 Article 26 (Inspection, etc. Of Violations)

(1) When the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu acknowledges the fact that a violation of this Act exists, it or he/she may conduct necessary inspections ex onduc.

(2) Where a Mayor/Do Governor or the head of a Si/Gun/Gu intends to onducta n inspection pursuant to paragraph (1), in the case of the Mayor/Do Governor, such intention shall be notified to the Fair Trade Commission, and in the case of the head of a Si/Gun/Gu, such intention shall be notified to the Fair Trade Commission and the relevant Mayor/Do Governor in advance of such intention, and where the inspection, etc. Is likely to be overlapped, the Fair Trade Commission may request the Mayor/Do Governor or the head of a Si/Gun/Gu to stop such inspection. In such cases, the Mayor/Do Governor or the head of a Si/Gun/Gu who is requested to stop the inspection shall stop it unless any reasonable ground exists.

(3) Where the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu has conducted an inspection pursuant to paragraph (1) or (2), it or he/she shall notify the parties to the relevant case of the result (including the contents of disposition, where a disposition, such as an order, etc. For corrective measures is intended as a onducta  the inspection) in writing.

(4) Anyone who finds a violation of the provisions of this Act may report such violation to the Fair Trade Commission, a Mayor/Do Governor or the head of a Si/Gun/Gu.

(5) Where five years have elapsed since the completion of a violation of this Act, the Fair Trade Commission shall neither order the corrective measures pursuant to Article 32, nor impose penalty surcharge, etc. Pursuant to Article 34 to such violation: Provided, That this shall not apply where the parties concerned have accepted but failed to execute the recommendation or arbitration of the dispute arbitration organization on the consumer damage under Article 33 (1).

(6) To onducta n inspection under paragraph (1), the Fair Trade Commission may organize an inspection team jointly with the Korea Consumer Agency established under Article 33 of the Framework Act on Consumers. In such cases, the methods and procedures for the composition of the inspection team and the inspection, and other necessary matters shall be prescribed by Presidential Decree.

(7) The Fair Trade Commission may pay allowances or travel expenses within budgetary limits to the executives and employees of the Korea Consumer Agency who participates in an inspection conducted under paragraph (6).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 27 (Search, etc. of Open Information)

(1) If necessary for securing fair trade order and preventing damage to the consumers in the electronic commerce transaction or mail order, the Fair Trade Commission may, through the use of electronic means, search and collect the open information made public via the information communications network by the business operators or organizations relating to consumer protection in the electronic commerce transaction or mail order.

(2) No business operators or related organizations shall refuse or interfere with the search and collection of information by the Fair Trade Commission conducted under paragraph (1) without any justifiable ground.

(3) If necessary for the efficient collection and use of information with respect to damage to consumers, the Fair Trade Commission may request agencies or organizations performing the businesses relating to consumer protection in the electronic commerce transaction or mail order to submit or share the relevant data, as prescribed by Presidential Decree.

(4) Agencies or organizations requested for data by the Fair Trade Commission pursuant to paragraph (3) shall not refuse to submit or share the data unless any justifiable ground exists.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 28 (Disclosure of Information on Violations, etc.)

In order to secure fair trade order and prevent damage to consumers in the electronic commerce transaction and mail order, the Fair Trade Commission may, as prescribed by Presidential Decree, disclose violations of this Act by business operators and other relevant information necessary for the prevention of damage to consumers among the information searched and collected under Article 27 (1).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 29 (Fairness of Evaluation and Authentication Business)

(1) Regardless of title, a person who operates the business of evaluation and authentication of related business operators for fairness and consumer protection in the electronic commerce transaction and mail order (hereinafter referred to as “evaluation and authentication business operator“) shall, as prescribed by Presidential Decree, announce the standards, methods, etc. of such evaluation and authentication, and conduct evaluation and authentication in an impartial manner pursuant thereto.

(2) Standards for, and methods of evaluation and authentication referred to in paragraph (1) shall be adequate to convey information on the effort and outcome exerted by the business operators for the fairness of transaction and consumer protection.

(3) The Fair Trade Commission may require the evaluation and authentication business operator to submit data on the operation state, etc.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 30 (Reporting and Supervision)

(1) Where a Mayor/Do Governor or the head of a Si/Gun/Gu recommends a correction pursuant to Article 31, in the case of the Mayor/Do Governor, the results thereof shall be reported to the Fair Trade Commission, and in the case of the head of a Si/Gun/Gu, the results thereof shall be reported to the Fair Trade Commission and the relevant Mayor/Do Governor, as prescribed by Presidential Decree.

(2) When deemed necessary for the effective enforcement of this Act, the Fair Trade Commission may request a Mayor/Do Governor or the head of a Si/Gun/Gu to conduct an inspection or confirmation, or to submit data or take other measures necessary for correction with respect to the matters under its jurisdiction. In such cases, the relevant Mayor/Do Governor or the head of the relevant Si/Gun/Gu shall comply with the request unless any special circumstance arises.

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER V.- CORRECTIVE MEASURES AND IMPOSITION OF PENALTY SURCHARGES

Article 31 (Recommendation to Correct Violations)

(1) Where a business operator commits a violation of this Act or fails to fulfill his/her duty under this Act, the Fair Trade Commission, a Mayor/Do Governor, or the head of a Si/Gun/Gu may, before issuing an order to take corrective measures under Article 32, formulate a correction plan to stop such violation, or to fulfill the duty prescribed in this Act or take necessary corrective measures under Article 32, and recommend the business operator to comply with it. In such cases, the purport that accepting such recommendation shall be construed as issuing an order to take corrective measures under paragraph (3) shall also be notified.

(2) A business operator in receipt of a recommendation for correction pursuant to paragraph (1) shall notify the administration agency which has issued it whether he/she accepts it or not within ten days from the day such recommendation is received.

(3) If a business operator in receipt of a recommendation of correction pursuant to paragraph (1) accepts such recommendation, it shall be deemed that the corrective measures under Article 32 are ordered.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 32 (Corrective Measures, etc.)

(1) Where a business operator does any of the following acts or fails to fulfill a duty under this Act, the Fair Trade Commission may order him/her to take corrective measures:

1. A violation of Articles 5 (2) through (5), 6 (1), 7, 8, 9 through 11, 12 (1) through (3), 13 (1) through (3) and (5), 14, 15, 17 (1) through (3) and (5), 18, 19 (1), 20, 20-2, 22 (1), 23 (2), 24 (1), (2) and (5) through (9), 27 (2) and (4), and 29 (1) and (2);

2. Any prohibited act falling under any subparagraph of Article 21 (1).

(2) The corrective measures referred to in paragraph (1) mean any of the following measures:

1. Discontinuance of the relevant violation;

2. Fulfillment of the duty stipulated in this Act;

3. Public announcement of the fact that the corrective measures are imposed;

4. Measures necessary for the prevention and relief of damage to consumers;

5. Other measures necessary for the correction of the violation.

(3) Matters necessary for the public announcement of the fact that the corrective measures are imposed under paragraph (2) 3 and details of measures necessary for the prevention and relief of damage to consumers under paragraph (2) 4 shall be prescribed by Presidential Decree.

(4) In any of the following cases, the Fair Trade Commission may order to suspend all or part of the business for a fixed period not exceeding one year, as prescribed by Presidential Decree:

1. Where a violation is repeated despite an order to take corrective measures issued under paragraph (1);

2. Where an order to take corrective measures is not complied with;

3. Where corrective measures alone are deemed significantly impractical to prevent damage to consumers.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 33 (Requests for Arbitration of Consumer Damage Disputes)

(1) Where a request for relief relating to a violation of this Act in an electronic commerce transaction or mail order is filed by a consumer, the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu may, before making a recommendation for correction pursuant to Article 31 or taking corrective measures pursuant to Article 32, request a dispute arbitration organization on consumer damage prescribed by Presidential Decree, such as the agencies or organizations which perform the business relating to consumer protection in the electronic commerce transaction or mail order, to arbitrate the request.

(2) Where the parties concerned accept and fulfill the recommendation or arbitration prepared by a dispute arbitration organization on the consumer damage, the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu shall notify the parties concerned of the purport that the corrective measures under Article 32 shall not be taken.

(3) Where the parties concerned accept and fulfill the recommendation or arbitration of a dispute arbitration organization on the consumer damage pursuant to paragraph (1), the corrective measures under Article 32 shall not be taken, as prescribed by Presidential Decree.

(4) Where the Fair Trade Commission requests an arbitration of dispute pursuant to paragraph (1), it may subsidize the funds needed for the arbitration of dispute within budgetary limits.

(5) Where an agreement is reached in an arbitration of dispute, the dispute arbitration organization on the consumer damage shall report the result thereof, or where no agreement is reached therein, it shall report the process of arbitration, to the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu without delay.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 34 (Penalty Surcharges)

(1) Where business suspension under Article 32 (4) is deemed likely to cause serious inconvenience to consumers, etc., the Fair Trade Commission may, in lieu of the suspension of all or part of the business, impose upon the relevant business operator a penalty surcharge within the extent not exceeding the sales amount related to the violation prescribed by Presidential Decree. In such cases, if the relevant sales amount is nonexistent or impossible to calculate, etc., a penalty surcharge within the extent not exceeding 50 million won may be imposed.

(2) The Fair Trade Commission may determine and publicly notify the criteria for determination under which a penalty surcharge can be imposed in lieu of the suspension of all or part of the business.

(3) In imposing penalty surcharges pursuant to paragraph (1), the Fair Trade Commission shall deliberate on the following matters:

1. Degree of damage to consumers incurred by the relevant violation;

2. Degree of compensation effort made by the business operator on the damage to consumers;

3. Scale of profit obtained on account of the relevant violation;

4. Details, period, frequency, etc. of the relevant violation.

(4) Where a company which is the business operator who has violated this Act merges with another company, the Fair Trade Commission may impose a penalty surcharge on, and collect it from, the company surviving the merger or newly established in the course of the merger, deeming the relevant violation has been committed by such company.

(5) Articles 55-4 through 55-6 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the extension of payment deadline and payment of the penalty surcharges in installments, and disposition on collection, default and refund thereof under paragraph (1).

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER VI.- SUPPLEMENTARY PROVISIONS

Article 35 (Prohibition of Contracts Disadvantageous to Consumers)

A contract that violates Articles 17 through 19 and is disadvantageous to consumers shall become void.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 36 (Exclusive Jurisdiction)

A lawsuit related to a transaction with a mail order distributor shall exclusively be governed by the district court having jurisdiction over the consumer’s address at the time of filing the lawsuit, but, in cases of nonexistence of address, the district court having jurisdiction over the consumer’s residence shall have the exclusive jurisdiction: Provided, That this shall not apply where the address or residence of the consumer at the time of filing the lawsuit is not evident.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 37 (Registration of Business Operator Organizations)

(1) Business operator organizations, established for the sound development of electronic commerce transaction and mail order, enhancement of consumers’ confidence, and promotion of mutual profit, may register at the Fair Trade Commission, as prescribed by Presidential Decree.

(2) The requirements, methods and procedures for registration under paragraph (1) and other matters shall be prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 38 (Delegation and Entrustment of Authority)

(1) Part of the authority of the Fair Trade Commission under this Act may be delegated to the heads of the agencies affiliated with it or a Mayor/Do Governor, or entrusted to the head of other administrative agency, as prescribed by Presidential Decree.

(2) Part of the authority of a Mayor/Do Governor under this Act may be delegated to the head of a Si/Gun/Gu, as prescribed by Presidential Decree.

(3) If necessary for the effective enforcement of this Act, the Fair Trade Commission may entrust part of its administrative affairs to the business operator organizations registered pursuant to Article 37 (1).

(4) Where the Fair Trade Commission entrusts part of its administrative affairs to the business operator organizations pursuant to paragraph (3), it may fully or partially subsidize expenses incurred in performing the entrusted administrative affairs within budgetary limits.

(5) Those entrusted with the administrative affairs under Article 26 (6) and paragraph (3) of this Article and perform, or have performed, the relevant affairs shall be deemed public officials for the purposes of penal provisions prescribed in Articles 127 and 129 through 132 of the Criminal Act.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 39 (Application Mutatis Mutandis of the Monopoly Regulation and Fair Trade Act)

(1) Articles 42, 43, 43-2, 44, 45 and 52 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to deliberation and decision of the Fair Trade Commission under this Act.

(2) Article 50 (1) through (4) of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the inspection, etc. of the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu on violations of this Act.

(3) Articles 53, 53-2, 54, 55 and 55-2 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to filing objections to the dispositions of the Fair Trade Commission pursuant to this Act, filing objections to the dispositions of the Mayor/Do Governor who has been delegated pursuant to Article 38, suspension of execution of orders of corrective measures, and exclusive jurisdiction of, filing of lawsuits, and lawsuits of dissatisfaction.

(4) Article 62 of the Monopoly Regulation and Fair Trade Act shall apply mutatis mutandis to the commissioners of the Fair Trade Commission, or public officials who perform or have performed the duties prescribed in this Act.

(Article Amended by Act nº 11326, Feb. 17, 2012)

CHAPTER VII.- PENAL PROVISIONS

Article 40 (Penal Provisions)

A person who fails to comply with an order to take corrective measures issued under Article 32 (1) shall be punished by imprisonment for not more than three years or by a fine not exceeding 100 million won.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 41 (Penal Provisions)

A person who carries on business in violation of a business suspension order issued under Article 32 (4) shall be punished by imprisonment for not more than two years or by a fine not exceeding 50 million won.

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 42 (Penal Provisions)

Any of the following persons shall be punished by a fine not exceeding 30 million won:

1. A person who fails to file a report or files a false report, in violation of Article 12 (1);

2. A person who uses a mark indicating the fact of having concluded a contract, etc. of consumer damage compensation insurance or of being allowed to use the escrow system, or makes or uses other similar marks, in violation of Article 24 (8) and (9).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 43 (Penal Provisions)

Any of the following persons shall be punished by a fine not exceeding ten million won:

1. A person who provides false information on the identification information of a business operator prescribed in Article 13 (1);

2. A person who provides false information regarding the terms of transaction prescribed in Article 13 (2).

(Article Amended by Act nº 11326, Feb. 17, 2012)

Article 44 (Joint Penal Provisions)

If a representative of a corporation or an agent, employee, or other servant of a corporation or an individual commits a violation under Articles 40 through 43 in connection with the business of the corporation or the individual, in addition to punishment of the violator, the corporation or individual shall be punished by a fine under each relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.

(Article Amended by Act nº 10172, Mar. 22, 2010)

Article 45 (Fines for Negligence)

(1) Any of the following persons shall be punished by a fine for negligence not exceeding ten million won:

1. A person who commits any violation falling under Article 21 (1) 1 through 5;

2. A person who, as an issuer of the settlement means under Article 8 (4), fails to conclude a contract, etc. of consumer damage compensation insurance, in violation of the proviso to Article 24 (1);

3. A person who, as a mail order distributor carrying out the prepaid mail order under Article 15 (1), violates Article 24 (2);

4. A person who, as an issuer of the settlement means under Article 8 (4), submits false data and concludes a contract, etc. of consumer damage compensation insurance, in violation of Article 24 (7);

5. A person who, as a mail order distributor carrying out the prepaid mail order under Article 15 (1), submits false data and concludes a contract, etc. of consumer damage compensation insurance, in violation of Article 24 (7);

6. A person who fails to appear on at least two occasions without any justifiable ground and violates this Act, among the parties to whom a summon is issued under Article 50 (1) 1 of the Monopoly Regulation and Fair Trade Act, which is applied mutatis mutandis under Article 39 (2);

7. A person who fails to submit a report, necessary data or things prescribed in Article 50 (1) 3 or (3) of the Monopoly Regulation and Fair Trade Act which is applied mutatis mutandis under Article 39 (2) or submits false report thereof;

8. A person who refuses, interferes with, or evades an inspection prescribed in Article 50 (2) of the Monopoly Regulation and Fair Trade Act which is applied mutatis mutandis under Article 39 (2).

(2) Any of the following persons shall be punished by a fine for negligence not exceeding five million won:

1. A person who fails to preserve the transaction records, or fails to provide the consumers with the methods of inspection and preservation of transaction records, in violation of Article 6;

2. A person who fails to indicate the information on the identity of the business operator prescribed in Article 10 (1) or 13 (1);

3. A person who fails to report under Article 12 (2) and (3);

4. A person who fails to indicate, advertise, or notify the stipulated matters or fails to hand over documents regarding the contents of contract, in violation of Article 13 (2);

5. A person who fails to inform the other party to a transaction who is a minor of the fact that a contract on the transaction of goods, etc. can be cancelled, in violation of Article 13 (3).

(3) Fines for negligence prescribed in paragraphs (1) and (2) shall be imposed and collected by the Fair Trade Commission, Mayor/Do Governor, or the head of a Si/Gun/Gu in accordance with the criteria prescribed by Presidential Decree.

(Article Amended by Act nº 11326, Feb. 17, 2012)

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2002.

Article 2 (Transitional Measures concerning Report, etc. of Mail Order Distributor)

(1) A person who has reported the mail order business pursuant to Article 17 of the previous Door-to-Door Sales, etc. Act shall be deemed to have reported to the Mayor/Do Governor pursuant to Article 12: Provided, That he/she shall complement the reported matters pursuant to Article 12 within two months from the enforcement of this Act

(2) The mail order distributor, who has reported on the cessation, closedown of business, restart of business after cessation, etc., at the time of enforcement of this Act, pursuant to Article 24 of the previous Door-to-Door Sales, etc. Act, shall be deemed to have reported pursuant to this Act, and where he/she intends to restart business after cessation, he/she shall report pursuant to the provisions of this Act.

Article 3 (Transitional Measures concerning Cancellation of Order)

The cancellation, effect, etc. of order, which have been made pursuant to the provisions of the previous Door-to-Door Sales, etc. Act at the time of enforcement of this Act, shall be subject to the previous provisions.

Article 4 (Transitional Measures concerning Suspension of Business)

The disposition of suspension of business due to an act before the enforcement of this Act shall be subject to the provisions of the previous Door-to-Door Sales, etc. Act.

Article 5 (Transitional Measures concerning Penal Provisions and Fine for Negligence)

The application of penal provisions and fine for negligence to an act before the enforcement of this Act shall be subject to the provisions of the previous Door-to-Door Sales, etc. Act.

Article 6 (Relations with Other Acts and Subordinate Statutes)

In case where other Acts and subordinate statutes cite the previous Door-to-Door Sales, etc. Act or the provisions thereof at the time of enforcement of this Act, they are deemed to have cited this Act or the equivalent provisions of this Act in lieu of the previous provisions, if there are provisions equivalent to the previous ones in this Act.

ADDENDA (Act nº 7315, Dec. 31, 2004)

Article 1 (Enforcement Date)

This Act shall enter into force on April 1, 2005. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA (Act nº 7344, Jan. 27, 2005)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation.

Article 2 Omitted.

ADDENDA (Act nº 7487, Mar. 31, 2005)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 13 (2) 10, 24 (2) through (4), and 24-2 (2) shall take effect one year after the date of its promulgation; and the amended provisions of Articles 13 (3), 17 (2) and (6), and 32 (1), three months after the date of its promulgation, respectively.

Article 2 (Applicability to Provision of Information on Identities of Mail Order Distributors and Terms of Transactions)

The amended provisions of Articles 13 (1) 3 and (2) and 32 (1) shall apply to any indication or advertisement which is put by a mail order distributor for the purpose of taking orders for transaction of goods, etc. or to the indication, advertisement, or notification of the matters regarding the terms of transaction which is made by a mail order distributor before making a contract with consumers and the hand-over of documents stating the terms of transaction regarding the contents of contract pursuant to Article 13 (2) on or after the enforcement date of this Act.

Article 3 (Applicability to Duty of Mail Order Distributors to Inform Minors)

The amended provisions of Articles 13 (3) and 32 (1) shall apply to a contract on the transaction of goods, etc. which the mail order distributor intends to conclude with a minor on or after the enforcement date of this Act.

Article 4 (Applicability to Measures for Supply of Goods, etc. and Refund of Prices by Mail Order Distributors)

The amended provisions of Article 15 (1) and (2) shall apply to any contract for transaction of goods, etc. all or part of whose price is paid by a consumer to the mail order distributor, before being supplied with them, on or after the enforcement date of this Act.

Article 5 (Applicability to Dispatch, etc. of Invoices by Mail Order Distributors)

The amended provisions of Article 16 shall apply to any goods, etc. which are supplied by a mail order distributor on a consumer’s order on or after the enforcement date of this Act.

Article 6 (Applicability to Cancellation, etc. of Orders Relating to Contracts Concluded by Consumers with Mail Order Distributors)

The amended provisions of Article 17 (2) and (6) shall apply to the cancellation, etc. of the order relating to the contract for purchase of goods, etc. which is concluded by a consumer with a mail order distributor on or after the enforcement date of this Act.

Article 7 (Applicability to Contracts, etc. of Consumer Damage Compensation Insurance Concluded by Business Operators Who are Engaged in Electronic Commerce Transactions or Mail Orders)

The amended provisions of Article 24 (1) and (10) shall apply to any contract, etc. of consumer damage compensation insurance which the Fair Trade Commission encourages a business operator engaged in the electronic commerce transaction or mail order to conclude or which is concluded by the issuer of settlement means pursuant to Article 8 (4) on or after the enforcement date of this Act.

Article 8 (Applicability to Use of Escrow System by Consumers or Conclusion of Contracts, etc. of Consumer Damage Compensation Insurance by Mail Order Distributor in Prepaid Mail Orders)

The amended provisions of Article 24 (2) through (4) shall apply to a contract on the transaction of goods, etc. with respect to which a consumer chooses to use the escrow system or requires the mail order distributor to conclude a contract, etc. of consumer damage compensation insurance in relation to the terms of transaction of such goods, etc. on or after the enforcement date of this Act.

Article 9 (Applicability to Use of Marks on Which Mail Order Distributors Indicate Fact of Allowing Use of Escrow System)

The amended provisions of Article 24 (9) shall apply to the use of a mark on which a mail order distributor indicates the fact of allowing the use of the escrow system on or after the enforcement date of this Act.

Article 10 (Applicability to Transmission of Spam Messages)

The amended provisions of Articles 24-2 (2) and 32 (1) shall apply to spam messages which a mail order distributor sends consumers on or after the enforcement date of this Act.

Article 11 (Applicability to Recommendation of Correction of Acts of Violation)

The amended provisions of Article 31 (1) shall apply to the cases where a business operator commits an act in violation of the provisions of this Act or fails to fulfill his/her duty pursuant to the provisions of this Act on or after the enforcement date of this Act.

Article 12 (Applicability to Additional Payment for Refund of Penalty Surcharges)

The amended provisions of Article 34 (4) shall apply to the penalty surcharge which is refunded on or after the enforcement date of this Act.

ADDENDUM (Act nº 8538, Jul. 19, 2007)

This Act shall enter into force three months after the date of its promulgation.

ADDENDA (Act nº 8635, Aug. 3, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 44 Omitted.

ADDENDUM (Act nº 10172, Mar. 22, 2010)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 10303, May 17, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 10 Omitted.

ADDENDA (Act nº 11326, Feb. 17, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Joint Responsibility of Mail Order Distributors)

The amended provisions of Article 20-2 (1) and (2) shall apply from the first mail order brokerage conducted after this Act enters into force.

Article 3 (Applicability to Deemed Public Officials)

The amended provisions of Article 38 (5) shall apply from the first person who conducts the entrusted administrative affairs after this Act enters into force.

Article 4 (Transitional Measures concerning Small-Scale Mail Order Distributors’ Obligation to Report)

A mail order distributor required to file a new report under the amended provisions of Article 12 (1) shall file such report within one year from the date this Act enters into force.

ADDENDA (Act nº 11461, Jun. 1, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation.

Articles 2 through 10 Omitted.

11Nov/21

Act nº 7929, Apr. 28, 2006, Electronic Financial Transactions Act

Act nº 7929, Apr. 28, 2006, Electronic Financial Transactions Act. (Amended by Act nº 8387, Apr. 27, 2007, Act nº 8863, Feb. 29, 2008, Act nº 9325, Dec. 31, 2008, Act nº 10303, May 17, 2010, Act nº 11087, Nov. 14, 2011, Act nº 11407, Mar. 21, 2012, Act nº 11461, jun. 1, 2012, Act nº 11814, May 22, 2013, Act nº 12837, Oct. 15, 2014, Act nº 13929, Jan. 27, 2016, Act nº 14132, Mar. 29, 2016, Act nº 14828, Apr. 18, 2017, Act nº 14839, Jul. 26, 2017).

ELECTRONIC FINANCIAL TRANSACTIONS ACT

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to ensure the safety and reliability of electronic financial transactions by clarifying their legal relations and to promote financial conveniences for people and contribute to national economic development by creating a foundation for the sound development of the electronic financial industry.

Article 2 (Definitions)

The definitions of terms used in this Act shall be as follows: (Amended by Act nº 8387, Apr. 27, 2007; Act nº 8863; Feb. 29, 2008; Act nº 11407, Mar. 21, 2012; Act nº 11461, Jun. 1, 2012; Act nº 11814, May 22, 2013)

1. The term “electronic financial transaction” means any transaction whereby a financial company or an electronic financial business entity provides financial products and services through electronic apparatus (hereinafter referred to as “electronic financial business“) and users use them in a non-facing and automated manner without any direct contact with employees of the financial company or electronic financial business entity;

2. The term “electronic payment transaction” means any electronic financial transaction whereby a person providing a payment (hereinafter referred to as “payer“) requires a financial company or an electronic financial business entity to transfer money to another person receiving the payment (hereinafter referred to as “payee“) by electronic payment means;

3. The term “financial company” means any of the following institutions, organizations or business entities:

(a) An institution referred to in subparagraphs 1 through 5, 7 and 8 of Article 38 of the Act on the Establishment, etc. of Financial Services Commission;

(b) A specialized credit financial company established under the Specialized Credit Finance Business Act;

(c) A postal service agency under the Postal Savings and Insurance Act;

(d) A community credit cooperative and Korean Federation of Community Credit Cooperatives established under the Community Credit Cooperatives Act;

(e) Any other person prescribed by Presidential Decree, which is an institution, organization, or a business entity carrying on financial business and other finance-related business pursuant to Acts;

4. The term “electronic financial business entity” means any person who has obtained permission or whose business has been registered (excluding any financial company) pursuant to Article 28;

5. The term “subsidiary electronic financial business entity” means any person prescribed by the Financial Services Commission established under Article 3 of the Act on the Establishment, etc. of Financial Services Commission (hereinafter referred to as the “Financial Services Commission“), who assists in electronic financial transactions; or vicariously performs the part of such transactions for a financial company or an electronic financial business entity; or who operates a payment gateway system;

6. The term “payment gateway system” means any financial data processing system that deals with business affairs relating to the settlement of accounts and payments by transmitting electronic financial transaction information between a financial company and an electronic financial business entity;

7. The term “user” means any person who conducts an electronic financial transaction under a contract concluded with a financial company or an electronic financial business entity for facilitating electronic financial transactions (hereinafter referred to as “electronic financial transaction contract“);

8. The term “electronic apparatus” means any apparatus used to transmit or process electronic financial transaction information by electronic means, such as a cash dispenser, automatic teller machine, debit terminal, computer, telephone, or other devices that transmit or process information by electronic means;

9. The term “electronic document” means any information prepared, transmitted, received or stored pursuant to subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions;

10. The term “means of access” means any of the following means or information which is used to issue a transaction request in electronic financial transactions or to secure the authenticity and accuracy of users and the details of such transaction:

(a) An electronic card or other electronic information equivalent thereto;

(b) An electronic signature creating key defined in subparagraph 4 of Article 2 of the Digital Signature Act and a certificate referred to in subparagraph 7 of the said Article;

(c) A user number registered with a financial company or an electronic financial business entity;

(d) Biological information of users;

(e) A password required to use the means or information referred to in item (a) or (b);

11. The term “electronic payment means” means an electronic funds transfer, electronic debit payment means, electronic prepayment means, electronic currency, a credit card, an electronic bond or other means of payment by electronic means;

12. The term “electronic funds transfer” means any transfer of funds by any of the following methods from an account opened with a financial company or an electronic financial business entity (limited to any account linked to a financial company; hereinafter the same shall apply) to another account through electronic apparatus for the purpose of transferring funds between a payer and a payee:

(a) A payment request made by a payer to a financial company or an electronic financial business entity;

(b) A collection request made by a payee (hereinafter referred to as “collection transfer“) to a financial company or an electronic financial business entity;

13. The term “electronic debit payment means” means any certificate (excluding any certificate available for loans), or information on such certificate, issued by a financial company or an electronic financial business entity to simultaneously supply goods or services and pay their prices by the method of transferring funds from the account of a financial company between a user and a chain store by electronic means;

14. The term “electronic prepayment means” means any certificate, or information on such certificate, issued with transferable monetary values stored by electronic means, which meets all of the following requirements: Provided, That this shall not include any electronic currency:

(a) It shall be used to purchase goods or services from a third person other than the issuer (including specially related persons prescribed by Presidential Decree) and pay their prices;

(b) It shall be able to purchase goods or services in at least two business categories (referring to mid-classification business categories in the Korean Standard Industrial Classification publicly announced by the Commissioner of the National Statistical Office pursuant to Article 22 (1) of the Statistics Act; hereafter the same shall apply in this Article);

15. The term “electronic currency” means any certificate, or information on such certificate, issued with transferable monetary values stored by electronic means, which meets all of the following requirements:

(a) It shall be used in the areas and chain stores which meet the standards prescribed by Presidential Decree;

(b) It shall meet the requirements referred to in subparagraph 14 (a);

(c) It shall be able to purchase goods or services in at least five business categories and the number of such business categories shall be at least that prescribed by Presidential Decree;

(d) It shall be issued in exchange for the same value of cash or deposits;

(e) It shall be exchangeable for cash or deposits under guarantee of the issuer;

16. The term “electronic bond” means any creditor’s monetary claims stated in an electronic document, which meets the following requirements:

(a) The debtor shall designate the creditor;

(b) It shall include the contents of debts;

(c) It shall include the certified digital signature defined in subparagraph 3 of Article 2 of the Digital Signature Act;

(d) It shall be registered with an electronic bond management agency under Article 29 (1) (hereinafter referred to as “electronic bond management agency“) via a financial company;

(e) The debtor shall transmit an electronic document which meets all requirements referred to in items (a) through (c) to the creditor pursuant to Article 6 (1) of the Framework Act on Electronic Documents and Transactions and the creditor shall receive it in accordance with Article 6 (2) of the said Act;

17. The term “transaction request” means any request whereby a user asks a financial company or an electronic financial business entity to process electronic financial transactions pursuant to the electronic financial transaction contract;

18. The term “error” means any case where an electronic financial transaction fails to be made pursuant to the electronic financial transaction contract or the user’s transaction request neither intentionally nor with negligence;

19. The term “electronic payment settlement agency service” means any service to transmit or receive payment settlement information in purchasing goods or using services by electronic means or to execute as an agent or mediate the settlement of prices thereof;

20. The term “chain store” means any person, other than a financial company or an electronic financial business entity, who supplies goods or services to users in transactions conducted by an electronic debit payment means, electronic prepayment means or electronic currency under a contract concluded with a financial company or an electronic financial business entity;

21. The term “electronic financial infrastructure” means any information processing system used in electronic financial transactions and information and communication network defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.;

22. The term “electronic infringement” means any attack on electronic financial infrastructure by means of hacking, computer virus, logic bomb, mail bomb, denial of service, high-powered electromagnetic wave, etc.

Article 3 (Scope of Application)

(1) Except as otherwise expressly provided for in other Acts, this Act shall apply to all electronic financial transactions: Provided, That this Act shall not apply to the electronic financial transactions prescribed by Presidential Decree among those conducted under a separate contract between a financial company and an electronic financial business entity. (Amended by Act nº 11814, May 22, 2013)

(2) The provisions of Chapter V shall not apply to the financial companies referred to in subparagraph 3 (c) and (d) of Article 2. (Amended by Act nº 11814, May 22, 2013)

(3) The following shall not apply to the financial companies prescribed by Presidential Decree, considering the frequency of electronic financial transactions, size of company, etc. among financial companies: (Inserted by Act nº 11814, May 22, 2013)

1. Meeting the standards set by the Financial Services Commission for the information technology sector, in terms of human resources, facilities, electronic apparatus, etc. and electronic financial business under Article 21 (2);

2. Establishing and submitting plans for the information technology sector under Article 21 (4);

3. Appointing the chief information security officer under Article 21-2;

4. Analyzing and assessing the vulnerability of electronic financial infrastructure under Article 21-3.

Article 4 (Reciprocity)

This Act shall also apply to a foreigner or foreign corporation: Provided, That with respect to any foreigner or foreign corporation of the State which fails to provide protections corresponding to this Act for any national or corporation of the Republic of Korea, any protection under this Act or the treaties acceded to or concluded by the Republic of Korea may be restricted commensurately therewith.

CHAPTER II.- RIGHTS AND DUTIES OF PARTIES TO ELECTRONIC FINANCIAL TRANSACTIONS

SECTION 1.- Common Provisions

Article 5 (Use of Electronic Documents)

(1) Articles 4 through 7, 9, and 10 of the Framework Act on Electronic Documents and Transactions shall apply to electronic documents used for electronic financial transactions. (Amended by Act nº 11461, Jun. 1, 2012)

(2) Each electronic document received by a financial company or an electronic financial business entity in relation to a transaction request shall be deemed independent, respectively: Provided, That where the financial company or electronic financial business entity and a user undergoes the procedures for confirmation on an electronic financial transaction contract concluded among them, such procedures shall prevail. (Amended by Act nº 11814, May 22, 2013)

Article 6 (Selection, Use and Management of Means of Access)

(1) A financial company or an electronic financial business entity shall select, use and manage the means of access necessary for electronic financial transactions and confirm the identity and authority of a user, the details of a transaction request, etc. (Amended by Act nº 11814, May 22, 2013)

(2) A financial company or an electronic financial business entity shall issue the means of access only if an application is made by the user after verifying the identity of such user: Provided, That it may be also issued without the user’s application nor the verification of the user’s identity in any of the following cases: (Amended by Act nº 11814, May 22, 2013)

1. In case of an electronic prepayment means or electronic currency referred to in the proviso to Article 16 (1);

2. Where a user’s consent is obtained for the renewal, replacement, etc. of the means of access, as prescribed by Presidential Decree.

(3) No one shall commit any of the following acts unless otherwise expressly provided for in other Acts with respect to the use and management of a means of access: Provided, That the same shall not apply to cases (excluding the act referred to in subparagraph 3 and other acts of assisting the said act) where it is necessary to transfer an electronic prepayment means or electronic currency, or to offer it as security under Article 18: (Amended by Act nº 9325, Dec. 31, 2008; Act nº 13069, Jan. 20, 2015; Act nº 13929, Jan. 27, 2016)

1. Transferring or taking over a means of access;

2. Borrowing or lending a means of access, or storing, delivering or distributing a means of access, accompanied by receipt, demand or promise of any compensation;

3. Borrowing or lending a means of access, or storing, delivering or distributing a means of access, for the purpose of using it for any crime or with the knowledge of the fact that it will be used for any crime;

4. Providing a means of access as the object of pledge;

5. Arranging or advertizing any act referred to in subparagraphs 1 through 4.

Article 6-2 (Suspension, etc. of Using Telephone Numbers Used in Illegal Advertisements)

(1) When the Prosecutor General, Commissioner of the National Police Agency, or Governor of the Financial Supervisory Service (referring to the Governor of the Financial Supervisory Service under Article 29 of the Act on the Establishment, etc. of Financial Services Commission; hereafter the same shall apply) identifies a telephone number used in illegal advertisements referred to in Article 6 (3) 5, he/she may request the Minister of Science and Information and Communications Technology (ICT) to suspend provision of telecommunications services related to the relevant telephone number. (Amended by Act nº 14839, Jul. 26, 2017)

(2) A person to whom provision of telecommunications services is suspended following a request made pursuant to paragraph (1) may raise an objection to the person who requested suspension of provision of telecommunications services.

(3) Matters necessary for the procedures, etc. regarding raising of an objection under paragraph (2) shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 13929, Jan. 27, 2016)

Article 7 (Confirmation of Transaction Details)

(1) Any financial company or electronic financial business entity shall ensure that a user can confirm the transaction details through an electronic apparatus (including electronic apparatus, if any, stipulated in advance between the financial company or electronic financial business entity and the user) used for electronic financial transactions. (Amended by Act nº 11814, May 22, 2013)

(2) Any financial company or electronic financial business entity shall, upon a user’s request to deliver relevant transaction details in writing (excluding any electronic document; hereinafter the same shall apply), deliver to him/her a document stating the details of his/her transaction within two weeks after receipt of such request. (Amended by Act nº 11814, May 22, 2013)

(3) Matters concerning the coverage period, types and scope of the transaction details offered pursuant to paragraphs (1) and (2) and other matters shall be prescribed by Presidential Decree.

Article 8 (Correction, etc. of Errors)

(1) When a user recognizes the existence of any error in electronic financial transactions, he/she may request the relevant financial company or electronic financial business entity to correct such error. (Amended by Act nº 11814, May 22, 2013)

(2) Upon receipt of a request to correct an error under paragraph (1), any financial company or electronic financial business entity shall immediately investigate and effect appropriate corrections to the processed transaction, and inform the user of the causes of the error and the results of correction by the methods prescribed by Presidential Decree within two weeks after receipt of such request. (Amended by Act nº 9325, Dec. 31, 2008; Act nº 11814, May 22, 2013)

(3) When any financial company or electronic financial business entity recognizes the existence of any error in electronic financial transactions, it or he/she shall immediately investigate and effect appropriate corrections to the processed transaction, and inform the user of the causes of the error and the results of correction in the methods prescribed by Presidential Decree within two weeks after recognizing such error. (Amended by Act nº 9325, Dec. 31, 2008; Act nº 11814, May 22, 2013)

Article 9 (Liability of Financial Companies or Electronic Financial Business Entities)

(1) When a user suffers any loss due to any of the following incidents, the relevant financial company or electronic financial business entity shall be liable for indemnifying him/her for the loss: (Amended by Act nº 11814, May 22, 2013)

1. An incident caused by the forgery or alteration of the means of access;

2. An incident caused in the course of electronically transmitting or processing the conclusion of a contract or a transaction request;

3. An incident caused by the use of a means of access acquired by fraudulent or other illegal means by invading electronic apparatus for electronic financial transactions or an information and communication network defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.

(2) Notwithstanding paragraph (1), a financial company or an electronic financial business entity may require a user to fully or partially bear the liability for any loss in any of the following cases: (Amended by Act nº 11814, May 22, 2013)

1. Where, with respect to any incident caused by the intention or gross negligence of the user, a prior agreement is made with the user to the effect that all or part of the loss may be borne by the user;

2. Where a corporate user (excluding any small enterprise defined in Article 2 (2) of the Framework Act on Small and Medium Enterprises) suffers any loss although the financial company or electronic financial business entity fulfills the duty of due care reasonably required to prevent incidents, such as the establishment and strict observance of security procedures.

(3) The intention or gross negligence of the user referred to in paragraph (2) 1 shall be limited to that stipulated in the terms and conditions of electronic financial transactions (hereinafter referred to as “terms and conditions“) within the limits prescribed by Presidential Decree.

(4) Every financial company or electronic financial business entity shall take measures necessary to discharge the liability provided for in paragraph (1), such as purchasing insurance, joining a mutual aid society or accumulating reserves, pursuant to the standards determined by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

Article 10 (Liability for Loss or Theft of Means of Access)

(1) Upon receipt of a user’s notification of the loss or theft of the means of access, the relevant financial company or electronic financial business entity shall be liable for compensating the user for any loss he/she might suffer due to the use of such means of access by a third party from the time such notification is received: Provided, That the same shall not apply to cases prescribed by Presidential Decree where any damage is caused by the loss, theft, etc. of electronic prepayment means or electronic currency. (Amended by Act nº 11814, May 22, 2013)

(2) Notwithstanding paragraph (1) of this Article and Article 9, if any provision of other Acts and subordinate statutes applicable favorably to the user exists, such provision shall prevail.

Article 11 (Status of Subsidiary Electronic Financial Business Entities)

(1) The intention or negligence of a subsidiary electronic financial business entity (including any electronic bond management agency; hereafter the same shall apply in this Chapter) in relation to electronic financial transactions shall be deemed the intention or negligence of the relevant financial company or electronic financial business entity. (Amended by Act nº 11814, May 22, 2013)

(2) When any financial company or electronic financial business entity compensates the user for any loss caused by the intention or negligence of its or his/her subsidiary electronic financial business entity, it or he/she may exercise the right of indemnity over the subsidiary electronic financial business entity. (Amended by Act nº 11814, May 22, 2013)

(3) Any user may give various notifications he/she is obligated to give to a financial company or an electronic financial business entity to its or his/her subsidiary electronic financial business entity pursuant to an agreement made with the financial company or electronic financial business entity. In such cases, a notification given to the subsidiary electronic financial business entity shall be deemed to have been given to the relevant financial company or electronic financial business entity. (Amended by Act nº 11814, May 22, 2013)

SECTION 2.- Electronic Payment Transactions, etc.

Article 12 (Validity of Electronic Payment Transaction Contracts)

(1) Any financial company or electronic financial business entity shall make a payment by transmitting the amount requested by a payer or payee on a transaction request to the payee or his/her financial company or electronic financial business entity, pursuant to an agreement made with the payer or payee to facilitate electronic payment transactions. (Amended by Act nº 11814, May 22, 2013)

(2) When any financial company or electronic financial business entity becomes unable to transmit the amount requested pursuant to paragraph (1), it or he/she shall return to the payer the amount received for electronic payment transactions. In such cases, when the failure to transmit the amount is caused by the negligence of the payer, the expenses incurred in relation to such transmission may be deducted. (Amended by Act nº 11814, May 22, 2013)

Article 13 (Time when Payment Takes Effect)

(1) Where a payment is made by electronic payment means, such payment shall take effect at the time set forth in the following: (Amended by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

1. For electronic funds transfers: When the information on the amount transferred on a transaction request is completely recorded on the ledger of the account of a financial company or an electronic financial business entity with which the payee’s account is opened;

2. For withdrawal of cash directly from electronic apparatus: When the payee receives such cash;

3. For payments made by an electronic prepayment means or electronic currency: When the information on the amount requested on a transaction request gets to the electronic apparatus designated by the payee;

4. For payments made by other electronic payment means: When the information on the amount requested on a transaction request is completely input in the electronic apparatus of a financial company or an electronic financial business entity with which the payee’s account is opened.

(2) The financial companies or electronic financial business entities prescribed by Presidential Decree in consideration of their total assets, etc. shall, upon their user’s request, ensure that payment of electronic funds transfer takes effect after a certain time has elapsed since such user makes such transaction request, in accordance with the procedures and methods prescribed by Presidential Decree. (Inserted by Act nº 12837, Oct. 15, 2014)

Article 14 (Withdrawal of Transaction Requests)

(1) Any user may withdraw his/her transaction request before the payment takes effect pursuant to each subparagraph of Article 13 (1). (Amended by Act nº 12837, Oct. 15, 2014)

(2) Notwithstanding paragraph (1), a financial company or an electronic financial business entity and its user may, pursuant to a prior agreement, determine differently the timing for withdrawing a transaction request with respect to any batch transaction, reserved transaction, etc. (Amended by Act nº 11814, May 22, 2013)

(3) Any financial company or electronic financial business entity shall include in its or his/her terms and conditions the matters relating to the methods and procedures for withdrawing a transaction request under paragraph (1) and the prior agreement under paragraph (2). (Amended by Act nº 11814, May 22, 2013)

Article 15 (Consent to Withdraw Deposits by Transfer)

(1) Any financial company or electronic financial business entity shall obtain consent from the payer in advance to the withdrawal of deposits to effect a collection transfer, as prescribed by Presidential Decree. (Amended by Act nº 11814, May 22, 2013)

(2) Any payer may request a financial company or an electronic financial business entity to revoke his/her consent to withdrawal under paragraph (1) before the withdrawal of deposits is completely recorded on the ledger of the payer’s account pursuant to a transaction request of the payee. (Amended by Act nº 11814, May 22, 2013)

(3) Notwithstanding paragraph (2), a financial company or an electronic financial business entity may, pursuant to a prior agreement made with the payer, determine differently the timing for revoking the consent with respect to any batch transaction, reserved transaction, etc. (Amended by Act nº 11814, May 22, 2013)

(4) Any financial company or electronic financial business entity shall include in its or his/her terms and conditions the matters relating to the methods and procedures for revoking the consent and the prior agreement under paragraphs (2) and (3). (Amended by Act nº 11814, May 22, 2013)

Article 16 (Issuance, Use and Exchange of Electronic Currencies)

(1) Any financial company or electronic financial business entity that issues an electronic currency (hereinafter referred to as “electronic currency issuer“) shall, in issuing the electronic currency, assign identifiable numbers to the means of access and manage it by linking the numbers to the user’s real name (hereinafter referred to as “real name“) defined in subparagraph 4 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality or deposit account: Provided, That the same shall not apply to any electronic currency, the upper limit of whose face value does not exceed the amount prescribed by Presidential Decree. (Amended by Act nº 11814, May 22, 2013)

(2) The electronic currency issuer shall issue the electronic currency in exchange for the same value of cash or deposits.

(3) The electronic currency issuer shall take necessary measures to keep and use the issued electronic currency so that electronic currency holders can use it.

(4) The electronic currency issuer shall, upon a request by its holder, have the duty to exchange such electronic currency for cash or deposits.

(5) The methods and procedures for the issuance and exchange of electronic currency under paragraphs (1) through (4) shall be prescribed by Presidential Decree.

Article 17 (Validity of Payment by Electronic Currencies)

When an electronic currency holder pays the prices of goods or services by electronic currency pursuant to an agreement with the payee, the duty to pay such prices shall be deemed fulfilled.

Article 18 (Transferability of Electronic Currencies, etc.)

(1) The holder of an electronic prepayment means or electronic currency may transfer it to a third party or offer it as a security pursuant to an agreement with its issuer.

(2) When an electronic prepayment means or electronic currency is transferred to a third party or offered as a security under paragraph (1), it shall be necessarily done via the issuer’s central computer system: Provided, That the same shall not apply to any electronic prepayment means whose real name is not confirmed or the electronic currency referred to in the proviso to Article 16 (1).

Article 19 (Refund of Electronic Prepayment Means)

(1) Any financial company or electronic financial business entity that issues an electronic prepayment means shall, upon a request by its holder, refund the balance recorded on such electronic prepayment means pursuant to a prior agreement. (Amended by Act nº 11814, May 22, 2013)

(2) Any financial company or electronic financial business entity shall enter, in the terms and conditions, the agreement on the refund under paragraph (1) and the fact that it or he/she will fully pay the balance recorded on the electronic prepayment means in any of the following cases: (Amended by Act nº 11814, May 22, 2013)

1. Where the electronic prepayment means becomes unavailable because it is impracticable for a chain store to supply goods or services due to an act of God, etc.;

2. Where a chain store cannot supply goods or services due to any defect in the electronic prepayment means;

3. Where the balance recorded on the electronic prepayment means falls below a fixed rate. In such cases, the fixed rate shall be less than 20/100.

Article 20 (Requisite for Setting Up Transfer of Electronic Bonds)

(1) The transfer of electronic bonds shall be deemed to satisfy the requisite for setting up against the obligor referred to in Article 450 (1) of the Civil Act when meeting all the following requirements:

1. The notice made by the transferor to transfer the electronic bonds or the obligor’s consent thereto shall be given through an electronic document bearing the certified digital signature provided for in subparagraph 3 of Article 2 of the Digital Signature Act;

2. The electronic document stating the notice or consent referred to in subparagraph 1 shall be registered with an electronic bond management agency.

(2) The electronic document stating the notice or consent referred to in paragraph (1) shall be deemed to satisfy the requisite for setting up against the obligor referred to in Article 450 (2) of the Civil Act when completing the time-stamp stipulated in Article 20 of the Digital Signature Act and meeting all the requirements referred to in paragraph (1).

CHAPTER III.- ENSURING SAFETY OF ELECTRONIC FINANCIAL TRANSACTIONS AND PROTECTION OF USERS

Article 21 (Duty to Ensure Safety)

(1) A financial company or an electronic financial business entity and its or his/her subsidiary electronic financial business entity (hereinafter referred to as “financial company, etc.”) shall perform its or his/her duties of a good manager to ensure the safe processing of electronic financial transactions. (Amended by Act nº 11814, May 22, 2013)

(2) In order to ensure the safety and reliability of electronic financial transactions, a financial company etc. shall comply with the standards determined by the Financial Services Commission with respect to the information technology sector, such as human resources, facilities, electronic apparatus, and expenses for conducting electronic transmissions or processing, the electronic financial affairs and certification methods including the use of certificates under the Digital Signature Act. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

(3) The Financial Services Commission shall not compel the use of any specific technology or service when determining the standards referred to in paragraph (2) and shall endeavor to promote the fair competition of security technologies and certification technologies. (Amended by Act nº 12837, Oct. 15, 2014)

(4) For safe electronic financial transactions, the financial companies or electronic financial business entities prescribed by Presidential Decree shall annually establish a plan for the information technology sector and submit it to the Financial Services Commission after obtaining confirmation and signature of its or his/her representative, as prescribed by Presidential Decree. (Inserted by Act nº 11814, May 22, 2013)

Article 21-2 (Appointment of Chief Information Security Officers)

(1) Any financial company or electronic financial business entity shall appoint a chief information security officer to be responsible for managing electronic financial business and information technology security which forms the basis of electronic financial business. (Amended by Act nº 11814, May 22, 2013)

(2) A financial company or an electronic financial business entity prescribed by Presidential Decree in consideration of its or his/her total assets, number of employees, etc. shall appoint one of the executives (including any person prescribed in Article 401-2 (1) 3 of the Commercial Act) as a chief information security officer. (Amended by Act nº 11814, May 22, 2013)

(3) The chief information security officer of the financial companies or electronic financial business entities prescribed by Presidential Decree in consideration of its or his/her total assets, number of employees, etc. shall not concurrently perform duties in the information technology sector other than those referred to in paragraph (4). (Inserted by Act nº 12837, Oct. 15, 2014)

(4) A chief information security officer under paragraph (1) shall perform the following duties: (Amended by Act nº 12837, Oct. 15, 2014)

1. Establishing strategies and plans for securing the stability of electronic financial transactions and protecting the users thereof;

2. Protecting the information technology sector;

3. Managing human resources and forming a budget, which are necessary for the security of the information technology sector;

4. Preventing electronic financial transaction accidents, and taking measures therefor;

5. Other matters prescribed by Presidential Decree for securing the stability of electronic financial transactions.

(5) Matters necessary for qualifications, etc. for a chief information security officer shall be prescribed by Presidential Decree. (Amended by Act nº 12837, Oct. 15, 2014)

(Article Inserted by Act nº 11087, Nov. 14, 2011)

Article 21-3 (Analyzing and Assessing Vulnerability of Electronic Financial Infrastructure)

(1) To ensure the safety and reliability of electronic financial transactions, a financial company and an electronic financial business entity shall analyze and assess the following matters with respect to its or his/her electronic financial infrastructure and report the findings therefrom (referring to the findings from analysis and assessment of vulnerability, where conducted under Article 9 of the Act on the Protection of Information and Communications Infrastructure) to the Financial Services Commission:

1. Matters relating to the organization, facilities, and internal control of the information technology sector;

2. Matters relating to electronic apparatus and the means of access of the information technology sector;

3. Matters relating to measures to respond to infringements in order to maintain electronic financial transactions;

4. Other matters prescribed by Presidential Decree.

(2) A financial company and an electronic financial business entity shall establish and implement a plan to take necessary complementary measures based on the findings from analysis and assessment of vulnerability in the electronic financial infrastructure under paragraph (1).

(3) The Financial Services Commission may require public officials under its control to inspect the findings from analysis and assessment of vulnerability in the electronic financial infrastructure under paragraph (1) and the actual status of implementing complementary measures pursuant to paragraph (2).

(4) Details of and procedures for analysis and assessment of vulnerability in the electronic financial infrastructure under paragraph (1) and the establishment and implementation of the plan under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 21-4 (Prohibition against Electronic Infringement, etc.)

No person shall commit any of the following offences:

1. For anyone without access authority to access electronic financial infrastructure, or for anyone with access authority to fabricate, destroy, hide or lose the stored data beyond his/her authority;

2. Installing programs, such as computer virus, logic bomb, or mail bomb, for the purpose of destroying data of electronic financial infrastructure or obstructing the operation of electronic financial infrastructure;

3. Causing errors or hindrance to electronic financial infrastructure by methods, such as sending mass signal, high-powered electromagnetic wave or data simultaneously or having fraudulent commands be processed, for the purpose of obstructing the stable operation of electronic financial infrastructure.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 21-5 (Notification, etc. of Infringement Incidents)

(1) If an incident, such as disturbance or paralysis of electronic financial infrastructure, occurs due to an electronic infringement (hereinafter referred to as “infringement incident”), the relevant financial company and electronic financial business entity shall, without delay, inform the Financial Services Commission thereof.

(2) If an infringement incident occurs, the relevant financial company and electronic financial business entity shall analyze the causes thereof and take necessary measures to prevent the spread of damage.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 21-6 (Response to Infringement Incidents)

(1) The Financial Services Commission shall perform the following duties to respond to infringement incidents:

1. Collecting and disseminating information on infringement incidents;

2. Issuing preannouncements and warnings about infringement incidents;

3. Taking emergency measures against infringement incidents;

4. Other matters prescribed by Presidential Decree for responding to infringement incidents.

(2) Procedures and methods necessary for performing the duties referred to in paragraph (1) and other matters shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 22 (Creation, Preservation and Destruction of Electronic Financial Transaction Records)

(1) A financial company, etc. shall create the records (hereafter referred to as “electronic financial transaction records” in this Article) necessary to trace and search the details of electronic financial transactions or to verify or correct any error in such details and shall preserve them for a period prescribed by Presidential Decree within up to five years. (Amended by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

(2) If the preservation period under paragraph (1) elapses and any commercial transaction relation, including financial transactions, is terminated, a financial company, etc. shall, within five years, destroy the relevant electronic financial transaction records (excluding credit information under the Credit Information Use and Protection Act; hereafter the same shall apply in this paragraph): Provided, That this shall not apply in any of the following cases: (Inserted by Act nº 12837, Oct. 15, 2014)

1. Where it is inevitable to meet any obligation under other Acts;

2. Other cases determined by the Financial Services Commission, where it is necessary to preserve electronic financial transaction records.

(3) The types, preservation methods, destruction procedures and methods of electronic financial transaction records to be preserved by financial companies, etc. in accordance with paragraphs (1) and (2), and the standards for determining the day when a commercial transaction relation is terminated shall be prescribed by Presidential Decree. (Amended by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

Article 23 (Issuance and Limit of Use of Electronic Payment Means, etc.)

(1) The Financial Services Commission may require a financial company or an electronic financial business entity to set the following limits or take other necessary measures, in consideration of the characteristics of electronic payment means, as prescribed by Presidential Decree: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

1. The upper limit of the face value of an electronic currency and electronic prepayment means to be issued;

2. The limit of use of electronic funds transfer;

3. The limit of use of electronic debit payment means.

(2) The Financial Services Commission may require a financial company or an electronic financial business entity to set the upper limit of cash withdrawal from electronic apparatus or may take other necessary measures, as prescribed by Presidential Decree. (Inserted by Act nº 11814, May 22, 2013)

Article 24 (Clarification of Terms and Conditions and Notification of Alterations thereof)

(1) Any financial company or electronic financial business entity shall clarify the terms and conditions in concluding a contract for electronic financial transactions with a user, and, at the request of a user, deliver a copy of the terms and conditions to the user, along with explaining the details thereof, in the manner prescribed by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(2) No financial company or electronic financial business entity shall, if it or he/she has concluded a contract in violation of paragraph (1), assert that the details of the terms and conditions are included in the relevant contract. (Amended by Act nº 11814, May 22, 2013)

(3) Any financial company or electronic financial business entity shall, if it or he/she has altered the terms and conditions, publish the altered terms and conditions and inform the users thereof by one month prior to the enforcement of the altered terms and conditions, in the manner prescribed by the Financial Services Commission: Provided, That if the terms and conditions are urgently altered due to any amendment to Acts and subordinate statutes, it or he/she shall promptly publish the terms and conditions so altered and inform the users thereof in such manner prescribed by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(4) Any user may terminate a contract for electronic financial transactions by no later than the business day immediately preceding the enforcement date of the altered terms and conditions after the details of the altered terms and conditions are published or informed pursuant to paragraph (3). When the user fails to raise an objection against the details of the altered terms and conditions within the period referred to in the first sentence, he/she shall be deemed to have approved the altered terms and conditions.

Article 25 (Preparation and Alteration of Terms and Conditions)

(1) When a financial company or an electronic financial business entity intends to prepare or alter the terms and conditions for electronic financial transactions, it or he/she shall in advance report thereon to the Financial Services Commission: Provided, That in cases determined by the Financial Services Commission which do not adversely affect the rights, interests or duties of users, a report may be file to the Financial Services Commission within ten days after the terms and conditions is prepared or altered. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(2) The Financial Services Commission may recommend a financial company or an electronic financial business entity to alter the terms and conditions under paragraph (1) if necessary to maintain orderly electronic financial transactions. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(3) The Financial Services Commission may determine the period and procedures for reporting the preparation or alteration of the terms and conditions under paragraph (1) and other necessary matters. (Amended by Act nº 8863, Feb. 29, 2008)

(4) Paragraphs (1) through (3) shall not apply to the financial companies defined in subparagraph 3 (c) and (d) of Article 2. (Amended by Act nº 11814, May 22, 2013)

Article 26 (Provision, etc. of Electronic Financial Transaction Information)

No one who recognizes the existence of any of the following matters in the course of performing duties relating to electronic financial transactions shall provide or disclose such information to any third party or use it for any purpose other than his/her duties without the consent of the relevant user: Provided, That the same shall not apply to cases provided for in the proviso to Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality or in any other Act:

1. The matters relating to the identity of the user;

2. The information or materials relating to the accounts, the means of access, and the details and results of electronic financial transactions of the user.

Article 27 (Settlement and Mediation of Disputes)

(1) Any financial company or electronic financial business entity shall prepare procedures to reflect reasonable opinions or complaints presented by users in relation to electronic financial transactions and to compensate for any loss sustained by users in the course of conducting electronic financial transactions, as prescribed by Presidential Decree. (Amended by Act nº 11814, May 22, 2013)

(2) When a user has an objection to the processing of electronic financial transactions, he/she may demand the settlement of dispute, such as compensation for losses, pursuant to the procedures determined under paragraph (1) or file an application for mediation of dispute with the Financial Supervisory Service, the Korea Consumer Agency, etc. (Amended by Act nº 11814, May 22, 2013)

(3) Detailed procedures and methods for the settlement of disputes and the application for mediation of disputes under paragraphs (1) and (2) and other matters shall be prescribed by Presidential Decree.

(4) Any financial company or electronic financial business entity shall clarify the procedures referred to in paragraphs (1) through (3) in concluding a contract for electronic financial transactions. (Amended by Act nº 11814, May 22, 2013)

CHAPTER IV.- PERMISSION, REGISTRATION AND FUNCTIONS OF ELECTRONIC FINANCIAL BUSINESS

Article 28 (Permission and Registration of Electronic Financial Business)

(1) Any person who intends to engage in a business issuing and managing electronic currencies shall obtain permission therefor from the Financial Services Commission: Provided, That the same shall not apply to the banks provided for in the Banking Act and other financial companies prescribed by Presidential Decree. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 10303, May 17, 2010; Act nº 11814, May 22, 2013)

(2) Any person who intends to provide any of the following services shall register himself/herself with the Financial Services Commission: Provided, That the same shall not apply to the banks provided for in the Banking Act and other financial companies prescribed by Presidential Decree: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 10303, May 17, 2010; Act nº 11814, May 22, 2013)

1. Electronic funds transfer services;

2. Issuance and management of electronic debit payment means;

3. Issuance and management of electronic prepayment means;

4. Electronic payment settlement agency services;

5. Other electronic financial services prescribed by Presidential Decree.

(3) Notwithstanding paragraph (2), any of the following persons may provide the services referred to in each subparagraph of the said paragraph without registering himself/herself with the Financial Services Commission: (Amended by Act nº 8863, Feb. 29, 2008)

1. Any person who issues an electronic prepayment means falling under any of the following cases:

(a) Where it is only used at chain stores meeting the standards prescribed by Presidential Decree, such as the chain stores located within specially designated buildings;

(b) Where the total balance of its issued amount does not exceed the amount prescribed by Presidential Decree;

(c) Where it is an electronic prepayment means, the price of which has not been pre-paid directly by a user and is covered by a refund guarantee insurance, etc. as prescribed by Presidential Decree to discharge the liability for monetary values stored by the user;

2. Any person who performs the electronic payment settlement agency services prescribed by Presidential Decree, such as delivering information only for the electronic processing of electronic payment transactions without direct involvement in the transfer of funds.

(4) Article 4, Chapters II (excluding Article 19) and III (excluding Articles 21 (4), 21-2, 21-3, 23 and 25), and Articles 37, 38, 39 (1) and (6), 41 (1), 43 (2) and (3), 46, 46-2, and 47 concerning electronic financial business entities shall apply mutatis mutandis to the persons who issue electronic prepayment means exempted from registration under paragraph (3) 1 (c): Provided, That Articles 25, 39 (2) through (5), and 40 (2) and (3) shall apply mutatis mutandis where the financial incidents prescribed by Presidential Decree occur, such as insolvency due to any illegal or unjust act committed by the relevant employees or officers. (Amended by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

(5) The Financial Services Commission may attach a condition to the permission granted under paragraph (1). (Amended by Act nº 8863, Feb. 29, 2008)

Article 29 (Registration of Electronic Bond Management Agencies)

(1) Any person who intends to engage in a business registering and managing electronic bonds shall register himself/herself with the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008)

(2) Articles 21, 22, 39, 41, and 43 shall apply mutatis mutandis to the electronic bond management agencies which are registered to carry out the business of registering and managing electronic bonds pursuant to paragraph (1).

(3) The procedures and methods for the registration of electronic bonds by electronic bond management agencies and other necessary matters shall be prescribed by Presidential Decree.

Article 30 (Capital)

(1) Any person who intends to obtain permission pursuant to Article 28 (1) shall be a stock company with a capital of at least five billion won.

(2) Either of the following entities is eligible for registration pursuant to Article 28 (2) 1 through 3, and its capital or total investment shall exceed the amount prescribed by Presidential Decree, which is at least two billion won for each category of business: (Amended by Act nº 11814, May 22, 2013)

1. A company provided for in Article 170 of the Commercial Act;

2. A corporation incorporated under a special Act (limited to the issuance and management of electronic prepayment means under Article 28 (2) 3 to perform the duties provided for in the relevant Act).

(3) An entity eligible for registration pursuant to Article 28 (2) 4 and 5 and Article 29 shall be a company provided for in Article 170 of the Commercial Act or a corporation stipulated in Article 32 of the Civil Act, the capital, total investments or fundamental property of which exceeds the amount prescribed by Presidential Decree, which is at least the amount referred to in the following subparagraphs for each category of business: (Amended by Act nº 14132, Mar. 29, 2016)

1. A person who intends to operate below the standard defined by the Financial Services Commission, within the scope in which the total amount of electronic financial transactions per quarter does not exceed three billion won (excluding a person who intends to register pursuant to Article 29): An amount prescribed by Presidential Decree of at least 300 million won;

2. A person not falling under subparagraph 1: An amount prescribed by Presidential Decree of at least 500 million won.

(4) Where a person falling under paragraph (3) 1 registers pursuant to Article 28 and continues to exceed the standard defined by the Financial Services Commission under paragraph (3) 1 for at least two consecutive quarters, he/she shall report the relevant details to the Financial Services Commission, and shall satisfy the requirements for capital under paragraph (3) 2 within the period set by the Financial Services Commission. (Inserted by Act nº 14132, Mar. 29, 2016)

Article 31 (Requirements for Permission and Registration)

(1) Any person who intends to obtain permission or file for registration pursuant to Articles 28 and 29 shall meet all of the following requirements. Subparagraphs 4 and 5 shall only apply to permission:

1. He/she shall hold the capital or fundamental property referred to in Article 30;

2. He/she shall be equipped with professional human resources and physical installations, such as computer equipment, sufficient to protect users and carry out the intended business;

3. He/she shall meet the standards of financial soundness prescribed by Presidential Decree;

4. He/she shall have a proper and sound plan necessary to execute the business concerned;

5. He/she shall secure the major investors prescribed by Presidential Decree, with sufficient investment capability, sound financial state and social credit.

(2) Matters necessary for the detailed requirements for permission and registration under paragraph (1) shall be determined by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008)

Article 32 (Disqualification for Permission and Registration)

None of the following persons are entitled to permission or registration under Articles 28 and 29: (Amended by Act nº 8863, Feb. 29, 2008)

1. A corporation for which one year has not yet passed since its registration was cancelled pursuant to Article 34, and a person who was a large stockholder (referring to any such investor prescribed by Presidential Decree; hereinafter the same shall apply) of the corporation at the time of cancellation of such registration and for whom one year has not yet passed since the registration was cancelled;

2. A corporation for which three years have not yet passed since its permission or registration was revoked pursuant to Article 43 (1), and a person who was a large stockholder of the corporation at the time of such revocation and for whom three years have not yet passed since such revocation;

3. A company which is in process of the rehabilitation procedure pursuant to the Debtor Rehabilitation and Bankruptcy Act and the large stockholders of such company;

4. Any person who has failed to pay a debt within an agreed period in financial transactions and other commercial transactions and who is determined by the Financial Services Commission;

5. Any person who has been punished by a fine or heavier punishment for violating the finance-related Acts or subordinate statutes prescribed by Presidential Decree within the three years preceding the date of application for permission or registration;

6. A corporation whose large stockholder falls under any of subparagraphs 1 through 5.

Article 33 (Applications, etc. for Permission, Registration and Authorization)

(1) Any person who intends to obtain permission or authorization or file for registration pursuant to Article 28, 29, or 45 shall submit an application therefor to the Financial Services Commission, as prescribed by Presidential Decree. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(2) Upon receipt of an application under paragraph (1), the Financial Services Commission shall grant permission, registration, or authorization and notify the applicant of the results, as prescribed by Presidential Decree. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(3) When the Financial Services Commission grants permission, registration or authorization pursuant to Articles 28, 29, and 45, it shall, without delay, publish the details thereof in the Official Gazette and inform the general public thereof through computer communications, etc. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

Article 33-2 (Preliminary Permission)

(1) Any person who intends to obtain permission under Article 28 (1) (hereafter referred to as “final permission” in this Article) may, in advance, file an application for preliminary permission with the Financial Services Commission.

(2) When the Financial Services Commission decides whether to grant preliminary permission under paragraph (1), it shall verify that the person who intends to obtain preliminary permission meets all requirements for final permission.

(3) The Financial Services Commission may attach a condition to preliminary permission under paragraph (2).

(4) When any person who obtained preliminary permission files an application for final permission, the Financial Services Commission shall verify whether he/she has fulfilled the condition to preliminary permission under paragraph (3) and has met all requirements for final permission, before it decides whether to grant final permission.

(5) Article 33 (1) and (2) shall apply mutatis mutandis to preliminary permission.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 34 (Cancellation of Registration Subject to Application)

(1) Any person who has been granted registration pursuant to Articles 28 (2) and 29 may file an application for the cancellation of such registration, as prescribed by Presidential Decree.

(2) The Financial Services Commission shall, upon receipt of an application under paragraph (1), cancel the registration without delay. (Amended by Act nº 8863, Feb. 29, 2008)

(3) When the Financial Services Commission has cancelled registration pursuant to paragraph (2), it shall, without delay, publish the details thereof in the Official Gazette and inform the general public thereof through computer communications, etc. (Amended by Act nº 8863, Feb. 29, 2008)

Article 35 (Restriction on Concurrent Businesses)

(1) Any electronic financial business entity who has obtained permission pursuant to Article 28 (1) shall be prohibited from concurrently engaging in any business other than the following:

1. Services provided for in the subparagraphs of Article 28 (2) (limited to registered ones);

2. Business permitted pursuant to Article 28 (1) and other business prescribed by Presidential Decree and necessary to provide the services referred to in subparagraph 1.

(2) Notwithstanding paragraph (1), any electronic financial business entity who has obtained permission pursuant to Article 28 (1) may engage in the business other than those referred to in the subparagraphs of paragraph (1), if it or he/she is provided with payment guarantee by the financial companies prescribed by Presidential Decree or purchase refund guarantee insurance for all of the non-refunded portions of electronic currency. (Amended by Act nº 11814, May 22, 2013)

Article 36 (Prohibition against Use of Similar Names)

(1) The name ‘electronic currency’ shall be used only for the electronic currency referred to in subparagraph 15 of Article 2.

(2) Any person who has failed to obtain permission pursuant to Article 28 (1) may not use the phrase ‘electronic currency’ in his/her trade name.

Article 37 (Matters to be Observed by Chain Stores)

(1) No chain store shall refuse to provide goods or services, or treat any user unfavorably, on the grounds that transactions are conducted by electronic debit payment means, electronic prepayment means or electronic currency (hereinafter referred to as “electronic currency, etc.”).

(2) No chain store shall charge users a merchant fee to be borne by such store.

(3) No chain store shall commit any of the following offences:

1. Pretending that a transaction is conducted by electronic currency, etc. without providing goods or services;

2. Conducting transactions by electronic currency, etc. in excess of actual turnover;

3. Conducting transactions by electronic currency, etc. under the name of another chain store;

4. Lending the name of the chain store to a third party;

5. Conducting, as an agent, transactions by electronic currency, etc.

(4) A person other than a chain store shall not conduct any transaction by electronic currency, etc. under the name of a chain store.

Article 38 (Recruitment, etc. of Chain Stores)

(1) In recruiting a chain store, any financial company or electronic financial business entity shall confirm whether the store seeking membership actually carries on its own business: Provided, That the same shall not apply to a chain store which has already been confirmed pursuant to Article 16-2 of the Specialized Credit Finance Business Act. (Amended by Act nº 11814, May 22, 2013)

(2) No financial company or electronic financial business entity shall have its or his/her chain store bear a loss incurred by either of the following transactions: Provided, That the same shall not apply where a financial company or an electronic financial business entity concludes a contract with its or his/her chain store to the effect that such loss shall be fully or partially borne by the chain store when the financial company or electronic financial business entity proves the intention or gross negligence of the chain store in connection with the transaction: (Amended by Act nº 11814, May 22, 2013)

1. A transaction conducted using a lost or stolen electronic currency, etc.;

2. A transaction conducted using a forged or altered electronic currency, etc.

(3) Any financial company or electronic financial business entity shall inform its or his/her chain stores of the following matters, in the manner prescribed by the Financial Services Commission: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

1. A merchant fee to be borne by chain stores;

2. Liability for chain stores under paragraph (2);

3. Matters to be observed by chain stores under Article 37.

(4) When a chain store is sentenced to a punishment for violating Article 37 or receives a written notification of such violation from the relevant administrative agency, and thus falls under the grounds prescribed by Presidential Decree, the relevant financial company or electronic financial business entity shall, without delay, terminate the contract with the said chain store unless any special ground exists to the contrary. (Amended by Act nº 11814, May 22, 2013)

CHAPTER V.- SUPERVISION OF ELECTRONIC FINANCIAL BUSINESS

Article 39 (Supervision and Inspection)

(1) The Financial Supervisory Service (referring to the Financial Supervisory Service established under Article 24 (1) of the Act on the Establishment, etc. of Financial Services Commission; hereinafter the same shall apply) shall supervise whether financial companies and electronic financial business entities abide by this Act or orders issued under this Act, following instructions from the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(2) The Governor of the Financial Supervisory Service may require a financial company or an electronic financial business entity to report on its or his/her business operations and financial conditions if necessary to conduct supervision under paragraph (1). (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 13929, Jan. 27, 2016)

(3) The Governor of the Financial Supervisory Service may inspect the electronic financial business and other related financial conditions of a financial company and an electronic financial business entity and, if deemed necessary to conduct such inspection, ask the financial company and the electronic financial business entity to submit data relating to its or his/her business operations and financial conditions or to order the attendance of all relevant persons. (Amended by Act nº 11814, May 22, 2013)

(4) Any person who conducts an inspection pursuant to paragraph (3) shall carry an identification indicating his/her authority and present it to relevant persons.

(5) Upon conducting an inspection pursuant to paragraph (3), the Governor of the Financial Supervisory Service shall report the findings therefrom to the Financial Services Commission, as determined by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008)

(6) When a financial company or an electronic financial business entity is deemed likely to undermine the sound operation of the financial company or electronic financial business entity in violation of any provision of this Act or any order issued under this Act, the Financial Services Commission may, upon recommendation of the Governor of the Financial Supervisory Service, take any of the following measures or authorize the Governor of the Financial Supervisory Service to take any measure referred to in subparagraphs 1 through 3: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 14828, Apr. 18, 2017)

1. Issuing an order to correct the relevant offence;

2. Issuing a caution or warning against a financial company or an electronic financial business entity;

3. Demanding caution, warning or reprimand against an executive officer or employee;

4. Recommending dismissal of an executive officer (excluding an operating officer under subparagraph 5 of Article 2 of the Act on Corporate Governance of Financial Companies; hereafter the same shall apply in Article 39-2) or suspending performance of his/her duties.

Article 39-2 (Notification of Details of Measures against Retired Executive Officer, etc.)

(1) Where, if a retired executive officer or employee (including an operating officer under subparagraph 5 of Article 2 of the Act on Corporate Governance of Financial Companies) of a financial company or electronic financial business entity held office as such, he/she would be deemed to be subject to any measure falling under Article 39 (6) 3 or 4, the Financial Services Commission (including the Governor of the Financial Supervisory Service authorized to take measures pursuant to Article 39 (6)) may notify the head of such financial company or electronic financial business entity of the details of such measure.

(2) The head of a financial company or electronic financial business entity in receipt of a notification under paragraph (1) shall notify the retired executive officer or employee of such fact, and keep and maintain the content of such notification.

(Article Inserted by Act nº 14828, Apr. 18, 2017)

Article 40 (Supervision and Inspection of Outside Orders, etc.)

(1) Where a financial company or an electronic financial business entity concludes or alters a contract with its or his/her subsidiary electronic financial business entity for affiliation, entrustment or outside orders (hereafter referred to as “outside order, etc.” in this Article) in relation to electronic financial transactions (including where a subsidiary electronic financial business entity concludes or alters a contract with another subsidiary electronic financial business entity for outside orders, etc.), it or he/she shall meet the standards determined by the Financial Services Commission to ensure the safety and reliability of electronic financial transactions and the soundness of the financial company and electronic financial business entity. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(2) Where the contents of a contract under paragraph (1) are deemed likely to undermine the operational soundness of a financial company or an electronic financial business entity and the rights and interests of users, the Financial Services Commission may direct the financial company or electronic financial business entity to correct or supplement the relevant contents of the contract. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(3) When the Governor of the Financial Supervisory Service conducts an inspection of a financial company or an electronic financial business entity in relation to outside orders, etc. under paragraph (1), he/she may request its or his/her subsidiary electronic financial business entity to submit data pursuant to the standards determined by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29. 2008; Act nº 11814, May 22, 2013)

(4) When a subsidiary electronic financial business entity fails to submit data under paragraph (3) or submit insufficient data, the Governor of the Financial Supervisory Service may investigate the relevant subsidiary electronic financial business entity. (Inserted by Act nº 11814, May 22, 2013)

(5) The Governor of the Financial Supervisory Service may request the following from a subsidiary electronic financial business entity, if deemed necessary for conducting an investigation under paragraph (4): (Inserted by Act nº 11814, May 22, 2013)

1. Submitting a written statement relating to matters subject to such investigation;

2. Submitting a ledger, document or other articles necessary for such investigation;

3. Attendance of a relevant person.

(6) A subsidiary electronic financial business entity entrusted with any duties related to the data protection of the information technology sector shall not re-entrust such duties to a third party: Provided, That this shall not apply to cases recognized by the Financial Services Commission within the extent not impairing the protection and safe processing of electronic financial transaction information. (Inserted by Act nº 12837, Oct. 15, 2014)

(7) Article 39 (4) shall apply mutatis mutandis to investigations conducted under paragraph (4). (Inserted by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

Article 41 (Requests, etc. for Submission of Data by Bank of Korea)

(1) When the Monetary Policy Committee deems it necessary for implementing monetary credit policies and facilitating the smooth operation of payment and settlement systems in relation to electronic payment transactions, the Bank of Korea may request a financial company or an electronic financial business entity to submit data. In such cases, the scope of data so requested shall be limited to a necessary minimum in consideration of the work burden of the relevant financial company and electronic financial business entity. (Amended by Act nº 11814, May 22, 2013)

(2) When the Monetary Policy Committee deems it necessary for implementing monetary credit policies, the Bank of Korea may request the Financial Supervisory Service to inspect the electronic currency issuer and the financial company and electronic financial business entity registered to provide the service referred to in Article 28 (2) 1 or to conduct a joint inspection thereof with the Bank of Korea. (Amended by Act nº 11814, May 22, 2013)

(3) Articles 87 and 88 of the Bank of Korea Act and Article 62 of the Act on the Establishment, etc. of Financial Services Commission shall apply mutatis mutandis to the methods and procedures for making requests under paragraphs (1) and (2). (Amended by Act nº 8863, Feb. 29, 2008)

Article 42 (Keeping Separate Accounts and Guidance for Sound Management)

(1) A financial company and an electronic financial business entity shall keep separate accounts by the category of business provided for in Article 28 (1) and (2) to analyze the performance of business relating to fund management and electronic financial transactions, and prepare a report on the business relating to electronic financial transactions and the outcomes of management and submit it to the Financial Services Commission, as determined by the Financial Services Commission. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

(2) The Financial Services Commission may set the standards for management guidance for the following matters to direct the sound management of a financial company or an electronic financial business entity that performs the business relating to electronic financial transactions and to prevent electronic financial incidents, as prescribed by Presidential Decree: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

1. Matters relating to the appropriateness of capital;

2. Matters relating to the soundness of assets;

3. Matters relating to liquidity;

4. Other matters necessary to ensure the soundness of management.

(3) Where any financial company or electronic financial business entity that has obtained permission under Article 28 (1) is deemed likely to severely undermine the soundness of its or his/her own management, such as failing to meet the standards for management guidance under paragraph (2), the Financial Services Commission may request it or him/her to take necessary measures to improve its or his/her own management, such as increasing capital and limiting dividends. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

(4) Articles 10, 11 (1), (4) and (5), 13-2, 14, 14-2 through 14-4, 14-7, 15 through 19, 27, and 28 of the Act on the Structural Improvement of the Financial Industry shall apply mutatis mutandis to the measures, etc. necessary to be taken when the financial standing of the financial company or electronic financial business entity that has obtained permission under Article 28 (1) falls short of the standards for management guidance under paragraph (2) or is evidently deemed to fall short of the said standards due to any serious financial incident or insolvency claims. (Amended by Act nº 11814, May 22, 2013)

Article 43 (Revocation, etc. of Permission or Registration)

(1) When a financial company or an electronic financial business entity falls under any of the following cases, the Financial Services Commission may revoke permission or registration under Article 28: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

1. Where it or he/she has obtained permission or registration under Article 28 by fraudulent or other illegal means;

2. Where it or he/she falls under any of subparagraphs 1 through 5 of Article 32;

3. Where it or he/she has violated an order to suspend business issued under paragraph (2);

4. Where it or he/she has failed to run a business for one or more consecutive years without any just ground;

5. Where it or he/she has virtually closed its or his/her business due to the merger, bankruptcy or business closure of the relevant corporation or on other grounds.

(2) When a financial company or an electronic financial business entity falls under any of the following cases, the Financial Services Commission may order it or him/her to wholly or partially suspend the relevant business with a given period of up to six months: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 14132, Mar. 29, 2016)

1. Where it or he/she has violated Article 6 (1) or (2), 16 (1) through (4), 19 (1), 21 (1) or (2), 21-5 (2), 35, 36, or 38 (3) or (4);

2. Where it or he/she has failed to investigate an error and effect appropriate corrections, in violation of Article 8 (2) and (3);

3. Where it or he/she has failed to comply with any measure, direction or order taken or issued by the Financial Services Commission under Article 23, 39 (6), 40 (2) or 42 (3).

4. Where it or he/she fails to file a report under Article 30 (4) or fails to satisfy the requirements within the period.

(3) A financial company or an electronic financial business entity, whose business is wholly or partially suspended or permission or registration is revoked under paragraphs (1) and (2), may even so continue to perform the payment and settlement business of electronic financial transactions conducted prior to such disposition. (Amended by Act nº 11814, May 22, 2013)

(4) When the Financial Services Commission revokes permission or registration under paragraph (1), it shall, without delay, publish the details thereof in the Official Gazette and inform the general public thereof through computer communications, etc. (Amended by Act nº 8863, Feb. 29, 2008)

Article 44 (Hearings)

When the Financial Services Commission intends to revoke permission or registration under Article 43 (1), it shall hold a hearing thereon. (Amended by Act nº 8863, Feb. 29, 2008)

Article 45 (Authorization for Merger, Dissolution, Business Closure, etc.)

(1) When any electronic financial business entity who has obtained permission pursuant to Article 28 (1) intends to engage in any of the following activities, he/she shall obtain authorization therefor from the Financial Services Commission, as prescribed by Presidential Decree: (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013)

1. A merger with another financial company or electronic financial business entity;

2. Dissolution or the closure of electronic financial business;

3. Transfer and takeover all or part of business.

(2) The Financial Services Commission may attach a condition to authorization under paragraph (1). (Amended by Act nº 8863, Feb. 29, 2008)

Article 45-2 (Preliminary Authorization)

(1) Any person who intends to obtain authorization under Article 45 (1) (hereafter referred to as “final authorization” in this Article) may, in advance, file an application for preliminary authorization with the Financial Services Commission.

(2) When the Financial Services Commission decides whether to grant preliminary authorization under paragraph (1), it shall verify whether the person who intends to obtain preliminary authorization meets all requirements for final authorization.

(3) The Financial Services Commission may attach a condition to preliminary authorization under paragraph (2).

(4) When any person who obtained preliminary authorization files an application for final authorization, the Financial Services Commission shall verify whether he/she has fulfilled the condition to preliminary authorization under paragraph (3) and has met all requirements for final authorization before it decides whether to grant final authorization to him/her.

(5) Article 33 (1) and (2) shall apply mutatis mutandis to preliminary authorization.

(Article Inserted by Act nº 11814, May 22, 2013)

Article 46 (Penalty Surcharges)

(1) Where a financial company or an electronic financial business entity provides or discloses any electronic financial transaction information to any other person, or uses it for any purpose other than its duties in violation of Article 21 (1) or (2), the Financial Services Commission may impose a penalty surcharge not exceeding five billion won. (Inserted by Act nº 12837, Oct. 15, 2014)

(2) Where a financial company or an electronic financial business entity comes to fall under any of the subparagraphs of Article 43 (2) (excluding cases where a penalty surcharge is imposed under paragraph (1)), the Financial Services Commission may, as prescribed by Presidential Decree, impose a penalty surcharge not exceeding 50 million won in lieu of an order to suspend business. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

(3) The amount of a penalty surcharge for each type, severity, etc. of violations subject to the imposition of a penalty surcharge under paragraph (1) or (2) and other necessary matters shall be prescribed by Presidential Decree. (Amended by Act nº 12837, Oct. 15, 2014)

(4) Where a penalty surcharge under paragraph (1) or (2) is not paid within a prescribed period, the Financial Services Commission shall collect it in the same manner as delinquent national taxes are collected. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 12837, Oct. 15, 2014)

(5) The Financial Services Commission may entrust duties concerning both collection of penalty surcharges and dispositions on default to the Commissioner of the National Tax Service, as prescribed by Presidential Decree. (Amended by Act nº 8863, Feb. 29, 2008; Act nº 12837, Oct. 15, 2014)

Article 46-2 (Refund of Overpayments or Erroneous Payments)

(1) Where a person obliged to pay a penalty surcharge requests a refund of the overpaid or erroneously paid penalty surcharge on grounds of adjudication on the objection or a court ruling, the Financial Services Commission shall, without delay, make a refund thereof, and shall refund the overpaid or erroneously paid penalty surcharge confirmed by the Financial Services Commission, even without a request from the person obliged to pay such penalty surcharge.

(2) If a person entitled to a refund has to pay other penalty surcharges to the Financial Services Commission, the Financial Services Commission may appropriate the refund for such penalty surcharges when making a refund of overpayments or erroneous payments under paragraph (1).

(3) When making a refund of overpayments or erroneous payments under paragraph (1), the Financial Services Commission shall refund additional money calculated by applying the interest rate on additional money prescribed by Presidential Decree, for the period from the day following the payment date of the penalty surcharge to the date of refund.

(Article Inserted by Act nº 11814, May 22, 2013)

CHAPTER VI.- SUPPLEMENTARY PROVISIONS

Article 47 (Statistical Surveys of Electronic Financial Transactions)

(1) The Bank of Korea may conduct a statistical survey of electronic financial businesses and electronic financial transactions to apprehend the current status of electronic financial transactions and to establish and implement effective monetary credit policies. In such cases, it may request necessary data from a government agency, financial company, etc., and a corporation and organization related to electronic financial transactions. (Amended by Act nº 11814, May 22, 2013)

(2) Upon receipt of a request for data under paragraph (1), a government agency, financial company, etc., and a corporation and organization related to electronic financial transactions shall comply with such request unless any just ground exists to the contrary. (Amended by Act nº 11814, May 22, 2013)

(3) Matters necessary for the subject matter, methods and procedures of the statistical survey under paragraph (1) shall be prescribed by Presidential Decree.

Article 48 (Entrustment of Authority)

The Financial Services Commission may entrust the Governor of the Financial Supervisory Service with part of its authority under this Act, as prescribed by Presidential Decree. (Amended by Act nº 8863, Feb. 29, 2008)

CHAPTER VII.- PENALTY PROVISIONS

Article 49 (Penalty Provisions)

(1) Any of the following persons shall be punished by imprisonment with labor for not more than ten years, or by a fine not exceeding 100 million won: (Inserted by Act nº 12837, Oct. 15, 2014)

1. A person who accesses any electronic financial infrastructure or fabricate, destroy, conceal, or leak any stored data, in violation of subparagraph 1 of Article 21-4;

2. A person who destroys any data or installs programs, such as a computer virus, a logic bomb, a mail bomb, in violation of subparagraph 2 of Article 21-4;

3. A person who sends mass signal, high-powered electromagnetic wave or data simultaneously or causes errors or hindrance to electronic financial infrastructure, in violation of subparagraph 3 of Article 21-4;

4. A person who provides or leaks any electronic financial transaction information to any other person or uses such information for any purpose other than his/her duties (including a person issuing an electronic prepayment means applicable mutatis mutandis pursuant to Article 28 (4)), in violation of Article 26.

(2) Any of the following persons shall be punished by imprisonment with labor for not more than seven years, or by a fine not exceeding 50 million won: (Amended by Act nº 11814, May 22, 2013; Act nº 12837, Oct. 15, 2014)

1. A person who forges or alters a means of access;

2. A person who intermediates the sale of, sells, exports, imports, or uses a forged or altered means of access;

3. A person who intermediates the sale of, sells, exports, imports, or uses a lost or stolen means of access;

4. A person who intrudes into any electronic financial infrastructure or any electronic apparatus for electronic financial transactions to acquire a means of access by fraud or other unjustifiable means, or conducts electronic financial transactions by using the means of access so acquired;

5. A person who intermediates the sale of, sells, exports, imports or uses a means of access which was extorted, embezzled, or acquired by deceiving or blackmailing other person;

6. Deleted (By Act nº 12837, Oct. 15, 2014)

(3) Electronic currencies shall be deemed valuable securities with respect to which a person might be charged with any of the crimes prescribed in Articles 214 through 217 of the Criminal Act, and a crime involving with electronic currencies shall be subject to the punishment provided for in each of such Articles, correspondingly. (Amended by Act nº 12837, Oct. 15, 2014)

(4) Any of the following persons shall be punished by imprisonment with labor for not more than three years, or by a fine not exceeding 20 million won: (Amended by Act nº 9325, Dec. 31, 2008; Act nº 13069, Jan. 20, 2015; Act nº 13929, Jan. 27, 2016)

1. Any person who acquires or transfers a means of access in violation of Article 6 (3) 1;

2. Any person who borrows or lends a means of access, or storing, delivering or distributing a means of access, in violation of Article 6 (3) 2 or 3;

3. Any pledger or pledgee who violates Article 6 (3) 4;

4. Any person who arranges or advertises any act in violation of Article 6 (3) 5;

5. Any person who performs the duties without permission or registration under Article 28 or 29;

6. Any person who obtains permission or registration under Article 28 or 29 by fraudulent or other illegal means;

7. Any person who conducts a transaction by electronic currency, etc. under the name of another chain store in violation of Article 37 (3) 3;

8. Any person who has conducted, as an agent, transactions by electronic currency, etc. in violation of Article 37 (3) 5;

9. Any person who conducts a transaction by electronic currency, etc. under the name of another chain store in violation of Article 37 (4);

10. Any person who peruses or is provided with electronic financial transaction information by fraudulent or other illegal means.

(5) Any of the following persons shall be punished by imprisonment with labor for not more than one year, or by a fine not exceeding ten million won:

1. Deleted (By Act nº 9325, Dec. 31, 2008)

2. Deleted; (By Act nº 11814, May 22, 2013)

3. Any person who refuses to provide goods or services, or treats any user unfavorably, on grounds of transaction by electronic currency, etc. in violation of Article 37 (1);

4. Any person who charges a user a merchant fee to be borne by the relevant chain store in violation of Article 37 (2);

5. Any person who lend the name of a chain store to a third party in violation of Article 37 (3) 4;

6. Any person who engages in an activity falling under any subparagraph of Article 45 (1) without authorization under Article 45 (1).

(6) An attempt to commit the crimes referred to in paragraphs (1) 1, 2, and 3 and (2) 1, 2, and 4 shall be subject to punishment. (Amended by Act nº 12837, Oct. 15, 2014)

(7) The imprisonment with labor and fines referred to in paragraphs (1) through (6) may be concurrently imposed.

Article 50 (Joint Penalty Provisions)

(1) If the representative of a corporation, or any agent, employee or other employed persons of a corporation or individual has committed any offence falling under Article 49 (1), (2), (3) (limited to where any person is subject to the punishment prescribed in Article 216 of the Criminal Act) and (4) through (6) in connection with the duties of such corporation or individual, not only shall such offender be punished, but also such corporation or individual shall be punished by the fines prescribed in the relevant Article: Provided, That where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offense, this shall not apply. (Amended by Act nº 12837, Oct. 15, 2014)

(2) If the representative of a corporation, or any agent, employee or other employed persons of a corporation or individual has committed any offense falling under Article 49 (3) (limited to where any person is subject to the punishment prescribed in Article 214, 215, or 217 of the Criminal Act) in connection with the duties of such corporation or individual, not only shall such offender be punished, but also such corporation or individual shall be punished by a fine not exceeding 50 million won: Provided, That where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offense, this shall not apply. (Amended by Act nº 12837, Oct. 15, 2014)

(Article Amended by Act nº 11087, Nov. 14, 2011)

Article 51 (Administrative Fines)

(1) Any of the following persons (in cases falling under subparagraph 3, including persons who issue electronic prepayment means to which the relevant provisions apply mutatis mutandis pursuant to the proviso to Article 28 (4)) shall be subject to an administrative fine not exceeding 50 million won: (Amended by Act nº 12837, Oct. 15, 2014; Act nº 14828, Apr. 18, 2017)

1. A person who fails to either perform his/her duties with the due care of a good manager or comply with the standards determined by the Financial Services Commission, in violation of Article 21 (1) or (2);

2. A person who uses the name ‘electronic currency’, in violation of Article 36;

3. A person who refuses, obstructs or evades an inspection, data submission, a request for attendance and an investigation under Article 39 (3) (including cases where Article 39 (3) applies mutatis mutandis in Article 29 (2)) or Article 40 (3) and (4);

4. A person who fails to submit a report or submits a false report, in violation of Article 42 (1).

(2) Any of following persons (including a person issuing an electronic prepayment means applicable mutatis mutandis pursuant to Article 28 (4), in cases falling under subparagraph 2) shall be subject to an administrative fine not exceeding 20 million won: (Amended by Act nº 12837, Oct. 15, 2014; Act nº 14828, Apr. 18, 2017)

1. A person who fails to have the payment of electronic funds transfer take effect, in violation of Article 13 (2);

2. A person who fails to appoint the chief information security officer or appoint an executive officer as the chief information security officer, in violation of Article 21-2 (1) or (2);

3. A person who has the chief information security officer concurrently perform duties in the information technology sector other than those under Article 21-2 (4) or himself/herself concurrently performs duties in such sector, in violation of paragraph (3) of that Article;

4. A person who fails to analyze and assess the vulnerabilities of the electronic financial infrastructure, in violation of Article 21-3 (1);

5. A person who fails to formulate and implement a plan for complying with complementary measures, in violation Article 21-3 (2);

6. A person who fails to destroy any record of electronic financial transactions, in violation of Article 22 (2);

7. A person who makes a re-entrustment to a third party, in violation of Article 40 (6).

(3) Any of the following persons (including any person issuing an electronic prepayment means applicable mutatis mutandis pursuant to Article 28 (4), in cases falling under subparagraphs 1, 6 through 8, and 10) shall be punished by an administrative fine not exceeding ten million won: (Amended by Act nº 14828, Apr. 18, 2017)

1. Any person who fails to deliver a document stating the details of a transaction, in violation of Article 7 (2);

2. Any person who fails to inform the relevant user of the causes of an error and results of correction, in violation of Article 8 (2) and (3);

3. Any person who transfers an electronic prepayment means or electronic currency to a third party or provides it as a security, in violation of Article 18 (2);

4. Any person who fails to submit a plan for the information technology sector, in violation of Article 21 (4);

5. Any person who fails to report the findings from analysis and assessment of vulnerability in electronic financial infrastructure, in violation of Article 21-3 (1);

6. Any person who fails to inform the Financial Services Commission of an infringement incident, in violation of Article 21-5 (1);

7. Any person who fails to create or keep records in violation of Article 22 (1) (including where it is applicable mutatis mutandis under Article 29 (2));

8. Any person who fails to clarify, explain, deliver, publish or notify the terms and conditions, in violation of Article 24 (1) or (3);

9. Any person who fails to report to the Financial Services Commission, in violation of Article 25 (1);

10. Any person who fails to prepare the procedures for the settlement of disputes, in violation of Article 27 (1);

11. Deleted (By Act nº 14828, Apr. 18, 2017)

12. Any person who fails to keep separate accounts by the category of business provided for in Article 28 (1) and (2), in violation of Article 42 (1).

(4) The administrative fines under paragraphs (1) through (3) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. (Amended by Act nº 14828, Apr. 18, 2017)

(Article Amended by Act nº 11814, May 22, 2013)

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on January 1, 2007.

Article 2 (Transitional Measures concerning Means of Access, etc.)

The means of access and electronic payment means issued as at the time this Act enters into force shall be deemed to have been issued pursuant to this Act.

Article 3 (Transitional Measures concerning Permission and Registration)

(1) Any person who is engaged in issuing or managing electronic currency as at the time this Act enters into force shall obtain permission therefor from the Financial Supervisory Commission pursuant to Article 28 (1) within three months from the date when this Act takes effect.

(2) Any person who is engaged in performing electronic funds transfer services, the issuance and management business of electronic debit payment means or electronic prepayment means or electronic payment settlement agency services, etc. as at the time this Act enters into force shall file a registration with the Financial Supervisory Commission pursuant to Article 28 (2) within six months from the date when this Act takes effect.

(3) Any person who is engaged in the business of electronic bond management agency as at the time this Act enters into force shall file a registration with the Financial Supervisory Commission pursuant to Article 29 within three months from the date when this Act takes effect.

Article 4 Omitted.

ADDENDA (Act nº 8387, Apr. 27, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDA (Act nº 8863, Feb. 29, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 though 5 Omitted.

ADDENDUM (Act nº 9325, Dec. 31, 2008)

This Act shall enter into force three months after the date of its promulgation.

ADDENDA (Act nº 10303, May 17, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 though 10 Omitted.

ADDENDUM (Act nº 11087, Nov. 14, 2011)

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 11407, Mar. 21, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 and 3 Omitted.

ADDENDA (Act nº 11461, Jun. 1, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation.

Articles 2 through 10 Omitted.

ADDENDA (Act nº 11814, May 22, 2013)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Submission of Plans for Information Technology Sector)

The submission of a plan for the information technology sector under the amended provisions of Article 21 (4) shall begin to apply from the business year beginning after this Act enters into force.

Article 3 (Transitional Measures concerning Penalty Provisions and Administrative Fines)

The application of penalty provisions and the imposition of administrative fines for violations committed before this Act enters into force shall be governed by the former provisions.

ADDENDA (Act nº 12837, Oct. 15, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 13 (2) and 21 (2) and (3) shall enter into force one year after the date of its promulgation.

Article 2 (Applicability to Prohibition against Concurrent Position of Chief Information Security Officers)

The amended provisions of Article 21-2 (3) shall apply beginning with the first chief information security officer appointed (including cases where he/she is reappointed) after this Act enters into force.

Article 3 (Applicability to Prohibition against Re-Entrustment of Duties Related to Information Protection)

The amended provisions of Article 40 (6) shall apply beginning with the first case where any duty is re-entrusted or a re-entrustment period is extended after this Act enters into force.

Article 4 (Applicability to Imposition of Penalty Surcharges)

The amended provisions of Article 46 (1) shall apply beginning with the first financial company or electronic financial business entity who commits any violation after this Act enters into force.

Article 5 (Transitional Measures concerning Penalty Provisions and Administrative Fines)

The application of penalty provisions and the imposition of an administrative fine for any violation committed before this Act enters into force shall be governed by the former provisions of this Act.

ADDENDA (Act nº 13069, Jan. 20, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures concerning Penalty Provisions)

The application of penalty provisions to any violation committed before this Act enters into force shall be governed by the former provisions of this Act.

ADDENDUM (Act nº 13929, Jan. 27, 2016)

This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 6-2 shall enter into force six months after the date of its promulgation.

ADDENDUM (Act nº 14132, Mar. 29, 2016)

This Act shall enter into force three months after the date of its promulgation.

ADDENDA (Act nº 14828, Apr. 18, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Notification of Details of Measures against Retired Executive Officer)

The amended provisions of Article 39-2 shall also apply to the executive officers and employees who have committed an violation before this Act enters into force, but resign or retire thereafter.

Article 3 (Transitional Measures concerning Demand for Suspension of Performance of Duties)

Notwithstanding the amended provisions of Article 39 (6) 4 (limited to the suspension of performance of duties), the former provision shall apply to the violations committed before this Act enters into force.

ADDENDA (Act nº 14839, Jul. 26, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 5 of the Addenda, amendments to the Acts which have been promulgated before this Act enters into force, but the enforcement dates of which have not yet arrive, shall enter into force on the enforcement dates of the relevant Acts, respectively.

Articles 2 through 6 Omitted.

09Nov/21

Presidential Decree nº 21698, Aug. 21, 2009. Enforcement Decree of the Framework act on National Informatization

Presidential Decree nº 21698, Aug. 21, 2009. Enforcement Decree of the Framework act on National Informatization. (Amended by Presidential Decree nº 21847, Nov. 26, 2009, Presidential Decree nº 21882, Dec. 14, 2009, Presidential Decree nº 22075, Mar. 15, 2010, Presidential Decree nº 22151, May 4, 2010, Presidential Decree nº 22218, jun. 28, 2010, Presidential Decree nº 22475, Nov. 10, 2010, Presidential Decree nº 23488, Jan. 6, 2012, Presidential Decree nº 24018, Aug. 3, 2012, Presidential Decree nº 24020, Aug. 3, 2012, Presidential Decree n º 24466, Mar. 23, 2013, Presidential Decree nº 24844, Nov. 20, 2013, Presidential Decree nº 25339, Apr. 29, 2014, Presidential Decree nº 25331, Apr. 29, 2014, Presidential Decree nº 25448, Jul. 7, 2014, Presidential Decree nº 25456, Jul. 14, 2014, Presidential Decree nº 25751, Nov. 19, 2014).

ENFORCEMENT DECREE OF THE FRAMEWORK ACT ON NATIONAL INFORMATIZATION

Article 1 (Purpose)

The purpose of this Decree is to stipulate matters delegated by the Framework Act on National Informatization and necessary matters for the enforcement thereof.

Article 2 (Publication of Basic Plans for National Informatization)

The Minister of Science, ICT and Future Planning shall publish a basic plan for national informatization (hereinafter referred to as “basic plan“) confirmed in accordance with Article 6 (2) of the Framework Act on National Informatization (hereinafter referred to as the “Act“) in the official gazette. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 3 Deleted (By Presidential Decree nº 24466, Mar. 23, 2013)

Article 4 (Establishment and Execution of National Informatization Implementation Plans)

(1) The heads of central administrative agencies and the heads of local governments shall each submit to the Minister of Science, ICT and Future Planning, by the deadlines in the following subparagraphs, records pertaining to the execution of an implementation plan for national informatization under Article 7 (1) of the Act (hereinafter referred to as “implementation plan“) carried out during the preceding year and an implementation plan for the next year, and matters concerning modifications to important matters under the latter part of Article 7 (2) of the Act: (Amended by Presidential Decree nº 22218, Jun. 28, 2010; Presidential Decree nº 24466, Mar. 23, 2013)

1. Central administrative agencies: April 30 of each year;

2. Local governments: July 31 of each year.

(2) “Important matters prescribed by Presidential Decree” under the latter part of Article 7 (2) of the Act means those matters having significant influence on the informatization policies of central administrative agencies or local governments which are related to no less than two central administrative agencies or local governments, or require a budgetary measure in excess of an amount determined by the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) The Minister of Science, ICT and Future Planning shall present its examination opinion on the implementation plan of a central administrative agency to the Minister of Strategy and Finance and the head of the relevant central administrative agency by June 30 of each year and examination opinion on the implementation plan of a local government to the Minister of Strategy and Finance and the head of the relevant local government by September 30 of each year, in accordance with Article 7 (3) of the Act. (Amended by Presidential Decree nº 22218, Jun. 28, 2010; Presidential Decree nº 24466, Mar. 23, 2013)

(4) The heads of central administrative agencies and the heads of local governments shall consult with the Minister of Science, ICT and Future Planning in establishing their implementation plan so that the implementation plan is interlinked with the basic plan. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(5) The heads of central administrative agencies and the heads of local governments shall consult in advance with the heads of the relevant administrative agencies when they include matters concerning the protection of information in their implementation plans.

(6) The heads of central administrative agencies and the heads of local governments shall confirm their implementation plan by December 31 of each year after reflecting examination opinions of the Minister of Science, ICT and Future Planning under paragraph (3), unless there is a compelling reason not to do so. (Amended by Presidential Decree nº 22218, Jun. 28, 2010; Presidential Decree nº 24466, Mar. 23, 2013)

Article 5 (Procedures and Methods of Adjustment)

(1) When the heads of central administrative agencies or the heads of local governments request adjustment to the Minister of Science, ICT and Future Planning pursuant to Article 8 (1) of the Act, he/she shall write the following matters clearly:

1. Counterparts of adjustment;

2. National informatization policies or projects requiring adjustment;

3. Matters requiring adjustment.

(2) When the adjustment pursuant to paragraph (1) is required, the Minister of Science, ICT and Future Planning may make a request to the head of an agency requesting adjustment and its counterparts for presentation of opinions or materials with respect to the matters requiring adjustment. In such cases, the head of an agency shall, upon receipt of such request, comply therewith unless there is a compelling reason not to do so.

(3) The Minister of Science, ICT and Future Planning may, where necessary, hear the opinions of the head of an agency related to the matters requiring adjustment and experts in relevant fields.

(Article Amended by Presidential Decree nº 25339, Apr. 29, 2014)

Articles 6 through 9-3 Deleted (By Presidential Decree nº 24466, Mar. 23, 2013)

Articles 10 and 11 Deleted, (By Presidential Decree nº 25339, Apr. 29, 2014)

Article 12 (Operation of Consultative Council of Officials in Charge of Informatization)

(1) To deal with the affairs of the Consultative Council of Officials in Charge of Informatization under Article 12 of the Act (hereinafter referred to as the “Consultative Council”), the Consultative Council may have two secretaries, who shall be each appointed by the Minister of Science, ICT and Future Planning and the Minister of Government Administration and Home Affairs from among public officials belonging to the Senior Civil Service Corps in charge of informatization affairs of the Ministry of Science, ICT and Future Planning and the Ministry of Government Administration and Home Affairs. (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 25751, Nov. 19, 2014)

(2) Each chairperson of the Consultative Council shall represent the Consultative Council and exercise overall control over the affairs thereof. (Inserted by Presidential Decree nº 24466, Mar. 23, 2013)

(3) Where each chairperson of the Consultative Council is unable to perform his/her duties due to unavoidable reasons, members shall act for him/her in the order predetermined by the Consultative Council. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) In addition to those provided for in paragraphs (1) through (3), necessary matters for the operation of the Consultative Council shall be determined jointly by each chairperson of the Consultative Council following deliberation by the Consultative Council. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 13 (Projects, etc. Subject to Implementation of Informatization Plans)

(1) The term “large-scale investment projects prescribed by Presidential Decree” in Article 13 (1) of the Act means large-scale investment projects specified in attached Table 1. (Amended by Presidential Decree nº 24844, Nov. 20, 2013)

(2) The Minister of Science, ICT and Future Planning may recommend the heads of central administrative agencies or local governments who intend to carry out a project, other than the large-scale investment projects listed in attached Table 1, the total cost of which is not less than 10 billion won, to formulate and implement a plan equivalent to the informatization plan under Article 13 (1) of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 24844, Nov. 20, 2013)

(3) The Minister of Science, ICT and Future Planning may determine and publicly notify the guidelines for establishing an informatization plan referred to in Article 13 (1) of the Act. (Amended by Presidential Decree nº 24844, Nov. 20, 2013)

(4) Where requested by the heads of central administrative agencies or local governments, the Minister of Science, ICT and Future Planning may provide support by organizing a technical support team consisting of relevant experts pursuant to Article 13 (4) of the Act, and if deemed necessary, may require the National Information Society Agency referred to in Article 14 of the Act to provide technical support. (Amended by Presidential Decree nº 24844, Nov. 20, 2013)

Article 14 (Operation of the National Information Society Agency)

The National Information Society Agency under Article 14 of the Act may, where necessary to carry out projects, such as the management and operation of an information communications network for national agencies, local governments and public institutions (hereinafter referred to as “national agencies, etc.”), the promotion of informatization projects, and the support for evaluation pursuant to paragraph (3) of the said Article, request the provision of relevant materials from national agencies, etc.

Article 15 (Preparation and Management of Materials on Current Status, etc. of Information Resources)

(1) The heads of national agencies, etc. shall systematically prepare and manage materials on the current status and statistical data on information resources retained by their respective agencies (hereinafter referred to as “materials on the current status, etc. of information resources“) in order to efficiently promote informatization under Article 15 (1) of the Act.

(2) Where necessary to systematically prepare and manage materials on the current status, etc. of information resources under paragraph (1), the heads of national agencies, etc. shall establish an information resources management plan containing the following:

1. Basic direction of the preparation and management of materials on the current status, etc. of information resources;

2. Matters concerning the current status and operation (including entrusted operation) of information resources;

3. Matters concerning the introduction and investment management of information technology;

4. Matters related to securing the safety and reliability of information resources;

5. Other matters necessary for the preparation and management of materials on the current status, etc. of information resources.

(3) The Minister of Science, ICT and Future Planning shall provide necessary support through consultation with the heads of relevant agencies such as the Minister of Government Administration and Home Affairs, in order to efficiently establish the information resources management plan under paragraph (2). (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 25751, Nov. 19, 2014)

Article 16 (Support for Informatization of Private Sectors)

The Government may carry out the following projects to support the informatization of private sectors under Article 17 of the Act:

1. Creating informatization infrastructure for private sectors, such as industry, finance, etc.;

2. Conducting training on informatization for private sectors, such as industry, finance, etc., consulting thereof, and distribution and dissemination of information technology;

3. Other projects necessary for the informatization of private sectors.

Article 17 (Sharing and Distribution of Knowledge and Information)

(1) For the purpose of establishing an infrastructure for sharing and distributing knowledge and information under Article 18 of the Act, national agencies, etc. shall make information retained by their respective agencies available for convenient search and utilization by the public.

(2) The Minister of Science, ICT and Future Planning may provide necessary support, such as the establishment, etc. of standards for the sharing and distribution of knowledge and information, following consultation with the heads of relevant national agencies, etc. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 18 (Common Use of Information among National Agencies, etc.)

(1) For the purpose of creating an infrastructure for sharing and distributing knowledge and information under Article 18 of the Act, the heads of national agencies, etc. may designate a database, among those retained by the national agencies, etc., which is highly useful for dealing with administrative affairs and providing services for the people as the national main database, and may allow other national agencies, etc. to commonly use it in preference to any other database. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) In respect of matters which may be checked through the common use of the national main database, the heads of national agencies, etc. shall reduce, to a minimum level, requests for the presentation of documents required to check the matters in question.

Article 19 (Organization and Operation of Consultative Council with Private Organizations, etc.)

(1) The heads of national agencies, etc. may organize and operate a consultative council (hereinafter referred to as “private consultative council“) with private business operators or an association of private business operators, following consultation with the Minister of Science, ICT and Future Planning pursuant to Article 19 (2) of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The private consultative council shall be chaired by a person appointed or commissioned by the heads of national agencies, etc. which organize and operate the private consultative council under paragraph (1) from among public officials or executives and employees of the relevant national agencies, etc., or the representatives of private business operators and the association of private business operators which constitute the private consultative council.

(3) The chairperson of the private consultative council shall represent the private consultative council and exercise overall control over its affairs.

(4) National agencies, etc. shall endeavor to ensure that opinions presented via the private consultative council are reflected in the establishment and execution of national informatization policies to the greatest extent possible.

(5) Detailed matters necessary for the operation of the private consultative council, such as convening the meetings of the private consultative council, shall be determined by the chairperson of the private consultative council after seeking the opinions of the members of the private consultative council.

Article 20 (Management of Knowledge Information Resources)

The Minister of Science, ICT and Future Planning may formulate guidelines concerning the management of knowledge information resources and give notice thereof to the heads of national agencies or the heads of local governments pursuant to Article 25 (1) of the Act in order to ensure that national agencies and local governments can efficiently and systematically manage the knowledge information resources under their jurisdiction. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 21 (Establishment of Mid- to Long-Term Knowledge Information Resources Management Plans)

(1) The Minister of Science, ICT and Future Planning shall establish a mid- to long-term knowledge information resources management plan under Article 25 (2) of the Act on a five-year basis, and establish an annual implementation plan for the management of knowledge information resources within the scope of the mid- to long-term knowledge information resources management plan. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The Minister of Science, ICT and Future Planning shall confirm and publish the annual implementation plan for the management of knowledge information resources for the following year by September 30 of each year, unless there is a compelling reason not to do so. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) The Minister of Science, ICT and Future Planning shall consult with the Minister of Strategy and Finance on budget-related matters included in the mid- to long-term knowledge information resources management plan and the annual implementation plan for the management of knowledge information under paragraph (1). (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) The Minister of Science, ICT and Future Planning shall ensure that the mid- to long-term knowledge information resources management plan and the annual implementation plan for the management of knowledge information resources under paragraph (1) are interlinked with the basic plan. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(5) Where it is deemed necessary for establishing the mid- to long-term knowledge information resources management plan and the annual implementation plan for the management of knowledge information resources under paragraph (1), the Minister of Science, ICT and Future Planning may request the heads of national agencies or the heads of local governments to submit data on the management of knowledge information resources under their jurisdiction. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 22 (Evaluation of Management of Knowledge Information Resources)

(1) In cases of evaluating central administrative agencies and local governments with respect to their management of knowledge information resources pursuant to Article 25 (2) 5 of the Act, the Minister of Science, ICT and Future Planning shall publicly announce in advance the subjects, criteria and methods of such evaluation. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) An evaluation under paragraph (1) shall contain the following matters:

1. Outcomes of the management of knowledge information resources and comparison of such outcomes among agencies;

2. Current status and utilization of knowledge information resources;

3. Defects and improvement measures;

4. Other matters deemed necessary for the evaluation of the management of knowledge information resources.

(3) Where necessary for the evaluation of the management of knowledge information resources, the Minister of Science, ICT and Future Planning may request the presentation of relevant data from the heads of central administrative agencies and the heads of local governments, or investigate the outcomes of the management of knowledge information resources. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) Where necessary for the investigation of the outcomes of the management of knowledge information resources under paragraph (3), the Minister of Science, ICT and Future Planning may receive support from a specialized institution or relevant expert under Article 28 of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(5) The Minister of Science, ICT and Future Planning shall notify the heads of relevant institutions of the outcomes of the evaluation of the management of knowledge information resources. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 23 (Facilitation of Utilization of Knowledge Information Resources)

(1) The heads of central administrative agencies and the heads of local governments shall endeavor to ensure that citizens can use knowledge information resources, other than such information as may not be disclosed under the proviso to Article 9 (1) of the Official Information Disclosure Act, in an electronic form via information communications networks to an extent not infringing upon the rights protected under relevant Acts, such as the Copyright Act.

(2) The heads of central administrative agencies and the heads of local governments shall endeavor to keep the information provided in an electronic form under paragraph (1) up-to-date, accurate and interlinked by continuous management.

(3) The Minister of Science, ICT and Future Planning may provide knowledge information resources by collecting, interlinking and integrating them in an electronic form in order to facilitate unrestricted access to and use of knowledge information resources. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 24 (Standardization of Knowledge Information Resources)

(1) A specialized institution under Article 28 of the Act or a person having an interest in the standardization of knowledge information resources may present a draft standard concerning the matters under the subparagraphs of Article 26 (1) of the Act, and request the Minister of Science, ICT and Future Planning to reflect the details thereof in the standards. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The Minister of Science, ICT and Future Planning shall, when enacting, amending or repealing standards concerning knowledge information resources, publish such in the official gazette following consultation with the heads of relevant central administrative agencies. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 25 (Designation Procedures for Important Knowledge Information Resources)

(1) The Minister of Science, ICT and Future Planning may designate knowledge information resources under Article 27 (2) of the Act (hereinafter referred to as “important knowledge information resources“) either directly or upon application by the heads of central administrative agencies or the heads of local governments pursuant to Article 27 (1) of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The heads of central administrative agencies or the heads of local governments shall submit the following to the Minister of Science, ICT and Future Planning when making an application for designation as important knowledge information resources pursuant to paragraph (1): (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Purpose and reason for designation;

2. Types and details of the knowledge information resources subject to designation;

3. Management status of the knowledge information resources and management plan of the knowledge information resources subject to designation;

4. Other matters necessary for the designation of important knowledge information resources.

(3) The Minister of Science, ICT and Future Planning may, when intending to designate important knowledge information resources, require a specialized institution under Article 28 of the Act to form an evaluating body consisting of relevant experts and require the evaluating body to investigate and review the relevant knowledge information resources. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) The Minister of Science, ICT and Future Planning shall, when having designated important knowledge information resources under paragraph (1), publish such fact in the Official Gazette. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 26 (Special Management of Important Knowledge Information Resources)

(1) The heads of central administrative agencies and the heads of local governments shall endeavor to ensure that important knowledge information resources are digitized and interlinked to an extent not infringing upon the rights protected under relevant Acts, such as the Copyright Act.

(2) The heads of central administrative agencies and the heads of local governments shall comply with the standards established under Article 26 of the Act in carrying out the digitization and interlinking of important knowledge information resources. In such cases, the Minister of Science, ICT and Future Planning may investigate whether the standards are complied with, and request correction, based on the findings of the investigation. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) The Minister of Science, ICT and Future Planning may render administrative, technical and financial support preferentially for the management of important knowledge information resources. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) For purposes of facilitating the common use and utilization of important knowledge information resources, the Minister of Science, ICT and Future Planning may provide support to national agencies, etc. to jointly digitize and distribute important knowledge information resources, and to provide the services thereof. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 27 (Collection of Knowledge Information Resources)

Where the heads of national agencies, etc. enact or amend statutes under their jurisdiction, or enter into a contract, the Minister of Science, ICT and Future Planning may advise them to include details regarding the collection and utilization of knowledge information resources in a digitized form in such subordinate statutes or contract. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 28 (Designation and Operation of Specialized Institutions)

(1) When the Minister of Science, ICT and Future Planning and the Minister of Government Administration and Home Affairs have designated a specialized institution (hereinafter referred to as the “specialized institution”) under Article 28 of the Act, the Ministers shall publish such fact in the official gazette. (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 25751, Nov. 19, 2014)

(2) The specialized institution shall perform the following affairs for the management of knowledge information resources: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Support for the establishment and implementation of a mid-to long-term knowledge information resources management plan under Article 25 (2) of the Act;

2. Support for the development of management policies of knowledge information resources;

3. Support for the building, operation, management, interlinking, distribution and integration of information systems to facilitate the utilization of knowledge information resources;

4. Support for affairs related to the creation of a classification system, such as assignment of identifiers allowing access to digitized knowledge information resources or distribution thereof via the information communications network;

5. Support for investigations into the management status and actual conditions of knowledge information resources;

6. Support for evaluations of the management of knowledge information resources;

7. Other affairs requested or entrusted by the heads of relevant central administrative agencies and the heads of local governments for the management of knowledge information resources.

(3) The Minister of Science, ICT and Future Planning and the Minister of Government Administration and Home Affairs may require a specialized institution designated and publicly announced under paragraph (1) to establish and submit a detailed project plan for the management of knowledge information resources and a plan for the execution of funds. (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 25751, Nov. 19, 2014)

(4) Where the heads of relevant central administrative agencies and the heads of local governments request or entrust their affairs to a specialized institution, the budget required therefor may be wholly or partially subsidized within budgetary limits.

Article 29 (Advancement of Information Culture)

(1) In order to efficiently implement policies on the advancement and expansion of information culture under Article 29 (1) of the Act, national agencies and local governments may select a private institution or organization related to the project in question and have it carry out the affairs thereof.

(2) National agencies and local governments may provide an institution or organization selected under paragraph (1) with the financial support necessary for implementing policies on the advancement and expansion of information culture. In such cases, an institution or organization which has received financial support shall use it appropriately for the intended purposes of implementing relevant policies.

(3) An institution or organization which intends to receive support from a national agency or local government under paragraph (2) shall apply for support by submitting the following to the national agency or local government:

1. Purpose and details of the project;

2. Necessity and ripple effect of the project;

3. Details of the support it seeks to receive;

4. Expenses to be incurred in conducting the project.

(4) National agencies and local governments shall comprehensively consider the following matters when selecting a private institution or organization under paragraph (1), or selecting an entity eligible to receive support upon receiving an application under paragraph (3) from the selected institutions or organizations:

1. Details and scale of the projects conducted by the relevant institutions or organizations;

2. The relevant institutions or organizations’ capability to implement the projects and recent performance;

3. The social demand for and ripple effect of the relevant policy projects and activities for the advancement and expansion of information culture.

(5) The Minister of Science, ICT and Future Planning may present his/her opinion regarding curriculum to the Minister of Education so that the educational content on information culture may be included in the standards and details of the curriculum pursuant to Article 29 (2) of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(6) Necessary matters for selection under paragraph (1) and the methods, procedures, etc. of support under paragraph (2) shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 30 (Formulation, etc. of Comprehensive Plan for Prevention and Solution of Internet Addiction)

(1) The comprehensive plan for the prevention and solution of Internet addiction under Article 30 (1) of the Act (hereinafter referred to as “comprehensive plan“) shall contain the following: (Amended by Presidential Decree nº 24844, Nov. 20, 2013)

1. The goal and basic direction of comprehensive plan;

2. Analysis of the actual conditions of Internet addiction and the performance of relevant policies;

3. Prospects of and implementation strategies for the prevention and solution of Internet addiction;

4. Research and development for the prevention and solution of Internet addiction;

5. Education, counseling and awareness campaign for the prevention and solution of Internet addiction;

6. Training of specialized human resources for the prevention and solution of Internet addiction;

7. Countermeasures against Internet addiction caused by the use of information communications services utilizing new technology;

8. International cooperation on the prevention and solution of Internet addiction;

9. Other matters necessary for the prevention and solution of Internet addiction.

(2) The heads of relevant central administrative agencies shall prepare plans for policies and projects under their jurisdiction which are to be reflected in the comprehensive plan, and submit it to the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24844, Nov. 20, 2013)

(3) The Minister of Science, ICT and Future Planning shall publicly announce the comprehensive plan on the Internet homepage of the Ministry of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013; Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-2 (Formulation, etc. of Promotion Plan for Prevention and Solution of Internet Addiction)

(1) The Minister of Science, ICT and Future Planning and the head of each relevant central administrative agency shall formulate an implementation plan to prevent and solve Internet addiction under Article 30 (2) of the Act (hereinafter referred to as “implementation plan“) by the end of February each year.

(2) The Minister of Science, ICT and Future Planning shall notify the head of each relevant central administrative agency of the guidelines for formulating an implementation plan by December 15 of the preceding year.

(3) The head of each relevant central administrative agency shall submit an implementation plan formulated pursuant to the guidelines under paragraph (2) as well as performance records of the preceding year to the Minister of Science, ICT and Future Planning by January 31 each year.

(4) The Minister of Science, ICT and Future Planning shall put together the implementation plans submitted pursuant to paragraph (3) and notify it to the head of each relevant administrative agency.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-3 (Standards for Green Internet Certification)

The standards for Green Internet certification referred to in Article 30-3 (3) of the Act shall be determined and publicly notified by the Minister of Science, ICT and Future Planning in accordance with the following classifications:

1. Whether relevant statutes for the prevention and solution of Internet addiction are complied with;

2. Whether the management of the media and content of information communications services for the prevention and solution of Internet addiction is appropriate;

3. Whether the guidelines for diagnostic methods for Internet addiction, counseling centers, etc. are appropriate;

4. Whether other necessary measures for the prevention and solution of Internet addiction are implemented.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-4 (Effective Period of Green Internet Certification)

The effective period of Green Internet certification under Article 30-3 (3) of the Act shall be two years.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-5 (Indication of and Publicity for Green Internet Certification)

(1) The indication of the Green Internet certification mark referred to in Article 30-5 (1) of the Act shall be as specified in attached Table 2.

(2) Where a person who has obtained Green Internet certification publicizes the fact that he/she has obtained such certification under Article 30-5 (1) of the Act, he/she shall indicate the effective period of the certification.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-6 (Establishment, etc. of Internet Addiction Response Center)

(1) The criteria for establishing and operating an Internet Addiction Response Center under Article 30-6 (3) of the Act shall be as specified in attached Table 3.

(2) The State or local governments shall establish and operate an Internet Addiction Response Center in a manner that fulfills the criteria referred to in paragraph (1), and endeavor to secure related budgets and to provide education and conduct management smoothly.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 30-7 (Provision of Education on Internet Addiction)

(1) The term “Other public agencies prescribed by Presidential Decree” referred to in Article 30-8 (2) 4 of the Act means institutions designated by the Minister of Strategy and Finance pursuant to Article 4 (1) of the Act on the Management of Public Institutions.

(2) The heads of the institutions referred to in Article 30-8 (2) of the Act shall provide education on Internet addiction at least once every year.

(3) Education on Internet addiction referred to in paragraph (2) may be provided by various methods, such as lectures and audio-visual education, and the education content shall include the following:

1. The current state and cases of Internet addiction;

2. The methods of prevention and time management against Internet addiction;

3. The method of identifying a harmful Internet environment;

4. Other matters necessary to prevent and solve Internet addiction.

(4) The Minister of Science, ICT and Future Planning may provide necessary textbooks and materials to institutions or organizations that provide education on Internet addition.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31 (Guaranteeing Access to and Use of Information by Persons with Disabilities, Aged Persons, etc.)

The Minister of Science, ICT and Future Planning shall carry out the following matters in order to guarantee accessibility to the websites of national agencies, etc. under Article 32 (1) of the Act: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Fact-finding surveys on accessibility to websites;

2. Standardization of accessibility to websites and support for the development of related technologies;

3. Education and consulting for guaranteeing accessibility to websites;

4. Other matters necessary for guaranteeing accessibility to websites.

Article 31-2 (Criteria for Designating Web Accessibility Quality Certification Institution)

The criteria for designating a Web accessibility quality certification institution referred to in Article 32-2 (1) of the Act (hereinafter referred to as “certification institution“) shall be determined and publicly notified by the Minister of Science, ICT and Future Planning in accordance with the following classifications:

1. Whether it has an organization and human resources necessary for certification business;

2. Whether it has facilities necessary for certification business and environmental conditions necessary for the operation of such facilities;

3. Whether it has internal regulations stipulating the management and operation of human resources, organization, facilities, etc. relating to certification business, as well as the methods and procedures for conducting examination for certification.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-3 (Criteria, Procedures, etc. for Web Accessibility Quality Certification)

(1) The criteria for Web accessibility quality certification referred to in Article 32-2 (1) of the Act (hereinafter referred to as “quality certification“) shall be determined and publicly notified by the Minister of Science, ICT and Future Planning in accordance with the following classifications:

1. All content shall be recognizable by users regardless of disability types, such as visual and hearing impairment;

2. It shall be presented in a manner manageable by users, including visually and aurally impaired persons;

3. Content or control methods shall be structured in a way easily understandable by users;

4. Content shall be made solid so as to be accessible by various methods of technology.

(2) Where a certification institution receives an application for quality certification pursuant to Article 32-2 (3) of the Act, it shall carry out written and technical examinations by applying the criteria for quality certification referred to in paragraph (1).

(3) Where the head of a certification institution deems that the criteria for quality certification are not satisfied as a result of examination, he/she shall inform the applicant of the rejection of the certification and the reason therefor.

(4) Details necessary for Web accessibility quality certification, other than the matters referred to in subparagraphs 1 through 3, shall be determined and publicly notified by the Minister of Science, ICT and Future Planning.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-4 (Effective Period of Web Accessibility Quality Certification)

The effective period of quality certification under Article 32-2 of the Act shall be one year.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-5 (Certification Institution’s Business Procedures)

(1) Where the name, representative, location, examination specialist or business regulations of a certification institution are altered, the certification institution shall submit a document verifying the details of such alteration to the Minister of Science, ICT and Future Planning, within 30 days from the date of alteration.

(2) A certification institution shall submit a report on certification records of the preceding year to the Minister of Science, ICT and Future Planning by January 31 each year.

(3) The Minister of Science, ICT and Future Planning may require a certification institution to submit necessary materials, or conduct an on-the-spot inspection to ascertain whether the certification institution falls under any subparagraph of Article 32-3 (1) of the Act.

(4) When a certification institution is unable to carry out business as a certification institution due to discontinuance, suspension, etc. of its business, it shall inform the Minister of Science, ICT and Future Planning of such fact without delay.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-6 (Fees)

The standards for fees which a certification institution receives from applicants for quality certification shall be determined by the Minister of Science, ICT and Future Planning, taking into account the number of certification examiners participating in certification examination, the period necessary for certification examination, etc.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-7 (Revocation of Designation, etc. as Certification Institution)

(1) The criteria for the revocation of designation, business suspension, etc. of a certification institution referred to in Article 32-3 (2) of the Act shall be as specified in attached Table 4.

(2) Where the Minister of Science, ICT and Future Planning intends to revoke the designation of a certification institution or to order business suspension thereof pursuant to Article 32-3 of the Act, he/she shall hold a hearing, and where the designation has been revoked or business suspension has been ordered, he/she shall publish such fact in an official gazette.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 31-8 (Indication of and Publicity for Web Accessibility Quality Certification)

(1) The indication of Web accessibility quality certification referred to in Article 32-4 (1) of the Act shall be as specified in attached Table 5.

(2) Where a person who has obtained web accessibility quality certification intends to indicate or publicize the details of certification pursuant to Article 32-4 (1) of the Act, he/she shall indicate the scope and the effective period of certification.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 32 (Support of Business Operators Related to Narrowing of Digital Divide)

(1) A business operator who intends to receive support from a national agency or local government under Article 33 (2) of the Act shall apply for support by submitting the necessary matters under the following classifications to the national agency or local government:

1. A business operator who develops and produces information communications equipment and software (hereinafter referred to as “information communications products“) for improving access to information by persons with disabilities, aged persons, etc. and the related user environment: Details of the information communications products in question and the details of financial and technical support applied for;

2. A business operator who provides content for persons with disabilities, aged persons, farmers, fishermen and low-income earners: Details of the information communications products in question and the details of financial and technical support applied for;

3. A business operator who develops and distributes relevant technology under Article 33 (1) of the Act (hereinafter referred to as “technology related to narrowing of the digital divide“): Details of the technology related to narrowing of the digital divide in question and the details of financial and technical support applied for.

(2) Upon receiving an application under paragraph (1), national agencies and local governments shall comprehensively consider the following matters when selecting a person eligible to receive support:

1. A business operator’s record of performance on the development, production and provision of information communications products and content and on the development of technologies related to narrowing of the digital divide;

2. Usefulness of information communications products, content, or technologies related to narrowing of the digital divide which a business operator intends to develop, produce, provide and distribute;

3. Appropriateness of the production plan of information communications products, provision plan of content, and development plan of the technologies related to narrowing of the digital divide.

(3) Necessary matters for the methods and procedures of applying for support under paragraph (1) shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 33 (Support, etc. of Information Communications Products)

(1) “Persons prescribed by Presidential Decree” in subparagraph 3 of Article 34 of the Act means the following persons: (Amended by Presidential Decree nº 24018, Aug. 3, 2012; Presidential Decree nº 24020, Aug. 3, 2012)

1. Children subject to protection under subparagraph 4 of Article 3 of the Child Welfare Act;

2. Persons who have received rating of injury between grade one to seven, among persons of distinguished service to the State who are registered under Article 6 of the Act on the Honorable Treatment and Support of Persons, etc. of Distinguished Service to the State;

3. Immigrants by marriage, etc. under subparagraph 2 of Article 2 of the Multicultural Families Support Act;

4. Persons who are currently receiving social welfare services under subparagraph 6 of Article 2 of the Social Welfare Services Act from social welfare foundations or social welfare facilities under subparagraph 3 or 4 of Article 2 of the same Act;

5. Other persons deemed necessary by a national agency or local government for the improvement of access to information and user environment.

(2) National agencies and local governments shall comprehensively consider the following matters in providing information communications products under Article 34 of the Act:

1. Usability of information communications products;

2. Capability of a person eligible to receive support to use information communications products;

3. Economic conditions of a person eligible to receive support.

(3) Where it is inevitable for the performance of business affairs for the support of information communications products under Article 34 of the Act, national agencies and local governments may process materials containing resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act. (Inserted by Presidential Decree nº 23488, Jan. 6, 2012)

Article 34 (Targets and Types, etc. of Education for Narrowing Digital Divide)

(1) “Persons prescribed by Presidential Decree” in Article 35 (2) 1 of the Act means persons with disabilities under Article 2 (1) of the Enforcement Decree of the Act on Welfare of Persons with Disabilities.

(2) “Persons prescribed by Presidential Decree” in Article 35 (2) 4 of the Act means the following persons: (Amended by Presidential Decree nº 21847, Nov. 26, 2009; Presidential Decreenº 24018, Aug. 3, 2012; Presidential Decree nº 24020, Aug. 3, 2012)

1. Children subject to protection under subparagraph 4 of Article 3 of the Child Welfare Act;

2. The aged under subparagraph 1 of Article 2 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion;

3. Immigrants by marriage, etc. under subparagraph 2 of Article 2 of the Multicultural Families Support Act;

4. Persons under protection at single-parent family welfare facilities under Article 19 (1) of the Single-Parent Family Support Act;

5. Farmers and fishermen under subparagraph 2 of Article 3 of the Framework Act on Agriculture and Fisheries, Rural Community, and Food Industry;

6. Deleted.; (By Presidential Decree nº 21847, Nov. 26, 2009)

7. Other persons deemed necessary by a national agency or local government for narrowing of the digital divide.

(3) The targets of education for narrowing the digital divide under Article 35 (4) of the Act shall be persons falling under any subparagraph of Article 35 (2) of the Act.

(4) The types of education for narrowing the digital divide under Article 35 (4) of the Act shall be as follows:

1. Basic education concerning computers and the Internet, etc.;

2. Education concerning how to search, process and produce necessary information utilizing computers and the Internet, etc.;

3. Other education deemed necessary by a national agency or local government.

Article 35 (Supplementation, etc. of Information Protection System)

(1) The Minister of Science, ICT and Future Planning shall consult in advance with the heads of relevant agencies when the Minister establishes standards for the performance and reliability of information protection systems under Article 38 (1) of the Act, or determines detailed matters on the affairs of evaluating or certifying whether such standards are complied with. In such cases, where the head of a relevant agency determines the detailed matters on certification affairs and gives notice thereof to the Minister of Science, ICT and Future Planning, the consultation thereof shall be deemed to have undergone. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) When a person who manufactures or imports information protection systems requests confirmation of whether the said systems comply with the standards under Article 38 (1) of the Act, the Minister of Science, ICT and Future Planning may require the President of the Korea Internet and Security Agency under Article 52 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., or the head of any institution meeting the standards under relevant international conventions to investigate, test or evaluate the said systems. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) A person who requests an investigation, test or evaluation under paragraph (2) shall pay the fees determined by the President of the Korea Internet and Security Agency or the head of any institution meeting the standards under relevant international conventions pursuant to the standards prescribed and published by the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 36 (Establishment of Sound Information Communications Ethics)

(1) The Minister of Science, ICT and Future Planning may advise the heads of national agencies, etc. who have installed equipment which allows many unspecified persons to search, save, send and receive information using information communications networks to install and supplement relevant equipment or software which prevents access to unwholesome information, such as obscene materials, violent materials, etc., in accordance with Article 40 of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The Minister of Science, ICT and Future Planning may establish and publish standards for managerial and technical measures, etc. required for the wholesome use of the information communications services by juveniles under Article 40 of the Act, and advise the providers of information communications services under Article 2 (1) 3 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc. (hereinafter referred to as “providers of information communications services“) to comply with the said standards. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 37 (Prevention, etc. of Harm to Users)

Where necessary to prevent harm to life, body and property resulting from information communications-related equipment and services provided for users under Article 41 (1) 3 of the Act, the Minister of Science, ICT and Future Planning may establish standards to prevent harm to users caused by information communications-related equipment and services, and standards to indicate the use, cautions for use, etc. of information communications-related equipment and services, thereby advising the manufacturers and importers of information communications-related equipment, or the providers of information communications services, etc. to comply with the said standards. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 38 (Fact-Finding Surveys)

(1) “Matters prescribed by Presidential Decree” under Article 43 (2) 4 of the Act means the following: (Amended by Presidential Decree nº 22151, May 4, 2010; Presidential Decree nº 24466, Mar. 23, 2013)

1. Actual conditions related to the execution of national informatization by national agencies, etc.;

2. Actual conditions related to support provided by national agencies, etc. for the informatization of private sectors;

3. Actual conditions related to information culture concerning the utilization and use patterns of information communications services and information communications products;

4. Actual conditions related to the digital divide concerning access, retention, use, etc. of information communications services and information communications products;

5. Actual conditions related to the addiction of the users of information communications services, such as the Internet, mobile phone, etc. and information communications products ;

6. Actual conditions related to the introduction and operation of information technology architectures under subparagraph 12 of Article 2 of the Electronic Government Act and the record of performance thereof;

7. Current status of the volume of knowledge information resources retained by national agencies, etc. and the digitization thereof;

8. Current status of the management of knowledge information resources and important knowledge information resources by national agencies, etc.;

9. Other matters concerning national informatization which are deemed necessary by the Minister of Science, ICT and Future Planning.

(2) The Minister of Science, ICT and Future Planning may annually directly conduct surveys of national agencies, etc., the public, private enterprises and associations or request the submission of necessary data thereto, if necessary for fact-finding surveys under Article 43 (2) of the Act. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 39 (Development and Distribution of Indices)

The Minister of Science, ICT and Future Planning shall develop and distribute the following indices under Article 44 of the Act: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Indices by which the level of national informatization may be measured;

2. Indices by which the level of information culture may be measured;

3. Other indices necessary for the management of national informatization and knowledge information resources, and narrowing of the digital divide.

Article 39-2 (Entrustment of Business relating to Green Internet Certification)

The Minister of Science, ICT and Future Planning shall entrust the following affairs, among business affairs relating to Green Internet certification, to the National Information Society Agency pursuant to Article 46 (2) 1 of the Act:

1. Acceptance of applications for Green Internet certification;

2. Examination for Green Internet certification;

3. Issuance of Green Internet certificates;

4. Management concerning the use of the Green Internet certification mark.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

Article 40 (Sectors, etc. for which Dedicated Institution can be Designated)

(1) Sectors for which the Minister of Science, ICT and Future Planning may designate a dedicated institution under Article 48 (1) of the Act (hereinafter referred to as “dedicated institution“) are as follows: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Building and management of the national information super-highway under Article 49 (1) of the Act;

2. Projects for broadband integrated research and development networks to build a B-ISDN;

3. Leading projects for verifying new technology on B-ISDN, such as the future Internet, etc.;

4. Application technology development projects for broadband integrated information communications;

5. Pilot area projects for quality control of B-ISDN and the enhancement of LAN;

6. Establishment of joint support facilities for promoting the building of B-ISDN infrastructure;

7. Core technology development projects for the building of B-ISDN;

8. Public relations projects for the public;

9. Research projects on laws and institutions;

10. International cooperation projects;

11. Development projects related to platform technology for competitiveness;

12. Pilot projects for facilitating the building of B-ISDN infrastructure and for revitalizing the use thereof;

13. Other projects necessary for facilitating the building and use of B-ISDN infrastructure.

(2) The head of a dedicated institution shall establish a detailed project plan and funds execution plan for each designated sector and submit it to the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) Matters necessary for the performance of dedicated institution’s affairs, such as project management, etc. shall be prescribed by the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 41 (Building and Management of National Information Super-Highway)

(1) A dedicated institution shall carry out the following affairs when building and managing the national information super-highway pursuant to Article 49 (1) and (3) of the Act: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Establishment of detailed project plans for the building and operation of the national information super-highway;

2. Establishment, execution and management of government-contributed financial resources;

3. Building, operation, maintenance and repair of the national information super-highway;

4. Surveys on demand for the national information super-highway and the establishment of a utilization plan thereof;

5. Ensuring the security of the national information super-highway;

6. Other affairs deemed necessary by the Minister of Science, ICT and Future Planning for the building and operation of the national information super-highway.

(2) The head of a dedicated institution may require a key communications business operator to implement part of the following affairs in order to efficiently carry out the affairs under paragraph (1) 3: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Design and building of the national information super-highway;

2. Operation of the national information super-highway;

3. Maintenance and repair of the national information super-highway and the efficient recovery from obstacles that arise;

4. Imposition, collection and management of charges to/from agencies using the national information super-highway;

5. Other affairs deemed necessary by the Minister of Science, ICT and Future Planning for the efficient building and operation of the national information super-highway.

(3) The head of a dedicated institution shall determine the standards, procedures, etc. of selecting key communications business operators capable of efficiently carrying out relevant affairs and obtain approval therefor from the Minister of Science, ICT and Future Planning when he/she requires a key communications business operator to implement part of the affairs under paragraph (2). (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) The head of a dedicated institution shall determine agencies, conditions, etc. for the use of the national information super-highway and obtain approval therefor from the Minister of Science, ICT and Future Planning. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 42 (Scope of Non-Profit Organizations)

Non-profit organizations prescribed by Presidential Decree” under Article 49 (1) of the Act means the following organizations: (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

1. Schools of any level established under the Elementary and Secondary Education Act, Higher Education Act and other Acts;

2. Research institutions which are non-profit corporations;

3. Medical institutions established by any person prescribed under the provisions of Article 33 (2) 2 through 4 of the Medical Service Act, the National Health Insurance Corporation established under the National Health Insurance Act, and the National Pension Service under the National Pension Act;

4. Museums and art galleries under the Museum and Art Gallery Support Act;

5. Libraries under the Libraries Act;

6. Other non-profit organizations deemed necessary by the Minister of Science, ICT and Future Planning for facilitating the building and use of the national information super-highway.

Article 43 (Requests, etc. for Construction or Lease of Conduits, etc.)

(1) Key communications business operators, etc. under Article 51 (2) of the Act (hereinafter referred to as “key communication business operators, etc.”) shall, when they request the construction of conduits, common utility ducts, electric poles, etc. (hereinafter referred to as “conduits, etc.”), consult in advance with other key communication business operators, etc. regarding demand for conduits, etc.

(2) Where an agency which constructs, operates and manages roads, railroads, subways, waterworks and sewerage, electrical facilities, telecommunications circuit facilities, etc. (hereinafter referred to as “facilities management agency“) is requested to construct or lease conduits, etc. under Article 51 (2) of the Act, the agency shall endeavor to enter into an agreement related to such construction or lease with key communications business operators, etc. within three months from the date of receiving such request, unless there is a compelling reason not to do so to the extent that it does not impede the proper business purpose of a facilities management agency.

Article 44 (Requests for Mediation and Deliberation)

(1) Key communications business operators, etc. may submit a request for mediation to the Minister of Science, ICT and Future Planning under Article 51 (3) of the Act if an agreement between a key communications business operator, etc. and a facilities management agency is not concluded within the period specified in Article 43 (2), or such an agreement cannot be concluded. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(2) The Minister of Science, ICT and Future Planning shall hear the opinions of the parties involved and may investigate the facts where necessary, when conducting mediation on the construction or lease of conduits, etc. upon receiving a request for mediation under paragraph (1). (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(3) In conducting mediation under paragraph (2), where the Minister of Science, ICT and Future Planning determines that a failure to reach an agreement between the parties appears severely detrimental to public interest, the Minister may make a mediatory decision for the conclusion of a fair agreement through consultation with the heads of relevant central administrative agencies, taking account of the interests, etc. of the parties involved. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

(4) Where the Minister of Science, ICT and Future Planning has made a mediatory decision under paragraph (3), the parties involved shall comply with the mediatory decision unless there is a compelling reason not to do so. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 45 (Requests for Mediation on Construction or Lease of Conduits, etc.)

A person who intends to request mediation on an agreement for construction or lease of conduits, etc. under Article 44 (1) shall submit to the Minister of Science, ICT and Future Planning a request for mediation on an agreement for the construction, etc. of conduits, etc. accompanied with documents concerning the agreement history and execution status. (Amended by Presidential Decree nº 24466, Mar. 23, 2013)

Article 46 (Imposition of Administrative Fine)

The criteria for the imposition of administrative fine referred to in Article 47 (1) and (2) of the Act shall be as specified in attached Table 6.

(Article Inserted by Presidential Decree nº 24844, Nov. 20, 2013)

ADDENDA

Article 1 (Enforcement Date)

This Decree shall enter into force on August 23, 2009.

Article 2 (Repeal of other Statutes)

The following Acts and subordinate statutes are hereby each repealed:

1. Enforcement Decree of the Act on Narrowing of the Digital Divide;

2. Enforcement Decree of the Knowledge Information Resource Management Act.

Article 3 Omitted.

Article 4 (Relationship to other Statutes)

Where other statutes cite the former Enforcement Decree of the Framework Act on Informatization Promotion, the former Enforcement Decree of the Act on Narrowing of the Digital Divide, the former Enforcement Decree of the Knowledge Information Resource Management Act or the provisions thereunder at the time this Decree enters into force, this Decree or the relevant provisions of this Decree shall be deemed cited in lieu of the former provisions if the provisions corresponding thereto exist in this Decree.

ADDENDA (Presidential Decree nº 21847, Nov. 26, 2009)

Article 1 (Enforcement Date)

This Decree shall enter into force on November 28, 2009.

Articles 2 through 6 Omitted.

ADDENDA (Presidential Decree nº 21882, Dec. 14, 2009)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDA (Presidential Decree nº 22075, Mar. 15, 2010)

Article 1 (Enforcement Date)

This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)

Article 2 Omitted.

ADDENDA (Presidential Decreenº. 22151, May 4, 2010)

Article 1 (Enforcement Date)

This Decree shall enter into force on May 5, 2010.

Articles 2 through 4 Omitted.

ADDENDA (Presidential Decree nº 22218, Jun, 28, 2010)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation.

Articles 2 (Applicability concerning Establishment of Implementation Plans for National Informatization)

The amended provisions of Article 4 shall also apply to an implementation plan for which establishment procedures are still in progress at the time this Decree enters into force.

ADDENDUM (Presidential Decree nº 22475, Nov. 10, 2010)

This Decree shall enter into force on the date of its promulgation.

ADDENDA (Presidential Decree nº 23488, Jan. 6, 2012)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)

Article 2 Omitted.

ADDENDA (Presidential Decree nº 24018, Aug. 3, 2012)

Article 1 (Enforcement Date)

This Decree shall enter into force on August 5, 2012.

Articles 2 through 7 Omitted.

ADDENDA (Presidential Decree nº 24020, Aug. 3, 2012)

Article 1 (Enforcement Date)

This Decree shall enter into force on August 5, 2012. (Proviso Omitted.)

Articles 2 and 3 Omitted.

ADDENDA (Presidential Decree nº 24466, Mar. 23, 2013)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation.

Article 2 Omitted.

ADDENDUM (Presidential Decree nº 24844, Nov. 20, 2013)

This Decree shall enter into force on November 23, 2013.

ADDENDUM (Presidential Decree nº 25331, Apr. 29, 2014)

This Decree shall enter into force on the date of its promulgation.

ADDENDA (Presidential Decree nº 25339, Apr. 29, 201)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation.

Articles 2 and 3 Omitted.

ADDENDA (Presidential Decree nº 25448, Jul. 7, 2014)

Article 1 (Enforcement Date)

This Decree shall enter into force on July 8, 2014.

Articles 2 through 4 Omitted.

ADDENDA (Presidential Decree nº 25456, Jul. 14, 2014)

Article 1 (Enforcement Date)

This Decree shall enter into force on July 15, 2014.

Articles 2 through 6 Omitted.

ADDENDA (Presidential Decree nº 25751, Nov. 19, 2014)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees which are amended according to Article 5 of Addenda, each amended part of the Decree, which is promulgated before this Decree enters into force but of which the enforcement date has not come, shall enter into force on the date of the promulgation of the relevant Presidential Decree.

Articles 2 through 5 Omitted.

08Nov/21

Act nº 432, January 28, 1957. Copyright Act 1957

Act nº 432, January 28, 1957. Copyright Act 1957. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9529, Mar. 25, 2009; Act nº 9625, Apr. 22, 2009; Act nº 9785, Jul. 31, 2009; Act nº 10807, Jun. 30, 2011; Act nº 11110, Dec. 2, 2011; Act nº 11903 Jul. 16, 2013; Act nº 12137, Dec. 30, 2013; Act nº 13978, Feb. 3, 2016; Act nº 14083, Mar. 22, 2016; Act nº 14432, Dec. 20, 2016; Act nº 14634, Mar. 21, 2017) .

COPYRIGHT ACT

Expand Act nº 14634, Mar. 21, 2017

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)          

The purpose of this Act is to protect the rights of authors and the rights neighboring on them and to promote fair use of works in order to contribute to the improvement and development of culture and related industries. (Amended by Act nº 9625, Apr. 22, 2009)

Article 2 (Definitions)

The terms used in this Act shall be defined as follows: (Amended by Act nº 9625, Apr. 22, 2009; Act nº 10807, Jun. 30, 2011; Act nº 11110, Dec. 2, 2011; Act nº 14083, Mar. 22, 2016)

1. The term “work” means a creative production that expresses human thoughts and emotions;

2. The term “author” means a person who creates a work;

3. The term “public performance” means to present to the public works, performances, phonograms or broadcasts by acting, musical playing, singing, narrating, reciting, screening, playback or other means, including transmission (excluding interactive transmission) made in the connected premises in the possession of one and the same person;

4. The term “performer” means a person who gives a stage performance by expressing works through acting, dancing, musical playing, singing, narrating, reciting or other artistic means or by expressing things other than works in a similar way, including a person who conducts, directs or supervises a stage performance;

5. The term “phonogram” means the medium in which the sound (referring to voice or sound; the same hereinafter) is fixed (including a digitalized sound): Provided, That excluding the sound fixed along with images;

6. The term “phonogram producer” means a person who makes an overall plan and takes charge of producing an original phonogram;

7. The term “public transmission” means transmitting works, stage performances, phonograms, broadcasts or database (hereinafter referred to as “works, etc.”) by making such available to the public by wire or wireless means so that the public may receive them or have access to them;

8. The term “broadcasting” means, among the public transmission, transmitting sound or image, or sound and image so that the public may receive it at the same time;

8-2. The term “encrypted broadcasting signal” means electronically encrypted broadcasting signals originated by a broadcasting organization or a person who has obtained consent from a broadcasting organization for the purpose to prevent or hinder from receiving broadcasting (limited to broadcasting by means of radio or satellite communications) without authorization;

9. The term “broadcast organization” means a person who engages in broadcasting business;

10. The term “interactive transmission” means, among types of public transmission, to make works, etc. available for the public so that the members of the public may have access at the time and place of their own choice, including transmission to be done accordingly;

11. The term “digital sound transmission” means, among types of public transmission, the transmission of sound in the digital form initiated at the request of the members of the public for the purpose of having the public receive simultaneously among the public transmission, excluding interactive transmission;

12. The term “digital sound transmission organizations” means a person who engages in digital sound transmission business;

13. The term “cinematographic work” means a creative production in which a series of images (regardless of whether accompanied by sound) are recorded, and which may be played by mechanical or electronic devices to be seen, or seen and heard through a reproduction;

14.  The term “producer of cinematographic works” means one who plans and takes responsibility for the whole in the production of cinematographic works;

15. The term “works of applied art” means the works of art that may be reproduced in the same shapes as article, and whose originality may be recognized apart from the articles used for reproduction. And designs, etc. are included;

16. The term “computer program work” means a creation expressed in a series of instructions or command which are directly or indirectly applied within devices having a capability of processing information, such as a computer (hereinafter referred to as “computer”), in order to obtain certain results;

17. The term “compilation” means the collections of works, symbols, letters, sounds, images and other forms of data (hereinafter referred to as “materials”), but shall include the database;

18. The term “compilation works” means the compilations which are of creative nature in terms of selection, arrangement or composition of their materials;

19. The term “database” means compilation whose materials are systematically arranged or composed, so that they may be individually accessed or retrieved;

20. The term “producer of database” means one who has made a substantial investment in human or material resource for the production of database, or for the renewal, verification or supplement of their materials (hereinafter referred to as “renewal, etc.”);

21. The term “joint works” means the works jointly created by two or more persons, and of which the part of their contributions may not be separately exploited;

22. The term “reproduction” means the temporary or permanent fixation of works in a tangible medium or a remaking of works by means of printing, photographing, copying, sound or visual recording, or other means; in cases of architectural structures, it includes carrying out construction of works in accordance with the models or plans for the relevant construction works;

23. The term “distribution” means a transfer by assignment or lending of the original or its reproduction etc. to the public for free or at charge;

24. The term “publication” means a reproduction and distribution of the works or phonograms to meet public demand;

25. The term “making works public” means to make the works open to the public by means of public performance, public transmission, or exhibit and by other means, and to publish the works;

26. The term “copyright trust service” means a business which continuously manages rights on behalf of the holder of economic rights of author, an exclusive publication right, publication right, or neighboring right or a person who has the right as a database producer, and which includes the case of a general agent regarding exploitation of works;

27. The term “copyright agency or brokerage service” means a business which acts as an agent or a broker on behalf of the holder of economic rights of author, an exclusive right of publication, publication right, or neighboring right or a person who has the right as a database producer, regarding exploitation of works;

28. The term “technological protection measures” means either of the following measures:

(a) Technological measures taken by a right holder or a person who has obtained the said holder’s consent, in order to effectively prevent or control the access to works, etc. protected under this Act, in relation to the exercise of copyright or other rights protected pursuant to this Act;

(b) Technological measures taken by a right holder or a person who has obtained the said holder’s consent in order to effectively prevent or restrict an act of infringing copyright or other rights protected pursuant to this Act;

29. The term “rights management information” means any of the following information or the numerals or symbols representing the said information, where each information is attached to the original or copies of the works, etc. protected by copyright or other rights protected pursuant to this Act, or is accompanied with public performance, implementation or public transmission thereof:

(a) Information to identify the works, etc.;

(b) Information to identify a person who has copyright or other rights protected pursuant to this Act;

(c) Information relating to the methods and conditions of the use of works, etc.;

30. The term “online service provider” means either of the following persons:

(a) A person who transmits, designates a route of, or provides connections to the works, etc. selected by users to deliver such works, etc. without any modification of their content through the information and communications networks (referring to the information and communications networks under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.; hereinafter the same shall apply) between the points designated by users;

(b) A person who provides the services to allow users to access the information and communications networks or reproduce or interactively transmit the works, etc. through the information and communications networks, or who provides or operates facilities therefor;

31. The term “work made for hire” means a work made by an employee of a legal person, organization or other employers (hereinafter referred to as “juristic person, etc.”) during the course of his or her duties and on the initiative of legal person etc.;

32. The term “public” means a large number of unspecified persons (including a large number of specified persons);

33. The term “authentication” means to verify the justifiable holder of right for authorization of use of the works, etc.;

34. The term “decompilation of program code” means to reproduce or convert computer program work code in order to obtain information necessary for compatibility of independently created computer program works with other computer programs;

35. The term “label” means a sign to be attached, enclosed or added, or a sign devised for such purposes, to tangible copies, packages or documents of works, etc. in order to indicate that such copies have been produced with legitimate authority;

36. The term “movie theater, etc.” means movie theaters, premier theaters or other places to screen cinematographic works to the public, the entrance to which is controlled by a person who screen such works.

Article 2-2 (Formulation of Measures for Protection of Copyright)

(1) The Minister of Culture, Sports and Tourism may formulate and execute the following measures to achieve the purposes of this Act:

1. Matters concerning a basic policy for the protection of copyright and creation of an environment for fair use of works;

2. Matters concerning education and publicity for raising public awareness of copyright;

3. Matters concerning policies for the rights management information of works, etc. and for technological protection measures thereof.

(2) Matters necessary for formulation and enforcement of policies pursuant to paragraph (1) shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 3 (Foreigners’ Works)      

(1) Foreigners’ works shall be protected in accordance with the treaties which the Republic of Korea has acceded to or concluded.

(2) The works of foreigners who permanently reside in the Republic of Korea (including stateless persons and foreign legal persons whose principal offices are located in the Republic of Korea), or foreigners’ works which are first made public in the Republic of Korea (including works made public in the Republic of Korea within 30 days after their making public in a foreign country) shall be protected under this Act.

(3) Even when foreigners’ works are to be protected under paragraphs (1) and (2) (excluding foreigners who permanently reside in the Republic of Korea and stateless persons; hereinafter the same shall apply in this Article), if the relevant foreign country does not protect the works of the nationals of the Republic of Korea, their protection under treaties and this Act may be correspondingly restricted. (Amended by Act nº 10807, Jun. 30, 2011)

(4) Even in cases of foreigners’ works protected pursuant to paragraphs (1) and (2), where the period of protection has expired in the relevant foreign country, the period of protection under this Act shall not be recognized. (Inserted by Act nº 10807, Jun. 30, 2011)

CHAPTER II.- COPYRIGHT

SECTION 1.- Works

Article 4 (Examples of Works)     

(1) The following shall be the examples of works referred to in this Act:

1. Novels, poems, theses, lectures, speeches, plays and other literary works;

2. Musical works;

3. Theatrical works including dramas, choreographies, pantomimes, etc.;

4. Paintings, calligraphic works, sculptures, printmaking, crafts, works of applied art, and other works of art;

5. Architectural works including buildings, architectural models and design drawings;

6. Photographic works (including those produced by similar methods);

7. Cinematographic works;

8. Maps, charts, design drawings, sketches, models and other diagrammatic works;

9. Computer program works.

(2) Deleted. (by Act nº 9625, Apr. 22, 2009)

Article 5 (Derivative Works)         

(1) A creative work produced by means of translation, arrangement, alteration, dramatization, cinematization, etc. of an original work (hereinafter referred to as a “derivative work”) shall be protected as an independent work.

(2) The protection of a derivative work shall not affect the rights of the author of the original work.

Article 6 (Compilation Works)     

(1) Compilation works shall be protected as independent works.

(2) The protection of compilation works shall not affect the copyright of materials constituting such compilation work and other rights protected under this Act.

Article 7 (Works Not Protected)  

No work which falls under any of the following subparagraphs shall be protected under this Act:

1. Constitution, Acts, treaties, decrees, and municipal ordinances and rules;

2. Bulletins, public notifications, directives and others similar thereto which are issued by the central or local government;

3. Judgments, decisions, orders, or adjudications of courts, as well as rulings and decisions made by the administrative appeals procedures, or other similar procedures;

4. Compilations or translations of works as referred to in subparagraphs 1 through 3 which are produced by the central or local government;

5. Current news reporting which delivers simple facts.

SECTION 2.- Authors

Article 8 (Presumption of Authors, etc.)  

(1) Any person who falls under any of the following subparagraphs shall be presumed to have the copyright for his or her works as an author: (Amended by Act nº 10807, Jun. 30, 2011)

1.A person whose real name or well-known pseudonym (referring to the stage name, pen name, abbreviated name, etc.; hereinafter the same shall apply) is indicated as the name of the author in a usual manner on the original or copies of a work;

2.A person whose real name or well-known pseudonym is indicated as the name of the author in the public performance or public transmission of a work.

(2)If the name of the author is not indicated as prescribed under any of the subparagraphs of paragraph (1), the person who is indicated as a publisher, public performer or a person making the work public shall be presumed to have the copyright. (Amended by Act nº 9625, Apr. 22, 2009)

Article 9 (Author of Works Made for Hire)             

The authorship of a work made for hire which is made by an employee of a legal person, etc. during the course of his duties and is made public under the name of such a legal person, etc. as the author shall be attributed to that legal person, etc., unless otherwise stipulated in the contract or work regulation, etc.: Provided, That in cases of a computer program work (hereinafter referred to as “program”), being made public is not required. (Amended by Act nº 9625, Apr. 22, 2009)

Article 10 (Copyright)     

(1) The author shall hold the rights under Articles 11 through 13 (hereinafter referred to as “author’s moral right“) and the rights falling under Articles 16 through 22 (hereinafter referred to as “author’s economic right“).

(2) A copyright shall commence from the time of its creation, and shall not require a fulfillment of any procedures or formalities.

SECTION 3.- Author’s Moral Right

Article 11 (Right to Make Public)               

(1) The author shall have the right to decide whether or not to make his or her work public.

(2) If the author has transferred by assignment his or her economic right on a work which is not yet made public pursuant to Article 45, authorized its use pursuant to Article 46, or established the exclusive publication rights pursuant to Article 57 or publication rights pursuant to Article 63, he or she shall be presumed to have given the other party his or her consent to make it public. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

(3) If the author has transferred by assignment the original of his or her work of art, architectural work or photographic work (hereinafter referred to as “work of art, etc.”) which has not been made public, he or she shall be presumed to have given the other party his or her consent to make it public in the manner of exhibition.

(4) If a derivative work or compilation work produced with the consent of the author has been made public, its original shall be also considered to have been made public.

(5) Where the author donates his or her pieces of unpublished work, etc. to libraries, etc. under Article 31, it shall be presumed that he or she consents to making them public at the time of his or her donation unless otherwise expressly stated. (Inserted by Act nº 11110, Dec. 2, 2011)

Article 12 (Right of Paternity)     

(1) The author shall have the right to indicate his or her real name or pseudonym on the original or copy of his or her work, or on the medium of publication by which his or her work is made public.

(2) Unless otherwise expressly stated by the author, the person using his or her work shall indicate the author’s name in accordance with the author’s manner of indicating his or her real name or pseudonym: Provided, That the same shall not apply where deemed unavoidable in the light of the nature of a work as well as the purpose and manner of its use.

Article 13 (Right of Integrity)       

(1) The author shall have a right to maintain the integrity of the content, form and title of his or her work.

(2) No author shall raise an objection to a modification falling under any of the following subparagraphs: Provided, That the same shall not apply to the modifications of substantial contents: (Amended by Act nº 9625, Apr. 22, 2009)

1. In cases of using a work pursuant to Article 25, the modification of expression within the limit as deemed unavoidable for the purpose of school education;

2. Extension, rebuilding or other modifications of an architectural structure;

3. Modification within the necessary limit to enable a program used only on a specific computer to be run on other computers;

4. Modification within the necessary limit to use a program more effectively for a specific computer than others;

5. Other modifications within the limit as deemed unavoidable in the light of the nature of a work as well as the purpose and manner of its use.

Article 14 (Inalienability of Author’s Moral Right)              

(1) Author’s moral rights shall belong exclusively to the author.

(2) Even after the death of the author, no person who use his or her work shall commit an act which would be prejudicial to author’s moral rights if he or she were alive: Provided, That if such act is deemed to have not defamed the honor of the author in the light of the nature and extent of the act, and in view of the prevailing social norms, the same shall not apply.

 Article 15 (Author’s Moral Right to Joint Work)  

(1) Author’s moral right to a joint work may not be exercised without the unanimous agreement of all the authors concerned. In such cases, each of the authors may not, in bad faith, prevent the agreement from being reached.

(2) Authors of a joint work may designate one of them as a representative in the exercise of their moral rights.

(3) Limitations imposed on the representation under paragraph (2), if any, shall not be effective against a bona fide third person.

SECTION 4.- Author’s Economic Right

SubSection 1.- Types of Author’s Economic Rights

Article 16 (Right of Reproduction)            

The author shall have the right to reproduce his or her work.

Article 17 (Right of Public Performance)                

The author shall have the right to perform his or her work publicly.

Article 18 (Right of Public Transmission)                

The author shall have the right to transmit his or her work in public.

Article 19 (Right of Exhibition)    

The author shall have the right to exhibit the original or copy of his or her work of art, etc.

Article 20 (Right of Distribution)                

The author shall have the right to distribute the original or copy of his or her work: Provided, That if the original or reproduction of the work has been offered to a deal by means of sale, etc. with permission of the relevant holder of author’s property right, the same shall not apply. (Amended by Act nº 9625, Apr. 22, 2009)

Article 21 (Right of Rental)           

Notwithstanding the proviso to Article 20, the author shall have the right to authorize the commercial rental of phonograms made public (hereinafter referred to as commercial phonograms”) or programs made public for pursuit of profit. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 14083, Mar. 22, 2016)

Article 22 (Right of Production of Derivative Works )        

The author shall have the right to produce and use a derivative work based on his or her original work.

SubSection 2.- Limitations on Author’s Economic Rights

Article 23 (Reproduction for Judicial Proceedings, etc.)  

It shall be permissible to reproduce a work if and to the extent deemed necessary for the purpose of judicial proceedings and of internal use in the legislative or administrative bodies: Provided, That the same shall not apply where such reproduction unreasonably prejudice the interests of the holder of author’s economic rights in the light of the nature of a work as well as the number of copies and the nature of reproduction.

Article 24 (Use of Political Speech, etc.)  

Political speeches delivered in public and statements made in public in the court, the National Assembly or local councils may be used in some way or other: Provided, That if the speeches and statements of the same author are used after compilation, the same shall not apply.

Article 24-2 (Free Use of Public Works)   

(1) A work produced as part of official duties and already made public by the State or a local government, or a work of which the author’s economic right is owned in its entirety by the State or a local government under a contract, may be used without permission: Provided, That the same shall not apply when the work falls under any of the following cases:

1. Where it includes any information pertaining to national security;

2. Where it corresponds to an individual’s privacy or confidential business information;

3. Where it includes any information of which disclosure is limited under other Acts;

4. Where it is registered with the Korea Copyright Commission under Article 112, and is managed as State-owned property under the State Property Act or as public property under the Public Property and Commodity Management Act.

(2) The State may establish and enforce policies to invigorate use of public works, as prescribed by Presidential Decree, in order to promote the use of works which are produced and made public by a public institution or of which the author’s economic right is owned in its entirety under a contract by a public institution pursuant to Article 4 of the Act on the Management of Public Institutions.

(3) When it is acknowledged as necessary for free use, the State or a local government may permit the use of public works among those prescribed in paragraph (1) 4, as prescribed by Presidential Decree, notwithstanding the State Property Act or the Public Property and Commodity Management Act.

(Article Inserted by Act nº 12137, Dec. 30, 2013)

Article 25 (Use for the Purpose of School Education)        

(1) A work already made public may be reproduced in textbooks to the extent deemed necessary for the purpose of education at high schools, their equivalents or lower level schools.

(2) Schools established by special Acts, the Early Childhood Education Act, the Elementary and Secondary Education Act, or the Higher Education Act, educational institutions which are operated by the State or local governments and education supporting institutions belonging to the State or local governments to support lessons of those educational institutions may reproduce, distribute, perform in public, display, or publicly transmit part of the works already made public where it is recognized as necessary for the lessons and for the purpose of support thereof: Provided, That it is inevitable to the whole work in view of the character of the work, the purpose, form, etc. of the work, they may use the work in whole. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 12137, Dec. 30, 2013)

(3) Those who receive education at an educational institution provided for in paragraph (2) may reproduce or interactively transmit the works made public within the extent of paragraph (2) where it is recognized as necessary for the purpose of education.

(4) Any person who intends to use a work pursuant to paragraphs (1) and (2) shall pay the relevant holder of author’s economic right the remuneration according to the standards stipulated and announced by the Minister of Culture, Sports and Tourism: Provided, That the reproduction, distribution, public performance, broadcasting, or interactive transmission of a work under paragraph (2) is done at high schools, their equivalents or lower level schools, no remuneration thereof shall be paid. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(5)          The right to receive remuneration under paragraph (4) shall be exercised through an organization meeting the following requirements, which has been designated by the Minister of Culture, Sports and Tourism. When the Minister of Culture, Sports and Tourism designates an organization, he or she shall obtain prior consent from the organization: (Amended by Act nº 8852, Feb. 29, 2008)

1. Organization comprised of persons who have the right to receive remuneration within the Republic of Korea (hereinafter referred to as “holder of right to remuneration“);

2. Organization not aiming at profit-making;

3. Organization fully capable of performing the duties of collection, distribution, etc. of remuneration.

(6) When there is an application from the holder of a right to remuneration who is not a member of the organization, the organization under paragraph (5) shall not refuse to exercise the right for him or her. In such cases, the organization shall have the authority to perform an act in its own name in court or out of court regarding the right.

(7) Where an organization under paragraph (5) falls under any of the following cases, the Minister of Culture, Sports and Tourism may revoke the designation thereof: (Amended by Act nº 8852, Feb. 29, 2008)

1. When it fails to meet the requirements under paragraph (5);

2. When it violates regulations defining the duties on remuneration;

3. When it is possible to harm the interest of the holder of right to remuneration as it has suspended the duties on remuneration for a considerable period.

(8) Any organization under paragraph (5) may use the remuneration that has been left undistributed for three years from the date of public announcement of remuneration distribution for the purpose of public interest with approval by the Minister of Culture, Sports and Tourism. (Amended by Act nº 8852, Feb. 29, 2008)

(9) Matters necessary for the designation and revocation of an organization, work regulations, public announcement of remuneration distribution, approval for use of undistributed remuneration for the purpose of public interest, etc. under paragraphs (5), (7), and (8) shall be prescribed by Presidential Decree.

(10) Where an educational institution performs interactive transmission pursuant to the provisions of paragraph (2), it shall take necessary measures prescribed by Presidential Decree, such as the measures to prevent reproduction, in order to prevent infringement of copyright or other rights protected pursuant to this Act.

Article 26 (Use for News Reporting)         

In cases of reporting current events by means of broadcasts or newspapers, or by other means, it shall be permissible to reproduce, distribute, perform publicly, transmit publicly a work seen or heard in the relevant courses, to the extent justified by the reporting purpose.

 Article 27 (Reproduction, etc. of News Articles or Editorials)        

News articles or editorials inserted in the newspapers and online newspapers under Article 2 of the Act on the Promotion of Newspapers, etc. or the news agencies under Article 2 of the Act on the Promotion of News Communications may be reproduced, distributed or broadcasted by other media organizations: Provided, That if there is an indication prohibiting the use thereof, the same shall not apply. (Amended by Act nº 9785, Jul. 31, 2009)

Article 28 (Quotation from Works Made Public)  

Works already made public may be quoted for news report, criticism, education, research, etc., in compliance with the fair practices within the reasonable extent.

Article 29 (Public Performance and Broadcasting for Non-Profit Purposes)           

(1) It shall be permissible to perform publicly (excluding cases where any commercial phonograms or cinematographic works made public for commercial purposes are played) or broadcast a cinematographic work already made public for non-profit purposes and without receiving any benefit in return from audience, spectators or third persons: Provided, That the same shall not apply to cases where performers are paid any normal remuneration. (Amended by Act nº 14083, Mar. 22, 2016)

(2) It shall be permissible to play and perform publicly any commercial phonograms or cinematographic works made public for commercial purposes for the general public if no benefit in return for the relevant public performance is received from audience or spectators: Provided, That the same shall not apply to the cases as prescribed by Presidential Decree. (Amended by Act nº 14083, Mar. 22, 2016)

Article 30 (Reproduction for Private Use)              

It shall be permissible for a user to reproduce in private, without any commercial purposes, a work already made public, within the limit of personal, family or the equivalent use: Provided, That this shall not apply to the case of reproductions by a photocopier installed for the use by the general public.

Article 31 (Reproductions, etc. in Libraries, etc.)                

(1) Libraries under the Libraries Act and the facilities prescribed by Presidential Decree (including the heads of relevant facilities; hereinafter referred to as “libraries, etc.”) among facilities which provide books, documents, records and other materials (hereinafter referred to as “books, etc.”) designed for public access, may reproduce the works by using books, etc. held by the relevant libraries, etc. (including the books, etc. reproduced by or transmitted to the relevant libraries, etc. under the provisions of paragraph (3), in cases of subparagraph 1) when it falls under any of the following subparagraphs: Provided, That they shall not reproduce the works in digital format in the cases of subparagraphs 1 and 3:

1. Where a copy of a part of the books, etc. already made public is provided to one per person at the request of a user with the purpose of research and study;

2. Where it is necessary to make a self preservation of books, etc.;

3. Where copies of books, etc., which are hard to obtain due to out of print or other equivalent causes, are made and provided to other libraries, etc., at their request, for their preservation purposes.

(2) The libraries, etc. may reproduce or interactively transmit the books, etc. held thereby so as to have the users peruse them within the relevant libraries, etc. by using computers. In such cases, the number of users allowed to peruse simultaneously shall not exceed the number of copies of the books, etc. held by said libraries, etc. or authorized to be used by the person holding copyright or other rights protected under this Act. (Amended by Act nº 9625, Apr. 22, 2009)

(3) The libraries, etc. may reproduce or interactively transmit the books, etc. held by them so as to have the users peruse them inside other libraries, etc. by using computers: Provided, That the same shall not apply where the whole or part of books, etc. are published for commercial purposes, and five years have not passed from the date of their publication. (Amended by Act nº 9625, Apr. 22, 2009)

(4) In making any reproductions of the books, etc. under paragraph (1) 2 and those of the books, etc. under paragraphs (2) and (3), if the said books, etc. are sold in digital format, the libraries, etc., shall be prohibited from reproducing them in digital format.

(5) Where the libraries, etc. reproduce the books, etc. in digital format under paragraph (1) 1, and where they reproduce or interactively transmit the books, etc. pursuant to paragraph (3) so as to make them available for perusal inside other libraries, etc., they shall pay the remuneration to the holder of author’s economic right under the standards determined and published by the Minister of Culture, Sports and Tourism: Provided, That the same shall not apply to the case of books, etc. for which the holders of author’s economic right are the State, local governments or schools under Article 2 of the Higher Education Act (excluding the whole or part of books, etc. which have been published for commercial purposes). (Amended by Act nº 8852, Feb. 29, 2008)

(6) The provisions of Article 25 (5) through (9) shall apply mutatis mutandis to the payment, etc. of remuneration under paragraph (5).

(7) Where the libraries, etc. reproduce or interactively transmit the books, etc. in digital format pursuant to paragraphs (1) through (3), they shall take necessary measures prescribed by Presidential Decree, such as those to prevent any reproduction, in order to prevent any infringements on copyright and other rights protected under this Act.

(8) Where the National Library of Korea collects online materials to preserve pursuant to Article 20-2 of the Libraries Act, it may reproduce the relevant materials. (Inserted by Act nº 9529, Mar. 25, 2009)

Article 32 (Reproduction for Examination Questions)      

It shall be permissible to reproduce or distribute a work already made public in questions of entrance examinations or other examinations of knowledge and skills, within the reasonable extent deemed necessary for that purpose: Provided, That where it is for profit-making purposes, the same shall not apply. (Amended by Act nº 9625, Apr. 22, 2009)

Article 33 (Reproduction, etc. for the Visually Impaired, etc.)       

(1) It shall be permissible to reproduce the works already made public in braille, and distribute them for the visually impaired, etc.

(2) It shall be permissible for the facilities prescribed by Presidential Decree (including the heads of relevant facilities) from among those for the promotion of welfare of the visually impaired, etc. to make a sound recording of the literary works already made public, for the purpose of offering it for the use by the visually impaired, etc., but not for the profit-making purpose, or to reproduce, distribute or interactively transmit them by an exclusive recording method for the visually impaired, etc. prescribed by Presidential Decree. (Amended by Act nº 9529, Mar. 25, 2009)

(3) The scope of the visually impaired, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

Article 33-2 (Reproduction, etc. for the Hearing Impaired, etc.)  

(1) It shall be permissible for anyone to convert the works already made public into Korean sign language, and reproduce, distribute, perform in public, or publicly transmit such Korean sign language for the hearing impaired, etc. (Amended by Act nº 13978, Feb.3, 2016)

(2) It shall be permissible for facilities prescribed by Presidential Decree (including the heads of relevant facilities) from among those for the promotion of welfare of the hearing impaired, etc. to convert the voice, sound, etc. contained in the works, etc. which have already been made public to any format that the hearing impaired can recognize, such as captions, for the purpose of offering it for the use by the hearing impaired, etc. but not for the profit-making purpose; or to reproduce, distribute, perform in public, or publicly transmit them for the hearing impaired, etc.

(3) The scope of the hearing impaired, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11903, Jul. 16, 2013)

 Article 34 (Ephemeral Sound or Visual Recordings by Broadcasting Organization)             

(1) Broadcasting organizations who have the authority to broadcast works may make ephemeral sound or visual recordings of a work for the purpose of their own broadcasting and by means of their own facilities.

(2) Sound or visual recordings made under paragraph (1) may not be kept for a period exceeding one year from the date of sound or visual recording: Provided, That if they are kept as materials for public records at places prescribed by Presidential Decree, the same shall not apply.

Article 35 (Exhibition or Reproduction of Works of Art, etc.)         

(1) The holder of the original of a work of art, etc., or a person who has obtained the holder’s consent, may exhibit the work in its original form: Provided, That where the work of art is to be permanently exhibited on the street, in the park, on the exterior of a building, or other places open to the public, the same shall not apply.

(2) Works of art, etc. exhibited at all times at an open place as referred to in the proviso to paragraph (1) may be reproduced and used by any means: Provided, That in any of the following cases, the same shall not apply:

1. Where a building is reproduced into another building;

2. Where a sculpture or painting is reproduced into another sculpture or painting;

3. Where the reproduction is made in order to exhibit permanently at an open place under the proviso to paragraph (1);

4. Where the reproduction is made for the purpose of selling its copies.

(3) A person who exhibits works of art, etc. pursuant to paragraph (1), or who intends to sell originals of works of art, etc., may reproduce and distribute them in a pamphlet for the purpose of explaining or introducing them.

(4) No portrait nor a similar photographic work produced by commission shall be used without the consent of the commissioner.

Article 35-2 (Temporary Reproduction in Course of Using Works, etc.)    

Where a person uses works, etc. on a computer, he or she may temporarily reproduce such works, etc. in that computer to the extent deemed necessary for the purpose of smooth and efficient information processing: Provided, That this shall not apply where the use of such works, etc. infringes on copyright.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 35-3 (Fair Use of Works, etc.)       

(1) Except as provided in Articles 23 through 35-2 and 101-3 through 101-5, where a person does not unreasonably prejudice an author’s legitimate interest without conflicting with the normal exploitation of works, he or she may use such works. (Amended by Act nº 14083, Mar. 22, 2016)

(2) In determining whether an act of using works, etc. falls under paragraph (1), the following shall be considered: (Amended by Act nº 14083, Mar. 22, 2016)

1. Purposes and characters of use including whether such use is for or not-for nonprofit;

2. Types and natures of works, etc.;

3. Amount and substantiality of portion used in relation to the whole works, etc.;

4. Effect of the use of works, etc. on the current or potential market for or value of such work etc.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 36 (Use by Means of Translation, etc.)     

(1) If a work is used under Article 24-2, 25, 29, 30 or 35-3, the work may be used by means of translation, arrangement, or adaptation. (Amended by Act nº 11110, Dec. 2, 2011; Act nº 12137, Dec. 30, 2013)

(2)          If a work is used under Article 23, 24, 26, 27, 28, 32, 33, or 33-2, the work may be used by means of translation. (Amended by Act nº 11110, Dec. 2, 2011; Act nº 11903, Jul. 16, 2013)

Article 37 (Indication of Sources)              

(1) A person who uses a work under this subsection shall indicate its sources: Provided, That the same shall not apply to the cases of Articles 26, 29 through 32, 34 and 35-2. (Amended by Act nº 11110, Dec. 2, 2011)

(2) The sources shall be clearly indicated in the manner and to the extent deemed reasonable by the situation in which the work is used, and in cases of a work which bears the author’s real name or pseudonym, such real name or pseudonym shall be indicated.

Article 37-2 (Exclusion from Application)               

Articles 23, 25, 30 and 32 shall not apply to programs.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 38 (Relationship with Author’s Moral Rights)        

No provisions of each Article of this Sub-section may be interpreted as affecting author’s moral rights.

SubSection 3.- Duration of Protection of Author’s Economic Right

Article 39 (Principles of Copyright Term)               

(1) The author’s economic right to a work shall continue to subsist during the lifetime of an author and until the end of a period of 70 years after the death of the author, unless otherwise provided in this Sub-section. (Amended by Act nº 10807, Jun. 30, 2011)

(2) The author’s economic right to a joint work shall continue to subsist for a period of 70 years after the death of the last surviving co-author. (Amended by Act nº 10807, Jun. 30, 2011)

Article 40 (Copyright Term of Anonymous and Pseudonymous Works)    

(1) The author’s economic right to a work that is anonymous or bears the pseudonym which is not widely known shall continue to subsist for a period of 70 years after it has been made public: Provided, That within such period, if there are reasonable grounds for recognizing that 70 years have lapsed after the death of the author, such economic right shall be deemed to be extinguished at the time when it deems that 70 years have lapsed after the death of the author. (Amended by Act nº 10807, Jun. 30, 2011)

(2) The provisions of paragraph (1) shall not apply to any of the following cases:

1. Where the real name or the well-known pseudonym of an author is revealed during the period referred to in paragraph (1);

2. Where the real name of an author is registered under Article 53 (1) during the period referred to in paragraph (1).

Article 41 (Copyright Term of Works Made for Hire)         

The author’s economic right to a work made for hire shall continue to subsist for a period of 70 years after it has been made public: Provided, That if it has not been made public within 50 years after its creation, the author’s economic right shall continue to exist for a period of 70 years after its creation. (Amended by Act nº 10807, Jun. 30, 2011)

Article 42 (Copyright Term of Cinematographic Works)  

Notwithstanding the provisions of Articles 39 and 40, the author’s economic right to cinematographic works shall continue to subsist for 70 years from the time of being made public: Provided, That if they have not been made public within 50 years from the time of their creation, the said right shall continue to subsist for 70 years from the time of creation. (Amended by Act nº 10807, Jun. 30, 2011)

Article 43 (Time when Serial Publications, etc. Have Been Made Public)  

(1) In cases of works which are made public in the form of volumes, issues, or installments or in cases of works which are completed by making public in parts in a successive manner, the time when a work has been made public pursuant to Article 40 (1) or 41 shall be determined by making public of each volume, issue or installment or by making public of the last part. (Amended by Act nº 10807, Jun. 30, 2011)

(2) In cases of works to be completed by making public in parts in a successive manner, the last part already made public shall be considered to be the last one under paragraph (1) if the part supposed to follow next is not made public after three years following the preceding part made public.

Article 44 (Commencement of Copyright Term)  

The protection period of author’s economic right prescribed under this subsection shall commence from the next year of the death of the author, or the creation of the work, or is the making public of the work.

SubSection 4.- Transfer, Exercise and Expiry of Author’s Economic Right

Article 45 (Transfer of Author’s Economic Right)                

(1) Author’s economic right may be transferred by assignment in whole or in part.

(2) Where author’s economic right is transferred by assignment in whole, the right of the production and use of a derivative work under Article 22 shall be presumed not to be included in the transfer, unless otherwise stipulated: Provided, That in cases of a program, the right of production of a derivative work shall be presumed to have been transferred together unless otherwise stipulated. (Amended by Act nº 9625, Apr. 22, 2009)

Article 46 (Authorization to Use Works)  

(1) The holder of author’s economic right may grant another person authorization to use the work.

(2) The person who obtained such authorization pursuant to paragraph (1) shall be entitled to exploit the work in such a manner and within the limit of such conditions so authorized.

(3) The right of exploitation as authorized under paragraph (1) may not be transferred by assignment to the third party without the consent of the holder of author’s economic right.

Article 47 (Exercise, etc. of Pledge Rights on Author’s Economic Right)    

(1) The pledge right on the author’s economic right may be exercised with respect to money or other goods to be received by the holder of author’s economic right as a result of a transfer of the author’s economic right or exploitation of the work (including remuneration for the establishment of the right of exclusive publication under Article 57 and the right of publication under Article 63): Provided, That the money or other goods shall be seized before payment or delivery. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

(2) The author’s economic right which has become the object of the pledge rights shall be exercised by the holder of author’s economic right unless otherwise stipulated in the contract of establishment of the pledge rights. (Inserted by Act nº 9625, Apr. 22, 2009)

Article 48 (Exercise of Author’s Economic Right to Joint Works)  

(1) Author’s economic right to a joint work may not be exercised without the unanimous agreement of all the holders of author’s economic right, and no holder of author’s economic right shall be entitled to transfer by assignment or pledge his or her share of author’s economic right without the consent of the other authors. In such cases, each holder may not prevent the agreement from being reached or refuse the consent in bad faith.

(2) The profit accruing from the exploitation of a joint work may be apportioned among authors according to the degrees of contribution by each author, unless otherwise stipulated. In such cases, if the degree of each contribution is not clear, the profit may be equally apportioned to all the authors.

(3) The holder of author’s economic right to a joint work may renounce his or her share. In cases of renunciation or death of a holder of author’s economic right without heir, his or her share may be apportioned among other authors according to the ratio of their holding shares.

(4) The provisions of Article 15 (2) and (3) shall apply mutatis mutandis to the exercise of author’s economic right to a joint work.

Article 49 (Expiry of Author’s Economic Rights)   

Author’s economic right shall expire in any of the following cases:

1. Where, after the author’s death without heir, author’s economic right are attributed to the State according to provisions of the Civil Act and other Acts;

2. Where, after the dissolution of a legal person or an organization who is the holder of author’s economic right, author’s economic right are attributed to the State according to the provisions of the Civil Act and other Acts.

SECTION 5.- Exploitation of Works Under Statutory License

Article 50 (Exploitation of Works Whose Holder of Author’s Economic Right is Unknown)             

(1) Where any person fails, despite his or her considerable efforts to meet the standards prescribed by Presidential Decree, to identify the holder of author’s economic right to a work (excluding foreigners’ works) made public, or his or her place of residence, and therefore is unable to obtain any authorization for its exploitation, he or she may exploit the work by depositing a remuneration as determined by the Minister of Culture, Sports and Tourism after obtaining his or her approval as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008)

(2) The person who exploits a work pursuant to paragraph (1) shall indicate the intention to use and the approval date.

(3) When the work legally licensed pursuant to the provisions of paragraph (1) becomes the object of statutory license again, the procedures of considerable endeavors corresponding to the standards prescribed by Presidential Decree pursuant to the provisions of paragraph (1) may be omitted: Provided, That if the holder of author’s economic right raises an objection according to the procedures prescribed by Presidential Decree before approval on statutory license to the work, the same shall not apply.

(4) The Minister of Culture, Sports and Tourism shall post the content of statutory license on the information and communication network as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008)

Article 51 (Broadcasting of Works Made Public)  

Where a broadcasting organization which intends to broadcast a work already made public for the sake of the public benefit has negotiated with the holder of author’s economic rights but failed to reach an agreement, it may broadcast the work with approval of the Minister of Culture, Sports and Tourism as prescribed by Presidential Decree, and by paying to the holder of author’s economic right or depositing remuneration as determined by the Minister of Culture, Sports and Tourism. (Amended by Act nº 8852, Feb. 29, 2008)

Article 52 (Production of Commercial Phonogram)           

If three years have passed after the date of the first sale of a commercial phonogram in the Republic of Korea, and if any person who intends to produce a commercial phonogram by recording works already recorded on such phonogram has negotiated with the holder of author’s economic right but failed to reach an agreement, he or she may produce the phonogram with approval of the Minister of Culture, Sports and Tourism as prescribed by Presidential Decree, and by paying to the holder of author’s economic right or depositing remuneration under the standards determined by the Minister of Culture, Sports and Tourism. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

SECTION 6.- Registration and Authentication

Article 53 (Registration of Copyright)      

(1) An author may register any of the following:

1. Real name, pseudonym (limited to the case where pseudonym is used at the time of making it public), nationality, domicile or residence of an author;

2. Title, types or date of creation of a work;

3. Whether a work has been made public, and the country and date/month/year in which the work was first made public;

4. Other matters prescribed by Presidential Decree.

(2) In the absence of any special intention of the author at his or her death, the person designated by the will of the author or his or her heir may register the items falling under any of the subparagraphs of paragraph (1).

(3) The person whose real name is registered as the author pursuant to paragraphs (1) and (2) shall be presumed to be the author of the registered work, and the work whose date of creation or the date on which it has been made public for the first time is registered shall be presumed to have been created or made public for the first time on the date it has been registered: Provided, That where the date, month and year of creation has been registered after one year passed from the time when a work had been created, it shall not be presumed to have been created on the date, month and year registered. (Amended by Act nº 9625, Apr. 22, 2009)

Article 54 (Registration and Effect of Changes in Rights, etc.)       

The following may be registered, and shall not bind third parties without their registration: (Amended by Act nº 11110, Dec. 2, 2011)

1. Transfer by assignment of author’s economic right (excluding that by inheritance or other successions in general), or limitation on the disposal of author’s economic right;

2. Establishment, transfer, alteration, extinction or limitation on the disposal of the right of exclusive publication under Article 57 or the right of publication under Article 63;

3. Establishment, transfer, alteration, or expiry, or the limitation on the disposal of the right of pledge on author’s property rights, exclusive rights of publication pursuant to Article 57, and publication rights pursuant to Article 63.

Article 55 (Procedures, etc. for Registration)       

(1) The registration under Articles 53 and 54 shall be made by the Minister of Culture, Sports and Tourism by making an entry in the copyright register (in cases of programs, referring to a program register; hereafter the same shall apply in this Article). (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(2) Where it falls under any of the following subparagraphs, the Minister of Culture, Sports and Tourism may return the application: Provided, That if the deficiency in the application can be corrected and the applicant corrects it on the day, the same shall not apply: (Amended by Act nº 8852, Feb. 29, 2008)

1. Where the matters that have been applied for registration are not fit for registration;

2. Where the application for registration does not conform to the form stipulated by Ordinance of the Ministry of Culture, Sports and Tourism, or is not accompanied with other necessary materials or documents.

(3) The Minister of Culture, Sports and Tourism shall publish a registration gazette or post on the information and communications network regarding the registration stated on the copyright register pursuant to the provisions of paragraph (1), and where there is an applicant, he or she shall have him or her peruse the copyright register or deliver copies thereof. (Amended by Act nº 8852, Feb. 29, 2008)

(4) Matters necessary for registration under paragraphs (1) through (3), return of application for registration, publication of registration gazette or posting, perusal of the copyright register and issuance of copies thereof, etc. shall be prescribed by Presidential Decree.

Article 55-2 (Confidentiality Obligation)  

Any person who conducts registration business pursuant to Articles 53 through 55 and who was in that position shall not divulge any secret he or she obtained on his or her duty to others.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 56 (Authentication of Holder of Right, etc.)            

(1) The Minister of Culture, Sports and Tourism may designate an authentication organization for the security of transaction of works, etc. and protection of confidence. (Amended by Act nº 8852, Feb. 29, 2008)

(2) Matters necessary for the designation and revocation of the designation of authentication organization, authentication procedures, etc. pursuant to paragraph (1) shall be prescribed by Presidential Decree. (Amended by Act nº 9625, Apr. 22, 2009)

(3) The authentication organization under paragraph (1) may collect fees for authentication and the amount thereof shall be determined by the Minister of Culture, Sports and Tourism. (Amended by Act nº 8852, Feb. 29, 2008)

SECTION 7.- Exclusive Publication Right

Article 57 (Establishment of Exclusive Publication Right)                

(1) A person who holds the right to publish or reproduce and interactively transmit (hereinafter referred to as “publication, etc.”) works, etc. may establish an exclusive right (hereinafter referred to as “exclusive publication right” and excluding the right of publication under Article 63; hereinafter the same shall apply) for a person who intends to use such works, etc. for publication, etc. (Amended by Act nº 11110, Dec. 2, 2011)

(2) The holder of author’s economic right may establish a new exclusive publication right to the extent that the methods and conditions of publication, etc. of relevant works, etc. do not overlap. (Inserted by Act nº 11110, Dec. 2, 2011)

(3) The person for whom the exclusive publication right (hereinafter referred to as “holder of the exclusive publication right”) has been established under paragraph (1) shall have the right to use the work that is the object of such exclusive publication right by means of publication, etc., according to the terms of the contract of establishment. (Amended by Act nº 11110, Dec. 2, 2011)

(4) If the right of pledge is established on the right of reproduction, distribution or interactive transmission of a work, the holder of author’s economic right may establish the exclusive publication right only with the authorization of the pledgee. (Amended by Act nº 11110, Dec. 2, 2011)

Article 58 (Obligations of Holder of Exclusive Publication Right)  

(1) Unless otherwise stipulated in the contract of establishment, the holder of the exclusive publication right shall use the work by means of publication, etc. within the period of nine months from the date when he or she received manuscripts or other similar materials which are necessary for the reproduction of the work. (Amended by Act nº 11110, Dec. 2, 2011)

(2) Unless otherwise stipulated in the contract of establishment, the holder of the exclusive publication right shall continue to use the work by means of publication, etc. in accordance with customary practice. (Amended by Act nº 11110, Dec. 2, 2011)

(3) Unless otherwise stipulated in the contract, the holder of the exclusive publication right shall put a mark of holder of author’s economic right on each reproduction, as stipulated by Presidential Decree. (Amended by Act nº 11110, Dec. 2, 2011)

Article 58-2 (Revision, Addition or Reduction of Work)    

(1) If the holder of the exclusive publication right reuses a work that is the object of its right by means of publication, etc., the author may revise, add or reduce the contents of the work to the extent that it is justified. (Amended by Act nº 11110, Dec. 2, 2011)

(2) Whenever the holder of the exclusive publication right intends to reuse a work that is the object of its right by means of publication, etc., unless otherwise stipulated in the contract, he or she shall notify the author of his or her intention in advance. (Amended by Act nº 11110, Dec. 2, 2011)

Article 59 (Duration, etc. of Exclusive Publication Right)  

(1) The duration of the exclusive publication right shall be three years from the date of its first publication, etc., unless otherwise stipulated in the contract of establishment: Provided, That the duration shall be five years where the exclusive publication right is established to cinematize such work. (Amended by Act nº 11110, Dec. 2, 2011)

(2) If the author of the work which is the object of the exclusive publication right dies within the duration of the exclusive publication right, the holder of author’s economic right, notwithstanding the provisions of paragraph (1), may reproduce the work in a complete collection of works or other compilation work, or use the work by means of publication, etc. by separating it from a complete collection of works or other compilation work. (Amended by Act nº 11110, Dec. 2, 2011)

Article 60 (Notification of Termination of Exclusive Publication Right)      

(1) If the holder of the exclusive publication right has violated Article 58 (1) or (2), the holder of author’s economic right may call on him or her to fulfill his or her obligation for a prescribed period of not shorter than six months. If the holder of the exclusive publication right fails to do so during such period, the holder of author’s economic right may notify him or her of the termination of his or her exclusive publication right. (Amended by Act nº 11110, Dec. 2, 2011)

(2) The holder of author’s economic right may immediately notify the holder of the exclusive right of publication of its termination, notwithstanding the provisions of paragraph (1), when it is obvious that it is impossible for the holder of the exclusive publication right to use the work by means of publication, etc., or that he or she has no intention to do so. (Amended by Act nº 11110, Dec. 2, 2011)

(3) When the termination of the exclusive publication right is notified under the provisions of paragraph (1) or (2), the exclusive publication right is presumed to have been terminated on the date the holder of the exclusive publication right has received such notification. (Amended by Act nº 11110, Dec. 2, 2011)

(4) In cases of paragraph (3), the holder of author’s economic right may, at any time, claim to the holder of the exclusive publication right for restitution or compensation for damages accruing from the suspension of publication, etc. of the work. (Amended by Act nº 11110, Dec. 2, 2011)

 Article 61 (Distribution of Reproductions after Termination of Exclusive Publication Right)           

After the termination of the exclusive publication right on account of the expiration of the duration of the right or other reasons, the holder of the exclusive publication right shall not distribute copies reproduced within the duration of the right, except in any of the following cases: (Amended by Act nº 11110, Dec. 2, 2011)

1. Where otherwise stipulated in the contract of establishment;

2. Where he or she has already paid any remuneration to the holder of author’s economic right for publication, etc. within the duration of the exclusive publication right, and he or she distributes the number of copies equivalent to such payment.

Article 62 (Transfer by Assignment of, and Limitations on, Exclusive Publication Right, etc.)          

(1) No holder of the exclusive publication right shall transfer or pledge such right without the consent of the holder of author’s economic right.

(2) Articles 23, 24, 25 (1) through (3), 26 through 28, 30 through 33, 35 (2) and (3), 35-2, 35-3, 36 and 37 shall apply mutatis mutandis to the reproduction, etc. of works, etc. that are the object of the exclusive publication right.

(Article Amended by Act nº 11110, Dec. 2, 2011)

SECTION 7-2.- Special Provisions Concerning Publication

Article 63 (Establishment of Publication Right)    

(1) A person who holds the right to reproduce or distribute a work (hereinafter referred to as “holder of the right of reproduction“) may establish the right to publish such work (hereinafter referred to as “publication right“) for a person who intends to publish such work in documents or pictures by printing them or by other method similar thereto.

(2) A person for whom the publication right is established pursuant to paragraph (1) (hereinafter referred to as “holder of the publication right“) may hold the right to publish the original copy of the work that is the object of the publication right as prescribed by the act of establishment.

(3) Where the pledge has been established for the right of reproduction of relevant work, the holder of the right of reproduction may establish the publication right therefor only with the pledgee’s permit.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 63-2 (Mutatis Mutandis Application)         

Articles 58 through 62 shall apply mutatis mutandis to the publication right. In such cases, “exclusive publication right” shall be construed as “publication right” and “holder of author’s economic right” as “holder of the right of reproduction.”

(Article Inserted by Act nº 11110, Dec. 2, 2011)

CHAPTER III.- NEIGHBORING RIGHTS

SECTION 1.- General Provisions

Article 64 (Protected Performance, Phonogram and Broadcast)  

(1) The following performances, phonogram and broadcasts shall be protected pursuant to this Act: (Amended by Act nº 11110, Dec. 2, 2011)

1. Performances:

(a) Performances conducted by nationals of the Republic of Korea (including legal persons established under the Acts of the Republic of Korea, and foreign legal persons maintaining their principal offices in the Republic of Korea; hereinafter the same shall apply);

(b) Performances protected under the international treaties to which the Republic of Korea has acceded or which it has ratified;

(c) Performances fixed in phonograms as referred to in any item of subparagraph 2;

(d) Performances transmitted by broadcasts as referred to in any item of subparagraph 3 (excluding those included in sound or visual recordings before transmission);

2. Phonograms:

(a) Phonograms produced by nationals of the Republic of Korea;

(b) Phonograms in which sounds have been fixed for the first time in the Republic of Korea;

(c) Phonograms in which sounds have been fixed for the first time in a foreign country party to the treaties and thus protected under such treaties to which the Republic of Korea has acceded or which it has ratified and thus protected under such treaties;

(d) Phonograms which are protected according to treaties in which the Republic of Korea has acceded to or concluded, and whose producers are nationals (including any legal person established pursuant to the Acts of the relevant contracting country and any legal person whose main office is located in the relevant contracting country) of the contracting country;

3. Broadcasts:

(a) Broadcasts made by broadcasting organizations which are nationals of the Republic of Korea;

(b) Broadcasts made from broadcasting facilities located in the Republic of Korea;

(c) Broadcasts made by broadcasting organizations who are nationals of a foreign country party, from broadcasting facilities located in the foreign country party to the treaties to which the Republic of Korea has acceded or which it has ratified and thus protected under such treaties.

(2) Even in cases of performances, phonogram and broadcasts of foreigners protected pursuant to paragraph (1), where the period of protection has expired in the relevant foreign country, the period of protection under this Act shall not be recognized. (Inserted by Act nº 11110, Dec. 2, 2011)

Article 64-2 (Presumption of Performers, etc.)   

A person whose real name or widely known pseudonym as a performer, phonogram producer, or broadcasting organizations is indicated in a general manner in relation to performance, phonogram or broadcasting protected pursuant to this Act shall be presumed to have the right for such performance, phonogram or broadcasts as a performer, phonogram producer or broadcasting organizations, respectively.

(Article Inserted by Act nº 10807, Jun. 30, 2011)

Article 65 (Relationship with Copyright)  

The provisions of each Article in this Chapter shall not be construed as affecting copyright.

SECTION 2.- Performers Right

Article 66 (Right of Paternity)     

(1) A performer shall have the right to indicate his or her real name or pseudonym on his or her performance or the copy of his or her performance.

(2) Those who intend to exploit a performance shall indicate the real name or pseudonym of the performer as he or she has indicated insofar as there is no special declaration of intention by the performer: Provided, That if it is recognized as unavoidable in view of the character of the performance, the purpose and form of exploitation, etc., the same shall not apply.

Article 67 (Right of Integrity)       

A performer shall have the right to maintain the identity of the content and form of his or her performance: Provided, That if it is recognized as unavoidable in view of the nature, or the purpose and manner of exploitation, etc., the same shall not apply.

Article 68 (Inalienability of Performer’s Moral Rights)     

The rights prescribed in Articles 66 and 67 (hereinafter referred to as “moral rights of performer”) shall belong exclusively to the performer.

Article 69 (Right of Reproduction)            

A Performer shall have the right to reproduce his or her performances.

Article 70 (Right of Distribution)                

Performers shall have the right to distribute the copies of his or her performance: Provided, That if the copies of performance have been offered to transactions by means of sale, etc. with authorization of the performer, the same shall not apply.

Article 71 (Right of Rental)           

Performers shall have the right to lend the commercial phonogram, in which his or her performance is recorded, for profit-making purpose notwithstanding the provisions of the proviso to Article 70. (Amended by Act nº 14083, Mar. 22, 2016)

Article 72 (Right of Public Performance)                

Performers shall have the right to perform his or her performance publicly which has not been fixed: Provided, That if the performance is for broadcasting, the same shall not apply.

Article 73 (Right of Broadcasting)              

Performers shall have the right to broadcast their stage performances: Provided, That the same shall not apply to the performance which has been recorded with authorization of the performer.

Article 74 (Right of Interactive Transmission)      

Performers shall have the right to interactively transmit their performances.

Article 75 (Remuneration by Broadcasting Organizations to Performers)               

(1) When a broadcasting organizations sends out a broadcast by using commercial phonograms in which performances are recorded, it shall pay reasonable remuneration to the performers: Provided, That when the performer is a foreigner and the relevant foreign country does not recognize remuneration pursuant to the provisions of this paragraph to the performer who is a national of the Republic of Korea, the same shall not apply. (Amended by Act nº 14083, Mar. 22, 2016)

(2) The provisions of Article 25 (5) through (9) shall apply mutatis mutandis to the payment, etc. of remuneration under paragraph (1).

(3) The amount of remuneration which the organization referred to in paragraph (2) may claim on behalf of the holder of right to remuneration shall be determined each year by an agreement between the relevant organization and the broadcasting organizations.

(4) If the organization and the broadcasting organization fails to reach an agreement pursuant to paragraph (3), the organization or the broadcasting organization may request for conciliation to the Korea Copyright Commission under Article 112 as prescribed by Presidential Decree. (Amended by Act nº 9625, Apr. 22, 2009)

 Article 76 (Remuneration by Digital Audio Transmission Organizations to Performers)   

(1) When a digital audio transmission organization transmits by using phonogram in which stage performances are recorded, it shall pay reasonable remuneration to the performer.

(2) The provisions of Article 25 (5) through (9) shall apply mutatis mutandis to payment of remuneration, etc. under paragraph (1).

(3) The amount of remuneration which the organization referred to in paragraph (2) may claim on behalf of the holder of right to remuneration shall be determined every year by an agreement between the organization and the digital audio transmission organization within the period prescribed by Presidential Decree.

(4) If an agreement referred to in paragraph (3) is not reached, the amount fixed and announced in public by the Minister of Culture, Sports and Tourism shall be paid. (Amended by Act nº 8852, Feb. 29, 2008)

Article 76-2 (Remuneration to Performers by Persons Doing Public Performance Using Commercial Phonograms)             

(1) Any person doing a public performance using commercial phonogram on which the performance is recorded shall pay a reasonable remuneration to the relevant performer: Provided, That where a performer is a foreigner, the same shall not apply when the performer’s country does not recognize a remuneration under this paragraph to a performer who is a national of the Republic of Korea. (Amended by Act nº 14083, Mar. 22, 2016)

(2) Articles 25 (5) through (9) and 76 (3) and (4) shall apply mutatis mutandis to the payment, amount, etc. of a remuneration under paragraph (1).

(Article Inserted by Act nº 9529, Mar. 25, 2009)

Article 77 (Joint Performers)       

(1) If two or more performers perform jointly in a chorus, concert, or drama, etc., the rights of performers (excluding the performer’s moral right) prescribed under this Section shall be exercised by a representative elected by the joint performers: Provided, That where such a representative is not elected, the conductor or director shall exercise the rights.

(2) In exercising the rights of performers under paragraph (1), if a solo vocalist or a solo instrument player participates in the performance, the consent of such vocalist or instrument player shall be obtained.

(3) The provisons of Article 15 shall apply mutatis mutandis to the exercise of the moral rights of joint performers.

SECTION 3.- Rights of Phonogram Producers

Article 78 (Right of Reproduction)            

Phonogram producers shall have the right to reproduce their phonogram.

Article 79 (Right of Distribution)                

Phonogram producers shall have the right to distribute their phonogram: Provided, That the copies of phonogram have been offered to transactions by means of sale, etc. with authorization of the phonogram producers, the same shall not apply.

Article 80 (Right of Rental)           

Notwithstanding the provisions of the proviso to Article 79, phonogram producers shall have the right to authorize commercial rental of phonogram for the purpose of making profits. (Amended by Act nº 14083, Mar. 22, 2016)

Article 81 (Right of Interactive Transmission)      

Phonogram producers shall have the right to interactively transmit their phonograms.

Article 82 (Remuneration to Phonogram Producers by Broadcasting Organization)            

(1) Where a broadcasting organization sends out broadcasts by using commercial phonograms, it shall pay reasonable remuneration to the phonograms producer: Provided, That when the phonograms producer is a foreigner and the foreign country concerned does not recognize remuneration under this paragraph to the phonograms producer who is a national of the Republic of Korea, the same shall not apply. (Amended by Act nº 14083, Mar. 22, 2016)

(2) The provisions of Articles 25 (5) through (9) and 75 (3) and (4) shall apply mutatis mutandis to the payment, amount, etc. of remuneration under paragraph (1).

Article 83 (Remuneration to Phonogram Producers by Digital Audio Transmission Organization)                 

(1) Where a digital audio transmission organization transmits by using commercial phonogram, it shall pay reasonable remuneration to the phonogram producer.

(2) The provisions of Articles 25 (5) through (9) and 76 (3) and (4) shall apply mutatis mutandis to the payment, amount, etc. of remuneration under paragraph (1).

Article 83-2 (Remuneration to Phonogram Producers by Persons Performing in Public Using Commercial Phonogram)    

(1) Any person doing a public performance using a commercial phonogram shall pay a reasonable remuneration to the relevant phonogram producer: Provided, That where a phonogram producer is a foreigner, the same shall not apply when the producer’s country does not recognize remuneration under this paragraph to a phonogram producer who is a national of the Republic of Korea. (Amended by Act nº 14083, Mar. 22, 2016)

(2) Articles 25 (5) through (9) and 76 (3) and (4) shall apply mutatis mutandis to the payment, amount, etc. of a remuneration under paragraph (1).

(Article Inserted by Act nº 9529, Mar. 25, 2009)

SECTION 4.- Rights of Broadcasting Organization

Article 84 (Right of Reproduction)            

Broadcasting organizations shall have the right to reproduce their broadcasts.

Article 85 (Right of Simultaneous Broadcasting)  

Broadcasting organizations shall have the right to authorize their broadcasts to rebroadcast simultaneously.

Article 85-2 (Right of Public Performance)            

A broadcasting organization has the right to publicly perform its broadcasts, when the public performance is made in place ccesible to the general public charging an entrance fee with regard to watching the broadcast.

(Article Inserted by Act nº 10807, Jun. 30, 2011)

SECTION 5.- Term of Protection for Neighboring Right

 Article 86 (Term of Protection)  

(1) Neighboring rights shall commence from the time that falls under the following and shall not require any procedures or formalities: (Amended by Act nº 11110, Dec. 2, 2011)

1. For performances, when the performance took place;

2. For phonograms, when the first fixation of sound was done;

3. For broadcasts, when the broadcasts was sent out.

(2) Neighboring rights (excluding moral rights of performers; hereinafter the same shall apply) shall continue to remain for 70 years (50 years in cases of broadcasts) counting from the year following the year falling under any of the following: (Amended by Act nº 11110, Dec. 2, 2011)

1. For performances, when the performance took place: Provided, That if a phonogram on which the performance is fixed is published within 50 years from the time such performance took place, when the phonogram is published;

2. For phonogram, when the phonogram was released: Provided, That phonograms have not been released until after 50 years have passed counting from the year after the year when the sound was first fixed on the phonogram, the time when the sound was first fixed on the phonogram;

3. For broadcasts, when the broadcast was sent out.

SECTION 6.- Limitations on, Transfers of Ownership, Exercise, etc. of Neighboring Rights

Article 87 (Limitations on Neighboring Rights)     

(1) Articles 23, 24, 25 (1) through (3), 26 through 32, 33 (2), 34, 35-2, 35-3, 36 and 37 shall apply mutatis mutandis to the use of performances, phonograms or broadcasts that are the objects of neighboring rights. (Amended by Act nº 11110, Dec. 2, 2011)

(2) Where a digital audio transmission organization transmits by making use of a phonogram on which performance is recorded pursuant to Articles 76 (1) and 83 (1), he or she may temporarily reproduce a phonogram on which performance is recorded by his or her own means. In such cases, Article 34 (2) shall apply mutatis mutandis to the period of keeping such copy. (Inserted by Act nº 9625, Apr. 22, 2009)

Article 88 (Transfers by Assignment, Exercise, etc. of Neighboring Rights)              

Article 45 (1) shall apply mutatis mutandis to the transfer by assignment of neighboring rights; Article 46 to authorization to exploit performance, phonogram or broadcast; Article 47 to the exercise of the right of pledge established on neighboring rights; Article 49 to the termination of neighboring rights; and Articles 57 through 62 to the establishment, etc. of the exclusive publication right of performance, phonogram or broadcast, respectively.

(Article Amended by Act nº 11110, Dec. 2, 2011)

Article 89 (Statutory License for Use of Performance, Phonogram and Broadcast)             

The provisions of Articles 50 through 52 shall apply mutatis mutandis to the use of performances, phonograms and broadcasts.

Article 90 (Registration of Neighboring Rights)    

Articles 53 through 55 and 55-2 shall apply mutatis mutandis to the registration of neighboring rights or the right of exclusive publication of neighboring rights. In such cases, the term “copyright register” in Article 55 shall be construed as “register of neighboring rights“. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

CHAPTER IV.- PROTECTION OF DATABASE PRODUCERS

Article 91 (Database Under Protection)  

(1) The database of persons falling under any of the following subparagraphs shall be protected under this Act:

1. Nationals of the Republic of Korea;

2. Foreign nationals protected by the treaties to which the Republic of Korea has acceded or which it has concluded in relation with the protection of database.

(2) Even for a foreign national database protected under paragraph (1), if the foreigner’s country does not protect the database of nationals of the Republic of Korea, the protection under the treaties and this Act may be limited proportionately therewith.

Article 92 (Exception from Application)  

The provisions of this Chapter shall not be applicable to the database falling under either of the following subparagraphs:

1. Computer programs which are used for the production, renewal, etc. or operation of the database;

2. Database which are produced or renewed, etc. in order to have wireless or wire communications technically possible.

Article 93 (Rights of Database Producers)             

(1) Database producers shall hold the rights to reproduce, distribute, broadcast, or interactively transmit (hereafter referred to as the “reproduction, etc.” in this Article) the whole or considerable parts of relevant database.

(2) Individual materials of the database shall not be considered as the considerable parts of relevant database under the provisions of paragraph (1): Provided, That even for the reproductions, etc. of individual materials of database or of the portions falling short of their considerable parts, if the said reproductions conflict with the normal exploitation of relevant database, or infringe unduly on the interests of database producers, by making them repeatedly or systematically for specific purposes, they shall be considered as the reproductions, etc. of the considerable parts of relevant database.

(3) Protections under this Chapter shall not affect the copyright of materials forming constituent parts of the database, and other rights protected under this Act.

(4) Protections under this Chapter shall not extend to the materials themselves forming constituent parts of the database.

Article 94 (Limitations on Rights of Database Producers)               

(1) Articles 23, 28 through 34, 35-2, 35-3, 36 and 37 shall apply mutatis mutandis to the use of database which is the object of the rights of database producers. (Amended by Act nº 11110, Dec. 2, 2011)

(2) In either of the following cases, a person may reproduce, distribute, broadcast or interactively transmit the whole or considerable parts of database: Provided, That the same shall not apply where it is in conflict with the normal exploitation of relevant database:

1. Where being used for education, scholarship or research: Provided, That the same shall not apply to the case aiming at profit-making;

2. Where being used for the news reporting.

Article 95 (Period of Protection)                

(1) The rights of database producers shall commence from the time of completing a production of database, and shall continue to exist for five years counting from the next year of the completion.

(2) Where a considerable investment in human or material resources has been made for the renewal, etc. of database, the rights of database producers for the relevant parts shall commence from the time of making relevant renewal, etc., and shall remain effective for five years counting from the next year of the renewal.

Article 96 (Transfer, Exercise, etc. of Rights of Database Producers)         

The proviso to Article 20 shall apply mutatis mutandis to the offer of database for transaction, Article 45 (1) to the transfer of rights of database producers, Article 46 to the authorization of the use of database, Article 47 to the exercise of the right of pledge established on the rights of database producers, Article 48 to the exercise of rights by the database producers of joint databases, Article 49 to the termination of rights of database producers, and Articles 57 through 62 to the establishment, etc. of the exclusive publication right of database, respectively.

(Article Amended by Act nº 11110, Dec. 2, 2011)

Article 97 (Statutory License for Use of Database)             

The provisions of Articles 50 and 51 shall apply mutatis mutandis to the use of database.

Article 98 (Registration of Rights of Database Producers)              

Articles 53 through 55 and 55-2 shall apply mutatis mutandis to the registration of rights of database producers and the exclusive publication right of database producer’s right. In such cases, the term “copyright register” in Article 55 shall be construed as “database producer’s right register“. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

CHAPTER V.- SPECIAL CASES CONCERNING CINEMATOGRAPHIC WORKS

Article 99 (Cinematization of Works)       

(1) If the holder of author’s economic right authorizes another person to exploit his or her work by means of cinematization, such authorization shall be presumed to include the following rights, unless otherwise expressly stipulated:

1. To dramatize a work for the production of a cinematographic work;

2. To publicly screen a cinematographic work aiming at a public screening;

3. To broadcast a cinematographic work aiming at broadcasting;

4. To interactively transmit a cinematographic work aiming at a interactive transmission;

5. To reproduce and distribute a cinematographic work for its original purpose;

6. To exploit the translation of a cinematographic work in the same manner as the cinematographic work.

(2) If the holder of author’s economic right authorizes a person to exploit his or her work by means of cinematization, unless otherwise stipulated, he or she may authorize, after the lapse of five years from the date of his or her authorization, the cinematization of the work in another form of cinematographic work.

Article 100 (Rights to Cinematographic Works)   

(1) Where a producer of a cinematographic work and a person who agreed to cooperate in the production of a cinematographic work have obtained a copyright to the said cinematographic work, the rights necessary for the exploitation of such cinematographic work shall be presumed to have been transferred to the producer of the cinematographic work unless otherwise expressly stipulated.

(2) The copyright to a novel, play, work of art or musical work used for the production of a cinematographic work shall not be affected by the provision of paragraph (1).

(3) The right to reproduce under Article 69, the right to distribute under Article 70, the right to broadcast under Article 73, and the right to interactively transmit under Article 74 with regard to the use of a cinematographic work of a performer who agreed with the producer of a cinematographic work to cooperate in the production of a cinematographic work shall be presumed to have been transferred to the producer of cinematographic works, unless otherwise expressly stipulated.

Article 101 (Rights of Producers of Cinematographic Works)        

(1) Rights necessary for the exploitation of a cinematographic work to be transferred by a person, who agreed to cooperate in the production of a cinematographic work, to a producer of a cinematographic work shall be the right to exploit the cinematographic work by means of reproduction, distribution, public presentation, broadcasting, interactive transmission, and others, and the said producer may transfer the rights, or establish the pledge thereon.

(2) The right to be transferred from a performer to a producer of a cinematographic work shall be the right to reproduce, distribute, broadcast or interactive transmit the said cinematographic work, and it may be interactively transferred or a pledge may be established thereon.

CHAPTER V-2.- SPECIAL RULES CONCERNING CINEMATOGRAPHIC WORKS

Article 101-2 (Objects of Protection)       

This Act shall not apply to the following subparagraphs used to prepare programs:

1. Programming language: Characters, symbols and their systems as means expressing programs;

2. Protocol: A special agreement on how to use programming language in a specific program;

3. Algorithm: Combination methods of instructions and commands in a program.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 101-3 (Limitations on Author’s Economic Right of Program)           

(1) In any of the following cases, a program released may be reproduced or distributed to the extent necessary for that purpose: Provided, That where it unreasonably prejudices the interest of the holder of author’s economic right in the light of types and purposes of programs, relative importance of a reproduced part in a program and the number of copies of reproduction or such, the same shall not apply:

1. Where a program is reproduced for a trial or investigation;

2. Where a program is reproduced or distributed for the purpose of providing it to a course of lessons by any person who is responsible for education at schools under the Early Childhood Education Act, the Elementary and Secondary Education Act and the Higher Education Act, and in educational institutions (limited to educational institutions by which educational attainments for entrance into a school of higher level are authorized or which confer an academic degree) established pursuant to other Acts;

3. Where a program is reproduced to be published in textbooks for the educational purpose of schools under the Elementary and Secondary Education Act and schools equivalent thereto;

4. Where a program is reproduced for personal purposes (excluding cases for the purpose of profit-making) in the confined place like home;

5. Where a program is reproduced or distributed for the purpose (excluding cases for the purpose of profit-making) of entrance examinations of schools under the Elementary and Secondary Education Act and the Higher Education Act and of schools equivalent thereto, or of other examinations or official approval for scholarship or skill;

6. Where a program is reproduced for the purpose of research, study, test of functions of a program to confirm ideas and principles which form the foundation of a program (only when any person who uses a program with legitimate authority is using the relevant program).

(2) Programs (limited to cases in which they are legitimately acquired) may be temporarily reproduced during the course of using a computer for the maintenance and repair of such computer. (Inserted by Act nº 11110, Dec. 2, 2011)

(3) Any person who intends to publish a program in textbooks pursuant to paragraph (1) 3 shall pay a remuneration under the standards determined and announced by the Minister of Culture, Sports and Tourism to the relevant holder of author’s economic right. The provisions of Article 25 (5) through (9) shall apply mutatis mutandis to payment of a remuneration.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 101-4 (Decompilation of Program Codes)               

(1) Where any person who uses a program with legitimate authority or any person who has obtained his or her permission cannot easily obtain necessary information for compatibility and it is inevitable for him or her to obtain the information, he or she may perform decompilation of program codes without obtaining permission of the holder of author’s economic right of the program limited to necessary part for compatibility of the relevant program.

(2) Where information obtained through decompilation of program codes under paragraph (1) falls under any of the following subparagraphs, it shall not be used:

1. Where information is exploited for the purpose other than the purpose of compatibility or is provided to a third party;

2. Where a program or expression subject to a reverse engineering of program code is exploited in development, production and sale of substantially similar programs or in infringement of copyright of the program.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 101-5 (Reproduction for Storage by Legitimate Users)      

(1) Any person who possesses and uses a copy of program with legitimate authority may reproduce the relevant copy to the extent necessary to provide against destruction, damage or deterioration or such of the copy.

(2) When any person who possesses or uses a copy of program has lost the right to possess and use a copy of the relevant program, he or she shall destroy the copy made pursuant to paragraph (1) unless the holder of author’s economic right of the program specially expresses his or her intention: Provided, That where he or she has lost the right to possess and use a copy of program because the relevant copy of program has been destroyed, the same shall not apply.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

 Article 101-6 (Article Amended by Act nº 11110, Dec. 2, 2011)

 Article 101-7 (Bailment of Program)       

(1) The holder of author’s economic right of a program and any person who has been authorized to use the program may bail the source code and technical information or such of the program to a person prescribed by Presidential Decree (hereafter referred to as “bailee” in this Article) by mutual consent.

(2) Any person who has been authorized to use a program may, when a reason stipulated in the consent obtained pursuant to paragraph (1) has arisen, request the bailee to provide him or her the source code and technical information or such of the program.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

CHAPTER VI.- LIMITATION ON LIABILITY OF ONLINE SERVICE PROVIDERS

Article 102 (Limitation on Liability of Online Service Providers)   

(1) Even if copyright or other rights protected pursuant to this Act are infringed in relation to any of the following subparagraphs, an online service provider shall not be responsible for such infringement, where he or she meets all of the following requirements in the items pursuant to each subparagraph: (Amended by Act nº 10807, Jun. 30, 2011; Act nº 11110, Dec. 2, 2011)  

1. An act of transmitting, routing or providing connections for works etc. without modifying their contents, or automatic, intermediate or temporary storage of such works etc. in the course thereof within a reasonably necessary period for such transmission:

(a) Where an online service provider has not initiate the transmission of works, etc.;

(b) Where an online service provider has not selected works, etc. or the recipients thereof;

(c) Where an online service provider has adopted and reasonably implemented a policy that provides for termination of the accounts (referring to the accounts with the right to use relevant services, used by an online service provider to identify and manage users; hereafter the same shall apply in this Article and Articles 103-2, 133-2 and 133-3) of persons who repeatedly infringe on copyright or other rights protected pursuant to this Act;

(d) Where the online service provider has accommodated and has not interfered with standard technical measures used by the holder of right that are designed to identify and protect works, etc. and meet the conditions under Presidential Decree;

2. An act of storing works, etc. transmitted at the request of service users in an automatic, mediating or temporary manner so that subsequent users can efficiently access or receive such works, etc.:

(a) Where the requirements under the items of subparagraph 1 are all met;

(b) Where an online service provider has not modified such works, etc.;

(c) If any condition exists to access such works, etc. provided, where the access to temporarily stored works, etc. is permitted to users who have complied with such condition;

(d) Where an online service provider has complied with the rules on updating works, etc. that are determined by a person who reproduces or interactively transmits works, etc. (hereinafter referred to as “interactive transmitter or reproducer”) under data communications protocol for computers or information and communications networks generally recognized in the industry: Provided, That this shall not apply where an interactive transmitter or reproducer has determined rules on updating for the purposes of unreasonably restricting such storage;

(e) Where an online service provider has not interfered with the use of technologies generally recognized within such industry, which are applied to obtain information on the use of works, etc. at the originating site of the works, etc.;

(f) Where an online service provider immediately removed or disabled access to the works etc., when an online service provider is required to suspend reproduction or interactive transmission under Article 103 (1), where such works, etc. are removed or made inaccessible at the original website, or where he or she actually becomes aware of the fact that the court or the head of a central administrative agency has issued an order to delete such works, etc. or make them inaccessible;

3. An act of storing works, etc. in the computer of an online service provider at the request of a reproducer or interactive transmitter:

(a) Where the requirements under the items of subparagraph 1 are all met;

(b) When an online service provider has the right and ability to control the infringing activity, where he or she has not obtained any financial benefit directly attributable to the infringing activity;

(c) When an online service provider actually becomes aware of infringement or obtains actual knowledge of the fact or circumstance that infringement is evident through the request, etc. to suspend reproduction or interactive transmission under Article 103 (1), where he or she has immediately suspended the reproduction or interactive transmission of such works, etc.;

(d) Where an online service provider has designated and announced a person to receive demand to suspend reproduction or interactive transmission pursuant to Article 103 (4);

4. An act of allowing users to know the location of works, etc. on information and communications networks or connecting them thereto through information search tools:

(a) Where the requirements under subparagraph 1 (a) are met;

(b) Where the requirements under subparagraph 3 (b) through (d) are met.

(2) Notwithstanding the provisions of paragraph (1), where it is technologically impossible for an online service provider to take measures under paragraph (1), he or she shall not be responsible for the infringement of copyright or other rights protected pursuant to this Act due to the reproduction or interactive transmission of works, etc. by other persons. (Amended by Act nº 10807, Jun. 30, 2011)

(3) In relation to the limitation on liability under paragraph (1), an online service provider shall not be obligated to monitor any infringement within his or her services or actively investigating such infringement. (Inserted by Act nº 10807, Jun. 30, 2011)

Article 103 (Suspension of Reproduction or Interactive Transmission)     

(1) Any person who claims that his or her copyright and other rights protected under this Act are infringed (hereafter referred to in this Article as “claimant to a right“) due to the reproduction or interactive transmission of works, etc. through the use of services by an online service provider (excluding cases under Article 102 (1) 1; hereafter the same shall apply in this Article), may demand the online service provider, by vindicating the said facts, to suspend the reproduction or interactive transmission of the works, etc. (Amended by Act nº 10807, Jun. 30, 2011)

(2) Where an online service provider is requested to suspend the reproduction or interactive transmission under paragraph (1), he or she shall immediately suspend the reproduction or interactive transmission of such works, etc. and notify a claimant to the right of such fact: Provided, That an online service provider referred to in Article 102 (1) 3 or 4 shall also notify the reproducer or interactive transmitter of such works, etc. (Amended by Act nº 10807, Jun. 30, 2011)

(3) Where the reproducer or interactive transmitter, upon receipt of notification under paragraph (2), vindicates that his or her reproduction or interactive transmission is made with legitimate authority, and demands a resumption of such reproduction or interactive transmission, the online service provider shall promptly notify the claimant to the right of the fact of demanding a resumption and the scheduled date of resumption, and shall have the reproduction or interactive transmission resumed on the said scheduled date: Provided, That this shall not apply where the claimant to a right notifies an online service provider before the scheduled date of resumption, of the fact that he or she has filed a lawsuit against the act of infringement of reproducer or interactive transmitter. (Amended by Act nº 11110, Dec. 2, 2011)

(4) The online service provider shall make an announcement, by designating the person who is demanded to suspend or to resume the reproduction or interactive transmission under paragraphs (1) and (3) (hereafter referred to in this Article as “recipient”), so as to have the users of facilities or services of the provider know with ease.

(5) Where the online service provider has made an announcement pursuant to paragraph (4), and has suspended or resumed the reproduction or interactive transmission of relevant works, etc. under paragraphs (2) and (3), the liability of the online service provider for the infringement on third parties’ copyright and other rights protected under this Act, and the liability of the online service provider for the losses incurred to the reproducer or interactive transmitter, shall be exempted: Provided, That this shall not apply to the liability arisen from the time when the online service provider has known the facts that the copyright and other rights protected under this Act were infringed due to the reproduction or interactive transmission of works, etc. by third parties to the time of demanding the suspension under paragraph (1). (Amended by Act nº 10807, Jun. 30, 2011; Act nº 11110, Dec. 2, 2011)  

(6) Any person who demands, without legitimate authority, the suspension or resumption of the reproduction or interactive transmission of relevant works, etc. under paragraphs (1) and (3), shall make a compensation for any losses incurred thereby.

(7) Matters necessary for the vindication, suspension, notification, resumption of reproduction or interactive transmission, designation of a recipient, and public notice, etc. under paragraphs (1) through (4) shall be prescribed by Presidential Decree. In such cases, the Minister of Culture, Sports and Tourism shall make a prior consultation with the heads of related central administrative agencies. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 10807, Jun. 30, 2011)  

Article 103-2 (Scope of Court Orders Issued to Online Service Providers)               

(1) Where the court orders necessary measures pursuant to Article 123 (3) to an online service provider who meets the requirements under Article 102 (1) 1, it may order the following measures only:

1. Termination of certain accounts;

2. Reasonable measures to prevent the access to specific foreign websites.

(2) Where the court orders necessary measures pursuant to Article 123 (3) to an online service provider who meets the requirements under Article 102 (1) 2 through 4, it may order the following measures only:

1. Deletion of illegal copies;

2. Measures to prevent the access to illegal copies;

3. Termination of specific accounts;

4. Other measures deemed by the court as necessary to the extent a minimum burden is imposed on an online service provider.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 103-3 (Request for Information on Reproducers and Interactive Transmitters)     

(1) Where the claimant to a right has requested an online service provider to provide information owned by such online service provider, such as the names and addresses of the relevant reproducer and interactive transmitter to the minimum extent necessary to file a civil lawsuit or bring criminal charges, but the online service provider has refused such request, the claimant to the right may request the Minister of Culture, Sports and Tourism to issue an order to the online service provider to provide such information.

(2) In receipt of a request under paragraph (1), the Minister of Culture, Sports and Tourism may order the online service provider to submit information on the relevant reproducer and interactive transmitter, after undergoing deliberation by the Copyright Protection Deliberation Committee referred to in Article 122-6. (Amended by Act nº 14083, Mar. 22, 2016)

(3) The online service provider shall submit relevant information to the Minister of Culture, Sports and Tourism within seven days from receipt of an order under paragraph (2), and the Minister of Culture, Sports and Tourism shall provide such information to a person who has made a request under paragraph (1), without delay.

(4) No person provided with information on the relevant reproducer or interactive transmitter pursuant to paragraph (3) shall use such information for the purposes other than those requested under paragraph (1).

(5) Other matters necessary for the provision of information on reproducers or interactive transmitters shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 104 (Obligation, etc. of Online Service Providers of Special Type)                

(1) The online service provider who aims principally at enabling interactive transmission of works, etc. by using computers between other persons (hereinafter referred to as “online service provider of special type”) shall take necessary measures, such as technological measures, etc. that block illegal forwarding of the relevant work, etc. upon request from the holder of rights. In such cases, matters regarding the request of holder of rights and necessary measures shall be prescribed by Presidential Decree. (Amended by Act nº 9625, Apr. 22, 2009)

(2) The Minister of Culture, Sports and Tourism may lay down and announce the extent of online service provider of special type under paragraph (1). (Amended by Act nº 8852, Feb. 29, 2008)

CHAPTER VI-2.- PROHIBITION OF CIRCUMVENTING TECHNOLOGICAL PROTECTION MEASURES, ETC

Article 104-2 (Prohibition of Circumventing Technological Protection Measures)               

(1) No person shall circumvent the technological protection measures under subparagraph 28 (a) of Article 2 by intention or negligence without legitimate authority by removing, altering or bypassing such measures: Provided, That this shall not apply in any of the following:

1. Where a person engaged in research of encryption circumvents technological protection measures to the extent necessary to research flaws or vulnerability of encryption technologies applied to such works, etc. after legitimately obtaining the copy of the works, etc.: Provided, That the foregoing shall be limited to cases where he or she has made a considerable effort to obtain a permission for the use necessary for such research from the holder of rights, but failed to do so;

2. Where he or she includes components or parts circumventing technological protection measures in technology, products, services or devices in order to prevent minors from accessing online works, etc. harmful to minors: Provided, That the foregoing shall be limited to cases where no ban is imposed pursuant to paragraph (2);

3. Where it is necessary to identify functions of non-disclosure collecting and distributing personally identifiable information capable of verifying individuals’ online activities and circumventing them: Provided, That the foregoing shall not apply where it affects other persons’ access to works, etc.;

4. Where it is necessary for law enforcement, legitimate information collection, guarantee of security, etc. by the State;

5. Where it is necessary for educational institutions and education supporting institutions under Article 25 (2), libraries under Article 31 (1) (limited to non-profit libraries) or archive management institutions under the Public Records Management Act to determine whether to purchase works, etc.: Provided, That the foregoing shall be limited to cases where any access thereto is impossible without circumventing technological protection measures;

6. Where a person who uses programs with legitimate authority engages in decompilating program codes to the extent necessary to secure compatibility with other programs;

7. Where it is necessary for a person who has legitimate authority to inspect, investigate, or correct the security of computers or information and communications networks;

8. Cases determined and notified by the Minister of Culture, Sports and Tourism according to the procedures prescribed by Presidential Decree as it is deemed that the legitimate use of works, etc. of specific types is unreasonably affected or likely to be affected by the prohibition of circumventing technological protection measures. In such cases, the effect of such exception shall be valid for three years.

(2) No person may manufacture, import, distribute, interactively transmit, sell or rent, offer to the general public for subscription, advertise to sell or rent, store or possess to distribute the following devices, products or parts, or provide the relevant services, without legitimate authority:

1. Those publicized, advertised or promoted for the purpose of circumventing technological protection measures;

2. Those having limited business purposes or uses other than circumventing technological protection measures;

3. Those designed, produced or remodeled, or performed for the main purpose of making circumventing technological protection measures possible or easy.

(3) Notwithstanding the provisions of paragraph (2), the aforementioned shall not apply in either of the following cases:

1. Cases falling under paragraph (1) 1, 2, 4, 6 and 7 in relation to technological protection measures under subparagraph 28 (a) of Article 2;

2. Cases falling under paragraph (1) 4 and 6 in relation to technological protection measures under subparagraph 28 (b) of Article 2.

(Article Inserted by Act nº 10807, Jun. 30, 2011)

Article 104-3 (Prohibition of Removal, Alteration, etc. of Rights Management Information)          

(1) No person shall do any of the following acts without legitimate authority either knowingly or without knowing by negligence that such acts may cause or conceal the infringement of copyright or other rights protected pursuant to this Act: (Amended by Act nº 11110, Dec. 2, 2011)

1. Act of deliberately removing, altering or falsely adding rights management information;

2. Act of distributing rights management information or importing such information for the purpose of distribution, upon knowing that such information has been removed or altered without legitimate authority;

3. Act of distributing, publicly performing or publicly transmitting the original or copies of relevant works, etc. or the reproduction thereof or of importing them for the purpose of distribution, upon knowing that rights management information has been removed, altered or falsely added without legitimate authority.

(2) Paragraph (1) shall not apply where it is necessary for national law enforcement, legitimate information collection, guarantee of security, etc.

(Article Inserted by Act nº 10807, Jun. 30, 2011)

Article 104-4 (Prohibition of Circumvention, etc. of Encrypted Broadcasting Signals)         

No person shall conduct any of the following acts:

1. Act of manufacturing, assembling, altering, importing, exporting, selling, or renting, or delivering with other means, devices, products, major components, programs, or other tangible or intangible measures for the purposes of decoding (encoding) encrypted broadcasting signals without consent of a broadcasting organization, either knowingly or without knowing by negligence that such measures will be mainly used for such purposes: Provided, That this shall not apply to cases falling under Article 104-2 (1) 1, 2 or 4;

2. Where encrypted broadcasting signals have been decoded with legitimate authority, act of publicly transmitting such signals upon knowing such fact to other persons for profit without consent of a broadcasting organization;

3. Act of listening to or viewing or publicly transmitting to other persons by receiving encrypted broadcasting signals, upon knowing that such signals have been decoded without consent of a broadcasting organization.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 104-5 (Prohibition of Forging, etc. of Labels)         

No person shall conduct any of the following acts without legitimate authority:

1. Act of forging labels of works, etc. to be attached, enclosed or added to illegal copies or their documents or packaging, or act of distributing forged labels or owning them for the purpose of distribution upon knowing such fact;

2. Act of distributing labels produced upon obtaining a permit from the holder of right of works, etc. or a person who has received consent from the holder of right, beyond the permitted range, or act of redistributing forged labels or owning them for the purpose of redistribution upon knowing such fact;

3. Act of forging documents or packaging distributed together with legitimate copies of works, etc. to use them for illegal copies, or act of distributing forged documents or packaging or owning them for the purpose of distribution upon knowing such fact.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 104-6 (Prohibition of Recording, etc. of Cinematographic Works)                

No person shall record cinematographic works protected by copyright at a movie theater, etc. screening such works with a recording device without consent of the holder of author’s economic right, or publicly transmit such works.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 104-7 (Prohibition of Transmitting Signals Prior to Broadcasting)  

No person shall transmit signals to be transmitted to a broadcasting organization (excluding cases in which the signals are transmitted for the purposes of allowing the public to directly receive them) to any third person without legitimate authority.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 104-8 (Claim, etc. of Suspension or Prevention of Infringement)  

A person who holds copyrights or other rights protected pursuant to this Act may request suspension or prevention of infringement, security for damages, damages or statutory damages in lieu thereof against a person who has violated Articles 104-2 through 104-4, and may request suspension and prevention of infringement against a person who has done an act under Article 104-2 (1) without intention or negligence. In such cases, Articles 123, 125, 125-2, 126 and 129 shall apply mutatis mutandis. (Amended by Act nº 11110, Dec. 2, 2011)

(Article Inserted by Act nº 10807, Jun. 30, 2011)

CHAPTER VII.- COPYRIGHT TRUST SERVICE

Article 105 (Permission, etc. for Copyright Trust Service)               

(1) Any person who intends to engage in a copyright trust service shall obtain permission from the Minister of Culture, Sports and Tourism as prescribed by Presidential Decree; and a person who intends to engage in a copyright agency or brokerage service shall report thereon to the Minister of Culture, Sports and Tourism as prescribed by Presidential Decree: Provided, That the Minister of Culture, Sports and Tourism may designate a public institution under the Act on the Management of Public Institutions as an organization that provides copyright trust service. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

(2) Anyone who intends to operate the copyright trust service pursuant to the provisions of paragraph (1) shall satisfy the following requirements, prepare regulations defining the duties of copyright trust service as prescribed by Presidential Decree and submit them together with an application for permission for copyright trust service to the Minister of Culture, Sports and Tourism: Provided, That the requirements prescribed in subparagraph 1 shall not apply to a public institution referred to in the proviso to paragraph (1): (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

1. That it shall be an organization comprised of the holders of right to works, etc.;

2. That it shall not aim at profit-making;

3. That it shall have sufficient capability to execute the duties, such as the collection, distribution, etc. of fees.

(3) Any person falling under any of the following subparagraphs shall not be eligible to obtain a license to engage in a copyright trust service or copyright agency or brokerage service (hereinafter referred to as “copyright trust service”) under paragraph (1) or report it: (Amended by Act nº 14634, Mar. 21, 2017) 

1. Any incompetent person under the adult guardianship or quasi-incompetent person under the limited guardianship;

2. Any person who has been declared bankrupt and has not yet been reinstated;

3. Any person who is within one-year period following the execution of criminal penalties of a fine or more severe punishment, or the final decision to suspend the execution of a sentence for violation of this Act, or who is in the probation period following a suspended sentence;

4. Any person who has no domicile in the Republic of Korea;

5. Any legal person or organization in which a person falling under any of subparagraphs 1 through 4 is the representative or executive officer.

(4) Any person who has obtained permission or reported for copyright trust service under paragraph (1) (hereinafter referred to as “copyright trust service provider”) may collect fees for his or her services from the holder of author’s economic rights or other interested persons.

(5) The rate and amount of fees under paragraph (4) and the rate and amount of usage fee that a copyright trust service provider receives from users shall be determined by the copyright trust service provider after he or she obtains approval from the Minister of Culture, Sports and Tourism. In such cases, the Minister of Culture, Sports and Tourism shall collect opinions of interested persons, as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

(6) As for approval under paragraph (5), the Minister of Culture, Sports and Tourism may approve after going through the deliberation of the Korea Copyright Commission pursuant to Article 112, and may ,if necessary, set the period of time for the approval or approve after correcting the content in the application . (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(7) Where there is an application for approval on the rate or amount of usage fee pursuant to the provisions of paragraph (5) or where the Minister of Culture, Sports and Tourism has granted approval, he or she shall announce the content thereof as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008)

(8) Where it is necessary for the protection of rights of the holder of author’s economic right and other parties or for the contribution of convenience of use of works, etc., the Minister of Culture, Sports and Tourism may change the content of approval pursuant to the provisions of paragraph (5). (Amended by Act nº 8852, Feb. 29, 2008)

Article 106 (Obligation of Copyright Trust Service Provider)          

(1) The copyright trust service provider shall prepare a list of works, etc. that he or she manages on a quarter year basis in written or electronic form as prescribed by Presidential Decree so that all the people may peruse the list during business hours at the least.

(2) Where a user requests in writing, the copyright trust service provider shall supply the information under his or her management necessary for concluding exploitation contract of works, etc., which is prescribed by Presidential Decree, within a considerable period of time in writing, unless there are justifiable causes to the contrary.

(3) Where necessary for users’ convenience, the Minister of Culture, Sports and Tourism may request a copyright trust service provider that receives usage fees under Article 105 (5) or an organization that collects remunerations from persons who do public performance using commercial phonogram under Articles 76-2 and 83-2 to make an integrated collection, as prescribed by Presidential Decree. In such cases, the copyright trust service provider or remuneration collection organization in receipt of such request shall comply therewith unless there is any good cause. (Inserted by Act nº 14083, Mar. 22, 2016)

(4) A copyright trust service provider or remuneration collection organization may entrust the affairs related to the integrated collection of usage fees and remunerations as prescribed in paragraph (3) to a person prescribed by Presidential Decree. (Inserted by Act nº 14083, Mar. 22, 2016)

(5) A copyright trust service provider or remuneration collection organization that entrusts affairs related to collection under paragraph (4), shall pay entrustment commission, as prescribed by Presidential Decree. (Inserted by Act nº 14083, Mar. 22, 2016)

(6) Necessary matters concerning the time frame for, and methods, etc. of, settlement of usage fees and remunerations collected under paragraph (3) shall be prescribed by Presidential Decree. (Inserted by Act nº 14083, Mar. 22, 2016)

Article 107 (Request for Perusal of Documents)  

The copyright trust service provider may request for perusal of documents needed for the calculation of usage fee for the relevant works from the person who uses the works, etc. under his or her management for commercial purposes. In such cases, the user shall comply therewith unless there is a justifiable reason to the contrary.

Article 108 (Supervision)              

(1) The Minister of Culture, Sports and Tourism may demand a copyright trust service provider to submit a necessary report on the duties of the copyright trust service. (Amended by Act nº 8852, Feb. 29, 2008)

(2) In order to promote the protection of rights and interests of authors and the convenient use of works, the Minister of Culture, Sports and Tourism may issue necessary orders concerning copyright trust service. (Amended by Act nº 8852, Feb. 29, 2008)

Article 109 (Cancellation, etc. of Permission)       

(1) The Minister of Culture, Sports and Tourism may order the suspension of business for a specified period of not longer than six months, if a copyright trust service provider commits any of the following subparagraphs: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

1. Where he or she has received an amount in excess of the fee approved pursuant to the provisions of Article 105 (5);

2. Where he or she has received an additional usage fee in addition to the usage fee approved pursuant to the provisions of Article 105 (5);

3. Where he or she has failed to make a report under Article 108 (1) without any justifiable reason or made a false report;

4. Where he or she has received an order under Article 108 (2), and failed to fulfill the order without any justifiable reason;

5. Where he or she has received a request to make integrated collection under Article 106 (3), and failed to comply with the request without any justifiable reason.

(2) The Minister of Culture, Sports and Tourism may cancel permission for, or order to close copyright trust service if a copyright trust service provider commits any of the following subparagraphs: (Amended by Act nº 8852, Feb. 29, 2008)

1. That the copyright trust service provider has obtained permission or made a report by fraudulent or unlawful means;

2. That the copyright trust service provider continues to engage in the business after receiving an order of suspension under paragraph (1).

Article 110 (Hearings)     

If the Minister of Culture, Sports and Tourism intends to cancel the permission for, or order to close copyright trust service pursuant to the provisions of Article 109 (2), he or she shall hold a hearing. (Amended by Act nº 8852, Feb. 29, 2008)

Article 111 (Imposition of Penalty Surcharge)      

(1) When a copyright trust service provider falls under any of the subparagraphs of Article 109 (1) and thus has to be given a disposition of business suspension, the Minister of Culture, Sports and Tourism may impose and collect a penalty surcharge not exceeding 1/100 of the usage fees and remunerations collected in the immediately preceding year, in lieu of the disposition of business suspension, as prescribed by Presidential Decree: Provided, That where it is impractical to calculate the amount to be collected, the Minister may impose and collect a penalty surcharge in an amount not exceeding one billion won. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

(2) When the person who has been given a disposition of business suspension pursuant to the provisions of paragraph (1) fails to pay the penalty surcharge by the payment deadline, the Minister of Culture, Sports and Tourism shall collect it in the same manner as delinquent national taxes are collected. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 14083, Mar. 22, 2016)

(3) The penalty surcharge collected pursuant to the provisions of paragraphs (1) and (2) may be used by the collecting body to establish order of healthy use of works. (Amended by Act nº 14083, Mar. 22, 2016)

(4) Matters necessary for the amount of penalty surcharge in accordance with the kind, degree, etc. of violation for which a penalty surcharge is imposed pursuant to the provisions of paragraph (1), procedures for use of penalty surcharge pursuant to the provisions of paragraph (3), etc. shall be prescribed by Presidential Decree. (Amended by Act nº 14083, Mar. 22, 2016)

CHAPTER VIII.- KOREA COPYRIGHT COMMISSION

Article 112 (Establishment of Korea Copyright Commission)         

(1) In order to deliberate on matters concerning copyright and other rights (hereafter referred to as “copyright” in this Chapter) protected pursuant to this Act, and to mediate and conciliate disputes concerning copyright (hereinafter referred to as “dispute”), and to conduct business necessary for the promotion of the rights and interests of right holders and protection and fair use of works, etc., the Korea Copyright Commission (hereinafter referred to as the “Commission”) shall be established. (Amended by Act nº 14083, Mar. 22, 2016)

(2) The Commission shall be a legal person.

(3) The provisions on an incorporated foundation under the Civil Act shall apply mutatis mutandis to matters not prescribed in this Act regarding the Commission. In such cases, a member of the Commission shall be deemed a director.

(4) Any person who is not the Commission shall not use the name of the Korea Copyright Commission.

(Article Amended by Act nº 9625, Apr. 22, 2009)

Article 112-2 (Organization of the Commission)  

(1) The Commission shall be comprised of members no less than 20 but no more than 25 including one chairperson and two vice-chairpersons.

(2) Members shall be appointed by the Minister of Culture, Sports and Tourism from among the persons referred to in the following subparagraphs, and the chairperson and vice-chairpersons shall be elected from among the members. In such cases, the Minister of Culture, Sports and Tourism shall strike a balance between the number of members who reflect the interest of holders of rights which are protected by this Act and the number of members who reflect the interest of users thereof, and may request organizations of holders of a right by field or organizations of users by field or such to recommend members:

1. Those who majored in the field related to copyright as those who are or were associate professors or higher, or in the position equivalent thereto in a college or authorized research institution;

2. Those who are in the position of a judge or public prosecutor, or those who have qualification for a lawyer;

3. Those who are experienced in business in the field of copyright or cultural industry as those who are or were public officials in Grade IV or higher, or in the position in a public institution equivalent thereto;

4. Those who are or were in the position of executive officer of an organization related to copyright or cultural industry;

5. Those who have extensive knowledge and wide experience in business related to copyright or cultural industry.

(3) A term of office of members shall be three years and they may be reappointed: Provided, That a term of office of a member who is appointed to the designated post shall be the term of the post he or she holds.

(4) When a vacancy occurs in the membership of the Commission, a substitute member shall be appointed pursuant to paragraph (2), and a term of office of the substitute member shall be the remainder of his or her predecessor’s term of office: Provided, That if the number of members is no less than 20, a substitute member need not be appointed.

(5) Subcommittees by field may be established in order to efficiently conduct business of the Commission. A resolution made by a subcommittee with respect to matters entrusted by the Commission shall be deemed made by the Commission.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 113 (Functions)   

The Commission shall perform the following functions: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

1. Mediation or conciliation of disputes;

2. Deliberation of the matters concerning the rate or amount of fee and usage fee for copyright trust service provider pursuant to the provisions of Article 105 (6) and deliberation of the matters presented for consideration by the Minister of Culture, Sports and Tourism or jointly by three or more members;

3. Projects for setting up order in the use of works, etc. and for promoting fair use of works;

4. International cooperation for the protection of copyright;

5. Research, education and publicity of copyright;

6. Support to the formulation of policy on copyright;

7. Measures of technological protection and support to the formulation of policy on rights management information;

8. Construction and operation of information management system for the provision of copyright information;

9. Appraisal of infringement, etc. of copyright;

10. Deleted (By Act nº 14083, Mar. 22, 2016)

11. Duties prescribed as duties of the Commission or duties entrusted to the Commission pursuant to statutes;

12. Other duties entrusted by the Minister of Culture, Sports and Tourism.

Article 113-2 (Mediation)             

(1) Any person seeking for mediation for dispute settlement may apply for mediation by filing an application with the Commission.

(2) When the Commission has received an application for mediation pursuant to paragraph (1), the chairperson shall appoint a member from among the members and have him or her mediate.

(3) Where a member responsible for mediation deems that a dispute is not possible to be settled through mediation, he or she may discontinue mediation.

(4) When an application for conciliation has been made under this Act with respect to a dispute under mediation, the relevant mediation shall be deemed to have been suspended.

(5) When mediation has been effected, a member responsible for mediation shall prepare a written mediation and put his or her name and seal on it with the relevant persons.

(6) Matters necessary for application of and procedures for mediation shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 114 (Conciliation Division)              

(1) In order for the Commission to effectively execute the duties of dispute conciliation, a conciliation division comprised of one member, or three or more members, including one member qualified as a lawyer.

(2) Matters necessary for the composition, operation, etc. of conciliation division pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree.

Article 114-2 (Application, etc. for Conciliation)  

(1) Any person who wants for dispute conciliation may apply for conciliation by filing an application for conciliation in which the intention and cause of application is stated with the Commission.

(2) The conciliation division under Article 114 shall make conciliation of a dispute pursuant to paragraph (1).

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 115 (Non-Disclosure)       

The procedures of conciliation shall be kept closed to the public in principle: Provided, That the head of conciliation division may permit those who are recognized as appropriate with the consent of the relevant parties to attend the procedures.

Article 116 (Limitation on Use of Statement)       

The statements made by the relevant parties or interested persons at the conciliation procedures shall not be used at the lawsuit or arbitration proceeding.

Article 117 (Conclusion of Conciliation)   

(1) Conciliation shall take effect by entering the matters that have been agreed upon between the relevant parties in the record.

(2) The record pursuant to the provisions of paragraph (1) shall have the same effect as the court settlement: Provided, That the same shall not apply to the matters that cannot be disposed of voluntarily by the relevant parties.

Article 118 (Conciliation Expense, etc.)  

(1) Conciliation expense shall be borne by the applicant: Provided, That where conciliation has been concluded and unless special agreement exists, the relevant parties shall share the expense equally.

(2) Matters necessary for application of and procedures for conciliation, and payment methods of conciliation expense shall be prescribed by Presidential Decree. (Inserted by Act nº 9625, Apr. 22, 2009)

(3) The amount of conciliation expense pursuant to paragraph (1) shall be determined by the Commission. (Amended by Act nº 9625, Apr. 22, 2009)

Article 119 (Appraisal)    

(1) The Commission may, where a case falls under any of the following subparagraphs, make an appraisal: (Amended by Act nº 9625, Apr. 22, 2009)

1. Where a court or investigation agency requests for an appraisal of infringement of copyright or other rights for a trial or investigation;

2. Where both parties to conciliation of a dispute request for an appraisal of a program and electronic information or such related to the program for dispute conciliation pursuant to Article 114-2 to make

(2) Matters necessary for the procedures, methods, etc. of appraisal pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree.

(3) When the Commission makes an appraisal pursuant to the provisions of paragraph (1), it may collect appraisal fee and the amount shall be determined by the Commission.

Article 120 (Copyright Technology Center)           

(1) In order to effectively execute the duties in subparagraphs 7 and 8 of Article 113, the Commission shall have Copyright Technology Center. (Amended by Act nº 9625, Apr. 22, 2009)

(2) Matters necessary for operation of Copyright Technology Center shall be prescribed by Presidential Decree. (Inserted by Act nº 9625, Apr. 22, 2009)

Article 121 Deleted. (by Act nº 9625, Apr. 22, 2009)          

Article 122 (Subsidy, etc.)             

(1) The State may contribute money or provide subsidy for expenses necessary for operation of the Commission within budgetary limits. (Amended by Act nº 9625, Apr. 22, 2009)

(2)          Individuals, legal persons or organizations may contribute money or other property to the Commission in order to support the execution of duties pursuant to the provisions of subparagraphs 3, 5 and 8 of Article 113.

(3) The contributions pursuant to the provisions of paragraph (2) shall be held in a separate account and approval from the Minister of Culture, Sports and Tourism shall be obtained for the use thereof. (Amended by Act nº 8852, Feb. 29, 2008)

CHAPTER VIII-II.- KOREA COPYRIGHT PROTECTION AGENCY

Article 122-2 (Establishment of Korea Copyright Protection Agency)        

(1) There is hereby established the Korea Copyright Protection Agency (hereinafter referred to as the “Protection Agency“) to provide services related to the protection of copyright.

(2) The Protection Agency shall be a corporation.

(3) The Government may contribute money or provide subsidy for expenses required for the establishment, facilities, operation, etc. of the Protection Agency within budgetary limits.

(4) Except as expressly provided for in this Act and the Act on the Management of Public Institutions, the provisions of the Civil Act that are relevant to an incorporated foundation shall apply mutatis mutandis in regard to the Protection Agency.

(5) No one other than the Protection Agency under this Act shall not use the title of the Korea Copyright Protection Agency or any title similar thereto.

(Article Inserted by Act nº 14083, Mar. 22, 2016)

Article 122-3 (Articles of Incorporation of Protection Agency)     

The articles of incorporation of the Protection Agency shall include the following matters:

1. Purpose;

2. Name;

3. Matters concerning the main office;

4. Matters concerning executive officers and employees;

5. Matters concerning the operation of the board of directors;

6. Matters concerning the Copyright Protection Deliberation Committee referred to in Article 122-6;

7. Matters concerning duties;

8. Matters concerning property and accounting;

9. Matters concerning the amendment of the articles of incorporation;

10. Matters concerning the establishment, amendment and repeal of internal regulations.

(Article Inserted by Act nº 14083, Mar. 22, 2016)

Article 122-4 (Executive Officers of Protection Agency)  

(1) The Protection Agency shall have not more than nine directors including one chairperson, and one auditor; the auditor and directors excluding the chairperson shall be part-time, and the chairperson shall preside over meetings of the board of directors.

(2) The chairperson shall be appointed and dismissed by the Minister of Culture, Sports and Tourism.

(3) The term of office of the chairperson shall be three years.

(4) The chairperson shall represent and exercise overall control over the Protection Agency.

(5) Where the chairperson is unable to perform his or her duties in extenuating circumstances, one of directors in the order enumerated in the articles of incorporation shall act on behalf of the chairperson.

(6) No person who falls under any subparagraph of Article 33 of the State Public Officials Act shall be an executive officer of the Protection Agency referred to in paragraph (1).

(Article Inserted by Act nº 14083, Mar. 22, 2016)

Article 122-5 (Functions)              

The functions of the Protection Agency shall be as follows:

1. Support for the establishment and implementation of policies for protection of copyrights;

2. Fact-finding survey and production of statistics on infringement of copyrights;

3. Research and development of technology for protection of copyrights;

4. Provision of support to the investigation and regulation of infringements on copyrights under subparagraph 26 of Article 5 of the Act on the Persons Performing the Duties of Judicial Police Officers and the Scope of Their Duties;

5. Deliberation on corrective orders issued by the Minister of Culture, Sports and Tourism under Article 133-2;

6. Making recommendations to online service providers to take corrective measures and making requests to the Minister of Culture, Sports and Tourism to issue corrective orders under Article 133-3;

7. Affairs prescribed as duties of the Protection Agency or entrusted to it, by Acts and subordinate statutes;

8. Other affairs entrusted by the Minister of Culture, Sports and Tourism.

(Article Inserted by Act nº 14083, Mar. 22, 2016)

Article 122-6 (Composition of Deliberation Committee)  

(1) In order to conduct deliberations under Articles 103-3, 133-2 and 133-3 and to deliberate on the matters requested by the chairperson of the Protection Agency or referred to by the chairperson of the Deliberation Committee in connection with the protection of copyright, the Copyright Protection Deliberation Committee (hereinafter referred to as the “Deliberation Committee“) shall be established under the Protection Agency.

(2) The Deliberation Committee shall be comprised of not less than five nor more than ten members, including one chairperson, and there shall be a balance between the number of the members representing the interest of the holders of the rights protected by this Act and the number of the members representing the interest of the users. (Amended by Act nº 14432, Dec. 20, 2016)

(3) The chairperson of the Deliberation Committee shall be elected by and from among its members.

(4) Members of the Deliberation Committee shall be commissioned by the Minister of Culture, Sports and Tourism in compliance with Presidential Decree from among persons with extensive knowledge of and experience in copyright, cultural industry, law, etc.,.

(5) The term of office of a member of the Deliberation Committee shall be three years, and the consecutive appointment may be permitted.

(6) Other matters necessary for the composition and operation of the Deliberation Committee shall be prescribed by Presidential Decree.

(Article Inserted by Act nº 14083, Mar. 22, 2016)

CHAPTER IX.- REMEDIES FOR INFRINGEMENT OF RIGHTS

Article 123 (Right of Demanding Suspension, etc. of Infringement)           

(1) Any person who holds the copyright or other rights protected under this Act (excluding the rights to be compensated under Articles 25, 31, 75, 76, 76-2, 82, 83 and 83-2; hereafter the same shall apply in this Article) may demand of a person infringing his or her rights to suspend such act or demand a person likely to infringe on his or her rights to take preventive measures or to provide a security for compensation for damages. (Amended by Act nº 9529, Mar. 25, 2009)

(2) If a person who holds the copyright or other rights protected under this Act makes a demand under paragraph (1), he or she may demand destruction of the objects made by the act of infringement or other necessary measures.

(3) In the cases of paragraphs (1) and (2), or in the case where a criminal indictment under this Act has been filed, on request of a plaintiff or accuser, the court may, with or without security, issue an order to temporarily suspend the act of infringement, or seize the objects made by the act of infringement, or to take other necessary measures.

(4) With respect to paragraph (3), where a final judicial decision was made that no infringement of copyright and other rights protected under this Act has been made, the applicant shall pay compensation for the damages caused by his or her request.

Article 124 (Act Construed as Infringement)        

(1) Any act falling under any of the following subparagraphs shall be considered to be infringement of copyright or other rights protected under this Act: (Amended by Act nº 9625, Apr. 22, 2009)

1. The importation into the Republic of Korea, for the purpose of distribution therein of goods made by an act which would infringe on copyright or other rights protected under this Act, if they were made within the Republic of Korea at the time of such importation;

2. The possession, for the purpose of distribution, of goods produced by an act that constitutes an infringement on copyright or other rights protected under this Act (including those imported as referred to in subparagraph 1) with the knowledge of such infringement;

3. Exploitation in business of a copy (including imported goods pursuant to subparagraph 1) of a program made in infringement of copyright of a program by a person who has acquired it with the knowledge of such infringement.

(2) An act of using a work in a manner prejudicial to the honor or reputation of the author shall be considered to be an infringement of his or her moral rights. (Amended by Act nº 10807, Jun. 30, 2011)

(3) Deleted (By Act nº 10807, Jun. 30, 2011)

Article 125 (Claim for Damages)                

(1) Where the holder of author’s economic right or other rights (excluding author’s moral right and performer’s moral right) protected under this Act (hereinafter referred to as “holder of author’s economic right, etc.”) claims compensation against a person who has infringed on his or her rights intentionally or by negligence for damages sustained from the relevant infringement, if the infringing person has gained any profit by his or her infringement, the relevant amount of profit shall be presumed to be the amount of damages sustained by the holder of author’s economic right, etc.

(2) Where the holder of author’s economic right, etc. claims compensation against a person who has infringed on his or her rights intentionally or by negligence for damages sustained from the relevant infringement, the amount corresponding to that normally gained by an exercise of such rights shall be made as the amount of damages sustained by the holder of author’s economic right, etc., and a claim therefor may be made.

(3) Notwithstanding the provisions of paragraph (2), where the amount of damages sustained by the holder of author’s economic right, etc. exceeds the amount under paragraph (2), a claim for such exceeding amount may be made.

(4) Any person who has infringed on copyright, exclusive publication right (including cases applied mutatis mutandis under Articles 88 and 96), publication right, neighboring right or right of database producer which is registered shall be presumed to have been negligent in the relevant infringement. (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

Article 125-2 (Claim of Statutory Damages)          

(1) A holder of author’s economic right, etc. may claim considerable damages within the scope of up to ten million won (50 million won in cases of intentionally infringing rights for profit) for each work, etc. whose right is infringed in lieu of the actual amount of damages or the amount of damages determined pursuant to Article 125 or 126 against a person who has infringed on rights intentionally or by negligence before a trial proceedings of the relevant is concluded.

(2) For the purpose of paragraph (1), compilation works and derivative works which use two or more works as their material shall be deemed a single work.

(3) In order for the holder of author’s economic right, etc. to make a claim pursuant to paragraph (1), relevant works, etc. shall be registered pursuant to Articles 53 through 55 (including cases applied mutatis mutandis under Articles 90 and 98) before the act of infringement occurs.

(4) In receipt of a claim under paragraph (1), the court may recognize a considerable amount of damages within the scope under paragraph (1) in consideration of the purport of defense and the results of evidence examination.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 126 (Acknowledgement of the Amount of Damages)         

When the fact is admitted that some damages have been done, but it is difficult to estimate the amount of damage under Article 125, the court may acknowledge a considerable amount of damage, in the light of the purport of pleading and the results of evidence examination.

Article 127 (Claim for Restoration of Reputation, etc.)    

An author or performer may demand of the person who has infringed on the author’s moral right or performer’s moral right wilfully or by negligence to take measures necessary for the restoration of his or her reputation in lieu of or together with compensation for damages.

Article 128 (Protection of Author’s Moral Interests after Death)  

After the death of an author, his or her bereaved family (referring to the surviving spouse, children, parents, grand children, grand parents, brothers and sisters of the deceased author) or the executor of his or her will may, pursuant to Article 123, claim compensation from a person who has violated or is likely to violate the provisions of Article 14 (2) in respect of the work concerned, or, may, pursuant to Article 127, demand restoration of his or her reputation from a person who has infringed on author’s moral right intentionally or by negligence or who has violated the provisions of Article 14 (2).

Article 129 (Infringement on Rights to Joint Work)            

Each author of a joint work or each holder of author’s economic right to a joint work shall be entitled to make the demand pursuant to Article 123 without the consent of other authors or other holders of author’s economic right, or to claim compensation for damages to his or her share in a joint work regarding the infringement on author’s economic right pursuant to Article 125.

Article 129-2 (Provision of Information)  

(1) Where deemed necessary for collecting evidence upon request of the party concerned in a lawsuit against the infringement of copyright or other rights protected pursuant to this Act, the court may order the other party concerned to provide the following information that he or she holds or knows:

1. Information capable of identifying the act of infringement or a party related to the production and distribution of illegal copies;

2. Information on the routes of production and distribution of illegal copies.

(2) Notwithstanding the provisions of paragraph (1), the other party concerned may refuse to provide information in any of the following cases:

1. Where any of the following persons might be indicted or found guilty:

(a) The other party concerned;

(b) A person who is or was a relative of the other party concerned;

(c) Guardian of the other party concerned;

2. Where it is intended to protect trade secrets (referring to trade secrets under subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act; hereinafter the same shall apply) or privacy, or where other justifiable grounds for refusing the provision of information exist.

(3) Where the other party concerned fails to comply with the order to provide information without any justifiable ground, the court may recognize argument on information by the party concerned as true.

(4) Where deemed necessary to determine whether there are justifiable grounds prescribed in paragraph (2) 2, the court may require the other party concerned to provide necessary information. In such cases, the court shall not disclose the provided information to anyone, unless it is necessary to hear the opinion of the party concerned who has requested the provision of information or his or her representative in order to determine whether the justifiable grounds exist.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 129-3 (Order of Secrecy Maintenance)    

(1) Where all of the following grounds have been substantiated in regard to the trade secrets owned by the party concerned in a lawsuit against the infringement of copyright or other rights protected pursuant to this Act (excluding rights to receive compensation under Articles 25, 31, 75, 76, 76-2, 82, 83, 83-2 and 101-3; hereafter the same shall apply in this Article), the court may, by decision, order the other party concerned, an agent representing the party concerned in the lawsuit or other persons who have become aware of the trade secrets from the lawsuit to neither use such trade secrets for purposes other than the purpose of continuing the lawsuit, nor disclose such trade secrets to persons other than those related to the trade secrets and issued with the order under this paragraph, upon request of the party concerned: Provided, That this shall not apply where, until such request is made, the other party concerned, an agent representing the party concerned in the lawsuit or other persons who have become aware of the trade secrets from the lawsuit have already obtained such trade secrets by means other than the perusal of preparatory documents or evidence examination under subparagraph 1:

1. That trade secrets are included in preparatory documents to have already been submitted or to be submitted, or in evidence (including information provided pursuant to Article 129-2 (4)) to have already been investigated or to be investigated;

2. That the use or disclosure of trade secrets under subparagraph 1 for purposes other than the purpose of carrying out the lawsuit is likely to harm the business of the party concerned, and thus it is necessary to restrict the use or disclosure of trade secrets in order to prevent such harm.

(2) The application for an order under paragraph (1) (hereinafter referred to as “order of secrecy maintenance“) shall be made in documents stating the following matters:

1. The party subject to order of secrecy maintenance;

2. The facts that are sufficient to identify the trade secrets subject to order of secrecy maintenance;

3. The facts falling under the grounds prescribed in each subparagraph of paragraph (1).

(3) Where an order of secrecy maintenance has been decided, the written decision shall be served on the party subject to order of secrecy maintenance.

(4) Order of secrecy maintenance shall take effect from the time the written decision under paragraph (3) is served on the party subject to it .

(5) An immediate appeal may be made against the ruling that has dismissed or rejected the application for an order of secrecy maintenance.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 129-4 (Revocation of Secrecy Maintenance Order)             

(1) Where the party who has applied for or received an order of secrecy maintenance fails to meet, or no longer meets, the requirements prescribed in Article 129-3 (1), he or she may request the court keeping the records of proceedings (where no court is keeping the records of proceedings, referring to the court that has issued the confidentiality order) to revoke the order.

(2) The court ruling on the application for revocation of a secrecy maintenance order shall serve the applicant and the other party concerned with the written decision.

(3) An immediate appeal may be made against the court ruling of the application for revocation of the confidentiality order.

(4) A court ruling to revoke a secrecy maintenance order shall take its effect only when it becomes final and conclusive.

(5) Where any person other than the applicant for revocation of a secrecy maintenance order and the other party concerned has received the secrecy maintenance order about the relevant trade secrets, the court that held the trial to revoke the confidentiality order shall immediately notify such person of the purport of the trial to revoke the secrecy maintenance order.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

Article 129-5 (Notification, etc. of Application Including Perusal of Records of Proceedings)         

(1) Where a decision under Article 163 (1) of the Civil Procedure Act has been made on the records of proceedings of the trial that issued an secrecy maintenance order (excluding a trial that has revoked secrecy maintenance order in whole), if the party concerned applied for the perusal, etc. of the part containing confidential information prescribed in the same paragraph through a person not subject to secrecy maintenance order in the relevant lawsuit, the court administrative officer, junior court administrative officer, chief court clerk or senior court clerk (hereafter referred to as “junior court administrative officer, etc.” in this Article) shall notify a person who made application under Article 163 (1) of the Civil Procedure Act (excluding a person who applied for the perusal, etc. thereof) of the purport of such an application, right after the application for perusal, etc. thereof is made.

(2) In cases falling under paragraph (1), no junior court administrative officer, etc. shall allow the person who has taken the procedures for such application for perusal, etc. the part containing confidential information under paragraph (1) until two weeks pass from the date of the application under paragraph (1) (where the application for the secrecy maintenance order for the person who has taken the procedures for such application is made within the period, referring to the point when the trial for such application becomes final and conclusive).

(3) In regard to allowing the person who has applied for the perusal, etc. under paragraph (1) to peruse, etc. the part containing confidential information under paragraph (1), paragraph (2) shall not apply where all of the parties concerned who have made an application under Article 163 (1) of the Civil Procedure Act consent thereto.

(Article Inserted by Act nº 11110, Dec. 2, 2011)

CHAPTER X.- SUPPLEMENTARY PROVISIONS

Article 130 (Delegation and Entrustment of Authority)   

The Minister of Culture, Sports and Tourism may delegate part of his or her authority pursuant to this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, Do Governor and Special Self-Governing Province Governor as prescribed by Presidential Decree, or may entrust it to the Commission, Protection Agency, or copyright-related organizations. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009; Act nº 14083, Mar. 22, 2016)

Article 131 (Legal Fiction as Public Official in Application of Penal Provisions)       

Members and employees of the Commission, executive officers and employees of the Protection Agency, and members of the Deliberation Committee shall be deemed public officials in the application of Articles 129 through 132 of the Criminal Act. (Amended by Act nº 14083, Mar. 22, 2016)

Article 132 (Fees)             

Those who apply, etc. for a matter falling under any of the following subparagraphs pursuant to this Act shall pay a fee, as stipulated by Ordinance of the Ministry of Culture, Sports and Tourism: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

1. Those who apply for approval of statutory license (including the cases applied mutatis mutandis pursuant to Articles 89 and 97) pursuant to Articles 50 through 52;

2. Those who apply for registration (including the cases applied mutatis mutandis pursuant to Articles 90 and 98), modifications of the registered matters, perusal of registers and issuance of copies thereof pursuant to Articles 53 through 55;

3. Those who apply for permission or report copyright trust service pursuant to Article 105.

Article 133 (Collection, Destruction and Deletion of Illegal Copies)            

(1) When the Minster of Culture, Sports and Tourism, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor and a Special Self-Governing Province Governor or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu) finds out copies (excluding copies which are interactively transmitted through information and communication networks) that infringe on copyright or other rights protected pursuant to this Act, or tools, devices, information and programs manufactured to circumvent technological protection measures for works, etc., he or she may have the relevant public officials collect, destroy or delete them pursuant to the procedures and methods prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(2) The Minster of Culture, Sports and Tourism may entrust the duties pursuant to the provisions of paragraph (1) to an organization prescribed by Presidential Decree. In such cases, those who are engaged in these duties shall be deemed public officials. (Amended by Act nº 8852, Feb. 29, 2008)

(3) Where the relevant public officials, etc. collect, destroy or delete them pursuant to paragraphs (1) and (2), the Minster of Culture, Sports and Tourism may request the relevant organization for cooperation if necessary. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(4) Deleted. (by Act nº 9625, Apr. 22, 2009)

(5) The Minister of Culture, Sports and Tourism may set up and operate structures necessary for the duties pursuant to paragraph (1). (Amended by Act nº 8852, Feb. 29, 2008; Act nº 9625, Apr. 22, 2009)

(6) Where the provisions of paragraphs (1) through (3) conflict with the provisions of other Acts, this Act shall prevail to the extent of the conflict. (Amended by Act nº 9625, Apr. 22, 2009)

Article 133-2 (Orders, etc. for Deletion of Illegal Copies, etc. through Information and Communications Networks)           

(1) Where a copy or information which infringes on copyright or other rights protected under this Act, or a program or information (hereinafter referred to as “illegal copies, etc.”) which circumvents technological protection measures is interactively transmitted through information and communications network, the Minister of Culture, Sports and Tourism may order, following deliberation by the Deliberation Committee, an online service provider to take measures referred to in the following subparagraphs, as prescribed by Presidential Decree: (Amended by Act nº 14083, Mar. 22, 2016)

1. Warnings to reproducers and interactive transmitters of illegal reproductions, etc.;

2. Deletion or suspension of interactive transmission of illegal reproductions, etc.

(2) Where any reproducer and interactive transmitter who receives warnings pursuant to paragraph (1) 1 three times or more interactively transmits illegal reproductions, etc., the Minister of Culture, Sports and Tourism may order, following deliberation by the Deliberation Committee, an online service provider to suspend an account (excluding an exclusive account for e-mail and including other accounts given by the relevant online service provider; hereinafter the same shall apply) of the relevant reproducer or interactive transmitter within a fixed period of up to six months. (Amended by Act nº 11110, Dec. 2, 2011; Act nº 14083, Mar. 22, 2016)

(3) An online service provider who has received orders pursuant to paragraph (2) shall, seven days before he or she suspends an account of the relevant reproducer or interactive transmitter, notify the relevant reproducer or interactive transmitter of the fact that the relevant account will be suspended, as prescribed by Presidential Decree.

(4) Where a bulletin board for which orders pursuant to paragraph (1) 2 have been issued more than three times from among bulletin boards (referring to bulletin boards providing commercial interests or convenience of use from among the bulletin boards referred to in Article 2 (1) 9 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.; hereinafter the same shall apply) established in information and communications network of an online service provider is judged to seriously harm healthy use of copyright in the light of the form of the relevant bulletin board and the quantity and nature of copies posted, the Minister of Culture, Sports and Tourism may order, following deliberation by the Deliberation Committee, the online service provider to suspend the whole or part of the relevant bulletin board service within a fixed period not exceeding six months, as prescribed by Presidential Decree. (Amended by Act nº 14083, Mar. 22, 2016)

(5) An online service provider who has received orders pursuant to paragraph (4) shall, from ten days before he or she suspends the relevant bulletin board service, post the fact that the relevant bulletin board service is suspended on the website of the relevant online service provider and on the relevant bulletin board, as prescribed by Presidential Decree.

(6) An online service provider shall notify the Minister of Culture, Sports and Tourism of the result of measures taken within five days from receiving an order pursuant to paragraph (1), within ten days from receiving an order pursuant to paragraph (2), within 15 days from receiving an order pursuant to paragraph (4), as prescribed by Presidential Decree.

(7) The Minister of Culture, Sports and Tourism shall give an opportunity of submission of an opinion in advance to online service providers subject to orders referred to in paragraphs (1), (2) and (4), to reproducers and interactive transmitters who have direct stake in orders pursuant to paragraph (2) and to operators of bulletin boards pursuant to paragraph (4). In such cases, Articles 22 (4) through (6) and 27 of the Administrative Procedures Act shall apply mutatis mutandis to the submission of an opinion.

(8) The Minister of Culture, Sports and Tourism may establish and operate an organization necessary to perform affairs pursuant to paragraphs (1), (2) and (4).

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 133-3 (Recommendation of Correction, etc.)        

(1) Where the Protection Agency, as a result of investigation into information and communications network of an online service provider, has found a fact that illegal copies, etc. have been interactively transmitted, it may recommend an online service provider to take corrective measures falling under the following subparagraphs, following deliberation by the Deliberation Committee: (Amended by Act nº 14083, Mar. 22, 2016)

1. Warnings to reproducers or interactive transmitters of illegal copies, etc.;

2. Deletion and suspension of interactive transmission of illegal copies, etc.;

3. Suspension of accounts of reproducers or interactive transmitters who have repeatedly transmitted illegal copies, etc.

(2) Within five days from receiving recommendation pursuant to paragraph (1) 1 and 2, and within ten days from receiving recommendation pursuant to paragraph (1) 3, an online service provider shall notify the Protection Agency of the result of performing the correction measures. (Amended by Act nº 14083, Mar. 22, 2016)

(3) Where an online service provider fails to comply with the recommendation pursuant to paragraph (1), the Protection Agency may request the Minister of Culture, Sports and Tourism to issue an order pursuant to Article 133-2 (1) and (2) to him or her. (Amended by Act nº 14083, Mar. 22, 2016)

(4) Where, pursuant to paragraph (3), the Minister of Culture, Sports and Tourism gives an order pursuant to Article 133-2 (1) and (2), no deliberation by the Deliberation Committee shall be required. (Amended by Act nº 14083, Mar. 22, 2016)

(Article Inserted by Act nº 9625, Apr. 22, 2009)

Article 134 (Creation of Environment for fair Use of Works)          

(1) The Minister of Culture, Sports and Tourism may execute projects necessary for promotion of fair use of works, such as provision of information on works, etc., copyright of which has expired. (Amended by Act nº 9625, Apr. 22, 2009)

(2) Matters necessary for projects under paragraph (1) shall be prescribed by Presidential Decree. (Amended by Act nº 9625, Apr. 22, 2009)

(3) Deleted. (by Act nº 9625, Apr. 22, 2009)

Article 135 (Donation of Author’s Economic Right, etc.)  

(1) The holder of author’s economic right, etc. may donate their rights to the Minister of Culture, Sports and Tourism. (Amended by Act nº 8852, Feb. 29, 2008)

(2) The Minister of Culture, Sports and Tourism may designate an organization capable of equally managing the rights to the works, etc. donated by the holder of author’s property right, etc. (Amended by Act nº 8852, Feb. 29, 2008)

(3) The organization designated pursuant to the provisions of paragraph (2) shall not use the works, etc. for commercial purposes or against the intention of the relevant holder of author’s economic right, etc.

(4) Matters necessary for the procedures of donation, designation of organization, etc. pursuant to the provisions of paragraphs (1) and (2) shall be prescribed by Presidential Decree.

CHAPTER XI.- PENALTY PROVISIONS

Article 136 (Penalty Provisions)  

(1) Any person who falls under any of the following subparagraphs may be punished by imprisonment with labor up to five years or by a fine up to 50 million won, or may be punished by both: (Amended by Act nº 11110, Dec. 2, 2011)

1. A person who infringes on author’s economic right or other property rights protected pursuant to this Act (excluding the rights under Article 93) by means of reproduction, performance, public transmission, exhibition, distribution, rental, or production of derivative works;

2. A person who violates the court order under Article 129-3 (1) without justifiable grounds.

(2) Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for up to three years or by a fine up to 30 million won, or may be punishable by both: (Amended by Act nº 9625, Apr. 22, 2009; Act nº 10807, Jun. 30, 2011; Act nº 11110, Dec. 2, 2011)

1. A person who defames the honor of author or performer by infringing on author’s or performer’s moral rights;

2. A person who files for false registration pursuant to Articles 53 and 54 (including cases applied mutatis mutandis pursuant to Articles 90 and 98) deceitfully;

3. A person who infringes on the right of a database producer protected pursuant to Article 93 by means of reproduction, distribution, broadcasting or interactive transmission;

3-2. A person who violates Article 103-3 (4);

3-3. A person who violates Article 104-2 (1) or (2) for his or her own business or for profit;

3-4. A person who violates Article 104-3 (1) for his or her own business or for profit: Provided, That a person who, by negligence, has not known that such act causes or conceals the infringement of copyright or other rights protected pursuant to this Act shall be excluded herefrom;

3-5. A person who commits an act falling under subparagraph 1 or 2 of Article 104-4;

3-6. A person who violates Article 104-5;

3-7. A person who violates Article 104-7;

4. A person who commits an act deemed an infringement pursuant to Article 124 (1);

5. and 6. Deleted (By Act nº 10807, Jun. 30, 2011)

Article 137 (Penalty Provisions)  

(1) Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor up to one year or by a fine up to ten million won: (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

1. A person who makes a work public under the real name or pseudonym of a person other than the author;

2. A person who publicly performs or publicly transmits a performance, or distributes copies of performance under the real name or pseudonym of a person other than the performer;

3. A person who violates Article 14 (2);

3-2. A person who conducts an act falling under subparagraph 3 of Article 104-4;

3-3. A person who violates Article 104-6;

4. A person who operates copyright trust service without obtaining permission pursuant to Article 105 (1);

5. A person who commits an act deemed an infringement pursuant to Article 124 (2);

6. A person who obstructs the business of an online service provider by making a demand by intention for the suspension or resumption of a reproduction or interactive transmission under Article 103 (1) or (3), upon knowing that he or she had no legitimate authority;

7. A person who violates Article 55-2 (including cases applied mutatis mutandis pursuant to Articles 90 and 98).

(2) A person who attempts to commit a crime under paragraph (1) 3-3 shall be punished. (Inserted by Act nº 11110, Dec. 2, 2011)

Article 138 (Penalty Provisions)  

Any person who falls under any of the following subparagraphs shall be punished by a fine up to five million won: (Amended by Act nº 11110, Dec. 2, 2011)

1. A person who violates Article 35 (4);

2. A person who fails to indicate the sources, in violation of Article 37 (including the cases applied mutatis mutandis pursuant to Articles 87 and 94);

3. A person who fails to the holder of author’s economic right, in violation of Article 58 (3) (including cases applied mutatis mutandis under Articles 63-2, 88 and 96);

4. A person who fails to notify the author, in violation of Article 58-2 (2) (including cases applied mutatis mutandis under Articles 63-2, 88 and 96);

5. A person who engages in a copyright agency or brokerage service without reporting pursuant to Article 105 (1), or who continues the services after receipt of an order to close the services pursuant to Article 109 (2).

Article 139 (Confiscation)             

Among copies made by infringing on copyright or other rights protected pursuant to this Act and tools and materials mainly used to produce such copies, which are owned by the infringing person, printer, distributor or public performer shall be confiscated. (Amended by Act nº 11110, Dec. 2, 2011)

(Article Amended by Act nº 10807, Jun. 30, 2011)

Article 140 (Complaint)  

The crimes under this Chapter shall be prosecuted only when the injured party has made a complaint: Provided, That in cases falling under any of the following subparagraphs, the same shall not apply: (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011)

1. Where an act falling under Article 136 (1) 1 or 136 (2) 3 and 4 (in cases falling under Article 124 (1) 3, the act shall not be punishable against the explicit opinion of the victim) has been committed habitually for profit-making;

2. Cases falling under Article 136 (2) 2 and 3-2 through 3-7, Article 137 (1) 1 through 4, 6 and 7, and subparagraph 5 of Article 138;

3. Deleted. (By Act nº 11110, Dec. 2, 201)

Article 141 (Joint Penal Provisions)          

If a representative of a legal person, or an agent, employee or other employed persons of a legal person or an individual has committed a crime as prescribed under this Chapter with respect to the affairs of the legal person or the individual, the fine prescribed under the relevant Articles shall be imposed on such a legal person or an individual in addition to the punishment of the offender: Provided, That where a legal person or an individual has not neglected to pay reasonable attention to and supervise the relevant affairs in order to prevent such an offense, the same shall not apply. (Amended by Act nº 9625, Apr. 22, 2009)

Article 142 (Administrative Fine)               

(1) A person who has failed to take necessary measures pursuant to Article 104 (1) shall be punished by an administrative fine not exceeding 30 million won. (Amended by Act nº 9625, Apr. 22, 2009)

(2) A person who falls under any of the following subparagraphs shall be punished by an administrative fine not exceeding ten million won: (Amended by Act nº 9625, Apr. 22, 2009; Act nº 11110, Dec. 2, 2011; Act nº 14083, Mar. 22, 2016)

1. A person who fails to comply with the order of the Minister of Culture, Sports and Tourism under Article 103-3 (2);

2. A person who fails to perform his or her duty pursuant to Article 106;

3. A person who uses the title of the Korea Copyright Commission, in violation of Article 112 (4);

3-2. A person who uses the title of the Korea Copyright Protection Agency, in violation of Article 122-2 (5);

4. A person who fails to execute orders given by the Minister of Culture, Sports and Tourism pursuant to Article 133-2 (1), (2) and (4);

5. A person who fails to give notice pursuant to Article 133-2 (3), to post notice pursuant to paragraph (5) of the same Article, to give notice pursuant to paragraph (6) of the same Article.

(3) An administrative fine pursuant to paragraphs (1) and (2) shall be imposed and collected by the Minister of Culture, Sports and Tourism, as prescribed by Presidential Decree. (Amended by Act nº 9625, Apr. 22, 2009)

(4) and (5) Deleted. (by Act nº 9625, Apr. 22, 2009)

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation: Provided, That the provisions of Article 133 (1) and (3) shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures concerning Extent of Application)

(1) Regarding the works, etc. whose copyright has become extinct entirely or in part or has not been protected entirely or in part pursuant to the former provisions before this Act enters into force, this Act shall not apply to that part.

(2) The utilization of works, etc. performed before the enforcement of this Act shall be governed by the previous provisions.

(3) The provisions of the previous Addenda shall continue to apply even after this Act enters into force: Provided, That the provisions of transitional measures concerning the protection period of neighboring rights under paragraph (3) of the Addenda of the Copyright Act amended by Act nº 4717 shall be excluded herefrom. (Amended by Act nº 11110, Dec. 2, 2011)

Article 3 (Transitional Measures concerning Phonogram Producer)

Phonogram producers pursuant to the previous provisions shall be deemed phonogram producers under this Act.

Article 4 (Transitional Measures concerning Author of Work in Organization’s Name)

The previous provisions shall apply to the author of a work that has been made out pursuant to the previous provisions of Article 9 before this Act enters into force.

Article 5 (Transitional Measures concerning Designation of Organization)

The organization designated to receive compensation pursuant to the previous provisions before this Act enters into force shall be deemed an organization designated pursuant to this Act.

Article 6 (Transitional Measures concerning Statutory License)

The legal license under the previous provisions at the time this Act enter into force shall be deemed the legal license under this Act.

Article 7 (Transitional Measures concerning Registration)

The registration pursuant to the previous provisions at the time this Act enters into force shall be deemed the registration under this Act: Provided, That the registration of name, etc. of the holder of author’s property right made pursuant to the previous provisions of Article 51 shall be governed by the previous provisions.

Article 8 (Transitional Measures concerning Counting of Protection Period of Phonogram)

The counting of protection period of a phonogram that was fixed before this Act entered into force but has not been released yet shall be governed by this Act.

Article 9 (Transitional Measures concerning Undistributed Compensation)

The provisions of Article 25 (8) of this Act (including the cases applied mutatis mutandis pursuant to the provisions of Articles 31 (6), 75 (2) and 82 (2)) shall also apply to the compensation money that has been received pursuant to the previous provisions of Articles 23 (3), 28 (5), 65 and 68 before this Act enters into force. In such cases, the date of notification of distribution for each compensation shall be deemed the last day of the year to which the day when the holder of right is able to receive the compensation concerned for the first time from the compensation paying organization belongs.

Article 10 (Transitional Measures concerning Performer’s Moral Right)

The provisions of Articles 66 and 67 of this Act shall not apply to the performance presented before this Act enters into force.

Article 11 (Transitional Measures concerning Copyright Trust Service Provider)

Those who have received permission for copyright trust service pursuant to the previous provisions at the time this Act enters into force shall be deemed those who have received the permission for copyright trust management business, and those who have reported the copyright trust service shall be deemed those who have reported the copyright agency or brokerage service.

Article 12 (Transitional Measures concerning Fee and Usage Fee for Copyright Trust Service Provider)

The rate or amount of fee and usage fee for copyright trust management business provider that has been approved pursuant to the previous provisions shall be deemed to have been approved pursuant to this Act.

Article 13 (Transitional Measures concerning Copyright Committee, etc.)

The Copyright Deliberation and Conciliation Committee and the members therof under the previous provisions shall be deemed the Copyright Committee and the members therof pursuant to the provisions of Chapter VIII of this Act.

Article 14 (Transitional Measures concerning Application of Penalty Provisions)

The application of penal provisions to an act before this Act enters into force shall be governed by the previous provisions.

Article 15 Omitted.

Article 16 (Relationship with Other Statutes)

Where the previous provisions are cited in other Acts and subordinate statutes at the time this Act enters into force, the corresponding provisions in this Act shall be deemed to have been cited.

ADDENDA (Act nº 8852, Feb. 29, 200)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDUM (Act nº 9529, Mar. 25, 2009)

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 9625, Apr. 22, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force three months after the date of its promulgation.

Article 2 (Repeal of Computer Programs Protection Act)

The Computer Programs Protection Act shall be repealed.

Article 3 (Preparation of Establishment of Commission)

(1) An action of preparation made to establish the Commission pursuant to this Act may be made before this Act enters into force.

(2) The Minister of Culture, Sports and Tourism shall organize the founding committee to take charge of affairs relating to the establishment of the Commission.

(3) The founding committee shall be comprised of not more than five members appointed by the Minister of Culture, Sports and Tourism, and the chairperson of the Copyright Commission pursuant to Article 112 of the previous Copyright Act shall be the chairperson of the founding committee.

(4) The founding committee shall prepare the articles of association to obtain authorization of the Minister of Culture, Sports and Tourism before this Act enters into force.

(5) When the founding committee has obtained authorization pursuant to paragraph (4), it shall make registration for the establishment of the Commission.

(6) Expenses incurred in the establishment of the Commission shall be borne by the State.

(7) After the founding committee has registered the establishment of the Commission pursuant to paragraph (5), it shall transfer affairs to the chairperson of the Commission without delay, and the founding committee members shall be deemed to have been dismissed when transfer of affairs has been completed.

Article 4 (Transitional Measures concerning Affairs, Rights and Duties, Employment of Copyright Commission and Computer Programs Protection Committee)

(1) The Korea Copyright Commission shall take over affairs, rights and duties and employment of staff of the Copyright Commission and the Computer Programs Protection Committee pursuant to Articles 112 through 122 of the previous Copyright Act and Articles 35 through 43 of the previous Computer Programs Protection Act at the time this Act enters into force.

(2) The chairperson and members of the Copyright Commission pursuant to Article 112 of the previous Copyright Act at the time this Act enters into force shall be deemed the chairperson and members of the Korea Copyright Commission, and the term of office shall be reckoned from the time when a term of office of the chairperson and members of the previous Copyright Commission began.

Article 5 (Transitional Measures concerning Scope of Application)

(1) With respect to works, etc. the whole or part of the right of which, protected by the previous Copyright Act and the previous Computer Programs Protection Act, has terminated or has not been protected before this Act enters into force, this Act shall not apply to the part thereof.

(2) Use of programs made before this Act enters into force shall be in accordance with the previous Computer Programs Protection Act.

Article 6 (Transitional Measures concerning Statutory License)

Acts referred to in the following subparagraphs done under the previous Computer Programs Protection Act before this Act enters into force shall be deemed to have been done pursuant to this Act:

1. Statutory license;

2. Designation of an entrusted managing institution of copyright of programs;

3. Designation of bailor and bailee of a program;

4. Registration of programs;

5. Transfer registration of copyright of programs;

6. Measures for collection of illegal reproductions;

7. Orders for correction and recommendation of correction of illegal reproductions, etc.;

8. Mediation and conciliation of disputes;

9. Appraisal of programs.

Article 7 (Transitional Measures concerning Application of Penalty Provisions)

In application of the penal provisions pursuant to the previous Computer Programs Protection Act to acts done before this Act enters into force, it shall be in accordance with the previous Computer Programs Protection Act.

Article 8 Omitted.

Article 9 (Relation with Other Statutes)

Where the previous Computer Programs Protection Act or the provisions thereof are cited by other statutes as at the time when this Act enters into force, this Act or the corresponding provisions of this Act shall be deemed to have been cited.

ADDENDA (Act nº 9785, Jul. 31, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDA (Act nº 10807, Jun. 30, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force on the date on which the Free Trade Agreement between the Republic of Korea, of the one part, and the European Union and its Member States, of the other part, takes effect: Provided, That the amended provisions of Articles 39 through 42 shall enter into force two years from the date on which the Free Trade Agreement between the Republic of Korea, of the one part, and the European Union and its Member States, of the other part, takes effect.

Articles 2 (Transitional Measures concerning Scope of Application)

With regard to works, etc. for which all or some of copyright or other rights protected pursuant to this Act have been extinct or not protected pursuant to the former provisions before this Act enters into force, this Act shall not apply.

Article 3 (Transitional Measures concerning Restriction on Responsibilities of Online Service Providers)

Restriction on responsibilities of online service providers for the infringement of copyright or other rights protected pursuant to this Act before this Act enters into force shall be governed by the former provisions, notwithstanding the amended provisions of Articles 102 and 103.

Article 4 (Transitional Measures concerning Application of Penalty Provisions)

Application of penal provisions to acts done before this Act enters into force shall be governed by the former provisions.

ADDENDA (Act nº 11110, Dec. 2, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force on the date on which the Free Trade Agreement between the Republic of Korea and the United States of America and Exchange of Letters on the Free Trade Agreement between the Republic of Korea and the United States of America takes effect: Provided, That the amended provisions of Articles 64 (2) and 86 shall enter into force on August 1, 2013.

Article 2 (Applicability)

The amended provisions of Articles 103-3, 125-2 and 129-2 through 129-5 shall apply, starting with the first infringement of rights or violation of obligations after this Act enters into force.

Article 3 (Transitional Measures concerning Scope of Application)

With regard to works whose copyright or other rights protected pursuant to this Act have ceased to exist or have not been protected in full or in part under the former provisions before this Act enters into force, this Act shall not apply to the relevant parts.

Article 4 (Special Rules concerning Protection Period of Neighboring Rights)

(1) Notwithstanding the provisions of Article 3, the neighboring rights that come into being between July 1, 1987, and June 30, 1994, pursuant to the amended provisions of Article 2 (3) of the Addenda of the Copyright Act amended by Act nº 8101 shall remain for 50 years counting from the year following the time when such rights come into being pursuant to the amended provisions of Article 70 of the Copyright Act amended by Act nº 4717, which entered into force on July 1, 1994 (hereafter referred to as “the same Act” in this Article).

(2) Among the neighboring rights that come into being between July 1, 1987, and June 30, 1994, pursuant to paragraph (3) of the Addenda of the same Act, those that have become extinct because the 20-year protection period under the former Act (referring to the Copyright Act before the Copyright Act amended by Act nº 4717 enters into force; hereafter the same shall apply in this Article) has lapsed before this Act enters into force shall be reinstated from the enforcement date of this Act and reverted to the holder of neighboring rights. In such cases, such neighboring rights shall remain for the remaining period of the protection period that would have been acknowledged if they had been protected for 50 years counting from the year following the time they came into being for the first time.

(3) Act of using performances, phonograms or broadcasts for which neighboring rights have been reinstated pursuant to paragraph (2) before this Act enters into force shall not be deemed infringement of rights prescribed by this Act.

(4) Reproductions manufactured before this Act enters into force by using relevant performance, phonograms or broadcasts after neighboring rights under paragraph (2) become extinct pursuant to the former Act may be continuously distributed without the permit from the holder of neighboring rights for two years after this Act enters into force.

Article 5 (Transitional Measures concerning Restriction, etc. on Responsibilities of Online Service Providers)

Notwithstanding the amended provisions of Articles 102 and 103-2, the restriction on responsibilities of online service providers in regard to the infringement of copyright or other rights protected pursuant to this Act before this Act enters into force shall be governed by the former provisions.

Article 6 (Transitional Measures concerning Exclusive Publication Right of Program)

Exclusive publication right of programs established and registered before this Act enters into force shall be governed by the former provisions.

Article 7 (Transitional Measures concerning Application of Penalty Provisions)

Application of penal provisions to acts taken before this Act enters into force shall be governed by the former provisions.

Article 8 Omitted.

ADDENDUM (Act nº 11903, Jul. 16, 2013)

This Act shall enter into force three months after the date of its promulgation.

ADDENDUM (Act nº 12137, Dec. 30, 2013)

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 13978, Feb. 3, 2016)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 and 3 Omitted.

ADDENDA (Act nº 14083, Mar. 22, 2016)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Preparation for Establishment of Protection Agency)

(1) Preparatory activities to incorporate the Protection Agency may be performed before this Act enters into force.

(2) In order to deal with the affairs related to the incorporation of the Protection Agency, the Minister of Culture, Sports and Tourism shall organize a steering group for incorporation of the Protection Agency (hereinafter referred to as the “steering group for incorporation“)

(3) The steering group for incorporation shall be comprised of and operated by not more than five incorporators commissioned by the Minister of Culture, Sports and Tourism.

(4) The steering group for incorporation shall prepare the articles of incorporation of the Protection Agency, obtain approval thereof from the Minister of Culture, Sports and Tourism, register incorporation of the Protection Agency under a joint name of incorporators, and then, transfer their duties to the chairperson of the Protection Agency.

(5) When the transfer of duties under paragraph (4) is completed, the steering group for incorporation shall be deemed dissolved and incorporators dismissed.

Article 3 (Transitional Measures concerning Affairs under Jurisdiction of Korea Copyright Commission, and Its Rights and Obligations, Employment Relationship, etc.)

(1) Affairs under the jurisdiction of the Korea Copyright Commission under subparagraph 10 of the former Article 113, and its rights and obligations and employment relationship existing as at the time this Act enters into force shall be succeeded by the Protection Agency.

(2) Any activities performed by or toward the Korea Copyright Commission pursuant to subparagraph 10 of the former Article 113 before the establishment of the Protection Agency shall be deemed performed by or toward the Protection Agency.

ADDENDUM (Act nº 14432, Dec. 20, 2016)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 14634, Mar. 21, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures concerning Ineligibility of the Incompetent, etc.)

Notwithstanding the amended provisions of Article 105 (3) 1, the former provisions shall apply to the persons who has already been declared incompetent or quasi-incompetent at the time this Act enters into force, and of whom the effect of the declaration of the incompetency or quasi-incompetency remains valid pursuant to Article 2 of the Addenda to the Civil Act partially amended by Act 10429.

05Nov/21

Act nº 10166, Mar. 22, 2010. Telecommunications Business Act

Act nº 10166, Mar. 22, 2010. Telecommunications Business Act (Amended by Act nº 10656, May 19, 2011, Act nº 11201, Jan. 17, 2012).

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purposes)

The purpose of this Act is to contribute to the promotion of public welfare by encouraging sound development of the telecommunications business and ensuring convenience to the users of the telecommunications business through proper management of such business and efficient operation of telecommunications.

Article 2 (Definitions)

The terms used in this Act shall be defined as follows: (Amended by Act nº 10656, May 19, 2011)

1. The term “telecommunications” means any transmission or reception of signs, signals, writing, sounds and images by wire, radio, optics or other electromagnetic systems;

2. The term “telecommunications equipment and facilities” means equipment and facilities necessary for telecommunications, such as machinery, appliances, lines, etc.;

3. The term “telecommunications line equipment and facilities” means equipment and facilities which constitute communications channels between transmission and reception points for telecommunications among the telecommunications equipment and facilities, such as the transmission and line equipment and facilities, exchange facilities installed as one body of the transmission and line equipment and facilities, and all facilities attached thereto;

4. The term “commercial telecommunications equipment and facilities” means telecommunications equipment and facilities to be provided for tele communications business;

5. The term “private telecommunications equipment and facilities” means telecommunications equipment and facilities, other than commercial telecommunications equipment and facilities, installed by an individual to be used for his/her own telecommunications;

6. The term “telecommunications services” means services to advocate a third party’s communications through telecommunications equipment and facilities or to provide telecommunications equipment and facilities for a third party’s communications;

7. The term “telecommunications business” means any business which provides telecommunications services;

8. The term “telecommunications business operator” means an entity that provides telecommunications services upon obtaining a license, or completing registration or reporting (including cases of exemption from reporting) under this Act;

9. The term “user” means a person who concludes a contract for the use of telecommunications services with a telecommunications business operator in order to procure telecommunications services;

10. The term “pervasive services” means basic telecommunications services which any user may use at reasonable fees regardless of time and place;

11. The term “common telecommunications services” means telecommunications services for transmitting or receiving sounds, data, images, etc. without any change in the form or contents thereof and to lease telecommunications line equipment and facilities for the use of transmission or reception of sounds, data, images, etc., such as telephone services or Internet services: Provided, That this shall not include telecommunications services (referring to detailed independent services among telecommunications services under subparagraph 6; hereinafter the same shall apply) determined and publicly announced by the Korea Communications Commission;

12. The term “value-added telecommunications services” means telecommunications services, other than common telecommunications services:

13. The term “special value-added telecommunications services” shall be as follows:

(a) Value-added telecommunications services provided by a special on-line service provider under Article 104 of the Copyright Act;

(b) Other value-added telecommunications services for the purpose of storing and transmitting, or transmitting information under subparagraph 1 of Article 3 of the Framework Act on National Informatization by using computers among others.

Article 3 (Duties to Provide Services, etc.)

(1) No telecommunications business operator may refuse to provide any telecommunications service, without justifiable grounds.

(2) A telecommunications business operator shall perform his/her business in a fair, swift and accurate manner.

(3) Fees for telecommunications services shall be reasonably determined so as to ensure the efficient development of the telecommunications business and to provide users with convenient and various telecommunications services fairly and inexpensively.

Article 4 (Provision, etc. of Pervasive Services)

(1) Each telecommunications business operator shall have obligations to provide pervasive services or to compensate for losses incurred therefrom.

(2) Notwithstanding paragraph (1), the Korea Communications Commission may release any of the following telecommunications business operators from the obligations mentioned under paragraph (1):

1. A telecommunications business operator, prescribed by Presidential Decree, for whom the imposition of obligations under paragraph (1) is deemed inadequate in consideration of the nature of telecommunications services;

2. A telecommunications business operator whose profits from telecommunications services is not more than the amounts determined by Presidential Decree within 1/100 of the total profits from all telecommunications services.

(3) Details of pervasive services shall be determined by Presidential Decree in consideration of the following matters:

1. Level of the development of information and communications technology;

2. Level of the dissemination of telecommunications services;

3. Public interest and safety;

4. Promotion of social welfare;

5. Acceleration of informatization.

(4) In order to provide pervasive services in an efficient and stable manner, the Korea Communications Commission may, according to standards and procedures prescribed by Presidential Decree, designate a telecommunications business operator who provides pervasive services, taking into account the scope, quality and level of fees of pervasive services, and the technical capability of the telecommunications business operator.

(5) The Korea Communications Commission may distribute the burden of compensation for losses incurring from providing pervasive services to telecommunications business operators, based on their profits, in accordance with the methods and procedures prescribed by Presidential Decree.

CHAPTER II.- TELECOMMUNICATIONS BUSINESS

SECTION 1.- General Provisions

Article 5 (Classification, etc. of Telecommunications Businesses)

(1) The telecommunications business shall be classified into the common telecommunications business, special category telecommunications business and value-added telecommunications business.

(2) The common telecommunications business shall install telecommunications line equipment and facilities, and thereby provide telecommunications services.

(3) The special category telecommunications business shall be as follows:

1. Business that provides common telecommunications services by using telecommunications line equipment and facilities, etc. of a person who has obtained a license for the common telecommunications business under Article 6 (hereinafter referred to as “common telecommunications business“);

2. Business that installs telecommunications equipment and facilities in the premises prescribed by Presidential Decree, and provides telecommunications services therein by using such equipment and facilities.

(4) The value-added telecommunications business shall provide value-added telecommunications services.

SECTION 2.- Common Telecommunications Business

Article 6 (Licenses, etc. for Common Telecommunications Business)

(1) A person who intends to operate the common telecommunications business shall obtain a license from the Korea Communications Commission.

(2) When granting a license under paragraph (1), the Korea Communications Commission shall comprehensively examine the following matters:

1. Financial capability to implement plans for providing common telecommunications services;

2. Technical capability to implement plans for providing common telecommunications services;

3. Adequacy of plans for protecting users;

4. Other matters prescribed by Presidential Decree concerning capabilities necessary for the stable provision of common telecommunications services.

(3) The Korea Communications Commission shall establish detailed criteria for examination by subject matter to be examined, under paragraph (2), a period for granting licenses and guidelines for application for licenses, and publicly announce them.

(4) When granting a license for the common telecommunications business under paragraph (1), the Korea Communications Commission may place necessary conditions to facilitate fair competition, protect users, improve service quality and efficiently utilize information and telecommunications resources. In such cases, details of such conditions shall be published on the Official Gazette or posted on the web site.

(5) A license under paragraph (1) shall be granted only to a corporation.

(6) Procedures for granting licenses under paragraph (1) and other necessary matters shall be determined by Presidential Decree.

 Article 7 (Grounds for Disqualification of Licenses)

No person falling under any of the following subparagraphs shall be entitled to obtain a license for the common telecommunications business under Article 6:

1. The State or local governments;

2. Foreign governments or foreign corporations;

3. Corporations, stocks of which are held by foreign governments or foreigners in excess of the limitation on stock holdings referred to in Article 8 (1).

Article 8 (Limitation on Stock Holdings by Foreign Governments or Foreigners)

(1) A foreign government or foreigner may hold stocks of the common telecommunications business (excluding non-voting stocks under Article 370 of the Commercial Act, but including voting stock equivalents, such as security depositary receipts, and equity shares; hereinafter the same shall apply) within 49/100 of the total number of outstanding stocks of the common telecommunications business, when aggregating all of those held by foreign governments or foreigners.

(2) Where a foreign government or foreigner (including a specially related person under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) holds 15/100 or more of the total number of outstanding stocks of a corporation and is the largest shareholder under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act, such corporation shall be deemed as a foreign corporation (hereinafter referred to as “deemed-foreign corporation“).

(3) Any corporation which holds less than 1/100 of the total number of outstanding stocks of the common telecommunications business may not be deemed as a foreign corporation, even if it satisfies the requirements under paragraph (2).

Article 9 (Grounds for Disqualification as Executives)

(1) Any person falling under any of the following subparagraphs shall be disqualified as an executive of any common telecommunications business operator:

1. A minor, or an incompetent or quasi-incompetent person;

2. A person who is not yet reinstated after having been declared bankrupt by a court;

3. A person in whose case three years have not passed since he/she had been sentenced to imprisonment without prison labor or heavier punishment for a violation of this Act, the Framework Act on Telecommunications, the Radio Waves Act or the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (excluding matters not directly related to the telecommunications business; hereinafter referred to as “this Act, etc.”), and the execution of the punishment was completed (including cases that the execution is deemed to have been completed) or he/she was exempted from the enforcement of the sentence;

4. A person who was sentenced to a suspended execution of imprisonment without prison labor or heavier punishment for a violation of this Act, etc. and is still under the period of suspension;

5. A person in whose case one year has not passed since he/she had been sentenced to a fine for a violation of this Act, etc.;

6. A person in whose case three years have not passed since he/she has been subject to a disposition to fully or partially cancel his/her license in accordance with Article 20 (1), a disposition to fully or partially revoke his/her registration in accordance with Article 27 (1) or an order to fully or partially discontinue the business in accordance with Article 27 (2). In cases of a corporation, “person” refers to a person who causes cancellation of its license, revocation of its registration or an order to discontinue the business, and its representative.

(2) Where any executive falls under any subparagraph of paragraph (1) or is found to fall under any subparagraph of paragraph (1) at the time he/she is appointed as an executive, he/she shall duly resign from office.

(3) Any activity in which any executive has been involved prior to his/her resignation under paragraph (2) may not lose its legal effect.

Article 10 (Examination on Public Benefits of Possession, etc. of Stocks by Common Telecommunications Business)

(1) A Public Benefit Examination Committee (hereinafter referred to as the “Committee“) shall be established in the Korea Communications Commission in order to examine as to whether any of the following cases impairs public interests prescribed by Presidential Decree (hereinafter referred to as “examination on public benefits“), such as national security, public safety and maintenance of order:

1. Where a person holds not less than 15/100 of the total number of outstanding stocks of the common telecommunications business, including those stocks held by a specially related person under Article 9 (1) 1 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as “specially related person“);

2. Where the largest stockholder of the common telecommunications business changes;

3. Where the common telecommunications business operator or any stockholder of a common telecommunications business concludes a contract with a foreign government or a foreigner for important managerial matters prescribed by Presidential Decree, such as the appointment and dismissal of executives and the transfer or acquisition of business;

4. Where any stockholder who has de facto management rights for the common telecommunications business changes, as prescribed by Presidential Decree

(2) Where a common telecommunications business operator or any stockholder of the common telecommunications business falls under paragraph (1), he/she shall report thereon to the Korea Communications Commission within 30 days from the date when such case occurs.

(3) Where a common telecommunications business operator or any stockholder of the common telecommunications business falls under paragraph (1), he/she may request the Korea Communications Commission to examine public benefits before such case occurs.

(4) Where the Korea Communications Commission has received reporting under paragraph (2) or a request for examination under paragraph (3), it shall refer such matters to the Committee for deliberation.

(5) Where the Korea Communications Commission determines as a result of examination on public benefits under paragraph (1) that the cases under any subparagraph of paragraph (1) are likely to impair public interests, it may issue an order to modify the details of a contract, suspend the implementation of a contract, suspend the exercise of voting rights, or sell relevant stocks.

(6) The scope of common telecommunications business operators who shall report or may request an examination on public benefits pursuant to paragraph (2) or (3), procedures for reporting and examinations on public benefits and other necessary matters shall be prescribed by Presidential Decree.

Article 11 (Organization, Operation, etc. of the Committee)

(1) The Committee shall consist of not less than five but not more than 10 members, including one chairperson.

(2) The Vice Chairperson of the Korea Communications Commission shall hold office as the chairperson, and members shall be commissioned by the chairperson, from among public officials ranking Grade III of the relevant central administrative agencies prescribed by Presidential Decree, public officials in general service belonging to the Senior Civil Service, and those falling under any of the following persons:

1. Persons who have advanced knowledge and career backgrounds in information and communications;

2. Persons recommended by Government-funded research institutes which is related to the national security, public safety or maintenance of order;

3. Persons recommended by nonprofit, non-governmental organizations referred to in Article 2 of the Assistance for Non-profit, Non-Governmental Organizations Act;

4. Other persons deemed necessary by the chairperson.

(3) The Committee may conduct investigations necessary for the examination on public benefits, or request an interested party or a reference witness to provide necessary data. In such cases, the relevant interested party or reference witness shall comply with such request unless justifiable grounds exist.

(4) Where the Committee deems it necessary, it may require an interested party or a reference witness to appear at a Committee meeting and state his/her opinions. In such cases, the relevant interested party or reference witness shall appear at a Committee meeting unless justifiable grounds exist.

(5) Matters necessary for the organization, operation, etc. of the Committee shall be prescribed by Presidential Decree.

Article 12 (Restrictions, etc. on Excess Stock Holdings)

(1) Where a foreign government or a foreigner has acquired stocks in violation of Article 8 (1), it or he/she shall not exercise the voting rights in the excess stocks.

(2) The Korea Communications Commission may order a stockholder who has acquired stocks in violation of Article 8 (1), a common telecommunications business operator to which the stockholder belongs, or a stockholder of the deemed-foreign corporation to correct the violation within a period up to six months.

(3) Any person in receipt of a corrective order under paragraph (2) shall correct the violation within a specified period.

(4) Where a stockholder has acquired stocks in violation of Article 8 (1), a common telecommunications business operator may refuse to renew the register of stockholders or register of members to record the excess portion.

Article 13 (Charges for Compelling Compliance)

(1) The Korea Communications Commission may impose a charge for compelling compliance, on a person who has been subjected to the order referred to in Article 10 (5), 12 (2) or 18 (8) (hereinafter referred to as “corrective order“) and fails to comply with such order within a specified period. In such cases, the charge for compelling compliance leviable daily shall not be more than 3/1,000 of the purchase price of stocks held by such person, but in cases not related with stock holdings, it shall not exceed 100 million won.

(2) A period for which charges for compelling compliance are imposed pursuant to paragraph (1) shall be from the date following the date the period prescribed by the corrective order expires to the date the corrective order is complied with. In such cases, the charge for compelling compliance shall be imposed within 30 days from the date following the date the period prescribed by the corrective order expires, in the absence of special grounds.

(3) The provisions of Article 53 (5) shall apply mutatis mutandis to the surcharge on compelling compliance.

(4) Matters necessary for the imposition, payment, refund, etc. of charges for compelling compliance shall be prescribed by Presidential Decree.

Article 14 (Issuance of Stocks)

Where a common telecommunications business operator issues stocks, such stocks shall be registered.

Article 15 (Obligation to Commence Business)

(1) A common telecommunications business operator shall install telecommunications equipment and facilities and commence the business within the period prescribed by the Korea Communications Commission.

(2) Where a common telecommunications business operator fails to commence the business within the period under paragraph (1) due to natural disasters or other unavoidable circumstances, the Korea Communications Commission may extend the relevant period only once, upon an application from the common telecommunications business operator.

Article 16 (Modification of Licenses)

(1) Where a common telecommunications business operator intends to modify the importance matters prescribed by Presidential Decree among the matters of his/her license under Article 6, he/she shall obtain a revised license from the Korea Communications Commission, as prescribed by Presidential Decree.

(2) The provisions of Articles 6 (4) and 15 shall apply mutatis mutandis to a revised license pursuant to paragraph (1).

Article 17 (Concurrent Management of Business)

(1) Where a common telecommunications business operator intends to manage any of the following businesses, he/she shall obtain approval from the Korea Communications Commission: Provided, That this may not apply to a common telecommunications business operator whose profits do not exceed 30 billion won:

1. Communications equipment manufacturing business;

2. Information and communications construction business (excluding any improvement and integration business of telecommunications networks) under subparagraph 3 of Article 2 of the Information and Communications Construction Business Act;

3. Service business (excluding any improvement and integration business of telecommunications networks) under subparagraph 6 of Article 2 of the Information and Communications Construction Business Act.

(2) The Korea Communications Commission shall grant approval under paragraph (1) if it deems that the common telecommunications business is unlikely to impede the management of the telecommunications business due to the management of the business under paragraph (1), and that it is necessary for the development of telecommunications.

Article 18 (Acquisition of Business and Merger of Corporations, etc.)

(1) Any person falling under any of the following subparagraphs shall obtain authorization from the Korea Communications Commission, as prescribed by Presidential Decree: Provided, That where the person sells telecommunications line equipment and facilities, except major telecommunications line equipment and facilities prescribed by Presidential Decree, he/she shall report thereon to the Korea Communications Commission, as prescribed by Presidential Decree, notwithstanding the provisions of subparagraph 3:

1. Any person who intends to fully or partially acquire the business of a common telecommunications business operator;

2. Any person who intends to merge with a corporate common telecommunications business;

3. Any common telecommunications business operator who intends to sell the telecommunications line facilities necessary for providing licensed common telecommunications services;

4. Any person who intends to hold not less than 15/100 of the total number of outstanding stocks of a common telecommunications business, or to become the largest stockholder of a common telecommunications business, including those stocks held by a specially related person;

5. Any person who intends to acquire stocks of a common telecommunications business operator or conclude an agreement with a common telecommunications business operator with the intent to exercise dominant influence over the right of the common telecommunications business operator to manage the business, as prescribed by Presidential Decree;

6. Any common telecommunications business operator who intends to establish a corporation to partially provide licensed common telecommunications services.

(2) Where the Korea Communications Commission intends to grant authorization under paragraph (1), it shall comprehensively examine the following matters:

1. Appropriateness of financial, technical and managerial capabilities;

2. Appropriateness of the management of information and communications resources, such as frequencies and telecommunications numbers;

3. Influence over competition among common telecommunications business operators;

4. Protection of users;

5. Utilization of telecommunications equipment and facilities and communications networks, efficiency of research and development, and influence over public benefits, such as international competitiveness of the telecommunications industry.

(3) Matters necessary for the detailed guidelines for examinations for each subject matter and procedures for examinations under paragraph (2) shall be determined and publicly announced by the Korea Communications Commission.

(4) Any person falling under any of the following subparagraphs shall succeed to the status of the relevant common telecommunications business operator which is related to his/her license:

1. Any person who acquires the common telecommunications business by obtaining authorization under paragraph (1) 1;

2. Any corporation which survived a merger or has been newly established in the course of a merger by obtaining authorization under paragraph (1) 2;

3. Any corporation which is established to partially provide common telecommunications services by obtaining authorization under paragraph (1) 6.

(5) The Korea Communications Commission may place conditions provided for in Article 6 (4) when granting authorization under paragraph (1).

(6) The Korea Communications Commission shall consult with the Fair Trade Commission when intending to grant authorization under paragraph (1).

(7) The provisions of Article 7 shall apply mutatis mutandis to the grounds for disqualification of authorization under paragraph (1).

(8) Where a person falling under paragraph (1) 4 or 5 fails to obtain authorization referred to in paragraph (1), the Korea Communications Commission may order him/her to suspend the exercise of the voting right or to sell the relevant stocks and, where such person fails to comply with the conditions under paragraph (5), issue an order to comply with such conditions within a specified period set by it.

(9) Any person who intends to obtain authorization under paragraph (1) shall be prohibited from engaging in the following conducts, prior to obtaining such authorization:

1. Integration of telecommunications networks;

2. Appointment of executives;

3. Acquisition of business, or execution of agreements for merger or sales of equipment and facilities;

4. Follow-up measures for the establishment of a company.

(10) Where any person falling under paragraph (1) is subject to the examination on public benefits, he/she may present the documents required to be submitted for the examination on public benefits, when applying for authorization under paragraph (1).

Article 19 (Suspension or Discontinuation of Business)

(1) Where a common telecommunications business operator intends to fully or partially suspend or discontinue his/her common telecommunications business, he/she shall notify users by not later than 60 days before the scheduled date of such suspension or discontinuance and obtain approval therefor from the Korea Communications Commission.

(2) Where the Korea Communications Commission deems it necessary to protect users in a separate means due to the suspension or discontinuation of the common telecommunications business, it may order the relevant common telecommunications business operator to take necessary measures for the protection of users, such as the vicarious execution of subscription change, payment of expenses incurred therein or cancellation of subscription.

(3) Where the Korea Communications Commission is in receipt of an application for approval under paragraph (1) and deems that the suspension or discontinuation of the relevant business threatens to impair public benefits, it shall not grant such approval.

Article 20 (Cancellation, etc. of Licenses)

(1) Where a common telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may fully or partially cancel his/her license or issue an order to fully or partially suspend business operation for up to one year:

1. Where he/she obtains a license by fraudulent or other illegal means;

2. Where he/she fails to satisfy the conditions under Articles 6 (4) and 18 (5);

3. Where he/she fails to comply with an order under Article 12 (2);

4. Where he/she fails to commence business within a period prescribed by Article 15 (1) (referring to an extended period, if such period is extended under paragraph (2) of the same Article);

5. Where he/she fails to comply with the terms and conditions of use, which are authorized or reported under Article 28 (1) and (2);

6. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without any justifiable ground.

(2) Guidelines and procedures for the dispositions under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.

SECTION 3 .- Special Category Telecommunications Business and Value-Added Telecommunications Business

Article 21 (Registration of Special Category Telecommunications Business)

(1) Any person who intends to operate the special category telecommunications business shall satisfy the following conditions and file for registration (including any registration through an information and telecommunications network) with the Korea Communications Commission, as prescribed by Presidential Decree:

1. Financial and technical capabilities;

2. Plans for protecting users;

3. Business plans, etc. and other matters prescribed by Presidential Decree.

(2) The Korea Communications Commission in receipt of registration for the special category telecommunications business under paragraph (1) may place necessary conditions to facilitate fair competition, protect users, improve service quality, efficiently utilize information and telecommunications resources.

(3) Any registration for the special category telecommunications business under paragraph (1) shall be granted only to a corporation.

(4) Any person who has completed registration for the special category telecommunications business (hereinafter referred to as “special category telecommunications business operator”) shall commence his/her business within one year after the date he/she has completed such registration.

(5) Requirements, procedures and other necessary matters for the registration under paragraph (1) shall be prescribed by Presidential Decree.

Article 22 (Reporting, etc. on Value-Added Telecommunications Business)

(1) Any person who intends to operate the value-added telecommunications business shall report (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission, in accordance with conditions and procedures prescribed by Presidential Decree. In such cases, a small-scale value-added telecommunications business operator shall be deemed to have reported if he/she meets the standards for capital, etc. prescribed by Presidential Decree.

(2) Notwithstanding the provisions of paragraph (1), any person who intends to conduct special value-added telecommunications business shall register (including registration through an information and communications network) with the Korea Communications Commission along with the following: (Inserted by Act nº 10656, May 19, 2011)

1. An implementation plan to take technical measures to comply with the provisions of Articles 42, 42-2, 42-3 and 45 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. and Article 104 of the Copyright Act;

2. Human resources and physical facilities necessary to conduct affairs;

3. Financial soundness;

4. Other matters prescribed by Presidential Decree, such as a business plan.

(3) Where the Korea Communications Commission accepts the registration of value-added telecommunications business pursuant to paragraph (2), it may attach conditions necessary for the implementation of a plan under subparagraph 1 of the same paragraph thereto. (Inserted by Act nº 10656, May 19, 2011)

(4) Where a common telecommunications business operator intends to operate the value-added telecommunications business, he/she shall be deemed to have reported thereon. (Amended by Act nº 10656, May 19, 2011)

(5) Any person who has reported on value-added telecommunications business pursuant to the forepart of paragraph (1) and any person who has registered value-added telecommunications business pursuant to paragraph (2) shall commence his/her business within one year after he/she reports or registers such business. (Amended by Act nº 10656, May 19, 2011)

(6) A report under the forepart of paragraph (1), requirements and procedures for registration under paragraph (2), and other necessary matters shall be prescribed by Presidential Decree. (Inserted by Act nº 10656, May 19, 2011)

Article 22-2 (Disqualifications for Registration)

Any individual or corporation, for whom three years have not passed from the date the registration thereof is cancelled pursuant to Article 27 (2), or a person who is a major stockholder (referring to an investor prescribed by Presidential Decree) of such corporation at the time of such cancellation shall not conduct registration under Article 22 (2).

(Article Inserted by Act nº 10656, May 19, 2011)

Article 23 (Modification of Registered or Reported Matters)

Where any special category telecommunications business operator or any person who has reported on the value-added telecommunications business pursuant to the forepart of Article 22 (1) or any person who has registered value-added telecommunications business pursuant to paragraph (2) of the same Article intends to modify matters prescribed by Presidential Decree among registered or reported matters, he/she shall make a revised registration or a revised report (including cases of making a revised registration or a revised report through information and telecommunications networks) with the Korea Communications Commission, as prescribed by Presidential Decree. (Amended by Act nº 10656, May 19, 2011)

Article 24 (Transfer, Acquisition. etc. of Business)

Where any person transfers or acquires all or part of his/her special category telecommunications business or value-added telecommunications business, or a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator (referring to a person who has reported value-added telecommunications business pursuant to the forepart of Article 22 (1), a person who has registered value-added telecommunications business pursuant to paragraph (2) of the same Article or a person deemed to have reported value-added telecommunications business pursuant to the latter part of paragraph (1) of the same Article or paragraph (4); hereinafter the same shall apply) is merged with another corporation or comes into an inheritance, any of the following persons shall report (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission, in accordance with conditions and procedures prescribed by Presidential Decree: (Amended by Act nº 10656, May 19, 2011)

1. A person who acquires the relevant business;

2. A corporation which survived or has been newly established following the merger;

3. A person who inherits the relevant business.

Article 25 (Succession of Business)

Where any person transfers or acquires the special category telelcommunications business or the value-added telecommunications business, a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator merges with another corporation, or any person inherits the value-added telecommunications business, pursuant to Article 24, a person who falls under any of the following subparagraphs shall succeed to the status of the preceding special category telecommunications business operator or the value-added telecommunications business operator:

1. A person who acquires the relevant business;

2. A corporation which survived or has been newly established in the course of the merger;

3. A person who inherits the relevant business.

Article 26 (Suspension, Discontinuation, etc. of Business)

(1) Where a special category telecommunications business operator or a value-added telecommunications business operator intends to fully or partially suspend or discontinue his/her business, he/she shall notify the users of the relevant telecommunications services of such suspension or discontinuation, and report (including cases of reporting through information and telecommunications networks) thereon to the Korea Communications Commission by not later than 30 days prior to the scheduled date of such suspension or discontinuation. In such cases, the duration of suspension of the business shall not exceed one year.

(2) Where a corporate special category telecommunications business operator or a corporate value-added telecommunications business operator is dissolved for a reason other than a merger, the relevant liquidator (referring to the trustee in bankruptcy, when such corporate business operator is dissolved by bankruptcy) shall promptly report thereon (including cases of reporting through information and telecommunications networks) to the Korea Communications Commission.

Article 27 (Cancellation of Business Registration, Order to Discontinue Business, etc.)

(1)          Where a special category telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may fully or partially cancel his/her business registration, or issue an order to fully or partially suspend the business operation for up to one year: Provided, That if he/she falls under subparagraph 1, the Korea Communications Commission shall fully or partially cancel his/her business registration:

1. Where he/she registers the business by fraudulent or other illegal means;

2. Where he/she fails to satisfy the conditions under Article 21 (2);

3. Where he/she fails to commence the business within one year from the date he/she has completed the business registration, in violation of Article 21 (4) or where he/she suspends the business operation for at least one year, in violation of the latter part of Article 26 (1);

4. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without justifiable grounds.

(2) Where a value-added telecommunications business operator falls under any of the following subparagraphs, the Korea Communications Commission may order him/her to discontinue all or part of his/her business (in cases of a special value-added telecommunication business operator, referring to the cancellation of all or part of registration) or to suspend all or part of his/her business operation for up to one year: Provided, That if he/she falls under subparagraph 1, the Korea Communications Commission shall order a partial or whole closure of the business: (Amended by Act nº 10656, May 19, 2011)

1. Where he/she reports or registers such business by fraudulent or other illegal means;

2. Where he/she fails to fulfill the conditions under Article 22 (3);

3. Where he/she fails to commence the business within one year from the date he/she reports or registers such business, in violation of Article 22 (5) or where he/she suspends the business operation for at least one year, in violation of the latter part of Article 26 (1);

4. Where he/she fails to comply with an order under Article 52 (1) or a corrective order under Article 92 (1) without justifiable grounds;

5. Where he/she fails to execute an order to take corrective measures under Article 64 (4) of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;

6. Where a person who has been subjected to the disposition of a fine for negligence not less than three times pursuant to Article 142 (1) and (2) 3 of the Copyright Act is subjected to the disposition of a fine for negligence again, in whose case the Minister of Culture, Sports and Tourism requests such disposition through deliberation by the Korea Copyright Commission under Article 112 of the same Act.

(3) Guidelines, procedures and other matters necessary for the dispositions under paragraph (1) or (2) shall be prescribed by Presidential Decree.

CHAPTER III.- TELECOMMUNICATIONS SERVICES

Article 28 (Reporting, etc. on Terms and Conditions of Use)

(1) A common telecommunications business operator shall determine the service charges and the terms and conditions of use for each service type he/she intends to provide (hereinafter referred to as “terms and conditions of use“), and report thereon (including cases of reporting modified matters; hereafter the same shall apply in this Article) to the Korea Communications Commission.

(2) Notwithstanding paragraph (1), in cases of common telecommunications services to be provided by a common telecommunications business operator who satisfies the standards prescribed by Presidential Decree, such as the scale of business and market share, the common telecommunications business operator shall obtain authorization (including revised authorization; hereafter the same shall apply in this Article) from the Korea Communications Commission: Provided, That if a common telecommunications business operator reduces the service charges which are stated in the terms and conditions of use already authorized, he/she shall report thereon to the Korea Communications Commission.

(3) In cases under the main sentence of paragraph (2), the Korea Communications Commission shall authorize the terms and conditions of use, if they satisfy the following requirements:

1. Telecommunications service charges shall be determined with reasonable consideration of the cost for supply, profits, classification of expenses and profits corresponding to each service, cost saving depending on the methods of service delivery, influence over fair competition environments, etc.;

2. They shall not put users at a disadvantage in terms of matters concerning the responsibility of common telecommunications business operators and relevant users or cost-sharing methods for installation works of telecommunications facilities and other works;

3. They shall not unfairly restrict the use of telecommunications line facilities by other telecommunications business operators or users;

4. They shall not unfairly discriminate specific persons;

5. They shall secure major telecommunications under Article 85, taking into consideration the efficient implementation of functions of the State.

(4) Any person who intends to report on the terms and conditions of use of telecommunications service or obtain authorization therefor under paragraphs (1) and (2) shall submit to the Korea Communications Commission the materials stating the basis of the calculation of telecommunications service charges (in cases of any alteration, including a comparative table on matters before and after the alteration), including subscription expenses, basic rates, user’s fees, additional service charges, actual expenses, etc.

(5) Necessary matters concerning the scope of and procedures for report or authorization, other than those under paragraphs (1) through (4), shall be prescribed by Presidential Decree.

Article 29 (Reduction or Exemption of Fees)

A common telecommunications business operator may reduce or exempt telecommunications service charges, as prescribed by Presidential Decree, to the extent necessary to sustain national security, disaster relief, social welfare, public interests, etc.

Article 30 (Restrictions on Use by Third Parties)

No person shall advocate a third party’s communications through telecommunications services provided by a telecommunications business operator or provide such services for a third party’s communications: Provided, That the same shall not apply in the following cases:

1. Where it is required to ensure the prevention and rescue from disaster, traffic and communications, and the supply of electricity, and to maintain order in a national emergency situation;

2. Where a person renders ancillary telecommunications services to clients while running his/her business other than the telecommunications business;

3. Where a person is allowed to use telecommunications services on a trial basis for the purpose of developing and marketing telecommunications equipment and facilities, such as terminal devices, etc. which enable to use the telecommunications services;

4. Where any user allows any third party to use telecommunications services to the extent that the latter does not use them repeatedly;

5. Where it is necessary for the public interests or where the use of telecommunications services do not impede the business operations by a telecommunications business, as prescribed by Presidential Decree.

Article 31 (Use of Transmission or Line Equipment and Facilities, etc.)

(1) Any composite cable TV business operator, transmission network business operator, or relay cable broadcasting business operator under the Broadcasting Act may permit common telecommunications business operators to use his/her own transmission or line equipment and facilities or cable broadcasting equipment and facilities in a manner prescribed by Presidential Decree.

(2) Where a common telecommunications business operator intends to provide value-added telecommunications services by using transmission or line equipment and facilities or cable broadcasting equipment and facilities owned by any composite cable TV business operator, transmission network business operator, or relay cable broadcasting business operator under the Broadcasting Act, he/she shall report thereon to the Korea Communications Commission pursuant to Article 22 (1).

(3) Articles 35 through 37, and 39 through 55 shall apply mutatis mutandis to a permit to use transmission or line equipment and facilities or cable broadcasting equipment and facilities pursuant to paragraph (1).

(4) Article 28 (2) through (7) of the Framework Act on Broadcasting Communications Development shall apply mutatis mutandis to the provision of services pursuant to paragraph (2).

Article 32 (Protection of Users)

(1) A telecommunications business operator shall promptly address the reasonable opinions or dissatisfactions raised by users with respect to telecommunications services. In such cases, if it is difficult to promptly address them, he/she shall notify the users of the reasons thereof and the schedule for treatment.

(2) Compensation for losses incurred by the occurrence of reasons causing the opinions or dissatisfactions under paragraph (1) and by the delay in addressing them shall be governed by Article 33.

(3) Where a telecommunications business operator who provides common telecommunications services intends to receive service charges from users in advance, prior to providing such telecommunications services, he/she shall purchase a guarantee insurance policy by which the person designated by the Korea Communications Commission is insured and which covers an amount calculated according to the guidelines prescribed by Presidential Decree within the total amount of advance service charges so as to compensate for losses suffered by users due to a failure to provide such telecommunications services: Provided, That a telecommunications business operator may choose not to purchase a guarantee insurance policy in any case prescribed by Presidential Decree taking into consideration the financial capability of the relevant telecommunications business operator, service charges, etc.

(4) Any insured person who has been designated under paragraph (3) shall pay the amount of coverage provided under a guarantee insurance policy referred to in paragraph (3) to the users, etc. who fail to receive telecommunications services after pre-paying service charges.

(5) Matters necessary for the purchase of guarantee insurance policies, renewal of guarantee insurance, procedures for paying insurance, etc. pursuant to paragraphs (3) and (4) shall be prescribed by Presidential Decree.

Article 32-2 (Notification of Excess, etc. of Limits on Charges)

(1) Where any telecommunications business operator who uses frequency allocated pursuant to the Radio Waves Act falls under any of the followings, he/she shall notify users of such fact:

1. Where he/she exceeds the limits on a charge for each telecommunications service on which he/she agreed with a user at the beginning;

2. Where a charge is imposed following the use of international telecommunications service, such as international telephone service.

(2) Matters necessary for objects, methods, etc. of a notification under paragraph (1) shall be determined and announced by the Korea Communications Commission.

(Article Inserted by Act nº 11201, Jan. 17, 2012)

Article 33 (Compensation for Losses)

A telecommunications business operator shall compensate for any losses suffered by a user when he/she has caused such losses in the course of providing telecommunications services: Provided, That if such loss results from a force majeure event or such user causes such losses on purpose or by gross negligence, the liability for compensation for the relevant losses shall be mitigated or exempted.

CHAPTER IV.- PROMOTION OF COMPETITION IN TELECOMMUNICATIONS BUSINESS

Article 34 (Promotion of Competition)

(1) The Korea Communications Commission shall endeavor to establish an efficient competition system and to promote environments of fair competition in the telecommunications business.

(2) The Korea Communications Commission shall appraise the conditions of competition in the common telecommunications business every year for the purpose of developing competition policies to establish an efficient competition system and to promote environments of fair competition in the telecommunications business under paragraph (1).

(3) The detailed guidelines, procedures and methods for appraising competition conditions under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree.

Article 35 (Provision of Equipment and Facilities)

(1) Where a telecommunications business operator requests a common telecommunications business operator or an authority that constructs, operates or manages roads, railroads, subways, water and sewage systems, electrical equipment, telecommunications line equipment and facilities, etc. (hereinafter referred to as “facility management authority“) to provide him/her with ducts, common utility conduits, poles, cables, stations, or other equipment (including telecommunications equipment and facilities; hereinafter the same shall apply) or facilities (hereinafter referred to as “equipment and facilities“), such common telecommunications business operator or such facility management authority may provide equipment and facilities by contract with him/her.

(2) Any of the following common telecommunications business operators or facility management authorities shall provide equipment and facilities by contract, notwithstanding the provisions of paragraph (1): Provided, That this shall not apply in cases where a facility management authority plans to use such equipment and facilities;

1. A common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operators to provide telecommunications services;

2. Any of the following facility management authorities who possess equipment and facilities, such as ducts, common utility conduits, or poles:

(a) Korea Highway Corporation established under the Korea Highway Corporation Act;

(b) Korea Water Resources Corporation established under the Korea Water Resources Corporation Act;

(c) Korea Electric Power Corporation established under the Korea Electric Power Corporation Act;

(d) Korea Rail Network Authority established under the Korea Rail Network Authority Act;

(e) A local public enterprise under the Local Public Enterprises Act;

(f) A local government under the Local Autonomy Act;

(g) A regional construction management administration under the Road Act;

3. A common telecommunications business operator or facility management authority whose scale of the business, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

(3) The Korea Communications Commission shall establish and publicly announce the scope of equipment and facilities under paragraphs (1) and (2) and the guidelines for the conditions, procedures, methods and calculation of prices for providing such equipment and facilities. In such cases, the scope of equipment and facilities to be provided under paragraph (2) shall be determined in consideration of the demand for equipment and facilities by common telecommunications business operators or facility management authorities falling under any subparagraph of the same paragraph.

(4) A telecommunications business operator who has been provided with equipment and facilities may install the apparatus enhancing the efficiency of the relevant equipment and facilities to the extent necessary to provide telecommunications services.

(5) The Korea Communications Commission may, as prescribed by Presidential Decree, order a telecommunications business operator or facility management authority to submit data concerning equipment and facilities, so as to efficiently utilize and manage equipment and facilities. In such cases, the telecommunications business operator or facility management authority shall comply with such order unless justifiable grounds exist.

(6) The Korea Communications Commission may designate a specialized institution to provide equipment and facilities under paragraphs (1) and (2).

(7) Matters necessary for the designation of a specialized institution under paragraph (6) and the methods of business operations shall be determined and publicly announced by the Korea Communications Commission.

Article 36 (Joint Use of Subscriber Lines)

(1) Where a telecommunications business operator determined and publicly announced by the Korea Communications Commission requests a common telecommunications business operator to jointly use the lines installed in the section from modems directly connected with the users to the users (hereafter referred to as “subscriber lines” in this Article), the common telecommunications business operator shall permit the joint use of subscriber lines.

(2) The Korea Communications Commission shall establish and publicly announce the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for the joint use of subscriber lines under paragraph (1).

Article 37 (Joint Utilization of Radio Communications Facilities)

(1) Where a common telecommunications business operator receives a request for joint utilization of radio communications facilities (hereinafter referred to as “joint utilization“) from other common telecommunications business operators, he/she may permit joint utilization by contract. In such cases, the prices for joint utilization by common telecommunications business operators which are determined and publicly announced by the Korea Communications Commission shall be computed and adjusted in a fair and reasonable manner.

(2) Where a common telecommunications business operator determined and publicly announced by the Korea Communications Commission receives a request for joint utilization of radio communications facilities from another common telecommunications business operator determined and publicly announced by the Korea Communications Commission, he/she shall permit the joint utilization by contract, notwithstanding paragraph (1), in order to enhance the efficiency of the telecommunications business and protect users.

(3) The guidelines for calculating the prices for the joint utilization under the latter part of paragraph (1), procedures and methods for paying such prices, and the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for the joint utilization under paragraph (2) shall be determined and publicly announced by the Korea Communications Commission.

Article 38 (Wholesale Provision of Telecommunications Services)

(1) Where a common telecommunications business operator receives a request from another telecommunications business operator, he/she may reach agreements with such telecommunications business operators to provide his/her telecommunications services to them or permit them to fully or partially use telecommunications equipment and facilities required for the provision of telecommunications services (hereinafter referred to as “wholesale services“) so as to enable them to provide his/her telecommunications services to users (hereinafter referred to as “resale“).

(2) For the purpose of the promotion of competition in the telecommunications business, the Korea Communications Commission may designate and publicly announce telecommunications services (hereinafter referred to as “mandatory wholesale services“) to be provided by a common telecommunications business operator who shall provide wholesale services by contract (hereinafter referred to as “mandatory wholesale service provider“), upon receipt of a request from other telecommunications business operators who intend to provide resale telecommunications services. In such cases, mandatory wholesale services to be provided by a mandatory wholesale service provider shall be designated among telecommunications services provided by a common telecommunications business operator who satisfies the standards determined by Presidential Decree, such as the scale of the business and market share.

(3) Where the Korea Communications Commission deems, as a result of the annual assessment of competition in communications markets, that the purposes of wholesale telecommunications services are achieved by vitalizing the competition in the telecommunications business or mandatory wholesale services fail to meet the standards for designation, it may revoke the designation of mandatory wholesale services provided by a mandatory wholesale service provider.

(4) The Korea Communications Commission shall determine and publicly announce the guidelines for the conditions, procedures, methods and calculation of prices for providing wholesale services to be observed by a mandatory wholesale service provider when reaching an agreement for the provision of mandatory wholesale services. In such cases, in principle, the prices for providing wholesale services shall be calculated by subtracting avoidable costs (referring to the relevant costs that can be avoided if a common telecommunications business operator does not directly provide telecommunications services to users) from the resale prices for mandatory wholesale services.

(5) A common telecommunications business operator shall, upon receipt of a request for wholesale services from other telecommunications business operators, reach an agreement for such wholesale services within 90 days, unless justifiable grounds exist, and the telecommunications business operator who has reached an agreement for wholesale services with a common telecommunications business operator shall report to the Korea Communications Commission within 30 days after the date of such agreement, as prescribed by Presidential Decree. The same shall apply to the amendment to or revocation of an agreement for wholesale services.

(6) An agreement under paragraph (5) shall comply with the guidelines publicly announced by the Korea Communications Commission pursuant to paragraph (4).

Article 39 (Interconnection)

(1) Where a telecommunications business operator receives a request for interconnection of telecommunications equipment and facilities from other telecommunications business operators, he/she may permit the interconnection by contract.

(2) The Korea Communications Commission shall determine and publicly announce the scope of, and the guidelines for the conditions, procedures, methods and calculation of prices for interconnections of telecommunications equipment and facilities under paragraph (1).

(3) Notwithstanding paragraphs (1) and (2), any of the following common telecommunications business operators shall permit the interconnection by contract, upon receipt of a request under paragraph (1):

1. The common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operators to provide telecommunications services;

2. The common telecommunications business operator whose scale of the business, market share, etc. of common telecommunications services meet the standards determined by Presidential Decree.

Article 40 (Prices of Interconnection)

(1) Prices for interconnection shall be calculated in a fair and reasonable manner and adjusted by mutual agreements, and detailed guidelines, procedures and methods for calculating prices for interconnection shall be governed by the guidelines under Article 39 (2).

(2) Where a telecommunications business operator experiences any disadvantage in a method of interconnection, connection quality, the provision of information required for interconnection, etc. for reasons not attributable to him/her, he/she may pay the prices for interconnection reduced according to the guidelines under Article 39 (2).

Article 41 (Joint Use, etc. of Telecommunications Equipment and Facilities)

(1) Where a common telecommunications business operator receives a request for access to or joint use of his/her own telecommunications equipment and facilities, such as ducts, cables, poles or stations, from other telecommunications business operators who intend to establish or operate equipment and facilities required for interconnection, he/she may enter reach agreement with them to permit such access or joint use.

(2) The Korea Communications Commission shall determine and publicly announce the scope of and the guidelines for conditions, procedures, methods and calculation of prices for access to or joint use of telecommunications equipment or facilities under paragraph (1).

(3) Notwithstanding the provisions of paragraph (1), any of the following common telecommunications business operators shall permit access to or joint use of the telecommunications equipment or facilities under paragraph (1) by contract, upon receipt of a request under paragraph (1):

1. A common telecommunications business operator who possesses equipment and facilities indispensable for another telecommunications business operator to provide telecommunications services;

2. A common telecommunications business operator whose business scale, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

Article 42 (Provision of Information)

(1) Where a telecommunications business operator requests a common telecommunications business operator to provide technical information or users’ personal information needed for the provision of equipment and facilities, wholesale services, interconnection services, joint-use services, billing and collections, and telephone number information services, the common telecommunications business operator may provide such information by contract with the telecommunications business operator.

(2) The Korea Communications Commission shall determine and publicly announce the scope of and the guidelines for conditions, procedures, methods and calculation of prices for providing information under paragraph (1).

(3) Notwithstanding the provisions of paragraph (1), any of the following common telecommunications business operators shall provide information requested by contract, upon receipt of a request under paragraph (1):

1. A common telecommunications business operator who possesses equipment and facilities indispensable for other telecommunications business operator to provide telecommunications services;

2. A common telecommunications business operator whose business scale, market share, etc. of common telecommunications services meet the standards prescribed by Presidential Decree.

(4) A common telecommunications business operator under paragraph (3) shall determine the technical standards to be satisfied by other telecommunications business operator or users who intend to connect their terminal devices, etc. with his/her own telecommunications equipment and facilities, the requirements for the provision and use, and other standards required for the creation of environments for fair competition, and publicly announce them by obtaining approval from the Korea Communications Commission.

Article 43 (Prohibition of Misuse of Information)

(1) No telecommunications business operator shall disclose any user’s personal information that he/she has obtained in the course of providing his/her own services, telecommunications equipment and facilities, wholesale services, interconnection services or joint-use services: Provided, That the same shall not apply in cases where a telecommunications business operator discloses such information with the user’s consent or under a lawful procedure pursuant to any Act.

(2) A telecommunications business operator shall use the technical information or user’s personal information obtained under Article 42 (1) and (3) only for its original purposes, and shall not misuse such information or provide such information to a third party.

Article 44 (Reporting, etc. on Agreement on Interconnection, etc.)

(1) Where a common telecommunications business operator or a facility management authority has received a request for the provision of equipment and facilities, joint utilization, interconnection or joint-use services or provision of information from other telecommunications business operators, he/she shall reach an agreement under Article 35 (1) and (2), the former part of Article 37 (1), Article 39 (1), 41 (1) or 42 (1) within 90 days unless special grounds exist and report it to the Korea Communications Commission within 30 days after the date of such agreement, as prescribed by Presidential Decree. The same shall apply to the amendment to or revocation of an agreement.

(2) Notwithstanding paragraph (1), if a common telecommunications business operator under the latter part of paragraph (1) and paragraph (2) of Article 37, and Articles 39 (3), 41 (3) or 42 (3) is a party to an agreement and requests another common telecommunications business operator to reach such agreement, the common telecommunications business operator who has received the request shall enter into the agreement within 90 days unless special grounds exist and apply for authorization to the Korea Communications Commission within 30 days after the date of agreement as prescribed by Presidential Decree, and disclose the details of such agreement within 30 days after the date of authorization. The same shall apply to the amendment to or revocation of an agreement.

(3) Agreements under paragraphs (1) and (2) shall comply with the guidelines publicly announced by the Korea Communications Commission pursuant to Articles 35 (3), 37 (3), 39 (2), 41 (2), or 42 (2).

(4) Where it is necessary to supplement an application for authorization under paragraph (2), the Korea Communications Commission may issue an order for supplementation by specifying a time limit for supplementation.

(5) Agreements under Articles 41 (1) and 42 (1) may be included in agreements under Article 39 (1).

Article 45 (Ruling by the Korea Communications Commission)

(1) A telecommunications business operator or user may apply for a ruling on the following matters to the Korea Communications Commission, when the parties concerned have failed to reach an agreement thereon or it is impossible to reach an agreement thereon:

1. Compensation for losses under Article 33;

2. Conclusion of an agreement within 90 days on the provision of equipment and facilities, joint utilization, wholesale services, interconnection or joint-use services, provision of information, etc.;

3. Implementation of an agreement on the provision of equipment and facilities, joint utilization, wholesale services, interconnection or joint-use services, provision of information, etc. or compensation for losses rising from the implementation of such agreement;

4. Other disputes related to the telecommunications business or subject matters of the ruling by the Korea Communications Commission under other Acts.

(2) The Korea Communications Commission shall, upon receipt of an application for a ruling under paragraph (1), give notice thereof to the other party and provide an opportunity to state his/her opinion within a specified period: Provided, That this shall not apply in cases where the party concerned fails to state his/her opinion without any justifiable ground.

(3) The Korea Communications Commission shall make a ruling within 90 days from the date of receipt of the application for a ruling: Provided, That if it fails to make a ruling within such period due to inevitable circumstances, the period may be extended only once for up to 90 days following a resolution passed by the Korea Communications Commission.

(4) Where one of the parties files a lawsuit during the ruling procedures, the Korea Communications Commission shall suspend such procedures and give notice thereof to the other party. The same shall apply in cases where it is confirmed that a lawsuit has been filed before the application for a ruling.

(5) Where the Korea Communications Commission makes a ruling on the matters under paragraph (1), it shall promptly serve the ruling documents on the parties concerned.

(6) Where no lawsuit is filed over the dispute between business operators or between a business operator and a user within 60 days after the date the certified transcripts of the ruling documents of the Korea Communications Commission are served on the business operator or user who is a party to the ruling or the lawsuit over such dispute is withdrawn or both parties clearly express their consent for the ruling to the Korea Communications Commission, both parties shall be deemed to have reached an agreement with the same effect as the ruling.

Article 46 (Referral of Disputes)

The Korea Communications Commission may establish a dispute settlement panel on a case-by-case basis and refer disputes to the relevant dispute settlement panel if it deems it appropriate or necessary to make a ruling on the matters under Article 45 (1).

Article 47 (Request for Appearance, Hearing of Opinions, etc.)

Where the Korea Communications Commission deems it necessary to deal with ruling cases, it may take any of the following measures upon receipt of an application by the party concerned or ex officio:

1. Requests for appearance by or hearing of opinions from the party concerned or a witness;

2. Requests for appraisal by an appraiser;

3. Requests for submission of documents or articles related to disputes and keeping documents or articles submitted in custody.

Article 48 (Management Plan for Telecommunications Numbers, etc.)

(1) The Korea Communications Commission shall develop and implement management plans for telecommunications numbers in order to efficiently provide telecommunications services, to promote user convenience and to create environments for fair competition among telecommunications business operators.

(2) Where the Korea Communications Commission has developed the plans under paragraph (1), it shall publicly announce them. The same shall also apply to an amendment to the developed plan.

(3) Any telecommunications business operator shall comply with the matters publicly announced under paragraph (2).

Article 49 (Settlement of Accounts)

(1) Any common telecommunications business operator shall complete settlement of accounts as prescribed by Presidential Decree, prepare a business report for the preceding year and submit it to the Korea Communications Commission by not later than three months after the end of each fiscal year, and retain the related books and source documents.

(2) Where the Korea Communications Commission intends to determine the matters concerning settlement of accounts under paragraph (1), it shall first consult with the Minister of Strategy and Finance.

(3) The Korea Communications Commission may verify the details of any business report submitted by a common telecommunications business operator in accordance with paragraph (1).

(4) If it is necessary to conduct the verification referred to in paragraph (3), the Korea Communications Commission may order the relevant common telecommunications business operator to submit related material or conduct an inspection necessary to ascertain the facts.

(5) Where the Korea Communications Commission intends to conduct an inspection pursuant to paragraph (4), it shall notify the relevant common telecommunications business operator of the inspection plan, including the period for and reasons and details of the inspection by not later than seven days before such inspection.

(6) Any person who conducts an inspection pursuant to paragraph (4) shall present a certificate indicating his/her authority to the persons concerned, and deliver thereto a document stating his/her name, the period and purpose of visit, etc. at the time of his/her first visit.

Article 50 (Prohibited Acts)

(1)          No telecommunications business operator may commit any of the following acts (hereinafter referred to as “prohibited acts“) which undermine or are feared to undermine fair competition or users’ interests, or allow other telecommunications business operators or third parties to commit such acts:

1. Acts which place unfair or discriminative conditions or restrictions on the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc.;

2. Acts which unfairly refuse to conclude an agreement on the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc. or failing to implement a concluded agreement without justifiable grounds;

3. Acts which misuse the information of other telecommunications business operators that he/she has obtained in the course of the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc., for his/her business operations;

4. Acts which compute telecommunications service charges or the prices for the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc., by unfairly itemizing the expenses or revenues;

5. Acts which provide telecommunications services in a manner different from the terms and conditions of use (limited to the terms and conditions of use reported or authorized under Article 28 (1) and (2)), or in a manner which substantially undermines telecommunications users’ interests;

6. Acts which determine that the prices for the provision of equipment and facilities, joint utilization, interconnection or joint-use services, wholesale services, provision of information, etc. which are unfairly higher than the supply prices;

7. Acts which refuse or restrict appropriate profit sharing when trading digital content through telecommunications services using the frequencies allocated under the Radio Waves Act.

(2) Where the provisions of Articles 52 and 53 apply to the acts under paragraph (1) 5 committed by a person who acts for a telecommunications business operator to conclude contracts (or modify the terms of concluded contracts) with users under an agreement with the telecommunications business operator, such acts shall be deemed to have been committed by the telecommunications business operator: Provided, That the same shall not apply in cases where the telecommunications business operator has paid considerable attention in order to prevent such acts.

(3) Matters necessary for categories of and standards for the acts prohibited under paragraph (1) shall be prescribed by Presidential Decree.

Article 51 (Fact-Finding Investigations, etc.)

(1) Where the Korea Communications Commission is notified or become aware that any act has been committed in violation of Article 50 (1), it may order the public officials under its control to conduct a fact-finding investigation necessary for the verification thereon.

(2) Ifthe Korea Communications Commission deems a fact-finding investigation under paragraph (1) is necessary, it may order the public official under its control to visit the offices or places of business of a telecommunications business operator or places of business of a person entrusted with the affairs of a telecommunications business operator (if the affairs entrusted by a telecommunications business operator are related to the provisions of Article 50, limited only to such affairs; hereafter the same shall apply in this Article) for an investigation on books, documents, other data or articles.

(3) Where the Korea Communications Commission intends to conduct a fact-finding investigation under paragraph (1), it shall notify the relevant telecommunications business operator of an investigation plan, including a period for and reasons and details of the investigation by not later than seven days before such investigation: Provided, That this shall not apply in cases of emergency or in cases where deemed that any prior notification might cause the destruction of any evidence to make it impossible to attain the purposes of such investigation.

(4) A person who visits the offices or places of business of a telecommunications business operator or the places of business of a person entrusted with the affairs of a telecommunications business operator to conduct a fact-finding investigation under paragraph (2) shall present a certificate indicating his/her authority, and allow the persons interested in the relevant offices or places of business to participate in such fact-finding investigation.

(5) Any public official in charge of a fact-finding investigation under paragraph (2) may order a telecommunications business operator or a person entrusted with the affairs of a telecommunications business operator to submit necessary data or articles, and temporarily keep such data or articles in his/her custody if the destruction of evidence, such as the disposal, concealment, or replacement of such data or articles, is anticipated.

(6) The Korea Communications Commission shall promptly return the data or articles kept in custody if they fall under any of the following subparagraphs:

1. Where it is deemed upon examination that they are not associated with the relevant investigation;

2. Where it is no longer necessary to keep them in custody because the purposes of the relevant investigation are achieved.

Article 52 (Measures on Prohibited Acts)

(1) The Korea Communications Commission may order a telecommunications business operator to take any of the following measures if it deems that a violation of Article 50 (1) has been committed:

1. Separation of the supply system of telecommunications services;

2. Amendment to internal accounting regulations, etc. concerning telecommunications services;

3. Disclosure of information concerning telecommunications services;

4. Conclusion, implementation or change of terms of an agreement between telecommunications business operators;

5. Amendment to the terms and conditions of use and the articles of incorporation of telecommunications business operators;

6. Suspension of prohibited acts;

7. Public announcement of a fact that a corrective order is issued due to prohibited acts;

8. Measures necessary for correcting the violation caused by prohibited acts, such as the removal of telecommunications equipment and facilities;

9. Business process improvement for telecommunications services;

10. Prohibition on the recruitment of new users for up to three months (limited to the cases where a violation is repeated at least three times even though the measures under subparagraphs 1 through 9 have been taken on such violation or where it is clearly recognized that such measures are not sufficient to prevent damage to users);

11. Other matters prescribed by Presidential Decree as may be necessary to take the measures referred to in subparagraphs 1 through 10.

(2) Telecommunications business operators shall comply with an order issued by the Korea Communications Commission under paragraph (1) within a period specified by Presidential Decree: Provided, That the Korea Communications Commission may extend the relevant period only once, if it is deemed that the telecommunications business operator is unable to comply with the order within the specified period due to natural disasters and other extenuating circumstances.

(3) The Korea Communications Commission shall notify the parties concerned of the details of measures and provide them with an opportunity to state their opinions within a prescribed period before it takes measures under paragraph (1), and where deemed necessary, it may request an interested party or witness to appear and state his/her opinions or request an appraiser to conduct appraisal: Provided, That this shall not apply in cases where the parties concerned fail to state their opinions without justifiable grounds.

(4) The Korea Communications Commission shall not take any measures under paragraph (1) or impose penalty surcharges under Article 53 on a violation of Article 50 (1) if five years have passed after such violation: Provided, That this shall not apply where any measure already taken or the imposition of a penalty surcharge is revoked by a court and a new measure is to be taken based on such decision.

Article 53 (Imposition, etc. of Penalty Surcharge on Prohibited Acts)

(1) Where any act is committed in violation of Article 50 (1), the Korea Communications Commission may impose a penalty surcharge on the relevant telecommunications business operator in an amount not exceeding 3/100 of his/her profit prescribed by Presidential Decree. In such cases, if the telecommunications business operator refuses to submit data necessary for the calculation of his/her profit or submits false data, such profit may be estimated based on financial statements and other accounting materials of the relevant telecommunications business operator and the business operators providing the same or similar type of services, and the materials concerning the current status of business operations, such as the number of subscribers, service charges, etc.: Provided, That where there is no profit or it is difficult to calculate the profit as prescribed by Presidential Decree, a penalty surcharge may be imposed in an amount not exceeding one billion won.

(2) Where a common telecommunications business operator who shall submit a business report under Article 49 falls under any of the following subparagraphs, the Korea Communications Commission may impose a penalty surcharge on the relevant common telecommunications business operator in an amount not exceeding 3/100 of his/her profit prescribed by Presidential Decree:

1. Where he/she fails to submit a business report under Article 49 or to comply with an order to submit relevant materials;

2. Where he/she fails to include important matters in a business report under Article 49 or includes false matters;

3. Where he/she fails to perform accounting, in violation of Article 49 (1) or to retain books or source documents.

(3) The Korea Communications Commission shall imposes a penalty surcharge under paragraph (1) or (2) in consideration of the following matters:

1. Details and severity of the violation;

2. Duration and frequency of the violation;

3. Scale of the gains from the violation;

4. Profits related to the performance of prohibited acts or the violation of accounting rules by a telecommunications business operator.

(4) A penalty surcharge under paragraph (1) or (2) shall be determined in consideration of paragraph (3) and the detailed guidelines and procedures for determination shall be prescribed by Presidential Decree.

(5) Where a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to do so by the payment deadline, the Korea Communications Commission shall collect 6/100 per annum of the penalty surcharge in arrears as an additional due from the day following the expiry of such payment deadline.

(6) Where a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to do so by the payment deadline, the Korea Communications Commission shall demand him/her to pay it within a prescribed period, and if he/she fails to pay the penalty surcharge and the additional due under paragraph (5) within the prescribed period, it shall collect them in the same manner as dispositions on default of national taxes.

(7) Where the penalty surcharge imposed pursuant to paragraph (1) or (2) is refunded by a court, etc., additional dues shall be paid at a rate of 6/100 per annum for a period from the date when the penalty surcharge is paid to the date of such refund.

Article 54 (Relations with Other Acts)

Where a telecommunications business operator is subject to a measure under Article 52 or a penalty surcharge under Article 53 on the grounds that he/she violates Article 50 (1), the telecommunications business operator shall not be subject to a corrective measure or penalty surcharge under the Monopoly Regulation and Fair Trade Act on the same grounds.

Article 55 (Compensation for Losses)

Where a measure has been taken under Article 52 (1), a person who suffers losses from a prohibited act may claim compensation for losses against the telecommunications business operator who has committed such prohibited act, and the relevant telecommunications business operator may not be exempt from liability to compensate for losses unless he/she is able to prove that there was no malicious intention or negligence.

Article 56 (Quality Improvement, etc. of Telecommunications Services)

(1) A telecommunications business operator shall endeavor to improve the quality of telecommunications services he/she provides.

(2) The Korea Communications Commission shall develop policy measures, such as an evaluation of quality of telecommunications services, in order to improve the quality of telecommunications services and to enhance the conveniences of users.

(3) The Korea Communications Commission may order a telecommunications business operator to submit data necessary for the evaluation of quality of telecommunications services, etc. under paragraph (2).

Article 57 (Preselection Systems)

(1) The Korea Communications Commission shall implement the systems in which users may select in advance the telecommunications business operator who is to provide telecommunications services thereto (hereinafter referred to as “preselection systems“). In such cases, the telecommunications services shall refer to telecommunications services determined by Presidential Decree among the same telecommunications services provided by multiple telecommunications business operators.

(2) A telecommunications business operator shall not force users to select a specified telecommunications business operator in advance, or recommend or induce by unlawful means.

(3) The Korea Communications Commission may designate a specialized institute in charge of the affairs concerning registration of preselection or modification thereto (hereinafter referred to as “preselection registration center“) in order to efficiently and neutrally implement the preselection systems.

(4) Matters necessary for the implementation of the preselection systems, the designation of the preselection registration center and the method of business operations, etc. shall be determined and publicly announced by the Korea Communications Commission.

Article 58 (Telephone Number Portability)

(1) The Korea Communications Commission may establish and implement a plan for telephone number portability (hereafter referred to in this Article as “plan for number portability“) to enable users to retain their telephone numbers when changing from one telecommunications business operator to another.

(2) A plan for number portability shall include the following matters:

1. Kinds of services subject to telephone number portability;

2. Time to start telephone number portability for each service;

3. Matters concerning sharing of expenses incurred in the implementation of a plan for number portability among telecommunications business operators.

(3) The Korea Communications Commission may order the relevant telecommunications business operator to take measures necessary for the implementation of a plan for number portability.

(4) The Korea Communications Commission may designate a specialized institution in charge of registration of number portability and modification thereto (hereinafter referred to as “number portability management institution“) to efficiently and neutrally implement telephone number portability.

(5) Matters concerning the implementation of telephone number portability and matters necessary for the designation of a number portability management institution and the operation of its affairs shall be determined and publicly announced by the Korea Communications Commission.

Article 59 (Limitation on Mutual Holding of Stocks)

(1) Where a common telecommunications business operator under Article 39 (3) 1 or 2 (including a person in a special relation with him/her) holds in excess of 5/100 of the total number of voting stocks issued by another common telecommunications business operator, he/she shall not be allowed to exercise any voting rights in excess of the relevant ceiling.

(2) Paragraph (1) shall not apply to holding relationship between a common telecommunications business operator under Article 39 (3) 1 or 2 and a common telecommunications business operator established by the said common telecommunications business operator by becoming the largest stockholder.

Article 60 (Provision of Number Information Services)

(1) A telecommunications business operator shall provide a service to inform the general public of the telephone numbers of users by means of voice, booklets or the Internet, etc. (hereinafter referred to as “number information service“) by obtaining a consent from users: Provided, That the same shall not apply to minor business determined and publicly announced by the Korea Communications Commission in consideration of the numbers of users, profits, etc.

(2) The Korea Communications Commission may place restrictions on the provision of number information services to the extent necessary to protect personal information.

(3) Matters necessary for the provision of number information services may be prescribed by Presidential Decree.

CHAPTER V.- TELECOMMUNICATIONS EQUIPMENT AND FACILITIES

SECTION 1.- Commercial Telecommunications Equipment and Facilities

Article 61 (Maintainment and Repair of Telecommunications Equipment and Facilities)

A telecommunications business operator shall maintain and repair his/her own telecommunications equipment and facilities in compliance with the technical standards prescribed by Presidential Decree so as to reliably provide his/her telecommunications services.

Article 62 (Reporting and Approval on Installation of Telecommunications Equipment and Facilities)

(1) Where a common telecommunications business operator intends to install or change important telecommunications equipment and facilities, he/she shall submit a prior report to the Korea Communications Commission, as prescribed by Presidential Decree: Provided, That in terms of telecommunications equipment and facilities installed for the first time thanks to a new telecommunications technology, the operator shall obtain approval from the Korea Communications Commission, as prescribed by Presidential Decree.

(2) Scope of important telecommunications equipment and facilities under paragraph (1) shall be prescribed and publicly announced by the Korea Communications Commission.

Article 63 ( Joint Installation of Telecommunications Equipment and Facilities)

(1) A common telecommunications business operator may install and use telecommunications equipment and facilities jointly with other common telecommunications business operators through consultation thereon with them.

(2) Where common telecommunications business operators have consultation under paragraph (1), the Korea Communications Commission may conduct researches on necessary data and provide them to common telecommunications business operators, as prescribed by Presidential Decree.

(3) The Korea Communications Commission may request an institution specialized in telecommunications to conduct researches under paragraph (2) as prescribed by Presidential Decree, so as to efficiently conduct the relevant researches.

(4) In any case described in the following subparagraphs, the Korea Communications Commission may recommend a common telecommunications business operator under paragraph (1) to jointly install telecommunications equipment and facilities, as prescribed by Presidential Decree:

1. Where consultation under paragraph (1) fails to lead to agreement, and the relevant common telecommunications business operator makes a request;

2. Where it is deemed necessary to promote public interests.

(5) Where it is necessary for a common telecommunications business operator to use land, buildings, etc. owned by the State, local governments, public institutions under the Act on the Management of Public Institutions (hereafter referred to as “public institutions” in this Article) or other common telecommunications business operators for the joint installation of telecommunications equipment and facilities, and consultation fails to lead to agreement on the use of such land, buildings, etc., the common telecommunications business operator may request the Korea Communications Commission to provide cooperation for the use of the relevant land, buildings, etc.

(6) Where the Korea Communications Commission receives a request for cooperation under paragraph (5), it may request the State agencies, local governments, the heads of public institutions, or other common telecommunications business operators to respond to the consultation on the use of the relevant land, buildings, etc. with the common telecommunications business operator who submits a request for cooperation under paragraph (5). In such cases, the State agencies, local governments, the heads of public institutions, or other common telecommunications business operators shall respond to the consultation with the common telecommunications business operator unless justifiable grounds exist.

SECTION 2.- Private Telecommunications Equipment and Facilities

Article 64 (Installation of Private Telecommunications Equipment and Facilities)

(1) Any person who intends to install private telecommunications equipment and facilities shall report to the Korea Communications Commission, as prescribed by Presidential Decree. The same shall apply in cases where he/she intends to change any important matter prescribed by Presidential Decree, among the reported matters.

(2) Notwithstanding paragraph (1), other Acts shall apply to private wireless telecommunications equipment and facilities and military telecommunications equipment and facilities, if otherwise prescribed by such other Acts.

(3) Where a person who has reported on the installation of private telecommunications equipment and facilities or reported on the change thereof pursuant to paragraph (1) completes the installation works or installation change works, he/she shall obtain prior confirmation from the Korea Communications Commission, as prescribed by Presidential Decree.

(4) Notwithstanding paragraph (1), private telecommunications equipment and facilities prescribed by Presidential Decree may be installed without reporting.

Article 65 (Restrictions on Use for other Purposes)

(1) No person who installs private telecommunications equipment and facilities shall advocate a third party’s communications through such equipment and facilities or operate such equipment and facilities not in accordance with the purposes of installation: Provided, That this shall not apply in cases where he/she uses them for any of the following purposes to the extent permitted by other Acts or to the extent that does not impede the purposes of installation:

1. Cases of allowing a policeman or a person engaged in disaster relief to use private telecommunications equipment and facilities for the maintenance of public order or for emergency disaster relief;

2. Cases of using private telecommunications equipment and facilities between a person who installs such equipment and facilities and a person in a special business relationship with him/her, as publicly announced by the Korea Communications Commission.

(2) A person who has installed private telecommunications equipment and facilities may provide his/her own telecommunications equipment and facilities, such as ducts or cables, to common telecommunications business operators, as prescribed by Presidential Decree.

(3) Articles 35, 44 (excluding paragraph (5)), 45 through 47 shall apply mutatis mutandis to the provision of equipment and facilities under paragraph (2).

Article 66 (Procurement of Communications in Cases of Emergency)

(1) The Korea Communications Commission may order a person who has installed private telecommunications equipment and facilities to carry out the telecommunications business or other important communications business or to connect his/her telecommunications equipment and facilities with other telecommunications equipment and facilities, at the time of war, an upheaval, natural disaster or any national emergency equivalent thereto or if an outbreak of such emergency is highly apprehended. In such cases, the provisions of Articles 28 through 55 shall apply mutatis mutandis.

(2) If he Korea Communications Commission deems necessary, he/she may require a common telecommunications business operator to carry out the business under paragraph (1).

(3) In cases under paragraph (1), the expenses incurred in carrying out the business and connecting equipment and facilities shall be reimbursed by the Government: Provided, That where private telecommunications equipment and facilities are used for telecommunications services, the expenses incurred therein shall be reimbursed by the common telecommunications business operator who uses such equipment and facilities.

Article 67 (Corrective Order, etc. Issued to Private Telecommunications Equipment and Facilities Installers)

(1) Where a person who has installed private telecommunications equipment and facilities violates this Act or any order under this Act, the Korea Communications Commission may order him/her to take a corrective measure within a prescribed period.

(2) Where a person who has installed private telecommunications equipment and facilities falls under any of the following subparagraphs, the Korea Communications Commission may order him/her to suspend the use of such equipment and facilities for up to one year:

1. Where he/she fails to comply with the corrective order under paragraph (1);

2. Where he/she uses private telecommunications equipment and facilities without confirmation in violation of Article 64 (3);

3. Where he/she advocates a third party’s communications or operates private telecommunications equipment and facilities not in accordance with the purpose of installation in violation of Article 65 (1).

(3) Where it is deemed that private telecommunications equipment and facilities are feared to impede a third party’s telecommunications or to harm a third party’s telecommunications equipment and facilities, the Korea Communications Commission may order the person who has installed such private telecommunications equipment and facilities to suspend the use of his/her equipment and facilities, to reform or repair them, or to take other necessary measures.

SECTION 3.- Integrated Management, etc. of Telecommunications Equipment and Facilities

Article 68 (Installation of Conduits, Ducts, etc.)

(1) Any person who installs or constructs any of the following facilities (hereinafter referred to as “facility installer“) shall consider the opinions of a common telecommunications business operator on the installation of common utility conduits, ducts, etc. that can carry telecommunications equipment and facilities and reflect them on the installation or construction of such facilities: Provided, That this shall not apply in cases where he/she fails to reflect the opinions of the common telecommunications business operator due to any extenuating circumstance:

1. Roads under Article 2 (1) 1 of the Road Act;

2. Railroads under subparagraph 1 of Article 2 of the Railroad Enterprise Act;

3. Urban railroads under subparagraph 1 of Article 3 of the Urban Railroad Act;

4. Industrial complexes under subparagraph 5 of Article 2 of the Industrial Sites and Development Act;

5. Free trade zones under subparagraph 1 of Article 2 of the Act on Designation and Management of Free Trade Zones;

6. Airport zones under subparagraph 9 of Article 2 of the Aviation Act;

7. Harbor zones under subparagraph 4 of Article 2 of the Harbor Act;

8. Other facilities or sites prescribed by Presidential Decree.

(2) A common telecommunications business operator shall present his/her opinions on the installation of common utility conduits, ducts, etc. under paragraph (1) in compliance with the guidelines prescribed by Presidential Decree for installing conduits.

(3) Articles 35, and 44 (excluding paragraph (5)) and 45 through 47 shall apply mutatis mutandis to the provision of common utility conduits, ducts, etc. established under paragraph (1).

(4) Where a facility installer is unable to reflect the opinions of a common telecommunications business operator pursuant to paragraph (1), he/she shall notify the relevant common telecommunications business operator of the reasons therefor within 30 days after the date of receipt of such opinions.

(5) Where a facility installer fails to reflect the opinions of a common telecommunications business operator pursuant to paragraph (1), the relevant common telecommunications business operator may submit a request for mediation to the Korea Communications Commission.

(6) Where the Korea Communications Commission intends to provide mediatory suggestions upon receipt of a request for mediation under paragraph (5), it shall first consult with the head of the relevant central administrative agency.

(7) Matters necessary for mediation under paragraphs (5) and (6) shall be prescribed by Presidential Decree.

Article 69 (Establishment of Building Telecommunications Cabling Systems, etc.)

(1) A building under Article 2 (1) 2 of the Building Act shall be equipped with the building telecommunications cabling systems, and secure a certain space for connection with telecommunications line equipment and facilities.

(2) Matters necessary for the scope of buildings, guidelines for establishing the telecommunications cabling systems, and securing a space for connection with telecommunications line equipment and facilities pursuant to paragraph (1) shall be prescribed by Presidential Decree.

 Article 70 (Integrated Management of Telecommunications Equipment and Facilities, etc.)

(1) Where it is necessary for the efficient management and operation of telecommunications equipment and facilities, the Korea Communications Commission may entrust the integrated management of telecommunications equipment and facilities installed under this Act or any other Act and land, buildings or other structures attached thereto (hereinafter referred to as “telecommunications equipment and facilities, etc.”) to the common telecommunications business operator who has been selected in accordance with the guidelines and procedures prescribed by Presidential Decree (hereinafter referred to as “telecommunications business operator entrusted with the integrated management“).

(2) Where the Korea Communications Commission intends to entrust the integrated management of telecommunications equipment and facilities under paragraph (1), it shall develop a plan for the integrated management of telecommunications equipment and facilities (hereinafter referred to as “integrated management plan“) and obtain approval therefor from the President through consultation with the head of the relevant administrative agency and through deliberation by the State Council.

(3) An integrated management plan shall include the following matters:

1. Subjects, periods, methods and procedures of the integrated management;

2. Matters concerning the management of telecommunications equipment and facilities, etc. after integration;

3. Other matters prescribed by Presidential Decree.

(4) Where the Korea Communications Commission intends to develop an integrated management plan, it shall first consult with the person who installs telecommunications equipment and facilities to be integrated.

Article 71 (Purchase of Telecommunications Equipment and Facilities, etc.)

(1) If it is necessary for the integrated management of telecommunications equipment and facilities, a telecommunications business operator entrusted with the integrated management may claim for the purchase of the relevant telecommunications equipment and facilities. In such cases, the owner of the relevant telecommunications equipment and facilities shall not refuse the claim without any justifiable ground.

(2) Notwithstanding Article 27 of the State Property Act or Article 19 of the Public Property and Commodity Management Act, State-owned or publicly-owned telecommunications equipment and facilities, etc. claimed by a telecommunications business operator entrusted with the integrated management may be sold to the telecommunications business operator entrusted with the integrated management. In such cases, matters necessary for the sales, such as the methods of calculating the sale price, procedures for sales, and payment methods of the purchase prices shall be prescribed by Presidential Decree.

(3) With respect to the methods and guidelines for calculating the sale price of non-state-owned or non-publicly-owned telecommunications equipment and facilities to be purchased by a telecommunications business operator entrusted with the integrated management under paragraph (1), the provisions of Articles 67 (1), 70, 71, 74, 75, 75-2, 76, 77 and 78 (5) through (7) shall apply mutatis mutandis.

SECTION 4.- Installation and Preservation of Telecommunications Equipment and Facilities

Article 72 (Use of Land, etc.)

(1) If it is necessary for the installation of lines, antennas, and their appurtenant facilities to be available for telecommunications services (hereinafter referred to as “lines, etc.”), a common telecommunications business operator may use a third party’s land, or buildings and structures attached thereto, and surface and bottom of the water (hereinafter referred to as “land, etc.”). In such cases, the common telecommunications business operator shall consult with the owners or occupants of the relevant land, etc, in advance.

(2) Where consultation under paragraph (1) fails to lead to agreement or fails to take place, a common telecommunications business operator may use a third party’s land, etc. pursuant to the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor.

Article 73 (Temporary Use of Land, etc.)

(1) If it is necessary for the measurement of lines, etc. and the installation works or preservation works of telecommunications equipment and facilities, a common telecommunications business operator may temporarily use private, national or public telecommunications equipment and facilities and land, etc. to the extent that does not substantially impede the current use thereof.

(2) No person shall impede the measurement of lines, etc., the installation works or preservation works of telecommunications equipment and facilities and the temporary use of telecommunications equipment and facilities and land, etc. under paragraph (1) without any justifiable ground.

(3) When a common telecommunications business operator intends to temporarily use private, national or public property under paragraph (1), he/she shall notify the occupants, in advance, of the purposes of and period for such use: Provided, That in cases where it is difficult to give prior notice, he/she shall give prompt notice during or after the use, and in cases where he/she is unable to notify the purposes of and period for the use due to an obscurity of an address and residence of occupants, he/she shall publicly announce them.

(4) No period of temporary use of land, etc. under paragraph (1) may exceed six months.

(5) A person who temporarily uses private, national or public telecommunications equipment and facilities or land, etc. under paragraph (1) shall carry with him/her a certificate indicating his/her authority, and present it to the persons concerned.

Article 74 (Entrance to Land, etc.)

(1) A common telecommunications business operator may enter into a third party’s land, etc., to the extent necessary for the measurement, inspection , etc., for the installation and preservation of his/her telecommunications equipment and facilities: Provided, That in cases where the place where he/she intends to enter into is a residential building, a consent from residents shall be obtained.

(2) No person shall impede the measurement, inspection, etc. for the installation or preservation of telecommunications equipment and facilities and a entrance to land, etc. under paragraph (1) without any justifiable ground.

(3) Article 73 (3) and (5) shall apply mutatis mutandis to notification and presentation of a certificate if a person engaged in the measurement, inspection, etc. under paragraph (1) enters private, national or public land, etc.

Article 75 (Request for Removal of Obstacles, etc.)

(1) A common telecommunications business operator may request the owners or users of gas pipes, water pipes, drain pipes, electric lamp lines, power lines or private telecommunications equipment and facilities, which impede or are feared to impede the installation of lines, etc. or common telecommunications equipment and facilities (hereinafter referred to as “obstacles, etc.”) to relocate, reform, or repair them or to take other necessary measures.

(2) A common telecommunications business operator may request the owners or the persons in possession of plants, which impede or are feared to impede the installation or maintenance of lines, etc. or telecommunications to remove such plants.

(3) Where an owner or a persons in possession of a plant fails to comply with the request under paragraph (2), or where extenuating circumstances exist, a common telecommunications business operator may fell or transplant the relevant plant by obtaining permission from the Korea Communications Commission. In such cases, he/she shall promptly notify the owner or the person in possession of the relevant plant.

(4) Where an obstacle, which impedes or is likely to impede the telecommunications equipment and facilities of a common telecommunications business operator, needs to be newly established, enlarged, improved, removed or changed, the owner or user of such obstacles shall consult with the common telecommunications business operator, in advance.

Article 76 (Obligation for Reinstatement)

Where the use of land, etc. under Articles 72 and 73 is terminated or it is no longer necessary to provide land, etc. used for telecommunications services, a common telecommunications business operator shall reinstate the relevant land, etc., and where it is impossible to reinstate the relevant land, etc., he/she shall properly compensate for any losses suffered by the owners or users.

Article 77 (Compensation for Losses)

Where a common telecommunications business operator causes losses to a third party in cases under Article 73 (1), 74 (1) or 75, he/she shall compensate the third party for such losses.

Article 78 (Procedures for Compensation for Losses to Land, etc.)

(1) Where a common telecommunications business operator compensates for any losses pursuant to Article 76 or 77 on any of the following grounds, he/she shall consult with the person who suffered such losses:

1. Temporary use of land, etc. under Article 73 (1);

2. Entrance to land, etc. under Article 74 (1);

3. Relocation, reform or repair of obstacles, etc. or removal of plants under Article 75;

4. Impossibility of reinstatement under Article 76.

(2) When consultation under paragraph (1) fails to lead to agreement or fails to take place, an application for adjudication shall be filed with the competent Land Expropriation Commission under the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor.

(3) Except as otherwise prescribed by this Act, the Act on the Acquisition of Land, etc. for Public Works and the Compensation therefor shall apply mutatis mutandis to the standards, methods and procedures for compensation for losses, etc. to land, etc. under paragraph (1), and an application for adjudication under paragraph (2).

Article 79 (Protection of Telecommunications Equipment and Facilities)

(1) No person shall destroy telecommunications equipment and facilities, nor obstruct the flow of telecommunications by impeding the functions of telecommunications equipment and facilities by means of contacting other objects with them or by any other means.

(2) No person may contaminate telecommunications equipment and facilities or damage measurement marks of telecommunications equipment and facilities by means of throwing any object at the telecommunications equipment and facilities or tying an animal, vessel or a log raft thereto.

(3) In order to protect telecommunication cables or supplementary facilities laid on the seabed (hereafter referred to as “submarine cable“), a common telecommunications business operator may file an application for the designation of a submarine cable zone to the Korea Communications Commission.

(4) The Korea Communications Commission upon receipt of application under paragraph (3), shall examine the necessity for such designation and may designate a submarine cable zone and publicly announce it, following consultation with the head of the relevant central administrative agency.

(5) Matters concerning application for designation of a submarine cable zone, methods and procedures for designation and public announcement, methods of installing warning signs, etc. shall be prescribed by Presidential Decree.

Article 80 (Relocation, etc. of Equipment and Facilities.)

(1) Where telecommunications equipment and facilities of a common telecommunications business operator impede the use of land, etc. in which they are located due to changes to the purposes or methods of using such land, etc. or land adjacent thereto, the owner or occupant of such land, etc. may request the common telecommunications business operator to relocate the telecommunications equipment and facilities, and take other necessary measures to remove the impediment.

(2) A common telecommunications business operator shall, upon receipt of a request under paragraph (1), take necessary measures unless he/she has a difficulty in business operations or a technical difficulty to take such measures.

(3) Expenses incurred in the measures under paragraph (2) shall be reimbursed by a person who has made measures necessary to relocate the relevant equipment and facilities or remove the impediment after installation of the equipment and facilities: Provided, That in cases where a person who is liable to reimburse the expenses is the owner or occupant of the relevant land, etc. and falls any of the following subparagraphs, a common telecommunications business operator may reduce or exempt expenses to be reimbursed by such owner or occupant, taking into account the amount of compensation at the time of the installation of the equipment and facilities and the period for the installation thereof:

1. Where a common telecommunications business operator develops and implements plans for the relocation of the relevant telecommunications equipment and facilities or for the removal of the impediments;

2. Where the relocation of the relevant telecommunications equipment and facilities or removal of the impediments is beneficial for other telecommunications equipment and facilities;

3. Where the State or a local government requests the relocation of the relevant telecommunications equipment and facilities or removal of the impediments;

4. Where telecommunications equipment and facilities installed in private land is relocated because they substantially impede the use of such private land.

Article 81 (Cooperation, etc. with Other Organizations)

A common telecommunications business operator may ask the relevant public agencies for a cooperation, in case where the operation of vehicles, vessels, airplanes and other carriers is necessary for the installation and preservation of his/her telecommunications equipment and facilities. In such cases, upon receipt of a request for cooperation, the public agency shall comply with the request unless justifiable grounds exist.

Article 82 (Inspection, Reporting, etc.)

(1) Where it is necessary for the development of telecommunications policies or where it is prescribed by Presidential Decree, the Korea Communications Commission may inspect the current installation status, books or documents of a person who has installed telecommunications equipment and facilities or require him/her to report on his/her equipment and facilities.

(2) Where a person has installed telecommunications equipment and facilities in violation of this Act, the Korea Communications Commission may order him/her to remove the relevant equipment and facilities or take other necessary measures.

CHAPTER VI.- SUPPLEMENTARY PROVISIONS

Article 83 (Protection of Confidentiality of Communications)

(1) No person may infringe or divulge the confidentiality of communications carried by telecommunications business operators.

(2) No person who is or has been engaged in telecommunications services may divulge a third party’s confidential information with respect to communications obtained in the course of performance of his/her duties.

(3) A telecommunications business operator may comply with a request for the perusal or provision of any of the following data (hereinafter referred to as “provision of communications data“) from a court, a prosecutor, the head of an investigative agency (including the head of a military investigative agency, the Commissioner of the National Tax Service and the Commissioner of a Regional Tax Office; hereinafter the same shall apply) or the head of an intelligence and investigation agency, who intends to collect information or intelligence in order to prevent any threat to a trial, an investigation (including the investigation of a violation committed by means of a telephone, the Internet, etc. among the offenses prescribed in Article 10 (1), (3) and (4) of the Punishment of Tax Evaders Act), the execution of a sentence or the guarantee of the national security:

1. Names of users;

2. Resident registration numbers of users;

3. Addresses of users;

4. Phone numbers of users;

5. User identification word (referring to the identification codes of users used to identify the rightful users of computer systems or communications networks);

6. Dates on which users subscribe or terminate their subscriptions.

(4) The request for provision of communications data under paragraph (3) shall be made in writing (hereinafter referred to as “written request for provision of data“), which states a reason for such request, relation with the relevant user and the scope of necessary data: Provided, That where it is impossible to make a request in writing due to an urgent reason, such request may be made without resorting to writing, and when such reason disappears, a written request for provisions of data shall be promptly filed with the telecommunications business operator.

(5) Where a telecommunications business operator provides communications data according to the procedures under paragraphs (3) and (4), he/she shall retain the ledgers prescribed by Presidential Decree, which contain necessary matters, such as the records that communications data are provided, and the related materials, such as the written requests for provision of data.

(6) A telecommunications business operator shall report on the current status, etc. of provision of communications data, to the Korea Communications Commission twice a year, in accordance with the methods prescribed by Presidential Decree, and the Korea Communications Commission may ascertain whether the details of a report submitted by a telecommunications business operator are correct and the management status of related materials under paragraph (5).

(7) A telecommunications business operator shall, in accordance with the methods prescribed by Presidential Decree, notify the details entered in the ledgers under paragraph (5) to the head of the central administrative agency whereto a person requesting the provision of communications data under paragraph (3) belongs: Provided, That in cases where a person who requests the provision of communications data is a court, the relevant telecommunications business operator shall notify the Minister of the Court Administration thereof.

(8)  A telecommunications business operator shall establish and operate a department in exclusive charge of the affairs related to users’communication secrets; and the matters concerning the function, composition, etc. of the relevant development shall be prescribed by Presidential Decree.

(9) Matters necessary for the scope of persons having authority to grant approval on the written requests for provision of data shall be prescribed by Presidential Decree.

Article 84 (Information, etc. of Caller’s Phone Number)

(1) A telecommunications business operator may, upon request from a receiver, inform him/her of a caller’s phone number: Provided, That this shall not apply in cases where the caller expresses his/her intent refusing the transmission of his/her phone number.

(2) Where any of the following cases occurs, a telecommunications business operator may inform a receiver a caller’s phone number, etc, notwithstanding the proviso to paragraph (1);

1. Where the receiver requests to inform the caller’s phone number under conditions and procedures prescribed by Presidential Decree in order to protect the receiver from verbal abuse, threats, harassment, etc.;

2. Where it is prescribed by Presidential Decree for national security, crime prevention, disaster relief, etc. when providing phone services with special numbers.

(3) No person shall fabricate or falsify a caller’s phone number while making phone calls for the purpose of making financial profits by deceiving other persons or of harming them by verbal abuse, threats, harassment, etc.

(4) No person shall provide services for forging or falsely indicating a caller’s phone number for profit-making: Provided, That this shall not apply to any case having justifiable grounds, such as for public interests or offering convenience to the receiver, etc.

Article 85 (Restriction on, and Suspension of Business)

The Korea Communications Commission may order a telecommunications business operator to fully or partially restrict or suspend telecommunications services in order to secure major telecommunications, as prescribed by Presidential Decree at the time of war, an upheaval, natural disaster or any national emergency equivalent thereto or if an outbreak of such emergency is highly apprehended or if extenuating circumstances exist.

Article 86 (Approval for International Telecommunications Services)

(1) When any special provisions concerning international telecommunications services are included in treaties or agreements signed by the Government, those provisions shall govern.

(2) Where a telecommunications business operator intends to enter into an agreement on international telecommunications services prescribed by Presidential Decree, he/she shall obtain approval from the Korea Communications Commission after satisfying the requirements prescribed by Presidential Decree. The same shall apply to an amendment to or revocation of such agreement.

(3) Where a telecommunications business operator who provides common telecommunications services intends to enter into an agreement for the adjustments of international telecommunications service charges with a foreign government or a foreigner, he/she shall report to the Korea Communications Commission: Provided, That this shall not apply to the telecommunications business operator who satisfies the requirements prescribed by Presidential Decree for the size of telecommunications equipment and facilities, capital, whether to grant phone numbers, etc.

(4) Where a telecommunications business operator who provides common telecommunications services intends to enter into an agreement for the adjustments of roaming service charges, he/she shall obtain approval from the Korea Communications Commission, notwithstanding paragraph (3).

(5) Matters necessary for reporting under paragraph (3) or approval under paragraph (4) shall be determined and publicly announced by the Korea Communications Commission.

Article 87 (Cross-Border Provision of Common Telecommunications Services)

(1) Where a person intends to provide common telecommunications services from abroad into Korea without establishing any place of business in Korea (hereinafter referred to as “cross-border provision of common telecommunications services“), he/she shall enter into an agreement for cross-border provision of common telecommunications services with a domestic common telecommunications business operator or special category telecommunications business operator who provides the same common telecommunications services.

(2) Articles 28, 32, 33, 45 through 47, 50 through 55, 83 through 85, 88, 92 of this Act and Article 44-7 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. shall apply mutatis mutandis to the provision of services under an agreement concluded by a common telecommunications business operator or a special category telecommunications business operator under paragraph (1).

(3) Where a person who intends to provide cross-border common telecommunications services under paragraph (1), or a common telecommunications business operator or special category telecommunications business operator who has entered into an agreement with such person, violates the relevant provisions which apply mutatis mutandis under paragraph (2), the Korea Communications Commission may revoke approval under Article 86 (2), or issue an order to fully or partially suspend the cross-border provision of common telecommunications services under the relevant agreement for up to one year.

(4) Guidelines and procedures for imposing dispositions under paragraph (3) and other necessary matters shall be prescribed by Presidential Decree.

Article 88 (Reporting, etc. on Statistics)

(1) A telecommunications business operator shall report to the Korea Communications Commission on the statistics on the provision of telecommunications services prescribed by Presidential Decree, such as the current status of equipment and facilities, subscription record and current status of users for each type of telecommunications services, and the data related to telephone traffic required for billing and collections and retain the related data, as prescribed by Presidential Decree.

(2) A common telecommunications business operator and stockholders thereof, or a special category telecommunications business operator and stockholders thereof shall submit the related data necessary for a verification of matters under Article 8, as prescribed by Presidential Decree.

(3)          In order to verify the matters under paragraph (2), or to examine the genuineness of the data submitted, The Korea Communications Commission may request the administrative agencies and other related agencies to examine the data submitted or to submit the related materials. In such cases, the agencies in receipt of such request shall comply with it unless justifiable grounds exist.

Article 89 (Hearings)

Where the Korea Communications Commission intends to impose any of the following dispositions, it shall hold a hearing:

1. To fully or partially cancel the license of a common telecommunications business operator under Article 20 (1);

2. To fully or partially cancel registration of a special category telecommunications business operator under Article 27 (1);

3. To fully or partially cease the value-added telecommunications business under Article 27 (2);

4. To revoke approval under Article 87 (3).

Article 90 (Imposition, etc. of Penalty Surcharge)

(1) Where a business suspension order to be issued to a telecommunications business operator who falls under each subparagraph of Article 20 (1), each subparagraph of Article 27 (1) or any subparagraph of Article 27 (2), causes substantial inconvenience to the users, etc. of the relevant business or threatens to impair public interests, the Korea Communications Commission may impose a penalty surcharge in an amount not exceeding 3/100 of the turnover calculated under Presidential Decree in lieu of the business suspension order. In such cases, if the telecommunications business operator refuses to submit materials relating to the calculation of the profit or submits any false material, the profit may be estimated based on the financial statements and other accounting materials of the relevant telecommunications business operator and the business operators providing the same or similar types of services, and the materials concerning the current status of business operations, such as the number of subscribers, service charges, etc.: Provided, That where there is no profit or it is difficult to calculate the profit, as prescribed by Presidential Decree, a penalty surcharge not exceeding one billion won may be imposed.

(2) Where an order to suspend the use of private telecommunications equipment and facilities under Article 67 (2) causes substantial inconvenience to the users of telecommunications services provided with the relevant private telecommunications equipment and facilities or threatens to impair public interests, the Korea Communications Commission may impose a penalty surcharge not exceeding one billion won in lieu of the order to suspend the use thereof.

(3) Detailed guidelines for the imposition of penalty surcharges under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

(4) The provisions of Article 53 (5) through (7) shall apply mutatis mutandis to additional dues, demands, and collection of penalty surcharges under paragraphs (1) and (2).

Article 91 (Extension of Payment Deadline of Penalty Surcharges and Payment in Installments)

(1) Where a penalty surcharge to be paid by a telecommunications business operator under Articles 53 and 90 exceeds an amount prescribed by Presidential Decree, and where deemed that the person liable to pay a penalty surcharge has difficulty in paying it in a lump sum on any of the following grounds, the Korea Communications Commission may either extend the payment deadline, or permit him/her to pay it in installments. In such cases, the Commission may, if deemed necessary, require him/her to provide a security therefor:

1. Where he/she suffers a severe financial loss due to natural disasters or fire, etc;

2. Where his/her business faces a serious crisis due to an aggravation of business environments;

3. Where it is expected that he/she will be in great financial difficulty if he/she pays the penalty surcharge in a lump sum.

(2) Matters necessary for an extension of the payment deadline of penalty surcharges, the payment in installments and the provision of a security shall be prescribed by Presidential Decree.

Article 92 (Corrective Orders, etc.)

(1) The Korea Communications Commission shall issue a corrective order to a telecommunications business operator who falls under any of the following subparagraphs:

1. Where he/she violates the provisions of Article 3, 4, 6 through 11, 14 through 24, 26 through 28, 30 through 44, 47 through 49, 51, 56 through 62, 64 through 67, 69, 73 through 75, 79 or 82 through 88, or the orders issued under these provisions;

2. Where the procedures for his/her business operations are deemed to inflict significant harm on the users’ interests;

3. Where he/she fails to promptly take measures necessary for removing an obstruction, such as repair, etc. when an accident, etc. impedes the provision of telecommunications services.

(2) The Korea Communications Commission may order a telecommunications business operator to conduct any of the following matters, when necessary for the development of telecommunications:

1. Integrated operation and management of telecommunications equipment and facilities;

2. Expansion of communications equipment and facilities for the enhancement of social welfare;

3. Establishment and management of communications networks for important communications to achieve efficient performance of the State’s functions;

4. Other matters prescribed by Presidential Decree.

(3) The Korea Communications Commission may order a person who falls under any of the following subparagraphs to suspend the provision of telecommunications services or to take measures necessary for the removal of telecommunications equipment and facilities:

1. A person who operates a common telecommunications business without obtaining a license under Article 6 (1);

2. A person who operates a special category telecommunications business without registration under Article 21 (1);

3. A person who operates the value-added telecommunications business without reporting thereon under Article 22 (1).

Article 93 (Delegation of Authority)

The Korea Communications Commission may partially delegate its authority under this Act to the head of its affiliated agency, as prescribed by Presidential Decree.

CHAPTER VII.- PENAL PROVISIONS

 Article 94 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than five years or by a fine not exceeding 200 million won:

1. A person who operates the common telecommunications business without obtaining a license under Article 6 (1);

2. A person who operates the common telecommunications business, in violation of an order to partially cancel his/her license under Article 20 (1);

3. A person who obstructs the flow of telecommunications by impeding a function of telecommunications equipment and facilities by means of damaging telecommunications equipment and facilities, or contacting the objects with them or by other means, in violation of Article 79 (1);

4. A person who divulges a third party’s confidential information with respect to communications obtained in the course of performance of his/her duties, in violation of Article 83 (2);

5. A person who provides communication data, and a person who receives communications data, in violation of Article 83 (3).

Article 95 (Penal Provisions)

Any of the following persons shall be punished by imprisonment for not more than three years or by a fine not exceeding 150 million won: (Amended by Act nº 10656, May 19, 2011)

1. A person who refuses to provide telecommunications services without justifiable grounds, in violation of Article 3 (1);

2. A person who violates a disposition taken to suspend his/her business operation under Article 20 (1);

3. A person who operates the special category telecommunications business without registration under Article 21 (1);

3-2. A person who conducts value-added telecommunications business without conducting registration under Article 22 (2);

4.  A person who operates a special category telecommunications business, in violation of an order to partially cancel registration under Article 27 (1);

5. A person who fails to comply with an order under Article 52 (1);

6. A person who obstructs the measurement of lines, etc. and the installation and preservation works for telecommunications equipment and facilities under Article 73 (2);

7. A person who violates the confidentiality of communications of telecommunications business operators or divulges such confidential information, in violation of Article 83 (1).

Article 96 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or by a fine not exceeding 100 million won:

1. A person who fails to obtain a revised license under Article 16;

2. A person who fails to obtain approval under Articles 17 (1) and 42 (4);

3. A person who fails to obtain authorization under the main sentence of the part other than each subparagraph of Article 18 (1) or approval under Article 19 (1);

4. A person who integrates telecommunications networks, appoints executives, acquires business, executes an agreement for merger or sale of equipment and facilities, or takes follow-up measures for the establishment of a company prior to obtaining authorization, in violation of Article 18 (9):

5. A person who fails to comply with an order to take measures to protect users under Article 19 (2);

6. A person who operates a value-added telecommunications business without reporting under Article 22 (1);

7. A person who violates a disposition taken to suspend his/her business operation under Article 27 (1);

8. A person who fails to comply with an order to discontinue his/her business under Article 27 (2);

9. A person who fails to purchase a guarantee insurance policy, in violation of Article 32 (3)

10. A person who discloses, uses or provides information, in violation of the main sentence of Article 43 (1) or paragraph (2) of the same Article;

11. A person who fails to comply with an order to restrict or suspend telecommunications services under Article 85;

12. A person who fails to obtain approval or approval for an amendment or revocation, under Article 86 (2) or (4).

Article 97 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding 50 million won:

1. A person who fails to comply with an order under Article 10 (5), 12 (2) (including cases where the provisons apply mutatis mutandis under Article 4 (4) of the Addenda of the Telecommunications Business Act amended by Act nº 5385) or 18 (8);

2. A person who fails to report under the proviso to Article 18 (1);

3. A person who fails to file a revised registration or a revised report under Article 23;

4. A person who fails to report under Article 24;

5. A person who violates a disposition taken to suspend his/her business operation under Article 27 (2);

6. A person who provides telecommunications services without submitting a report or revised report under Article 28 (1) and (2) (proviso) or without obtaining authorization or revised authorization under Article 28 (2);

7. A person who advocates a third party’s communications through telecommunications services provided by a telecommunications business operator or provides such services for a third party’s communications, in violation of the body of Article 30.

Article 98 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding 100 million won:

1. A person who installs or changes important telecommunications equipment and facilities without reporting under the main sentence of Article 62 (1) or a person who installs telecommunications equipment and facilities without obtaining approval under the proviso to Article 62 (1);

2. A person who installs private telecommunications equipment and facilities without submitting a report or a revised report under Article 64 (1);

3. A person who advocates a third party’s communications through private telecommunications equipment and facilities or operates such equipment and facilities not in accordance with the purposes of installation, in violation of Article 65 (1);

4. A person who fails to comply with an order to carry out the telecommunications business or other important communications business or to connect his/her equipment and facilities with other telecommunications equipment and facilities under Article 66 (1);

5. A person who fails to comply with an order to suspend the use under Article 67 (2) or an order under Article 67 (3);

6. A person who fails to comply with an order to remove telecommunications equipment and facilities or an order to take other necessary measures under Article 82 (2).

Article 99 (Penal Provisions)

A person who commits a prohibited act under each subparagraph of Article 50 (1) (excluding any act of providing telecommunications services in a manner different from the terms and conditions of use under Article 50 (1) 5) shall be punished by a fine not exceeding 300 million won.

Article 100 (Penal Provisions)

A person who falls under any of the following subparagraphs shall be punished by a fine not exceeding 50 million won:

1. A person who fabricates or falsifies a caller’s phone number while making a phone call for the purpose of making financial profits by deceiving other persons or of harming them by verbal abuse, threats, sexual harassment, etc., in violation of Article 84 (3);

2. A person who provides services for fabricating for falsifying a caller’s phone number for profit-making, in violation of Article 84 (4).

Article 101 (Penal Provisions)

A person who contaminates telecommunications equipment and facilities or damages measurement marks of telecommunications equipment and facilities, in violation of Article 79 (2) shall be punished by a fine or a minor fine not exceeding one million won.

Article 102 (Attempted Criminals)

An attempted criminal under subparagraphs 3 and 4 of Article 94 and subparagraph 7 of Article 95 shall be punished.

Article 103 (Joint Penal Provisions)

When a representative of a corporation or an agent, an employee or any other employed person of a corporation or an individual commits any violation under Articles 94 through 100 in connection with the business of such corporation or individual, not only shall such violator be punished accordingly, but the corporation or individual shall be punished by a fine under the relevant provisions, respectively: Provided, That the same shall not apply in cases where the corporation or individual has paid due attention to or diligently supervised the relevant business in order to prevent such violation.

Article 104 (Fines for Negligence)

(1) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 30 million won:

1. A person who impedes a temporary use of private telecommunications equipment and facilities or land, etc. without any justifiable ground, in violation of Article 73 (2);

2. A person who impedes an entrance to land, etc. without any justifiable ground, in violation of Article 74 (2);

3. A person who refuse to relocate, reform or repair obstacles, etc. or to take other necessary measures under Article 75 (1) or to remove plants under Article 75 (2) without any justifiable ground.

(2) A person who fails to apply for authorization on the conclusion of an agreement, in violation of Article 44 (2) shall be punished by a fine for negligence not exceeding 200 million won.

(3) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 15 million won:

1. A person who fails to report on the conclusion of an agreement under Article 44 (1);

2. A person who fails to report under the main sentence of Article 86 (3).

(4) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 10 million won:

1. A person who fails to report under Article 10 (2) or fails to comply with a request for the provision of necessary data or an order to appear under Article 11 (3) or (4);

2. A person who fails to notify users by not later than 60 days before a scheduled date of suspension or discontinuance, in violation of Article 19 (1);

3. A person who fails to report under Article 26;

4. A person who violates duties to protect users under Article 32 (1);

5. A person who fails to comply with an order to submit data issued by the Korea Communications Commission under Article 35 (5) or submits false data;

6. A person who fails to publicly announce the technical standards, the requirements for the provision and use, and other standards required for the creation of environments for fair competition, in violation of Article 42 (4);

7. A person who fails to comply with the matters publicly announced under Article 48 (2), in violation of Article 48 (3);

8. A person who refuses, avoids or impedes an investigation under Article 51 (2);

9. A person who refuses, avoids or impedes an order to submit necessary data or articles under Article 51 (5), or temporary custody of such data or articles;

10. A person who fails to comply with an order to submit data under Article 56 (3);

11. A person who uses private telecommunications equipment and facilities without verification, in violation of Article 64 (3);

12. A person who refuses, interferes with or avoids an inspection under Article 82 (1);

13. A person who fails to report under Article 82 (1) or falsely reports;

14. A person who fails to retain the related materials or retains false materials, in violation of Article 83 (5);

15. A person who fails to notify details of the ledgers which include the provision of communications data, etc. to the head of a central administrative agency, in violation of Article 83 (7);

16. A person who fails to report or submit data under Article 88, or falsely reports or submits false materials;

17. A person who fails to comply with a corrective order under Article 92.

(5) Fines for negligence under paragraphs (1) through (4) shall be imposed and collected by the Korea Communications Commission, as prescribed by Presidential Decree.

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Term of Validity)

The amended provisions of Article 38 (2) through (4) shall be valid for three years from the date this Act enters into force.

Article 3 (Transitional Measures concerning Scope of Application)

The former provisions of the Addenda shall apply even after this Act enters into force.

Article 4 (Transitional Measures concerning Licenses of Common Telecommunications Business Operators)

A common telecommunications business operator who has obtained a license under the former provisions to operate common telecommunications business as at the time this Act enters into force shall be deemed a common telecommunications business operator who has obtained a license under the amended provisions of Article 6 to operate common telecommunications business under the amended provisions of Article 5 (2).

Article 5 (Transitional Measures concerning Guarantee Insurance)

A special category telecommunications business operator registered under the former provisions as at the time this Act enters into force who has collected service charges from users in advance, and then purchased a guarantee insurance policy to provide services, shall be deemed to have purchased a guarantee insurance policy under the amended provisions of Article 32 (3).

Article 6 (Transitional Measures concerning Penal Provisions, etc.)

In applying penal provisions or provisions concerning the fine for negligence against a violation committed before this Act enters into force, the former provisions shall apply: Provided, That this Act shall apply in cases where the application of the provisions of this Act is favorable to a violator.

Article 7 Omitted.

Article 8 (Transitional Measures following Amendment to Other Acts)

In applying penal provisions or provisions concerning fines for negligence against a violation of the former Framework Act on Telecommunications (referring to the Framework Act on Telecommunications before the amendment under Article 7 (5) of this Addenda), the former Framework Act on Telecommunications shall apply.

Article 9 (Relations with Other Acts and Subordinate Statutes)

A citation of the former Framework Act on Telecommunications and the former Telecommunications Business Act or any provision thereof by any other Act or subordinate statute in force as at the time this Act enters into force shall be deemed a citation of this Act or a corresponding provision thereof in lieu of the former provisions, if such corresponding provision exists in this Act.

ADDENDA (Act nº 10656, May. 19, 2011)

(1) (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

(2) (Transitional Measures concerning Registration of Value-added Telecommunications Business)

Among those who conduct value-added telecommunications business in accordance with the former provisions as at the time this Act enters into force, any person who needs to make registration in accordance with the amended provisions of Article 22 (2) shall make registration within six months after this Act enters into force.

ADDENDA (Act nº 11201, Jan. 17, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Notification)

The amended provisions of Article 32-2 shall apply, starting with the first person who enters into a contract for the use of telecommunications services with a telecommunications business operator after this Act enters into force.

03Nov/21

Act nº 12032, Aug. 13, 2013, Special Act on Promotion of Information and Communications Technology, Vitalization of Convergence Thereof, etc.

Act nº 12032, Aug. 13, 2013, Special Act on Promotion of Information and Communications Technology, Vitalization of Convergence Thereof, etc. (Amended by Act nº 13016, Jan. 20, 2015, Act nº 14839, Jul. 26, 2017).

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to contribute to improving the quality of life of the people through the elevation of international competitiveness of information and communications and through the promotion of continuous development of national economy by promoting information and communications technology and by prescribing a system to promote policies for the vitalization of convergence of information and communications technology, rationalization of restrictions, fostering of human resources, development of venture businesses, support of research and development, etc.

Article 2 (Definitions)

(1) The definitions of terms used in this Act are as follows:

1. The term “information and communications” refers to a series of activities and means, such as equipment, technologies, services, and industries, related to the collection, processing, storage, handling, search, transmission, and reception, of information, supply of services, and so forth, using or making full use of telecommunications equipment and facilities defined in subparagraph 2 of Article 2 of the Telecommunications Business Act, computers, etc., which include following:

(a) Information and communications services defined in subparagraph 2 of Article 2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.;

(b) Broadcast communications services defined in subparagraph 5 of Article 2 of the Framework Act on Broadcasting Communications Development;

(c) Information and communications technology industry defined in subparagraph 2 of Article 2 of the Information and Communications Technology Industry Promotion Act;

(d) Technologies, services, and industries relating to the production, distribution, etc. of digital contents defined in subparagraph 5 of Article 2 of the Framework Act on the Promotion of Cultural Industries;

2. The term “convergence of information and communications technology” refers to creative and innovative activities and phenomena creating new social and market value by combining or mixing technologies and services between information and communications technology or between information and communications technologies and other industries;

3. The term “small and medium enterprises” refers to small and medium enterprises defined in Article 2 (1) of the Framework Act on Small and Medium Enterprises;

4. The term “venture business” refers to a venture business defined in Article 2 (1) of the Act on Special Measures for the Promotion of Venture Businesses or a self-employed creative business defined in Article 2 of the Act on the Fostering of Self-Employed Creative Enterprises;

5. The term “commercialization” refers to a series of processes in which technologies, products, and services developed, manufactured, or produced in making full use of research and development concerning information and communications are linked with business activities, such as sale, distribution, and supply, for the purpose of profit-making, or in which associations or organizations engaged in business activities are formed;

6. The term “software” refers to software defined in subparagraph 1 of Article 2 of the Software Industry Promotion Act;

7. The term “digital contents” refers to digital contents defined in subparagraph 5 of Article 2 of the Framework Act on the Promotion of Cultural Industries;

8. The term “digital content enterpriser” refers to a person who is engaged in economic activities for the purpose of profit-making by producing, duplicating, transmitting, distributing digital contents and conducting other activities related thereto;

9. The term “information and communications equipment” refers to devices, machinery, tools, parts, cables, and other necessary equipment and facilities concerning information and communications technology;

10. The term “public institutions” refers to the following institutions:

(a) Legal entities, organizations, or institutions under Article 4 of the Act on the Management of Public Institutions;

(b) Local government-invested or -funded public corporations under the Local Public Enterprises Act;

(c) Special legal entities established pursuant to special Acts;

(d) Other legal entities, organizations, or institutions prescribed by Presidential Decree.

(2) Except as otherwise provided for in paragraph (1), the definitions of terms used in this Act shall be as prescribed by other Acts, including the Framework Act on Broadcasting Communications Development, the Framework Act on Telecommunications, the Telecommunications Business Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., the Information and Communications Technology Industry Promotion Act, and the Internet Multimedia Broadcast Services Act.

Article 3 (Basic Principles)

(1) The State and each local government shall endeavor to create an environment that enables open and reasonable use of information and communications technology and to achieve sound and sustainable development of an information and communications technology ecosystem.

(2) The State and each local government shall endeavor to respect the creative spirit of the private sector and make the formation of market-oriented opinions possible.

(3) The State and each local government shall make an effort for collaborative cooperation among large enterprises, small and medium enterprises, and venture businesses relating to information and communications technology and the harmonious development thereof.

(4) The State and each local government shall actively support the advance of the industry of information and communications technology into overseas markets, and ensure that discriminatory treatment between domestic and foreign enterprisers does not occur in enacting or amending statutes or in formulating policies.

(5) The State and each local government shall endeavor to minimize regulation hindering the promotion and vitalization of technologies, services, etc. for information and communications and for the convergence of information and communications technology (hereinafter referred to as “convergence, etc. of information and communications technology“).

(6) The State and each local government shall endeavor to apply the same regulation to any services deemed the same in comprehensive consideration of the characteristics of information and communications technology, users’ behavior in the use of service, and so forth.

(7) The State and each local government shall, in principle, allow new technologies and services for the convergence, etc. of information and communications technology insofar as relevant statutes are not violated, and make active efforts to vitalize such matters.

Article 4 (Relationship with other Acts)

This Act shall prevail over other Acts concerning the promotion of technologies, services, etc. for information and communications technology and the vitalization of convergence thereof.

CHAPTER II.- CONSTRUCTION OF A SYSTEM TO DRIVE THE PROMOTION OF INFORMATION AND COMMUNICATIONS TECHNOLOGY AND THE ACTIVATION OF CONVERGENCE THEREOF

Article 5 (Formulation and Implementation of Master Plans)

(1) The Minister of Science and ICT shall, every three years, formulate and implement a three-year master plan (hereinafter referred to as “master plan”) for the promotion of information and communications technology and the vitalization of convergence thereof, but may shorten the planning cycle or change such master plan if necessary. (Amended by Act nº 14839, Jul. 26, 2017)

(2) A master plan (including modification of a master plan; hereinafter the same shall apply) shall include the following matters:

1. Direction-setting for and objectives of policies to promote information and communications technology and to vitalize the convergence thereof;

2. Matters concerning the construction of human and material foundations, such as fostering of specialized human resources and expansion of investment in facilities, for the promotion of information and communications technology and the vitalization of convergence thereof;

3. Matters concerning the protection of intellectual property rights, such as the convergence of information and communications technology;

4. Matters concerning support for research and development, dissemination of the outcomes of research, and promotion of commercialization of the outcomes of research to promote information and communications technology and to vitalize the convergence thereof;

5. Matters concerning the improvement of relevant laws and systems to promote information and communications technology and to vitalize the convergence thereof;

6. Matters concerning the protection and security of information;

7. Matters concerning support for international cooperation and advancement into overseas markets relating to the promotion of information and communications technology and the vitalization of convergence thereof;

8. Matters concerning cooperation in policies and duties among relevant central administrative agencies;

9. Other matters necessary for the promotion of information and communications technology and the vitalization of convergence thereof.

(3) A master plan shall be deliberated by the Strategic Committee for Information and Communications Technologies under Article 7 (1).

(4) In order to formulate a master plan, the Minister of Science and ICT may request the heads of relevant central administrative agencies, local governments, and public institutions to provide him/her with their plans, data, etc. In such cases, the agency requested to provide a plan, data, etc. shall cooperate therein unless any special reason exists to the contrary. (Amended by Act nº 14839, Jul. 26, 2017)

(5) The Minister of Science and ICT shall evaluate the implementation and track record of promotion, and reflect the results of evaluation in formulating a next master plan. (Amended by Act nº 14839, Jul. 26, 2017)

Article 6 (Formulation and Implementation of Action Plans)

(1) In order to materialize a master plan, the heads of relevant central administrative agencies shall, every year, formulate and implement an action plan for the promotion of information and communications technology and the vitalization of convergence thereof (hereinafter referred to as “action plan“).

(2) Where the heads of relevant central administrative agencies formulate an action plan, they shall reflect the results of deliberation of the Strategic Committee for Information and Communications Technology under Article 7 (1) therein, and submit the action plan to the Strategic Committee for Information and Communications Technology together with the track record of promotion of the action plan for the previous year.

(3) If necessary for the formulation of an action plan, the heads of relevant central administrative agencies may request the heads of local governments and relevant public institutions to provide data, etc. In such cases, the institution requested to provide data, etc. shall cooperate therein unless any special circumstances exist to the contrary.

(4) Matters necessary for the formulation, implementation, submission, etc. of an action plan, except otherwise provided for in paragraphs (1) through (3), shall be prescribed by Presidential Decree.

Article 7 (Establishment, etc. of Strategic Committee for Information and Communications Technology)

(1) In order to deliberate, and adopt resolutions, on policies for the promotion of information and communications technology and for the vitalization of convergence thereof, the Strategic Committee for Information and Communications Technology (hereinafter referred to as the “Strategic Committee“) shall be established under the jurisdiction of the Prime Minister.

(2) The Strategic Committee shall be comprised of not more than 25 members, including one chairperson and one secretary; the Prime Minister shall serve as Chairperson, the Minister of Science and ICT shall serve as executive secretary, and its members shall be appointed by the Prime Minister from among the heads of relevant central administrative agencies prescribed by Presidential Decree and from among the following persons: (Amended by Act nº 14839, Jul. 26, 2017)

1. An associate professor or higher at a university or a person who has served or is serving in a research institute related to information and communications technology for at least 15 years;

2. A person who has served or is serving in an industry related to information and communications technology as an executive officer or employee for at least 15 years;

3. A person who has served or is serving in a civil organization related to information and communications technology for at least 15 years;

4. A person who is qualified as a judge, prosecutor, or attorney-at-law and has at least 15 years of career experience in his/her field;

5. Other persons recognized by the Prime Minister as having expertise in information and communications technology.

(3) The Strategic Committee shall deliberate, or adopt resolutions, on the following matters:

1. Determining a master plan;

2. Analyzing, examining, and evaluating the track record of promotion of a master plan and action plan;

3. Requesting the heads, etc. of relevant central administrative agencies to take measures pursuant to Article 10 (3);

4. Recommending an order of priority among research and development relating to the promotion of information and communications technology and the vitalization of convergence thereof;

5. Coordination of pending issues on policies and duties among relevant central administrative agencies for the promotion of information and communications technology and the vitalization of convergence thereof;

6. Important matters concerning the promotion of national informatization under the Framework Act on National Informatization;

7. Other important matters concerning the promotion of information and communications technology and the vitalization of convergence thereof, which are submitted by the Chairperson for deliberation.

(4) In order to efficiently implement the duties of the Strategic Committee, a working committee, etc. for the promotion of vitalization of information and communications technology under Article 9 (1) (hereinafter referred to as the “working committee for the promotion of vitalization“) shall be established under the Strategic Committee.

(5) In order to support the Strategic Committee and the working committee for the promotion of vitalization, specialized committees consisting of experts in technology, law, etc. may be established.

(6) Matters necessary for the organization, composition, and operation of the Strategic Committee, working committee for the promotion of vitalization, and specialized committee shall be prescribed by Presidential Decree.

Article 8 (Fact-Finding Surveys)

(1) The Minister of Science and ICT and the heads of relevant central administrative agencies may survey or prepare the current state, statistics, actual condition, etc. concerning the following matters in order to formulate and implement a master plan and action plan: (Amended by Act nº 14839, Jul. 26, 2017)

1. Actual condition of and statistics on technologies and services for the convergence, etc. of information and communications;

2. Current state of human resources by field and function, and forecast of demand therefor;

3. Research and development by field and function, and the scale of investment therein;

4. Other matters necessary for the formulation and implementation of a master plan and action plan.

(2) The Minister of Science and ICT may request the heads of relevant central administrative agencies, Special Metropolitan City Mayor, Metropolitan City Mayors, Special Self-Governing City Mayor, Do Governors, Special Self-Governing Province Governor, enterprises, research institutes, and other public institutions or organizations to provide data necessary for a fact-finding survey, etc. under paragraph (1). In such cases, persons requested to submit data shall cooperate therein unless any special circumstances exist to the contrary. (Amended by Act nº 14839, Jul. 26, 2017)

(3) The Minister of Science and ICT may announce the results of a fact-finding survey conducted under paragraph (1). (Amended by Act nº 14839, Jul. 26, 2017)

(4) Matters necessary for the methods and procedures for fact-finding surveys under paragraph (1), public announcement, etc. thereof under paragraph (3) shall be prescribed by Presidential Decree.

Article 9 (Operation of the Working Committee for the Promotion of Vitalization)

(1) For the promotion of information and communications technology and the vitalization of convergence thereof, a working committee for the promotion of vitalization of information and communications technology shall be organized and operated in order to receive or inspect difficulties and suggestions of organizations, enterprises, etc. relating to information and communications technology, and to efficiently implement the duties of formulating plans for the improvement of a system therefor.

(2) If necessary for the prompt implementation of duties, the working committee for the promotion of vitalization may receive public officials, executive officers or employees dispatched by the heads of relevant central administrative agencies, the heads of public institutions, or the heads of relevant institutions or organizations.

(3) Matters necessary for the composition and operation of the working committee for the promotion of vitalization shall be prescribed by Presidential Decree.

Article 10 (Duties, etc. of the Working Committee for the Promotion of Vitalization)

(1) The working committee for the promotion of vitalization shall conduct the following affairs as its duties:

1. Improvement of laws and systems hindering collaborative cooperation and harmonious development among large enterprises, small and medium enterprises, and venture businesses under Article 3 (3);

2. Improvement of laws and systems causing discrimination between domestic enterprises and foreign enterprises under Article 3 (4);

3. Improvement of laws and systems obstructing the promotion and vitalization of technologies, services, etc. for the convergence, etc. of information and communications technology under Article 3 (5);

4. Handling of difficulties and suggestions of organizations, enterprises, etc. related to information and communications technology;

5. Other improvement of laws and systems necessary for the promotion of information and communications technology and the vitalization of convergence thereof.

(2) The working committee for the promotion of vitalization shall submit to the Strategic Committee a report on matters under paragraph (1) and plans for the improvement thereof, which are received from enterprises, organizations, etc. relating to information and communications technology or are searched directly by the working committee for the promotion of vitalization.

(3) Where the Strategic Committee deems it necessary after deliberating on matters reported by the working committee for the promotion of vitalization pursuant to paragraph (2), it may request the heads, etc. of relevant central administrative agencies to take necessary measures, such as improving related laws and systems; in such cases, the heads, etc. of relevant central administrative agencies shall formulate an action plan for necessary measures within three months and submit a report thereon to the Strategic Committee.

(4) The Strategic Committee may examine an action plan reported pursuant to paragraph (3) and announce the results of examination.

CHAPTER III.- PROMOTION OF INFORMATION AND COMMUNICATIONS TECHNOLOGY

SECTION 1.- Construction of Foundation for Promotion of Information and Communications Technology

Article 11 (Fostering of Domestic Experts)

(1) The Minister of Science and ICT shall formulate and implement policy measures to foster human resources with specialized technology, knowledge, etc. in the field of information and communications technology (hereinafter referred to as “specialized human resources”), and especially endeavor to vitalize education specialized in software engineering for the expansion of foundation for the education of software engineering and the development of regional industries. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The policy measures under paragraph (1) shall include the following matters:

1. Matters concerning the fostering, education, and training of specialized human resources;

2. Matters concerning the supply of and demand for specialized human resources and making full use thereof;

3. Matters concerning support, etc. for the career management of specialized human resources;

4. Other matters necessary for the fostering, management, etc. of specialized human resources.

(3) If necessary for the promotion of policies to foster specialized human resources, the Minister of Science and ICT may support relevant organizations, enterprises, etc., and operate a Korean comprehensive software education school to foster experts in software engineering through the systematic education of practical skills in software engineering. (Amended by Act nº 14839, Jul. 26, 2017)

(4) Matters necessary for the fostering and support of specialized human resources, operation, etc. of the Korean comprehensive software education school under paragraphs (1) through (3) shall be prescribed by Presidential Decree.

Article 12 (Credited Internship Program)

(1) The Government may require persons attending departments related to information and communications prescribed by Presidential Decree in universities, colleges, industrial colleges, teachers’ colleges, junior colleges, cyber colleges, or technical colleges under subparagraphs 1 through 6 of Article 2 of the Higher Education Act (hereinafter referred to as “universities“) to work as an intern for a period not exceeding two years, for small and medium enterprises, venture businesses, etc. prescribed by Presidential Decree.

(2) Persons who work for small and medium enterprises, venture businesses, etc. as an intern pursuant to paragraph (1) shall be deemed to have completed a bachelor’s course of their universities and obtained credits, as determined by university bylaws.

(3) The Government may grant necessary support, such as personnel expenses, to the universities, small and medium enterprises, venture businesses, etc. that adopt the internship system under paragraph (1).

(4) Matters necessary for the operation, support, etc. of the internship system under paragraphs (1) through (3) shall be prescribed by Presidential Decree.

Article 12-2 (Fact-Finding Surveys, etc. of Industrial Technical Personnel)

(1) The Minister of Science and ICT shall annually conduct a fact-finding survey of industrial technical personnel designed to identify demand for industrial technical personnel in the field of information and communications in order to prevent the career of excellent specialized human resources from being interrupted and to efficiently promote information and communications. (Amended by Act nº 14839, Jul. 26, 2017)

(2) Where the Commissioner of the Military Manpower Administration assigns personnel pursuant to Article 36 (4) of the Military Service Act, the Minister of Science and ICT may request him/her to determine an adequate number of persons to be assigned in consideration of the results of a fact-finding survey conducted pursuant to paragraph (1). In this case, the Commissioner of the Military Manpower Administration so requested shall comply with such request. (Amended by Act nº 14839, Jul. 26, 2017)

(Article Inserted by Act nº 13016, Jan. 20, 2015)

Article 13 (Search and Fostering of Excellent Overseas Human Resources)

(1) The Government shall formulate and implement policy measures for searching and fostering excellent overseas human resources having core technologies, knowledge, knowhow, etc. of information and communications technology.

(2) The policy measures referred to in paragraph (1) shall include the following matters:

1. Easing of requirements for an employment visa;

2. Easing of procedures for immigration;

3. Improvement of working conditions and treatment;

4. Establishment of a whole-of-government promotion system;

5. Other support necessary for searching and fostering excellent overseas human resources.

(3) The Government may link the programs for fostering excellent overseas human resources relating to information and communications technology promoted by enterprises with the policy measures under paragraph (1), or grant support thereto.

Article 14 (Enhancement of Information and Communications Technology Networks)

(1) The Minister of Science and ICT shall continuously promote the enhancement of information and communications technology networks for the promotion of information and communications technology and the vitalization of convergence thereof. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT shall develop a policy necessary to induce and support active investment from the private sector for the enhancement of information and communications technology networks. (Amended by Act nº 14839, Jul. 26, 2017)

SECTION 2.- Promotion of New Technologies, Services, etc. for Information and Communications

Article 15 (Designation, etc. of Promising Technologies, Services, etc.)

(1) In order to vitalize new technologies and services for information and communications and to link them with other industries, the Minister of Science and ICT may, each year, designate and support promising technologies and services (including digital contents) for the convergence, etc. of information and communications technology, as prescribed by Presidential Decree. (Amended by Act nº 14839, Jul. 26, 2017)

(2) Where the Minister of Science and ICT makes designation pursuant to paragraph (1), he/she shall publicly notify such designation; and the methods for designation and the scope and details of support shall be prescribed by Presidential Decree. (Amended by Act nº 14839, Jul. 26, 2017)

(3) In order to construct foundations for the vitalization of promising technologies and services, etc. for the convergence, etc. of information and communications technology designated pursuant to paragraph (1), the Minister of Science and ICT may support the vitalization of cooperation among central administrative agencies, public institutions, enterprises, universities, and research institutes. (Amended by Act nº 14839, Jul. 26, 2017)

Article 16 (Standardization of Technologies, Services, etc.)

(1) In order to promote information and communications technology and to vitalize the convergence thereof, the Minister of Science and ICT may implement the following projects concerning the standardization of technologies, services, etc. for the convergence, etc. of information and communications technology: (Amended by Act nº 14839, Jul. 26, 2017)

1. Establishment, amendment, repeal, and dissemination of standards concerning new technologies, services, etc. for the convergence, etc. of information and communications technology: Provided, That where a Korean industrial standard thereof is established pursuant to the Industrial Standardization Act, such standard shall govern;

2. Inspection, research and development of domestic and foreign standards concerning new technologies, services, etc. for the convergence, etc. of information and communications technology;

3. Other matters necessary for the standardization of new technologies, services, etc. for the convergence, etc. of information and communications technology.

(2) The Minister of Science and ICT may support projects for the standardization of technologies, services, etc. for the convergence, etc. of information and communications technology promoted by the private sector. (Amended by Act nº 14839, Jul. 26, 2017)

(3) The Minister of Science and ICT may designate institutions specialized in conducting projects for the standardization of technologies, services, etc. for the convergence, etc. of information and communications technology, and fully or partially subsidize them the necessary expenses. (Amended by Act nº 14839, Jul. 26, 2017)

(4) Matters necessary for the projects under paragraph (1) and the designation, etc. of specialized institutions under paragraph (3) shall be prescribed by Presidential Decree.

Article 17 (Quality Certification of Technologies, Services, etc.)

(1) The Minister of Science and ICT may determine and publicly notify the standards for certification (hereinafter referred to as “quality standards”) concerning the convenience, stability, reliability, expandability, etc. of technologies, services, etc. for the convergence, etc. of information and communications technology. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT may certify whether the quality of technologies, services, etc. for the convergence, etc. of information and communications technology complies with the quality standards publicly notified pursuant to paragraph (1). In such cases, expenses incurred for certification shall be borne by applicants. (Amended by Act nº 14839, Jul. 26, 2017)

(3) In order to efficiently implement certification duties under paragraph (2), the Minister of Science and ICT may designate certification organizations. (Amended by Act nº 14839, Jul. 26, 2017)

(4) Persons who obtain certification pursuant to paragraph (2) may indicate or publicize the contents of certification, as prescribed by Presidential Decree. No person who fail to obtain certification shall indicate a certification mark or similar thereto.

(5) Where certification under paragraph (2) falls under any of the following subparagraphs, the Minister of Science and ICT shall revoke the certification: (Amended by Act nº 14839, Jul. 26, 2017)

1. Where certification is obtained by deceit or other wrongful means;

2. Where it fails to meet quality standards;

3. Where this Act or orders issued under this Act are violated.

(6) An insurance company under subparagraph 6 of Article 2 of the Insurance Business Act may guarantee compensation for damage suffered by users due to certification under paragraph (2), as prescribed by Presidential Decree.

(7) Matters necessary for procedures for certification under paragraph (2), revocation of certification under paragraph (5), etc. shall be prescribed by Presidential Decree.

Article 18 (Support for Research and Development of Small and Medium Enterprises, etc.)

(1) In implementing a research and development project concerning information and communications technology prescribed by this Act, the Minister of Science and ICT shall preferentially use above the rate prescribed by Presidential Decree, out of the budget of the relevant project, for small and medium enterprises and venture businesses. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT shall endeavor to vitalize investment in and financing for the intellectual property rights of small and medium enterprises and venture businesses. (Amended by Act nº 14839, Jul. 26, 2017)

(3) Matters necessary for the procedures, methods, etc. for implementation under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

Article 19 (Support for Commercialization of Promising Technologies, Services, etc. for Convergence, etc. of Information and Communications Technology)

(1) The Minister of Science and ICT may provide necessary support for the commercialization of promising technologies, services, etc. for the convergence, etc. of information and communications technology publicly announced by the Minister of Science and ICT pursuant to Article 15. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT may collect a price for the use, transfer, lease, or export of the results of projects from a person who makes success in commercialization after receiving support under paragraph (1). (Amended by Act nº 14839, Jul. 26, 2017)

(3) Matters necessary for support and the collection, management, etc. of money under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

Article 20 (Vitalization of Public Purchase of Technologies and Services for Convergence, etc. of Information and Communications)

In order to create demand for technologies and services for the convergence, etc. of information and communications of which the quality is certified by the Minister of Science and ICT pursuant to Article 17, the Government shall take necessary supportive measures, such as preferential purchase thereof. (Amended by Act nº 14839, Jul. 26, 2017)

SECTION 3.- Promotion of Digital Contents, Software, etc.

Article 21 (Promotion and Vitalization of Digital Contents)

(1) The Government shall create an environment in which creativity of the producers of digital contents is heightened and promising digital contents are created, distributed, and used, and endeavor to strengthen the competitiveness of related industries.

(2) In order to promote and vitalize digital contents, the Government may implement the following projects:

1. Support for the production and distribution of digital contents;

2. Regional cooperation and demonstration projects concerning digital contents;

3. Support for the construction of infrastructure for digital contents;

4. Support for fostering specialized human resources concerning digital contents;

5. Projects for the study of policies for the promotion and vitalization of digital contents;

6. Other matters prescribed by Presidential Decree for the promotion and vitalization of digital contents.

(3) The Government may designate an institution to take exclusive charge of the projects referred to in paragraph (2) for their efficient promotion, and fully or partially subsidize the necessary expenses.

(4) Matters necessary for the support projects under paragraph (2) and the designation, etc. of institutions to take exclusive charge under paragraph (3) shall be prescribed by Presidential Decree.

Article 22 (Establishment of Order in Distribution of Digital Contents)

(1) The Government shall endeavor to establish fair order in the distribution of digital contents, and formulate and implement related policy measures.

(2) The Minister of Science and ICT may conduct a fact-finding survey of the channels, etc. of distribution in order to establish fair order in the distribution of digital contents, and publish the results of such survey. (Amended by Act nº 14839, Jul. 26, 2017)

(3) In order to establish fair order in the transaction and distribution of digital contents, the Minister of Science and ICT shall prepare a standard form contract concerning digital contents transaction after consultation with the Fair Trade Commission, the Ministry of Culture, Sports and Tourism, and the Korea Communications Commission, and recommend digital content business entities and organizations to use such contract. (Amended by Act nº 14839, Jul. 26, 2017)

(4) Where the Minister of Science and ICT enacts or amends the standard form contract under paragraph (3), he/she shall hear the opinions of the relevant digital content business entities and organizations. (Amended by Act nº 14839, Jul. 26, 2017)

Article 23 (Rationalization of Software Projects in Public Sector)

(1) Where the head of a relevant central administrative agency, local government, or public institution places an order for a software project, he/she shall calculate appropriate period for the project; where the period for the project exceeds one year, he/she may conclude a long-term continuing contract. In such cases, he/she shall issue an order to implement the relevant contract within budgetary limit for each fiscal year.

(2) The Minister of Science and ICT may determine and publicly notify standards for the calculation of appropriate period for projects under paragraph (1). (Amended by Act nº 14839, Jul. 26, 2017)

Article 24 (Operation of the Software Policy and Research Institute)

(1) The Minister of Science and ICT may operate a software policy research institute (hereinafter referred to as the “research institute”) to effectively support research in software engineering. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The research institute shall implement the following projects:

1. Research of software policies;

2. Analyzing, providing, and sharing statistics and information on the software industry;

3. Searching and planning new software projects;

4. Other projects prescribed by Presidential Decree.

(3) The Government may make contributions to the research institute to cover the expenses incurred for the operation, etc. within budgetary limit.

Article 25 (Facilitation of Convergence of Software)

(1) In order to facilitate the convergence of software, the Government shall prepare necessary policy measures.

(2) The policy measures under paragraph (1) shall include the following matters:

1. Formulation and implementation of policies to facilitate the convergence of software;

2. Vitalization of demand, such as promotion and expansion of pilot projects concerning the convergence of software;

3. Development of technologies for the convergence of software and support for the standardization thereof;

4. Fostering of the industry of software convergence, support for export, creation and development of clusters;

5. Other matters necessary for the facilitation of software convergence.

Article 26 (Vitalization of Research and Development of Software)

(1) In conducting national research and development projects of software pursuant to related statutes, the Government may determine a separate support system and evaluation method in consideration of the characteristics of the software industry as an asset in knowledge and information.

(2) The support system and evaluation method under paragraph (1) shall be prescribed by Presidential Decree.

Article 27 (Promotion for Making Full Use of Commercial Software)

(1) The heads of State agencies, etc. shall endeavor to promote making full use of commercial software and to calculate appropriate price, including maintenance expenses.

(2) The Minister of Science and ICT may implement the following projects in order to support the promotion for making full use of commercial software pursuant to paragraph (1): (Amended by Act nº 14839, Jul. 26, 2017)

1. Collection and analysis of information on commercial software products;

2. Examination of quality and technological support for the promotion for making full use of commercial software;

3. Comparison and evaluation of the quality and performance of commercial software;

4. Support for technological development of commercial software and the standardization thereof;

5. Other projects necessary for the vitalization of distribution of commercial software.

(3) In order to calculate the appropriate price of commercial software pursuant to paragraph (1), the Minister of Science and ICT may collect and analyze the following information on commercial software and provide the results of such analysis to State agencies, etc.: (Amended by Act nº 14839, Jul. 26, 2017)

1. Product identification information on commercial software;

2. Operating environment for commercial software;

3. Commercial software component elements and applicable standards;

4. Information on product characteristics, such as functionality, reliability, usability, and maintainability;

5. Other matters necessary for the calculation of appropriate price, including expenses for the maintenance of commercial software.

(4) In order to comprehensively manage information on commercial software under paragraph (3), the Minister of Science and ICT may request the heads of State agencies, etc., or software enterprisers to submit necessary data. (Amended by Act nº 14839, Jul. 26, 2017)

(5) The Minister of Science and ICT may entrust specialized institutions designated pursuant to Article 14 (5) of the Software Industry Promotion Act with duties under paragraphs (2) through (4) in order to efficiently perform such duties. (Amended by Act nº 14839, Jul. 26, 2017)

Article 28 (Installation Projects of Information and Communications Technology Equipment in Public Sector)

(1) Where the heads of central administrative agencies, local governments, and public institutions conclude a contract for installing information and communications technology equipment, they shall preferentially adopt a contract method by which a bidder under Article 10 (2) 3 of the Act on Contracts to which the State is a Party shall be a successful bidder: Provided, That if necessary when considering the characteristics of an installation project of information and communications technology equipment, this shall not apply.

(2) The Minister of Science and ICT and the Minister of Government Administration and Home Affairs may determine and publicly notify matters concerning contracts and operations under paragraph (1); the Minister of Government Administration and Home Affairs may publicly notify matters concerning the information system under subparagraph 13 of Article 2 of the Electronic Government Act; and the heads of central administrative agencies, local governments, and public institutions shall comply therewith. (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

(3) The heads of central administrative agencies, local governments, and public institutions shall, each year, notify the Minister of Science and ICT and the Minister of Government Administration and Home Affairs of the information prescribed by Presidential Decree, such as the current state of contracts for installing information and communications technology equipment. (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

(4) The Minister of Science and ICT and the Minister of Government Administration and Home Affairs may, each year, inspect the current state of use of information and communications technology equipment by public institutions. (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

Article 29 (Forecast of Demand for Information and Communications Technology Equipment)

(1) The heads of central administrative agencies, local governments, and public institutions shall formulate a promotional plan to efficiently implement installation projects of information and communications technology equipment under Article 28 (1).

(2) The heads of central administrative agencies, local governments, and public institutions shall submit a promotional plan under paragraph (1) and information on demand for purchase of information and communications technology equipment to the Minister of Science and ICT and the Minister of Government Administration and Home Affairs. (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

(3) The Minister of Science and ICT and the Minister of Government Administration and Home Affairs shall publish the promotional plan and information on demand for purchase submitted pursuant to paragraph (2). (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

(4) In order to efficiently perform duties under paragraphs (2) and (3), the Minister of Science and ICT and the Minister of Government Administration and Home Affairs may designate specialized institutions, and fully or partially subsidize them the necessary expenses. (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

(5) Frequency of, timing for, method of, and procedure for submission under paragraph (2) and publication under paragraph (3), designation and support of specialized institutions under paragraph (4), and other necessary matters shall be prescribed by Presidential Decree.

CHAPTER IV.- SUPPORT, ETC. FOR ACTIVATION OF CONVERGENCE, ETC. OF INFORMATION AND COMMUNICATIONS TECHNOLOGY

SECTION 1.- Support for Venture Businesses and Vitalization of Technology Transactions, etc.

Article 30 (Establishment of Small and Medium Enterprises, Venture Businesses, etc., Entry into Overseas Markets, etc.)

(1) In order to vitalize and support the establishment of small and medium enterprises, venture businesses, etc. related to the convergence, etc. of information and communications technology, the Minister of Science and ICT may implement the following projects: (Amended by Act nº 14839, Jul. 26, 2017)

1. Support for the establishment of small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology in Korea and abroad, and for entry into overseas markets;

2. Supply of work space and conference halls to small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology;

3. Supply of information on financing, human resources, markets, etc., and support therefor to small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology;

4. Consultation on laws, management, tax, etc. for small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology;

5. Overseas publicity of technologies developed by small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology, supply of information on purchasers, and referral and brokerage of sale;

6. Support for translation services and legal services for the easy entry into overseas markets by small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology;

7. Supply of information on overseas markets concerning the convergence, etc. of information and communications technology and support for the inducement of investment;

8. Building and operation of a base for entry into overseas markets by small and medium enterprises, venture businesses, etc. relating to the convergence, etc. of information and communications technology;

9. Exchange and cooperation with relevant institutions in Korea and abroad for the development of venture businesses relating to the convergence, etc. of information and communications technology;

10. Other projects necessary for the vitalization and support of business startups and entry into overseas markets.

(2) In order to efficiently implement projects listed in paragraph (1), the Minister of Science and ICT may designate and operate institutions or organizations prescribed by Presidential Decree as specialized institutions, and fully or partially subsidize them the necessary expenses. (Amended by Act nº 14839, Jul. 26, 2017)

Article 31 (International Cooperation and Operation, etc. of Global Consultative Body)

(1) The Minister of Science and ICT shall ascertain relevant international trend necessary for the promotion of information and communications technology and the vitalization of convergence thereof, and promote international cooperation. (Amended by Act nº 14839, Jul. 26, 2017)

(2) In order to promote international cooperation under paragraph (1), the Minister of Science and ICT may perform the following duties: (Amended by Act nº 14839, Jul. 26, 2017)

1. Support for international exchange of human resources relating to the convergence, etc. of information and communications technology;

2. Support for overseas specialized education of human resources relating to the convergence, etc. of information and communications technology and for overseas training;

3. Support for international standardization relating to the convergence, etc. of information and communications technology and for international joint research and development projects, etc.;

4. Cooperation with international organizations relating to the convergence, etc. of information and communications technology, and with foreign governments;

5. Support for international cooperation in the private sector relating to the convergence, etc. of information and communications technology;

6. Other matters prescribed by Presidential Decree concerning international cooperation.

(3) For the promotion of information and communications technology and the vitalization of convergence thereof, the Minister of Science and ICT may organize a global consultative body consisting of foreign experts relating to information and communications technology. In such cases, the Minister of Science and ICT may subsidize expenses incurred for the composition and operation of the global consultative body. (Amended by Act nº 14839, Jul. 26, 2017)

(4) Matters necessary for the composition, operation, etc. of the global consultative body under paragraph (3) shall be prescribed by Presidential Decree.

Article 32 (Support for Development, etc. of Technologies and Services for Convergence, etc. of Information and Communications Technology)

(1) The Minister of Science and ICT shall endeavor to enhance the productivity and value of information and communications technology by grafting information and communications technology onto other industries, services, etc. (Amended by Act nº 14839, Jul. 26, 2017)

(2) In order to facilitate the development of technologies and services for the convergence, etc. of information and communications technology, the Minister of Science and ICT may implement the following projects: (Amended by Act nº 14839, Jul. 26, 2017)

1. Research and development projects concerning technologies and services for the convergence, etc. of information and communications technology;

2. Planning, evaluation, and management of tasks to be performed pursuant to subparagraph 1;

3. Support for referral and brokerage for the transfer of technologies, such as transactions, etc. of technologies for the convergence, etc. of information and communications technology held by the State, local governments, universities, government-funded research institutes, civilians, etc.;

4. Evaluation of technologies for the convergence, etc. of information and communications technology, and development and dissemination of evaluation methods;

5. Collection, analysis, and supply of information on the statistical surveys, research, etc. concerning the transfer and commercialization of technologies for the convergence, etc. of information and communications technology;

6. Support for the research and development of commercialization of technologies for the convergence, etc. of information and communications technology after the technologies are transferred;

7. Fostering of human resources specializing in the commercialization of technologies for the convergence, etc. of information and communications technology;

8. Development and making full use of an information system to facilitate transactions and commercialization of technologies for the convergence, etc. of information and communications technology;

9. Management, publicity, and making full use of outcomes from research concerning the convergence, etc. of information and communications technology, such as intellectual property rights;

10. Projects of research on policies, such as surveys of the level of technologies and services for the convergence, etc. of information and communications technology;

11. Demonstration projects concerning technologies and services for the convergence, etc. of information and communications technology;

12. Other projects necessary for the promotion of information and communications technology.

(3) In order to implement projects listed in paragraph (2), the Minister of Science and ICT may establish an institution, which is a legal entity to take exclusive charge thereof, or entrust legal entities or organizations with the operation thereof, and may make contributions to or fully or partially subsidize the necessary expenses within budgetary limit. (Amended by Act nº 14839, Jul. 26, 2017)

(4) The heads of central administrative agencies and local governments may require institutions in exclusive charge under paragraph (3) to perform projects listed in paragraph (2), and fully or partially subsidize them the expenses incurred in performing such projects.

(5) Except as otherwise provided for in this Act, the provisions of the Civil Act concerning incorporated foundation shall apply mutatis mutandis to institutions in exclusive charge under paragraph (3); and matters necessary for the operation of institutions in exclusive charge and for the performance of projects listed in paragraph (2) shall be prescribed by Presidential Decree.

Article 33 (Vitalization of Technology Transactions)

(1) The Minister of Science and ICT shall endeavor to create an environment in which transactions of technologies for the convergence, etc. of information and communications are vitalized. (Amended by Act nº 14839, Jul. 26, 2017)

(2) In order to vitalize the transactions of technologies for the convergence, etc. of information and communications, the Minister of Science and ICT may evaluate new technologies, collect, analyze, and supply relevant information, provide support for the development of commercialization, and perform other duties. (Amended by Act nº 14839, Jul. 26, 2017)

Article 34 (Collection and Use of Royalties)

(1) Where the projects of developing technologies and services for the convergence, etc. of information and communications under Article 32 (2) are completed, the Minister of Science and ICT may collect royalties from persons who intend to use, transfer, lease, or export the outcomes of such projects. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT shall use the royalties collected pursuant to paragraph (1) for the projects of developing technologies and services for the convergence, etc. of information and communications under Article 32 (2). (Amended by Act nº 14839, Jul. 26, 2017)

(3) Matters necessary for the collection, management, use, etc. of royalties under paragraphs (1) and (2) shall be prescribed by Presidential Decree.

SECTION 2.- Vitalization of Convergence, etc. of Information and Communications Technology

Article 35 (Encouragement of Expansion of Culture of Convergence, etc. of Information and Communications Technology)

(1) In order to heighten people’s understanding of the convergence, etc. of information and communications technology and to disseminate the culture of convergence, etc. of information and communications technology, the Minister of Science and ICT may implement the following projects: (Amended by Act nº 14839, Jul. 26, 2017)

1. Searching exemplary cases of public institutions and enterprises contributed to the convergence, etc. of information and communications technology, awarding prizes thereto, and publicizing them;

2. Giving education and holding seminars for the proliferation and vitalization of the convergence, etc. of information and communications technology;

3. Other projects that the Minister of Science and ICT deems necessary.

(2) Matters necessary for the methods, procedures, etc. for implementation of projects under paragraph (1) shall be prescribed by Presidential Decree.

Article 36 (Prompt Handling of New Technologies and Services for Convergence, etc. of Information and Communications)

(1) Where a person who develops new technologies and services for the convergence, etc. of information and communications fails to obtain permission, approval, registration, authentication, verification, etc. (hereinafter referred to as “permission, etc.”) under statutes due to any of the following causes, or whether he/she needs permission, etc. is not clear, he/she may file with the Minister of Science and ICT an application for prompt handling of the new technologies and services for the convergence, etc. of information and communications, as prescribed by Presidential Decree: (Amended by Act nº 14839, Jul. 26, 2017)

1. Where standards, specifications, requirements, etc. compatible with new technologies and services for the convergence, etc. of information and communications are not prescribed by statutes being the grounds for permission, etc.;

2. Where applying the standards, specifications, requirements, etc. under statutes being the grounds for permission, etc. to the relevant new technologies and services for the convergence, etc. of information and communications is not appropriate.

(2) Where the Minister of Science and ICT receives an application under paragraph (1), he/she shall notify the head of a relevant central administrative agency of the fact that an application for permission, etc. for new technologies and services for the convergence, etc. of information and communications is filed and of the details of the application. (Amended by Act nº 14839, Jul. 26, 2017)

(3) The head of the relevant central administrative agency shall reply to the Minister of Science and ICT whether the new technologies and services for the convergence, etc. of information and communications are under his/her jurisdiction or whether permission, etc. therefor are needed within 30 days from the date he/she receives notification under paragraph (2). Where he/she fails to make reply within 30 days, the duties shall be deemed not to fall under his/her jurisdiction or permission therefor of the head of the relevant central administrative agency shall be deemed unnecessary. (Amended by Act nº 14839, Jul. 26, 2017)

(4) The Minister of Science and ICT shall immediately notify the applicant of a reply under paragraph (3) (including whether permission, etc. pursuant to statutes under the jurisdiction of the Ministry of Science and ICT are necessary), or whether temporary permission, etc. under Article 37 (1) is needed, etc. (Amended by Act nº 14839, Jul. 26, 2017)

(5) Except for cases in which notification received from the Minister of Science and ICT pursuant to paragraph (4) states that permission, etc. of the Minister of Science and ICT or the head of the relevant central administrative agency are needed or that temporary permission under Article 37 (1) is needed, the relevant applicant may freely launch new technologies and services for the convergence, etc. of information and communications on the market. (Amended by Act nº 14839, Jul. 26, 2017)

(6) Where the head of the relevant central administrative agency deems that an application for new technologies and services for the convergence, etc. of information and communications under paragraph (1) is in need of permission, etc. under related statutes, he/she shall reply the conditions, procedures, etc. necessary for permission, etc.; and where the applicant applies for permission, etc. according to the contents of the reply, he/she shall promptly handle it according to the related statutes.

(7) Except as otherwise provided for in paragraphs (1) through (6), matters necessary for prompt handling, etc. of new technologies and services for convergence, etc. of information and communications shall be prescribed by Presidential Decree.

Article 37 (Temporary Permission)

(1) Where the Minister of Science and ICT receives a reply that new technologies and services for the convergence, etc. of information and communications for which an application for prompt handling is filed pursuant to Article 36 (1) do not fall under the jurisdiction of the heads of other relevant central administrative agencies according to abovementioned Article or deems that they do not fall under the jurisdiction of the heads of other relevant central administrative agencies, and needs to establish proper or appropriate standards, specifications, requirements, etc. in consideration of the characteristics of the relevant new technologies and services for the convergence, etc. of information and communications, he/she may temporarily grant permission, etc. (hereinafter referred to as “temporary permission“). In such cases, the Minister of Science and ICT may attach necessary conditions for the stability, etc. of new technologies and services for the convergence, etc. of information and communications. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT may conduct any test and inspection for temporary permission or designate an institution or organization having specialized human resources and technology as an institution for testing and inspection. (Amended by Act nº 14839, Jul. 26, 2017)

(3) The term of validity of temporary permission shall be up to one year, as prescribed by Presidential Decree. The term of validity may be extended one time only; a person who intends to have the term of validity extended shall file an application with the Minister of Science and ICT two months before the term of validity expires. (Amended by Act nº 14839, Jul. 26, 2017)

(4) In order to compensate for damage that the users of new technologies and services for the convergence, etc. of information and communications may suffer if a person who intends to supply new technologies and services for the convergence, etc. of information and communications after obtaining temporary permission fails to supply such services, he/she shall, before supplying such services, take out guarantee insurance which names a person designated by the Minister of Science and ICT as the insured in an amount calculated according to the standard prescribed by Presidential Decree within the scope of total fees that he/she is to charge: Provided, That where the Minister of Science and ICT deems guarantee insurance is unnecessary in consideration of the characteristics of new technologies and services for the convergence, etc. of information and communications or the financial ability of the enterpriser, he/she may be allowed not to take out guarantee insurance. (Amended by Act nº 14839, Jul. 26, 2017)

(5) A person designated as the insured pursuant to paragraph (4) shall pay insurance claims which he/she receives according to the guarantee insurance to users who are not supplied with services after paying fees.

(6) A person who obtains temporary permission shall notify the users of the relevant new technologies and services for the convergence, etc. of information and communications of the temporary permission and the term of validity.

(7) The heads of relevant central administrative agencies who are influenced by temporary permission may submit their opinions to the Minister of Science and ICT. (Amended by Act nº 14839, Jul. 26, 2017)

(8) Necessary matters, such as standards for examination of new technologies and services for the convergence, etc. of information and communications, and the procedures, methods, etc. therefor shall be prescribed by Presidential Decree.

Article 38 (Revocation of Temporary Permission)

(1) Where a person who obtains temporary permission pursuant to Article 37 (1) falls under any of the following subparagraphs, the Minister of Science and ICT shall revoke the temporary permission: (Amended by Act nº 14839, Jul. 26, 2017)

1. Where he/she has obtained the temporary permission by deceit or other wrongful means;

2. Where he/she fails to meet conditions under Article 37 (1);

3. Where he/she no longer meets the standards for examination under Article 37 (8).

(2) A person whose temporary permission is revoked pursuant to paragraph (1) shall not sell, use, supply relevant technologies and services, or conduct any other business related thereto.

CHAPTER V.- SUPPLEMENTARY PROVISIONS

Article 39 (Raising of Funds)

In order to promote information and communications technology and to vitalize the convergence thereof, the Minister of Science and ICT may use funds of the Broadcast Communications Development Fund under Article 24 of the Framework Act on Broadcasting Communications Development and the Fund for the Promotion of Information and Communications under Article 41 of the Information and Communications Technology Industry Promotion Act. (Amended by Act nº 14839, Jul. 26, 2017)

Article 40 (Hearings)

Where the Minister of Science and ICT intends to issue the following disposition, he/she shall hold a hearing: (Amended by Act nº 14839, Jul. 26, 2017)

1. Revocation of certification under Article 17 (5);

2. Revocation of temporary permission under Article 38 (1).

Article 41 (Delegation and Entrustment of Authority and Duties)

(1) The authority of the Minister of Science and ICT under this Act may be partially delegated to the heads of affiliated agencies, as prescribed by Presidential Decree. (Amended by Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT may partially entrust relevant institutions, organizations, etc. with the duties under this Act, as prescribed by Presidential Decree. (Amended by Act nº 14839, Jul. 26, 2017)

Article 42 (Legal Fiction as Public Official for Purposes of Penalty Provisions)

Any of the following executive officers and employees of institutions, juristic persons, or organizations shall be deemed a public official for the purposes of Articles 129 through 132 of the Criminal Act: (Amended by Act nº 12844, Nov. 19, 2014; Act nº 14839, Jul. 26, 2017)

1. A working committee for the promotion of vitalization under Article 9;

2. A Korean comprehensive software education school under Article 11;

3. A specialized institution for projects for the standardization of technologies, services, etc. for the convergence, etc. of information and communications technology designated by the Minister of Science and ICT pursuant to Article 16 (3);

4. A certification organization of technologies, services, etc. for the convergence, etc. of information and communications technology designated by the Minister of Science and ICT pursuant to Article 17 (3);

5. An institution in exclusive charge of projects for the promotion and vitalization of digital contents designated by the Government pursuant to Article 21 (3);

6. A research institute under Article 24;

7. A specialized institution designated by the Minister of Science and ICT or the Minister of Government Administration and Home Affairs pursuant to Article 29 (4);

8. An legal entity or organization established, entrusted, or operated by the Minister of Science and ICT pursuant to Article 32 (3);

9. An institution for testing and inspection designated by the Minister of Science and ICT pursuant to Article 37 (2);

10. An institution or organization entrusted with some of the duties under this Act by the Minister of Science and ICT pursuant to Article 41 (2).

Article 43 (Prohibition of Divulging Classified Information)

The executive officers and employees of institutions, juristic persons, or organizations falling under any of the subparagraphs of Article 42 or persons who have been in such post shall not divulge classified information that they have become aware of in the course of performing their duties.

CHAPTER VI.- PENALTY PROVISONS

Article 44 (Penalty Provisions)

(1) Each of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:

1. A person who obtains certification under Article 17 (2) by deceit or other wrongful means;

2. A person who obtains temporary permission under Article 37 by deceit or other wrongful means;

3. A person who divulges classified information that he/she has become aware of in the course of performing his/her duties, in violation of Article 43.

(2) A person indicating a mark of certification or similar thereto without obtaining certification, in violation of the latter part of Article 17 (4) shall be punished by a fine not exceeding five million won.

Article 45 (Joint Penalty Provisions)

If the representative of a juristic person or organization or an agent, employee, or other servant of a juristic person, organization, or individual commits any violation described in Article 44 in conducting the business affairs of the juristic person, organization, or individual, not only shall the violator be punished but the juristic person, organization, or individual shall also be punished by a fine prescribed in the relevant provisions: Provided, That where the juristic person, organization, or individual has not been negligent in giving considerable due care and supervision in connectin with the business in order to prevent such violation, this shall not apply.

Article 46 (Administrative Fines)

(1) Any of the following persons shall be punished by an administrative fine not exceeding ten million won:

1. A person who fails to take out guarantee insurance, in violation of Article 37 (4);

2. A person who sells, uses, supplies, etc. relevant technologies and services after temporary permission is revoked, in violation of Article 38 (2).

(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Science and ICT. (Amended by Act nº 14839, Jul. 26, 2017)

ADDENDUM

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 12844, Nov. 19, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 6 of the Addenda, the amended provisions of the Acts, which were promulgated before this Act enters into force but the dates on which they are to enter into force have yet to arrive, shall enter into force on the date each relevant Act enters into force, respectively.

Articles 2 through 7 Omitted.

ADDENDUM (Act nº 13016, Jan. 20, 2015)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 14839, Jul. 26, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 5 of the Addenda, the amended provisions of the Acts, which were promulgated before this Act enters into force but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcement dates of the respective Acts.

Articles 2 through 6 Omitted.

02Nov/21

Act nº 7372, Jan. 27, 2005, on the Protection, Use, etc. of Location Informatión

Act nº 7372, Jan. 27, 2005, on the Protection, Use, etc. of Location Informatión. (Amended by Act nº 8002, Sep. 27, 2006, Act nº 8367, Apr. 11, 2007, Act nº 8486, May 25, 2007, Act nº 8775, Dec. 21, 2007, Act nº 8867, Feb. 29, 2008, Act nº 9481, Mar. 13, 2009, Act nº 9483, Mar. 13, 2009, Act nº 11423, May 14, 2012, Act nº 11690, Mar. 23, 2013, Act nº 11717, Mar. 23, 2013, Act nº 12840, Oct. 15, 2014, Act nº 13203, Feb. 3, 2015, Act nº 13540, Dec. 1, 2015, Act nº 14224, May 29, 2016, Act nº 14839, Jul. 26, 2017, Act nº 14840, Jul. 26, 2017, Act nº 15608, Apr. 17, 2018, Act nº 16087, Dec. 24, 2018).

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to protect privacy from the divulging, abuse and misuse of location information, provide a safe environment for using location information, and activate the use of location information, thus contributing to the improvement of people’s standard of living and the promotion of public welfare.

Article 2.- (Definitions)

The definitions of the terms used in this Act shall be as follows: (Amended by Act nº 10166, Mar. 22, 2010; Act nº 13203, Feb. 3, 2015)

1. The term “location information” means information about a place where a portable object or an individual exists or has existed at a certain time, which is collected using telecommunications equipment facilities or telecommunications line equipment and facilities prescribed in subparagraph 2 or 3 of Article 2 of the Telecommunications Business Act;

2. The term “personal location information” means the location information regarding a particular person (including information readily combinable with other information to track the location of a particular person even though location information alone is not sufficient to identify the location of such person);

3. The term “subject of personal location information” means a person identified with personal location information;

4. The term “data verifying the collection of location information” means data regarding a person who has requested the collection of location information and the date, time, and methods of collection thereof (excluding location information);

5. The term “data verifying the use and provision of location information” means data regarding the person receiving location information, the channel of acquisition thereof, and the date, time, and methods of use and provision thereof (excluding location information);

6. The term “location information business” means engaging in the business of collecting location information and providing such information to location-based service providers;

7. The term “location-based service business” means engaging in the business of providing services based on location information (hereinafter referred to as “location-based services“);

8. The term “location information system” means a combination of computer hardware, software, database, and human resources organically interlinked through information and communications networks defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection to collect, store, analyze, use, and provide location information for location information business and location-based service business.

Article 3 (Seeking Measures to Protect and Use Location Information)

In order to ensure the safe protection and sound use, etc. of location information, the Korea Communications Commission shall seek measures including the following, after consultation with the heads of relevant central administrative agencies: (Amended by Act nº 8867, Feb. 29, 2008; Act nº 16087, Dec. 24, 2018)

1. The basic policy direction for protecting and using location information;

2. Matters concerning the protection of location information (including matters relating to protection of location information of a child under the age of 14 who may not have a clear understanding of the risks and consequences arising from the processing of location information, the rights of a subject of personal location information, and other relevant issues);

3. Matters concerning the use of location information for public purposes;

4. Matters concerning the development and standardization of technology related to location information business and location-based service business;

5. Matters concerning the enhancement of safety and reliability of location information business and location-based service business;

6. Matters concerning the improvement and evaluation of the quality of location information business and location-based service business;

7. Other matters necessary for the protection and use of location information.

Article 4 (Relationship with Other Statutes)

Except as otherwise provided in other statutes, the collection, storage, protection, and use of location information shall be subject to such conditions as provided in this Act.

CHAPTER II.- PERMISSION FOR LOCATION INFORMATION BUSINESS

Article 5 (Permission for Location Information Business Handling Personal Location Information)

(1) Any person who intends to engage in location information business handling personal location information shall obtain permission from the Korea Communications Commission for his/her trade name, location of the main office, type and description of the relevant location information business, and major business facilities, including location information systems, as prescribed by Presidential Decree. (Amended by Act nº 8775, Dec. 21, 2007; Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

(2) Deleted. (by Act nº 9481, Mar. 13, 2009)

(3) In order to grant permission under paragraph (1), the Korea Communications Commission shall comprehensively examine the following: (Amended by Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

1. Feasibility of a plan for location information business;

2. Plans to take technical and managerial measures relating to the protection of personal location information;

3. Propriety of the scale of facilities relating to location information business;

4. Financial and technical capabilities;

5. Other matters necessary for running the business.

(4) When the Korea Communications Commission grants permission pursuant to paragraph (1), it may attach conditions necessary to conduct research and development to improve accuracy and reliability of location information, fair competition, or protection of personal location information. (Amended by Act nº 8867, Feb. 29, 2008)

(5) Only corporations shall be eligible for permission under paragraph (1). (Amended by Act nº 15608, Apr. 17, 2018)

(6) Matters concerning guidelines and procedures for obtaining permission prescribed in paragraph (1); and detailed examination standards for each item for examination under paragraph (3), shall be prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008)

(7) When any person who has obtained permission for location information business in accordance with paragraph (1) (hereinafter referred to as “personal location information provider“) intends to change a location information system (limited to where such change results in deteriorating the level of technology for protecting personal location information, subsequent to obtaining the permission) among permitted matters, he/she shall obtain permission to change such matter from the Korea Communications Commission as prescribed by Presidential Decree; and when he/she intends to change the trade name or the location of the main office, he/she shall report such change to the Korea Communications Commission. (Amended by Act nº 8775, Dec. 21, 2007; Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

(8) Upon receiving an application for permission under paragraph (1) or for permission to change a matter under paragraph (7), the Korea Communications Commission shall grant such permission or the permission to change such matter, except in any of the following cases: (Inserted by Act nº 13203, Feb. 3, 2015)

1. Where the application fails to pass the examination under paragraph (3);

2. Where the applicant is not a corporation;

3. Where an executive officer of the applicant corporation falls under any subparagraph of Article 6 (1);

4. Where three years have not passed since the applicant corporation received a disposition to revoke permission or an order to discontinue business operations under Article 13 (1);

5. Where the application contravenes any restriction under this Act or any other statute.

Article 5-2 (Reporting on Location Information Business Not Handling Personal Location Information)

Any person who intends to engage in location information business not handling personal location information, shall report the following matters to the Korea Communications Commission, as prescribed by Presidential Decree:

1. Trade name;

2. Principal place of business;

3. Type and details of location information business;

4. Main business facilities, including a location information system.

(2) Any person (if the person is a corporation, including its representative) for whom one year has not passed since the person was ordered to cease business operations under Article 13 (1) shall be prohibited from reporting another location information business under paragraph (1).

(3) If a person who has reported his/her location information business pursuant to paragraph (1) (hereinafter referred to as “object location information provider”) intends to change any of the following matters already reported, the person shall report such change to the Korea Communications Commission, as prescribed by Presidential Decree:

1. Trade name;

2. Principal place of business;

3. Location information system (limited to where such change results in deteriorating the level of technology for protecting personal location information, subsequent to filing a report).

(4) Upon receiving a report under paragraph (1) or a report on a change in the matter specified in paragraph (3) 3, the Korea Communications Commission shall review and accept the report if it meets the requirements of this Act.

(5) If a personal location information provider has submitted documents necessary for reporting his/her location information business not handling personal location information, as at the time of filing an application for permission under Article 5 (1), such provider shall be deemed to have filed a report under paragraph (1).

(Article Inserted by Act nº 15608, Apr. 17, 2018)

Article 6 (Grounds for Disqualification of Executive Officers or Employees)

(1) None of the following persons shall be qualified to be an executive officer of either a personal location information provider or an object location information provider (hereinafter referred to as “location information provider“); and none of the following employees shall be designated as a person with authorized access under Article 16 (1) (hereafter in this Article referred to as a person with authorized access): (Amended by Act nº 12840, Oct. 15, 2014; Act nº 13203, Feb. 3, 2015; Act nº 13540, Dec. 1, 2015; Act nº 15608, Apr. 17, 2018)

1. A minor or a person under adult guardianship or under limited guardianship;

2. A person declared bankrupt but not yet reinstated;

3. A person for whom three years have not elapsed since his/her imprisonment without labor or heavier punishment declared by a court for violating this Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, the Framework Act on Telecommunications, the Telecommunications Business Act, or the Radio Waves Act, was completely executed (including where it is deemed to completely executed) or was remitted;

4. A person subject to suspended execution of his/her imprisonment without labor or heavier punishment, declared by a court for violating this Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, the Framework Act on Telecommunications, the Telecommunications Business Act, or the Radio Waves Act;

5. A person for whom three years have not elapsed since he/she was sentenced to punishment by a fine for violating this Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, the Framework Act on Telecommunications, the Telecommunications Business Act, or the Radio Waves Act;

6. A person for whom three years have not elapsed since he/she received a disposition to revoke permission or an order to discontinue business operations under Article 13 (1); and in cases of a corporation, a person engaged in conduct giving rise to so revoking permission or an order to discontinue business operations, as well as its representative.

(2) Where an executive officer falls or is found falling under any subparagraph of paragraph (1) as at the time he/she is appointed, he/she shall resign from office ipso facto; and where a person with authorized access falls or is found falling under any subparagraph of paragraph (1) as at the time he/she is designated, such designation shall be null and void. (Amended by Act nº 13540, Dec. 1, 2015)

(3) Any conduct in which a resigned executive officer is involved before his/her resignation, or in which an employee whose designation as a person with authorized access is null and void is involved before the nullification under paragraph (2), shall remain in effect. (Amended by Act nº 13540, Dec. 1, 2015)

Article 7 (Acquisition of Location Information Business or Merger of Corporations)

(1) Any person who intends to acquire all or part of the business of a personal location information provider, or to merge or split off an incorporated location information provider (including split-off and merger; hereinafter the same shall apply) shall obtain authorization from the Korea Communications Commission, as prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

(2) The Korea Communications Commission shall comprehensively examine the following matters before granting authorization under paragraph (1): (Inserted by Act  13203, Feb. 3, 2015)

1. Adequacy of financial and technical capacities and capability to manage business;

2. Impact on protecting subjects of personal location information and location-based service providers;

3. Impact on public interests, including the efficiency in using personal location information for emergency rescue and in research and development for protecting personal location information.

(3) Upon receiving an application for authorization under paragraph (1), the Korea Communications Commission shall grant authorization, except in any of the following cases: (Inserted by Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Where the application fails to pass an examination under paragraph (2);

2. Where the applicant is not a corporation;

3. Where an executive officer of the applicant corporation falls under any subparagraph of Article 6 (1);

4. Where three years have not passed since the applicant corporation’s permission was revoked or it was ordered to discontinue business operations under Article 13 (1);

5. Where the application contravenes any restriction under this Act or any other statute.

(4) Where all or part of the business of an object location information provider is transferred or inherited; or where an incorporated object location information provider is merged or split off, the transferee or inheritor of the business or the corporation incorporated by the merger or split-off or the corporation surviving the merger or split-off shall report such acquisition, inheritance, merger or split-off to the Korea Communications Commission, as prescribed by Presidential Decree. (Inserted by Act nº 15608, Apr. 17, 2018)

(5) Upon receiving a report under paragraph (4), the Korea Communications Commission shall review and accept the report if it meets the requirements of this Act. (Inserted by Act nº 15608, Apr. 17, 2018)

(6) A transferee authorized under paragraph (1), a transferee or inheritor who filed a report under paragraph (4), a corporation incorporated by a merger or split-off, or a corporation surviving a merger or split-off shall succeed to the status of the transferor, the decedent, or the incorporated location information provider existing prior to the merger or split-off, respectively. (Amended by Act nº 15608, Apr. 17, 2018)

(7) Matters concerning the methods, procedures, etc. for filing an application for authorization under paragraph (1); detailed guidelines for examining each item under paragraph (2); and the methods, procedures, etc. for filing a report under paragraph (4), shall be prescribed by Presidential Decree. (Inserted by Act nº 13203, Feb. 3, 2010; Act nº 15608, Apr. 17, 2018)

Article 8 (Suspension or Discontinuation of Operations of Location Information Business)

(1) If a location information provider intends to fully or partially suspend business operations, such provider shall determine the period of suspension of business operations; shall develop a plan to notify the subjects of personal location information of the suspension of business operations (only if the location information provider handles personal location information); and shall either obtain approval therefor from the Korea Communications Commission or report the plan to the Korea Communications Commission as follows. In such cases, the period of suspension of business operations shall not exceed one year:

1. Personal location information provider: Approval;

2. Object location information provider: Reporting.

(2) If a location information provider intends to discontinue business operations fully or partially, such provider shall develop a plan to notify the subjects of personal location information of the discontinuation of business operations (only if the location information provider handles personal location information); and shall either obtain approval therefor from the Korea Communications Commission or report the plan to the Korea Communications Commission as follows:

1. Personal location information provider: Approval;

2. Object location information provider: Reporting.

(3) A personal location information provider who has obtained approval under paragraph (1) 1 or (2) 1 shall notify the subjects of personal location information of the following matters, by not later than the scheduled date of suspension or discontinuation of business operations:

1. Approval to suspend business operations under paragraph (1) 1: The scope of the suspended location information business and the period of suspension of business operations;

2. Approval to discontinue business operations under paragraph (2) 1: The scope of the discontinued location information business and the date of discontinuation of business operations.

(4) When a personal location information provider fully or partially suspends operations of his/her location information business with approval under paragraph (1) 1, or when a location information provider fully or partially discontinues operations of his/her location information business under paragraph (2), such provider shall destroy personal location information and data verifying the collection of location information as follows simultaneously with suspending or discontinuing business operations:

1. Approval to suspend business operations under paragraph (1) 1: Personal location information (limited to the personal location information, related to the suspended business operations if business operations are partially suspended);

2. Approval to discontinue business operations under paragraph (2) 1: Personal location information and data verifying the collection of location information (limited to the personal location information and the data verifying the collection of location information, related to the discontinued business operations if business operations are partially discontinued);

3. Reporting the discontinuation of business operations under paragraph (2) 2: Data verifying the collection of location information (limited to the data verifying the collection of location information related to the discontinued business operations if business operations are partially discontinued).

(5) Upon receiving an application for approval of a plan to notify the subjects of personal location information on suspending or discontinuing business operations under paragraph (1) 1 or (2) 1, the Korea Communications Commission shall approve the plan, unless it is unreasonable.

(6) Upon receiving a report under paragraph (1) 2 or (2) 2, the Korea Communications Commission shall review and accept the report, unless it is unreasonable.

(7) Except as otherwise expressly provided in paragraphs (1) through (6), matters necessary for suspending and discontinuing location information business shall be prescribed by Presidential Decree.

(Article Amended by Act nº 15608, Apr. 17, 2018)

 Article 9 (Reporting on Location-Based Service Business)

(1) Any person who intends to engage in location-based service business (excluding location-based service business not handling personal location information; hereafter the same shall apply in this Article and Articles 9-2, 10, and 11) shall report, to the Korea Communications Commission, the trade name; the principal place of business; the type of business; and main business facilities, including location information systems, etc., as prescribed by Presidential Decree. (Amended by Act nº 8775, Dec. 21, 2007; Act nº 8867, Feb. 29, 2008; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

(2) Any person for whom one year has not passed since the person was ordered to discontinue business operations under Article 13 (1) (if the person is a corporation, including its representative) shall be prohibited from reporting another location-based service business under paragraph (1). (Amended by Act nº 15608, Apr. 17, 2018)

(3) If a person who has reported a location-based service business under paragraph (1) intends to change any of the following, the person shall report the change to the Korea Communications Commission, as prescribed by Presidential Decree: (Amended by Act nº 15608, Apr. 17, 2018)

1. Trade name;

2. Principal place of business;

3. Location information system (limited to where such change results in deteriorating the level of technology for protecting personal location information, subsequent to reporting the business).

(4) Where a location information provider has submitted the documents required for reporting his/her location-based service business under paragraph (1), when filing an application for permission under Article 5 (1), such provider shall be deemed to have completed the reporting on the location-based service business under paragraph (1) (in cases of micro enterprises, etc. referred to in the main sentence of Article 9-2 (1), referring to reporting under the proviso to the same paragraph). (Amended by Act nº 15608, Apr. 17, 2018)

(5) Upon receiving a report under paragraph (1) or a report on a change in the matter specified in paragraph (3) 3, the Korea Communications Commission shall review and accept the report if it meets the requirements of this Act. (Inserted by Act nº 15608, Apr. 17, 2018)

 Article 9-2 (Reporting on Location-Based Service Business of Micro Enterprises)

(1) Notwithstanding Article 9 (1), if a person who is either a micro enterprise, defined in Article 2 of the Act on the Protection of and Support for Micro Enterprises, or a self-employed creative enterprise, defined in Article 2 of the Act on the Fostering of Self-Employed Creative Enterprises, (hereinafter referred to as “micro enterprise or self-employed creative enterprise“) intends to engage in location-based service business, such person may do so without filing a report under Article 9 (1): Provided, That if such person intends to continue location-based service business even one month after the commencement of the business shall report the following matters to the Korea Communications Commission within one month from the commencement date of the business, as prescribed by Presidential Decree:

1. Trade name;

2. Principal place of business;

3. Type and details of business.

(2) Any person for whom one year has not passed since the person was ordered to discontinue business operations under Article 13 (1) (if the person is a corporation, including its representative) shall be prohibited from reporting another location-based service business under paragraph (1).

(3) If a person who has filed a report under the proviso to paragraph (1) changes either of the following, the person shall report the change to the Korea Communications Commission within one month from the date of change, as prescribed by Presidential Decree:

1. Trade name;

2. Principal place of business.

(4) If a person who has commenced location-based service business in accordance with the main sentence of paragraph (1) or a person who has filed a report in accordance with the proviso to the same paragraph ceases to be a micro enterprise or self-employed creative enterprise, such person shall file a report with the Korea Communications Commission to supplement matters necessary for reporting under Article 9 (1), within one month from the date the relevant event occurs, as prescribed by Presidential Decree.

(Article Inserted by Act nº 15608, Apr. 17, 2018)

 Article 10 (Acquisition of Location-Based Service Business or Merger of Corporations)

(1) If the business of a person who has reported location-based service business in accordance with Article 9 (1) or the proviso to Article 9-2 (1) is fully or partially transferred or inherited; or if a corporation that has reported location-based service business in accordance with Article 9 (1) or the proviso to Article 9-2 (1) is merged or split off, the transferee or inheritor of the business or the corporation incorporated during the merger or split-off or the corporation surviving the merger or split-off shall report such event to the Korea Communications Commission, as prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

(2) Upon receiving a report under paragraph (1), the Korea Communications Commission shall review and accept the report if it meets the requirements of this Act. (Inserted by Act nº 15608, Apr. 17, 2018)

(3) The transferee or inheritor who has filed a report in accordance with paragraph (1) or the corporation incorporated during a merger or split-off or the corporation surviving a merger or split-off shall succeed to the status of the transferor, the decedent, or the corporation existing prior to the merger or split-off, respectively. (Amended by Act nº 15608, Apr. 17, 2018)

Article 11 (Suspension or Discontinuation of Operations of Location-Based Service Business)

(1) If a location-based service provider intends to fully or partially suspend business operations, he/she shall determine the period of suspension; shall notify subjects of personal location information thereof by not later than 30 days before the scheduled date of suspension; and shall report to the Korea Communications Commission thereon. In such cases, the period of suspension shall not exceed one year, and the location-based service provider shall destroy personal location information (limited to personal location information related to the suspended business operations if business operations are partially suspended), simultaneously with suspending the business operations. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

(2) If a location-based service provider intends to fully or partially discontinue business operations, he/she shall notify the subjects of personal location information thereof by not later than 30 days before the date of discontinuation; and shall report to the Korea Communications Commission thereon. In such cases, personal location information and data verifying the use and provision of personal location information (limited to personal location information and data verifying the use and provision of location information related to the discontinued business operations if business operations are partially discontinued) shall be destroyed simultaneously with discontinuing the business operations. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

(3) Matters necessary for reporting the suspension or discontinuation of operations of location-based service business; and for destroying personal location information under paragraphs (1) and (2) shall be prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 15608, Apr. 17, 2018)

Article 12 (Disclosure of Terms and Conditions of User Agreement)

(1) Either of the following persons shall disclose to the public, details of the services that the person intends to provide and fee rates, terms and conditions, etc. regarding collecting, using and providing location information (hereinafter referred to as “terms and conditions”) by posting such terms and conditions on the person’s website or by any of the methods prescribed by Presidential Decree so that subjects of personal location information and users of the location-based service business can easily access such terms and conditions at any time; shall disclose grounds for and details of any intended amendment to such terms and conditions by any of the methods prescribed by Presidential Decree, when the person intends to amend the terms and conditions; and shall take measures to ensure that the amended terms and conditions can be easily noticed:

1. A location information provider;

2. A person who has reported his/her location-based service business in accordance with Article 9 (1) or a person who engages in location-based service business in accordance with Article 9-2 (1) (hereinafter referred to as “location-based service provider“).

(2) If the Korea Communications Commission deems that the terms and conditions of a person falling under either subparagraph of paragraph (1) are likely to compromise personal location information, fair competition, or public interest, it may order such person to revise such terms and conditions.

(Article Inserted by Act nº 15608, Apr. 17, 2018)

Article 13 (Revocation of Permission and Discontinuation or Suspension of Business Operations)

(1) In any of the following cases, the Korea Communications Commission may revoke the permission or authorization granted to a location information provider or a location-based service provider (hereinafter referred to as “location information provider or location-based service provider“); or may order a location information provider or location-based service provider to discontinue business operations or fully or partially suspend business operations for a period of up to six months (hereinafter referred to as “suspension of business operations“): Provided, That the permission or authorization granted to a location information provider or location-based service provider shall be revoked, or a location information provider or location-based service provider shall be ordered to discontinue business operations, in the case of subparagraph 1: (Amended by Act nº 8867, Feb. 29, 2008; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Where a location information provider or location-based service provider has obtained permission, modified permission, or authorization under Article 5 (1) or (7) or 7 (1) by fraud or other improper means; or has filed a report under Article 5-2 (1) or 9 (1) or the proviso to Article 9-2 (1) by fraud or other improper means;

2. Where a location information provider or location-based service provider fails to resume business operations, without good cause, after the period of suspension under Article 8 (1) or 11 (1);

3. Where a location information provider or location-based service provider fails to continue business operations for at least six months without obtaining approval or filing a report in accordance with any of the following:

(a) Approval under Article 8 (1) 1 or (2) 1;

(b) Reporting under Article 8 (1) 2 or (2) 2;

(c) Reporting under the former part of Article 11 (1) or the former part of Article 11 (2);

4. Where a material change occurs to the facilities related to the collection of location information or the technical and managerial measures related to the protection of location information, thus preventing continued services;

5. Where a location information provider or location-based service provider fails to take technical and managerial measures under Article 16 (1) or measures to preserve data verifying the collection of location information and data verifying the collection, use, and provision of location information under Article 16 (2) (hereinafter referred to as “data verifying the collection, use, and provision of location information“);

6. Where a location information provider or location-based service provider collects, uses, or provides location information without specifying his/her intention to collect, use, or provide location information in his/her terms and conditions or without obtaining consent thereto, in violation of Article 18 (1) or 19 (1);

7. Where a location information provider or location-based service provider collects, uses, or provides location information, beyond the scope of consent, in violation of Article 18 (2) or 19 (5);

8. Where a location information provider or location-based service provider uses or provides, to a third party, location information, beyond the scope specified in his/her terms and conditions or notified to the pertinent subject, in violation of Article 21.

(2) Detailed criteria for administrative measures under paragraph (1) shall be prescribed by Presidential Decree, based upon the type and gravity of the relevant violation.

Article 14 (Imposition of Penalty Surcharges)

(1) Where the suspension of business under Article 13 (1) is likely to substantially harm to the interests of subjects of personal location information, the Korea Communications Commission may impose a penalty surcharge not exceeding 3/100 of the sales of the relevant location information business or location-based service business in lieu of an order for business suspension. (Amended by Act nº 8867, Feb. 29, 2008)

(2) Matters necessary for the criteria and procedures for the imposition of penalty surcharges, such as calculation of the sales referred to in paragraph (1), shall be prescribed by Presidential Decree.

(3) Where a person obligated to pay a penalty surcharge under paragraph (1) fails to pay such surcharge by the due date, the Korea Communications Commission may collect an additional charge at the rate prescribed by Presidential Decree, from the date after such due date, within the extent not exceeding 8/100 per annum of the surcharge in arrears. (Amended by Act nº 8867, Feb. 29, 2008)

(4) Where a person obligated to pay a penalty surcharge fails to pay such surcharge by the due date, the Korea Communications Commission shall urge him/her to pay the surcharge, setting the deadline; and where he/she fails to pay the surcharge and the additional charge under paragraph (3) by the deadline, it shall collect them in the same manner as delinquent national taxes are collected. (Amended by Act nº 8867, Feb. 29, 2008)

CHAPTER III.- PROTECTION OF LOCATION INFORMATION

SECTION 1.- General Provisions

Article 15 (Prohibition on Collection of Location Information)

(1) No one shall collect, use, or provide any location information without consent of the subject of relevant location information: Provided, That the foregoing shall not apply in any of the following cases: (Amended by Act nº 11423, May 14, 2012; Act nº 15608, Apr. 17, 2018)

1. Where an emergency rescue agency requests emergency rescue under Article 29 (1) or for the issuance of a warning under Article 29 (7);

2. Where a police agency makes a request under Article 29 (2);

3. Where otherwise provided in other statutes.

(2) No one shall obtain personal location information about another person by deceiving a personal location information provider or a location-based service provider (hereinafter referred to as “personal location information provider or a location-based service provider“), by copying the person’s telecommunications device or misappropriating such information. (Amended by Act nº 15608, Apr. 17, 2018)

(3) Any person who sells, lends, or transfers an object with a built-in device capable of collecting location information shall notify the person who purchases, borrows, or acquires such object of the fact that the object has such built-in device capable of collecting location information. (Amended by Act nº 15608, Apr. 17, 2018)

Article 16 (Measures for Protecting Location Information)

(1) Each location information provider, etc. shall take managerial measures, such as establishing guidelines on processing and management of location information to prevent the divulging, alteration, impairment, etc. of location information or designating those with authorized access, and take technical measures, such as installing a firewall or using encryption software. In such cases, details of the managerial measures and technical measures shall be prescribed by Presidential Decree.

(2) Each location information provider, etc. shall cause data verifying the collection, use, and provision of location information to be automatically recorded and preserved in a location information system.

(3) In order to protect location information and prevent abuse and misuse of location information, the Korea Communications Commission may authorize affiliated public officials to examine details of the technical and managerial measures taken under paragraph (1), and the preservation status of records under paragraph (2), as prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008)

(4) Each public official who examines the details of the technical and managerial measures and the status of preservation of records under paragraph (3), shall carry a certificate indicating his/her authority and produce it to persons involved. (Amended by Act nº 13203, Feb. 3, 2015)

Article 17 (Prohibition on Divulging Location Information)

No location information provider, etc. nor their current or former employees shall divulge, alter, impair, or disclose any location information acquired in the course of performing their duties.

Article 17-2 (Notification of Processing of Location Information to Subjects of Personal Location Information)

Where any location information provider, etc. notify matters regarding processing of location information to a subject of personal location information, such provider, etc. shall use an easy-to-understand form and clear and plain language.

(Article Inserted by Act nº 16087, Dec. 24, 2018)

SECTION 2.- Protection of Personal Location Information

Article 18 (Collection of Personal Location Information)

(1) Where any location information provider intends to collect personal location information, such provider shall specify, in advance, the following in his/her terms and conditions; and shall obtain consent from the subjects of personal location information: (Amended by Act nº 15608, Apr. 17, 2018)

1. Trade name, address, phone number and other contact information of the location information provider;

2. Rights held by the subjects of personal location information and their legal representatives (limited to where consent is required from a legal representative under Article 25 (1)); and methods of exercising such rights;

3. Details of the services to be provided by the location information provider to a location-based service provider;

4. Grounds for and period of retaining data verifying the collection of location information;

5. Other matters prescribed by Presidential Decree as necessary for protecting personal location information.

(2) A subject of personal location information may withdraw his/her consent for part of the scope of personal location information collected and the terms and conditions, when he/she has given consent under paragraph (1).

(3) Where any location information provider collects personal location information, he/she shall collect such information to the minimum extent necessary for attaining the purpose of the collection.

Article 19 (Use or Provision of Personal Location Information)

(1) Where any location-based service provider intends to provide services using personal location information, such provider shall specify, in advance, the following in his/her terms and conditions; and shall obtain consent from the subjects of personal location information: (Amended by Act nº 15608, Apr. 17, 2018)

1. Trade name, address, phone number and other contact information of the location-based service provider;

2. Rights held by the subjects of personal location information and their legal representatives (limited to where the consent of a legal representative is required under Article 25 (1)) and methods of exercising such rights;

3. Details of the location-based services to be provided by the location-based service provider;

4. Grounds and period for retaining data verifying the collection of location information;

5. Other matters prescribed by Presidential Decree as necessary for protecting personal location information.

(2) Where any location-based service provider intends to provide personal location information to a third party designated by a subject of personal location information, such service provider shall specify details referred to in the subparagraphs of paragraph (1) in his/her terms and conditions; shall inform the subject of personal location information, of the designated recipient of the personal location information and the purpose of provision; and shall obtain his/her consent.

(3) Where any location-based service provider provides personal location information to a third party designated by a subject of personal location information under paragraph (2), such service provider shall immediately notify, on each occasion, the subject of personal location information, of the designated recipient of such information; and of the date, time, and purpose of such provision.

(4) Notwithstanding paragraph (3), a location-based service provider may give notice of the occasions altogether to a subject of personal location information at a maximum interval of 30 days in accordance with the guidelines prescribed by Presidential Decree for frequency, period, etc., if such service provider has obtained consent thereto from the subject, as prescribed by Presidential Decree. (Inserted by Act nº 13203, Feb. 3, 2015)

(5) When a subject of personal location information gives consent under paragraph (1), (2), or (4), he/she may defer his/her consent as to the purposes of using and providing personal location information; the scope of the persons eligible to receive the information; some of the location-based services; and the methods of notifying the subject of personal location information. (Amended by Act nº 13203, Feb. 3, 2015)

Article 20 (Provision of Personal Location Information by Location Information Providers)

(1) In order to attain the purposes of using or providing personal location information under Article 19 (1) or (2), any location-based service provider that has obtained consent from the subjects of personal location information pursuant to Article 19 (1) or (2) may request the location information provider that has collected the relevant personal location information to provide such information. In such cases, no location information provider shall refuse to provide such information without good cause.

(2) Procedures for, and method of location information providers’ providing personal location information to location-based service providers pursuant to paragraph (1) shall be prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008)

Article 21 (Restriction on Use and Provision of Personal Location Information)

Unless a location information provider, etc. have obtained consent from a subject of personal location information or except in the following cases, they shall neither use personal location information or data verifying the collection, use, or provision of location information beyond the scope specified in their terms and conditions or notified to the subject in accordance with Articles 18 (1) and 19 (1) and (2) nor provide such information to any third party: (Amended by Act nº 13203, Feb. 3, 2015)

1. Where data verifying the collection, use, and provision of location information are required to calculate fees related to the provision of location information and location-based services;

2. Where data is processed in such a way that any specific person cannot be identified, and provided for the purpose of statistics, academic research, or market research.

Article 22 (Notification of Transfer of Business)

Any person who has succeeded to the rights and obligations of a location information provider, etc. as a result of the full or partial transfer, merger, inheritance, etc. of their business (hereinafter referred to as “transfer, etc.”), shall notify the following to the subjects of personal location information within 30 days, as prescribed by Presidential Decree:

1. Full or partial transfer, etc. of the business;

2. Name, address, phone number and other contact information of the person who has succeeded to the rights and obligations of the location information provider, etc.;

3. Other matters prescribed by Presidential Decree as necessary for the protection of personal location information protection.

Article 23 (Destruction of Personal Location Information)

When any location information provider, etc. attain the purpose of collecting, using or providing personal location information, they shall immediately destroy personal location information other than data verifying the collection, use, and provision of location information that should be recorded and preserved in accordance with Article 16 (2).

SECTION 3.- Rights Held by Subjects of Personal Location Information

Article 24 (Rights Held by Subjects of Personal Location information)

(1) Any subject of personal location information may, at any time, fully or partially withdraw consent given to a location information provider, etc. under Article 18 (1) or 19 (1), (2), or (4). (Amended by Act nº 13203, Feb. 3, 2015)

(2) Any subject of personal location information may request, at any time, a location information provider, etc. to temporarily suspend collecting, using, or providing location information. In such cases, the location information provider, etc. shall not refuse such request and shall take technical measures accordingly.

(3) Any subject of personal location information may request a location information provider, etc. to permit him/her to inspect any of the following data or records; or to give notice of any of the following data or records; and may request a location information provider, etc. to correct any error found in relevant data or records. In such cases, no location information provider, etc. shall refuse such request without good cause: (Amended by Act nº 13203, Feb. 3, 2015)

1. Data verifying the collection, use, and provision of personal location information which relates to the principal;

2. The ground on which his/her personal location information was provided to a third party pursuant to the provisions of this Act or other statutes, and the relevant details.

(4) Where any subject of personal location information fully or partially withdraws consent pursuant to paragraph (1), the location information provider, etc. shall, without delay, destroy the personal location information collected so far, as well as the data verifying the collection, use, and provision of location information (limited to personal location information and data verifying the use and provision of location information for the part of which consent is withdrawn, if consent is partially withdrawn). (Amended by Act nº 15608, Apr. 17, 2018)

Article 25 (Rights Held by Legal Representatives)

(1) Where any location information provider, etc. intend to collect, use, or provide personal location information from children under 14 years of age pursuant to Article 18 (1), 19 (1) or (2), or 21, they shall obtain the consent of their legal representatives and confirm whether such legal representatives give the consent as prescribed by Presidential Decree. (Amended by Act nº 16087, Dec. 24, 2018)

(2) Articles 18 (2), 19 (5), and 24 shall apply mutatis mutandis where a legal representative gives consent under paragraph (1). In such cases, “subject of personal location information” shall be construed as “legal representative“. (Amended by Act nº 13203, Feb. 3, 2015)

Article 26 (Use of Location Information for Protecting Children Eight Years or Younger)

(1) Where the legal guardian of any of the following persons (hereinafter referred to as “child eight years or younger, etc.”) gives consent to collecting, using, or providing personal location information regarding the child eight years or younger, etc., for the protection of the latter’s health or safety, it shall be deemed that the child, etc. personally consent thereto: (Amended by Act nº 8367, Apr. 11, 2007; Act nº 12840, Oct. 15, 2014; Act nº 13203, Feb. 3, 2015)

1. A child eight years or younger;

2. A person under adult guardianship;

3. A person with a mental disorder defined in Article 2 (2) 2 of the Act on Welfare of Persons with Disabilities, classified as a person with a severe disability defined in subparagraph 2 of Article 2 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities (limited to those registered as disabled persons under Article 32 of the Act on Welfare of Persons with Disabilities).

(2) The legal guardian of a child eight years or younger, etc. referred to in paragraph (1), means any of the following persons who provides de facto protection for the child, etc.: (Amended by Act nº 8367, Apr. 11, 2007; Amended by Act nº 10517, Mar. 30, 2011; Act nº 12840, Oct. 15, 2014; Act nº 13203, Feb. 3, 2015; Act nº 14224, May 29, 2016; Act nº 15608, Apr. 17, 2018)

1. The legal representative of a child of eight years old or younger or a guardian under Article 3 of the Act on the Guardianship of Minors in Protective Facilities;

2. The legal representative of a person under adult guardianship;

3. The legal representative of a person prescribed in paragraph (1) 3, the head of a residential facility for persons with disabilities under Article 58 (1) 1 of the Act on Welfare of Persons with Disabilities (limited to any facility established and operated by the State or a local government), the head of a mental health sanatorium defined in Article 22 of the Act on the Improvement of Mental Health and the Support for Welfare Services for Mental Patients (limited to any facility established and operated by the State or a local government), or the head of a mental health rehabilitation facility defined in Article 26 of the same Act.

(3) Requirements for giving consent under paragraph (1) shall be prescribed by Presidential Decree.

(4) Articles 18 through 22 and 24 shall apply mutatis mutandis where legal guardians give their consent pursuant to paragraph (2). In such cases, “subjects of personal location information” shall be construed as “legal guardians“.

Article 27 (Compensation for Damage)

Where a subject of personal location information suffers damage because a location information provider, etc. have violated Articles 15 through 26, he/she may claim damages against the location information provider, etc. In such cases, the location information provider, etc. shall not be exempt from liabilities unless they prove that there was no intention or negligence on their part.

Article 28 (Mediation in Disputes)

(1) Where the parties to a dispute related to location information fail to reach an agreement or it is impossible to reach an agreement, the relevant location information provider, etc. may file a petition for adjudication with the Korea Communications Commission. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 13203, Feb. 3, 2015)

(2) Where the parties to a dispute related to location information fail to reach an agreement or it is impossible to reach an agreement, the relevant location information provider, etc. or the user may file a petition for mediation with the Personal Information Dispute Mediation Committee established under Article 40 of the Personal Information Protection Act. (Amended by Act nº 11690, Mar. 23, 2013)

CHAPTER IV.- USE OF PERSONAL LOCATION INFORMATION FOR EMERGENCY RESCUE

Article 29 (Use of Personal Location Information for Emergency Rescue)

(1) Where any subject of personal location information, his/her spouse or blood-relative within the second degree, or a guardian of a minor under Article 928 of the Civil Act (hereinafter referred to as “spouse, etc.”) requests emergency rescue to protect health or safety from imminent danger, an emergency rescue agency referred to in subparagraph 7 of Article 3 of the Framework Act on the Management of Disasters and Safety (hereinafter referred to as “emergency rescue agency“) may determine whether it is an emergency; and may request a location information provider to provide personal location information. In such cases, no spouse, etc. shall request emergency rescue for any purpose other than emergency rescue.

(2) The National Police Agency, regional police agencies, and police stations under Article 2 of the Police Act (hereinafter referred to as “police agency“) may request a location information provider to provide any of the following personal location information: Provided, That if a police agency intends to obtain personal location information regarding a person who has requested rescue to protect another person’s health or safety (hereinafter referred to as “witness”) under subparagraph 1, it shall obtain consent from such witness:

1. Where rescue has been requested for protecting any person, including the witness or person requiring rescue from imminent health- or life-threatening danger (hereinafter referred to as “rescuee“), personal location information regarding the witness;

2. Where a rescuee has requested rescue from any third person, the personal location information regarding such rescuee;

3. Where a custodian defined in subparagraph 3 of Article 2 of the Act on the Protection and Support of Missing Children (hereinafter referred to as “custodian“) has requested emergency rescue of a missing child, etc. defined in subparagraph 2 of Article 2 of the same Act (hereinafter referred to as “missing child, etc.”) for protecting the latter’s health or safety, the personal location of such missing child, etc.

(3) Where any third person has requested rescue from a police agency pursuant to paragraph (2) 2, the police agency shall confirm the intention of the rescuee.

(4) Requests for emergency rescue under paragraphs (1) and (2) shall be made only by calling special phone numbers prescribed by Presidential Decree and assigned for the sake of maintaining public order and promoting public interest. (Amended by Act nº. 15608, Apr. 17, 2018)

(5) Any location information provider in receiving a request under paragraph (1) or (2) may collect personal location information without the consent of the relevant subject of personal location information; and shall not refuse such request by an emergency rescue agency or a police agency on the ground that consent is withheld by the subject of personal location information.

(6) Where any emergency rescue agency, location information provider, or police agency requests or provides personal location information pursuant to paragraph (1) or (2), it shall immediately notify the relevant subject of personal location information, of such fact: Provided, That where such immediate notification appears likely to threaten the health or safety of the subject of personal location information, the notification shall be made without delay after the relevant grounds have ceased.

(7) In order to warn subjects of personal location information located in disaster areas or potential disaster areas, such as typhoon, heavy rain, fire and chemical, biological, and radiological (CBR) accidents, of the dangers to their lives or bodies, any emergency rescue agency may request a location information provider to issue a warning, as prescribed by Presidential Decree; and no location information provider so requested shall refuse such request to issue a warning on the ground that consent is withheld by the subjects of personal location information in the disaster areas. (Amended by Act nº 8867, Feb. 29, 2008)

(8) No emergency rescue agency or police agency, nor any current or former emergency rescue worker, shall use personal location information provided for emergency rescue, for any purpose other than for emergency rescue.

(9) Where a police agency has requested to provide personal location information under paragraph (2), it shall keep the following matters, as prescribed by Presidential Decree, and where a subject of personal location information requests the police agency to confirm, inspect or copy the collected personal location information, it shall comply with such request without delay: (Amended by Act nº 15608, Apr. 17, 2018)

1. Person who made the request;

2. Date, time, and purpose of the request;

3. Details of information provided by the location information provider;

4. Consent to collecting personal location information (limited to the cases falling under the proviso to paragraph (2)).

(10) Matters necessary for requests for emergency rescue under paragraphs (1) and (2); confirmation of an intention under paragraph (3); and the method of, and procedures for, the issuing of warnings under paragraph (7), shall be prescribed by Presidential Decree.

(11) No emergency rescue agency or police agency shall inform any third party of the personal location information provided under paragraph (1) or (2): Provided, That the foregoing shall not apply to the following cases: (Inserted by Act nº 13203, Feb. 3, 2015)

1. Where the subject of personal location information has consented thereto;

2. Where the personal location information is provided to another emergency rescue agency or another police agency where emergency rescue activities are inevitable.

(Article Amended by Act nº 11423, May 14, 2012)

Article 30 (Requests for Personal Location Information, and Method Thereof)

(1) Where any emergency rescue agency or police agency requests a location information provider to provide personal location information pursuant to Article 29 (1) and (2), it shall do so using a location information system; and where any location information provider receives a request from an emergency rescue agency or a police agency to provide personal location information, it shall do so using a location information system. (Amended by Act nº 11423, May 14, 2012)

(2) Emergency rescue agencies and police agencies shall report data about the requests for, and providing, personal location information under paragraph (1) and Article 29 (11), to the Public Administration and Security Committee of the National Assembly semi-annually; while location information providers shall report such data to the Science, ICT, Broadcasting, and Communications Committee of the National Assembly semi-annually: Provided, That data about the requests for, and the provision of, such information under paragraph (1) shall be reported separately from data about requests for, and providing, such information under Article 29 (11). (Inserted by Act nº 11423, May 14, 2012; Act nº 11717, Mar. 23, 2013; Act nº 13203, Feb. 3, 2015; Act nº 14840, Jul. 26, 2017)

(3) Matters necessary for requests by emergency rescue agencies and police agencies under paragraph (1) and for reporting under paragraph (2), shall be prescribed by Presidential Decree. (Amended by Act nº 11423, May 14, 2012)

Article 30-2 (Use of Computerized Information about Registration of Family Relationships)

Upon receiving a request for emergency rescue under Article 29 (1), an emergency rescue agency may request the Minister of the National Court Administration to provide it with computerized data about registration under Article 11 (6) of the Act on the Registration, etc. of Family Relationships, so as to verify the relationship between the person requesting emergency rescue and the subject of personal location information.

(Article Inserted by Act nº 13203, Feb. 3, 2015)

Article 31 (Reduction of, and Exemption from, Costs)

Where any location information provider issues a warning pursuant to Article 29 (7) or provides personal location information to an emergency rescue agency or a police agency pursuant to Article 30 (1), costs incurred therein may be reduced or exempt. (Amended by Act nº 11423, May 14, 2012)

Article 32 (Submission of Statistical Data)

(1) Each location information provider shall submit statistical data regarding the issuance of warnings under Article 29 (7) and providing personal location information under Article 30 (1) to the Science, ICT, Broadcasting, and Communications Committee of the National Assembly and the Korea Communications Commission respectively semi-annually. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 11423, May 14, 2012; Act nº 15608, Apr. 17, 2018)

(2) Such matters as methods for submitting statistical data under paragraph (1) shall be prescribed by Presidential Decree. (Inserted by Act nº 15608, Apr. 17, 2018)

CHAPTER V.- CREATION OF INFRASTRUCTURE FOR USE OF LOCATION INFORMATION

Article 33 (Promotion of Technological Development)

(1) In order to efficiently promote the development of technologies and devices related to collecting, using, or providing location information, the Minister of Science and ICT or the Korea Communications Commission may authorize relevant research institutes prescribed by Presidential Decree to perform projects for research and development, technical cooperation, technology transfer, technical guidance, etc. (hereafter in this Article, referred to as “research and development, etc.”). In such cases, the Minister of Science and ICT or the Korea Communications Commission shall consult with the heads of related central administrative agencies thereon. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013; Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT or the Korea Communications Commission may fully or partially subsidize research institutes for expenses they incur in performing research and development, etc. projects pursuant to paragraph (1). (Amended by Act nº 8867, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013; Act nº 14839, Jul. 26, 2017)

Article 34 (Promotion of Standardization)

(1) The Minister of Science and ICT and the Korea Communications Commission may establish standards for collecting, using, or providing location information for the protection and use thereof and publicly announce them, in consultation with the heads of related central administrative agencies: Provided, That the Korean Industrial Standards under Article 12 of the Industrial Standardization Act shall apply to the matters for which relevant Korean Industrial Standards are established. (Amended by Act nº 8486, May 25, 2007; Act nº 8867, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013; Act nº 14839, Jul. 26, 2017)

(2) The Minister of Science and ICT and Future Planning and the Korea Communications Commission may recommend a location information provider, etc. or a manufacturer or supplier of products related to location information to comply with the standards under paragraph (1). (Amended by Act nº 8867, Feb. 29, 2008; Act nº 14839, Jul. 26, 2017)

(3) Matters to be standardized under paragraph (1) shall be as follows: (Amended by Act nº 9483, Mar. 13, 2009)

1. Technologies related to protecting and certifying location information;

2. Technologies related to collecting, storing, managing, and providing location information;

3. Technologies related to emergency rescue and other public services;

4. Other base technologies related to protecting and using location information.

(4) Matters necessary for the method, and procedures for standardization under paragraph (1) shall be prescribed by Presidential Decree. (Inserted by Act nº 9483, Mar. 13, 2009)

(5) The Minister of Science and ICT and the Korea Communications Commission may render assistance in activities for the standardization of collecting, using, and providing location information. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 9483, Mar. 13, 2009; Act nº 11690, Mar. 23, 2013; Act nº 14839, Jul. 26, 2017)

Article 35 (Promotion of Use of Location Information)

(1) The Korea Communications Commission, following consultation with the heads of related central administrative agencies, may implement projects for the efficient utilization and promotion of related technologies and application services in various fields, such as the public sector, industry, living, and welfare, for the purpose of protecting and using location information, as prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008)

(2) The Korea Communications Commission may provide persons participating in any of the projects under paragraph (1) with technical and financial assistance as necessary. (Amended by Act nº 8867, Feb. 29, 2008)

CHAPTER V-2.- SUPPLEMENTARY PROVISIONS

Article 36 (Requests for Submission of Materials and Inspections)

(1) In any of the following cases, the Korea Communications Commission may request a location information provider, etc. to submit necessary materials, including relevant articles and documents:

1. Where the Korea Communications Commission discovers a violation of this Act or is informed of a suspected violation of this Act;

2. Where the Korea Communications Commission receives a report or complaint about a violation of this Act;

3. Where it is necessary to protect location information on any other ground prescribed by Presidential Decree.

(2) If a location information provider, etc. fail to submit the materials under paragraph (1) or are found to have violated this Act, the Korea Communications Commission may authorize its public officials to enter the place of business of the location information provider, etc. and inspect the status of operation of business, relevant articles and documents, facilities, equipment, etc. In such cases, Article 16 (4) shall apply mutatis mutandis.

(Article Amended by Act nº 13203, Feb. 3, 2015)

Article 37 (Hearings)

Where the Korea Communications Commission intends to revoke permission or authorization or order to discontinue business operations in accordance with Article 13, it shall hold a hearing. (Amended by Act nº 8867, Feb. 29, 2008)

Article 38 (Delegation or Entrustment of Authority)

(1) Part of the authority of the Korea Communications Commission vested under this Act, may be delegated to the heads of its affiliated agencies, as prescribed by Presidential Decree.

(2) Some of the following affairs assigned to the Korea Communications Commission under this Act, may be entrusted to the Korea Internet and Security Agency established under Article 52 of the Act on Promotion of Information and Communications Network Utilization and Information Protection or the Telecommunications Technology Association founded under Article 34 of the Framework Act on Broadcasting Communications Development, as prescribed by Presidential Decree:

1. Inspection, conducted pursuant to Article 16 (3), of technical and managerial measures and the preservation status of records thereof (limited to affairs related to technical support);

2. Promoting standardization under Article 34;

3. Requesting the submission of materials and conducting inspections under Article 36 (1) and (2) (limited to affairs related to technical support).

(Article Amended by Act nº 13203, Feb. 3, 2015)

Article 38-2 (Legal Fiction as Public Officials in Applying Penalty Provisions)

The executive officers and employees of the Korea Internet and Security Agency or the Telecommunications Technology Association engaging in the affairs entrusted by the Korea Communications Commission pursuant to Article 38 (2), shall be deemed as public officials in applying penalty provisions under Articles 129 through 132 of the Criminal Act to them.

(Article Inserted by Act nº 13203, Feb. 3, 2015)

Article 38-3 (Provisions Applicable Mutatis Mutandis)

Articles 16 (1) and (3), 17, 28 (1), 34, 35, and 36 shall apply mutatis mutandis to persons who engage in location-based service business not handling personal location information.

(Article Inserted by Act nº 13203, Feb. 3, 2015)

CHAPTER VI.- PENALTY PROVISIONS

Article 39 (Penalty Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than five years; or by a fine not exceeding 50 million won: (Amended by Act nº 11423, May 14, 2012; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Any person who engages in location information business without obtaining permission, in violation of Article 5 (1); or who obtains permission by fraud or other improper means;

2. Any person who divulges, alters, impairs, or discloses personal location information, in violation of Article 17;

3. Any person who collects, uses, or provides personal location information to another person, without consent thereto from the subject of the personal location information; or beyond the scope of consent, in violation of Article 18 (1) or (2) or 19 (1), (2), or (5); or who receives personal location information for profit or for any unlawful purpose, although he/she is aware of such circumstance;

4. Any person who uses or provides to a third party, personal location information beyond the scope specified in the terms and conditions or notified to the relevant subjects, in violation of Article 21;

5. Any person who uses personal location information for any purpose other than emergency rescue, in violation of Article 29 (8);

6. Any person who provides or receives personal location information, without consent thereto from the subject of the personal location information; or for any purpose other than emergency rescue, in violation of Article 29 (11).

Article 40 (Penalty Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: (Amended by Act nº 8775, Dec. 21, 2007; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Any person who engages in location information business without obtaining permission to make a change; or who obtains permission to make a change by fraud or other improper means, in violation of Article 5 (7);

1-2. Any person who engages in location information business not handling personal location information, without reporting in violation of Article 5-2 (1); or who reports such business by fraud or other improper means;

2. Any person who engages in location-based service business, without reporting in violation of Article 9 (1), the proviso to Article 9-2 (1) or Article 9-2 (4); or who reports by fraud or other improper means;

3. Any person who violates an order issued to discontinue business operations under Article 13 (1);

4. Any person who collects, uses, or provides personal location information regarding an individual without the individual’s consent, in violation of Article 15 (1);

5. Any person who obtains personal location information regarding another person by deceiving a personal location information provider or location-based service provider by copying the person’s telecommunications device or misappropriating such information, in violation of Article 15 (2).

Article 41 (Penalty Provisions)

Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 20 million won: (Amended by Act nº 11423, May 14, 2012; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Any person who changes a location information system, without reporting the change, in violation of Article 5-2 (3) 3 or 9 (3) 3, or who reports a change in a location information system by fraud or other improper means;

2. Any person who fails to destroy location information, in violation of Article 8 (4) or 11 (1) or (2);

3. Any person who violates an order to suspend business issued under Article 13 (1);

4. Any person who fails to take technical and managerial measures in violation of Article 16 (1) (including persons to whom said provisions shall apply mutatis mutandis pursuant to Article 38-3);

4-2. Any person who fails to ensure that data verifying the collection, use, and provision of location information are to be automatically recorded and preserved in a location information system, in violation of Article 16 (2);

5. Any person who refuses a request by an emergency rescue agency or a police agency, in violation of Article 29 (5); or who refuses to issue a warning, in violation of Article 29 (7).

Article 42 (Joint Penalty Provisions)

If the representative of a corporation or an agent or employee of, or any other person employed by, the corporation or an individual commits any violation described in Articles 39 through 41 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be subject to a fine prescribed in the relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. (Article Amended by Act nº 10137, Mar. 17, 2010)

Article 43 (Administrative Fines)

(1) Any of the following persons shall be subject to an administrative fine not exceeding 20 million won: (Amended by Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Any person who violates a condition for granting permission under Article 5 (4);

2. Any person who acquires a business or merges or splits off a business, without authorization, in violation of Article 7 (1);

3. Any person who fully or partially suspends or discontinues business operations, without obtaining approval, in violation of Article 8 (1) or (2);

4. Any person who refuses to provide personal location information, in violation of Article 20 (1);

5. Any person who refuses a request for temporary suspension or fails to take a technical measure, in violation of Article 24 (2).

(2) Any of the following persons shall be subject to an administrative fine not exceeding ten million won: (Amended by Act nº 11423, May 14, 2012; Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018; Act nº 16087, Dec. 24, 2018)

1. Any person who fails to report the acquisition, inheritance, merger, or split-off of a business or who reports the acquisition, inheritance, merger, or split-off of a business by fraud or other improper means, in violation of Article 7 (4) or 10 (1);

2. Any person who fails to report the whole or partial suspension or discontinuation of business operations, in violation of Article 8 (1) or (2) or 11 (1) or (2);

3. Any person who fails to disclose terms and conditions or grounds for and details of an amendment to the terms and conditions, in violation of Article 12 (1);

3-2. Any person who violates an order to amend terms and conditions under Article 12 (2);

4. Any person who fails to notify that an object has a built-in device capable of collecting location information, in violation of Article 15 (3);

5. Any person who fails to perform a duty to specify terms and conditions in violation of Article 18 (1) or 19 (1);

6. Any person who collects personal location information, in violation of Article 18 (3);

7. Any person who fails to give information or notice, in violation of Article 19 (2) through (4);

8. Any person who fails to notify transfer, etc. of business, in violation of Article 22;

9. Any person who refuses a request for inspection, notification, or correction, in violation of Article 24 (3);

10. Any person who collects, uses, or provides personal location information without obtaining the consent of the relevant legal representative or without confirming that such legal representative gives the consent, in violation of Article 25 (1);

11. Any person who requests emergency rescue under Article 29 (1) or (2), by fraud;

12. Any person who fails to notify providing personal location information, in violation of Article 29 (6);

13. Any person who fails to submit relevant articles, documents, etc. under Article 36 (1); or who submits any false article or document (including persons to whom said provisions shall apply mutatis mutandis pursuant to Article 38-3);

14. Any person who, without good cause, refuses, interferes with, or evades an inspection under Article 36 (2) (including persons to whom said provisions shall apply mutatis mutandis pursuant to Article 38-3).

(3) Any of the following persons shall be subject to an administrative fine not exceeding five million won: (Amended by Act nº 13203, Feb. 3, 2015; Act nº 15608, Apr. 17, 2018)

1. Any person who changes the trade name or principal place of business, without reporting such change; or who reports a changed trade name or principal place business by fraud or other improper means, in violation of Article 5 (7), 5-2 (3), 9 (3) 1 or 2, or 9-2 (3);

2. Any person who fails to submit statistical data, in violation of Article 32.

(4) Administrative fines under paragraphs (1), (2) (excluding subparagraph 11), and (3) shall be imposed and collected by the Korea Communications Commission, as prescribed by Presidential Decree. (Amended by Act nº 8867, Feb. 29, 2008; Act nº 13203, Feb. 3, 2015)

(5) through (7) Deleted. (by Act nº 13203, Feb. 3, 2015)

(8) Administrative fines under paragraph (2) 11 shall be imposed and collected by the heads of emergency rescue agencies or the heads of police agencies, as prescribed by Presidential Decree. (Amended by Act nº 11423, May 14, 2012)

(9) Deleted. (by Act nº 13203, Feb. 3, 2015)

ADDENDA

(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation: Provided, That Articles 29 through 32, subparagraph 5 of Article 41, Article 43 (2) 11 and 12, and Article 43 (8) shall enter into force on the date of its promulgation.

(2) (Transitional Measures concerning Permission for Location Information Business) Each person who engages in local information business as at the time this Act enters into force shall obtain permission from the Minister of Information and Communications in accordance with Article 5 (1), within three months from the date this Act enters into force.

(3) (Transitional Measures concerning Reporting on Location-Based Service Business) Each person who engages in location-based service business as at the time this Act enters into force shall report his/her business to the Minister of Information and Communications in accordance with Article 9 (1), within three months from the date this Act enters into force.

(4) (Transitional Measures concerning Terms and Conditions) Each person who engages in location information business or location-based service business as at the time this Act enters into force shall prepare terms and conditions under Article 12 (1) within three months from the date this Act enters into force and shall report them to the Minister of Information and Communications.

ADDENDUM (Act nº 8002, Sep. 27, 2006)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 8367, Apr. 11, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 6 Omitted.

ADDENDA (Act nº 8486, May 25, 2007)

Article 1 (Enforcement Date)

This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 10 Omitted.

ADDENDUM (Act nº 8775, Dec. 21, 2007)

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 8867, Feb. 29, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 12 Omitted.

ADDENDA (Act nº 9481, Mar. 13, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 Omitted.

ADDENDUM (Act nº 9483, Mar. 13, 2009)

This Act shall enter into force six months after the date of its promulgation.

ADDENDUM (Act nº 10137, Mar. 17, 2010)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 10166, Mar. 22, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 9 Omitted.

ADDENDA (Act nº 10517, Mar. 30, 2011)

Article 1 (Enforcement Date)

This Act shall enter into one year after the date of its promulgation.

Articles 2 through 4 Omitted.

ADDENDUM (Act nº 11423, May 14, 2012)

This Act shall enter into force six months after the date of its promulgation.

ADDENDA (Act nº 11690, Mar. 23, 2013)

Article 1 (Enforcement Date)

(1)       This Act shall enter into force on the date of its promulgation.

(2)       Omitted.

Articles 2 through 7 Omitted.

ADDENDA (Act nº 11717, Mar. 23, 2013)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 4 Omitted.

ADDENDA (Act nº 12840, Oct. 15, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Article 2 (Transitional Measure concerning Disqualifications of Incompetent Persons)

Notwithstanding the amended provisions of Articles 6 (1) 1 and 26 (1) 2 and (2) 2, the previous provisions shall apply to the persons, for whom the declaration of incompetence or quasi-incompetence pronounced as at the time the amended provisions enter into force, remains effective under Article 2 of the Addenda to the Civil Act (Act nº 10429).

ADDENDA (Act nº 12844, Nov. 19, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute.

Articles 2 through 7 Omitted.

ADDENDA (Act nº 13203, Feb. 3, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Permission for Location Information Business)

The amended provisions of Articles 5 (8) 4 and 7 (3) 4 shall apply, beginning with where an application is filed for permission for location information business or authorization for the acquisition, etc. of location information business, after this Act enters into force.

ADDENDA (Act nº 13540, Dec. 1, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Transitional Measures to Grounds for Disqualification)

Notwithstanding the amended provisions of Article 6, an employee of a location information provider as at the time this Act enters into force shall be governed by the previous provisions.

ADDENDA (Act nº 14224, May 29, 2016)

Article 1 (Enforcement Date)

This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 21 Omitted.

ADDENDA (Act nº 14839, Jul. 26, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation: Provided, That, the amendments to the statutes to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute.

Articles 2 through 6 Omitted.

ADDENDA (Act nº 14840, Jul. 26, 2017)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 through 4 Omitted.

ADDENDA (Act nº 15608, Apr. 17, 2018)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation.

Article 2 (Applicability to Reporting by Micro Enterprises on Location-Based Service Business)

The amended provisions of Articles 9 (4) and 9-2 shall apply to micro enterprises, etc. that commence location-based service business after this Act enters into force.

Article 3 (Applicability to Disclosure of Terms and Conditions)

The amended provisions of Article 12 (1) shall also apply where a person intends to amend the terms and conditions reported before this Act enters into force.

Article 4 (Transitional Measures concerning Permission for Location Information Business)

(1) If a person who holds permission granted under previous Article 5 (1) as at the time this Act enters into force engages in location information business handling personal location information, such person shall be deemed to have obtained permission from the Korea Communications Commission under the amended provisions of Article 5 (1).

(2) If a person who holds permission granted under previous Article 5 (1) as at the time this Act enters into force engages in location information business, without handling personal location information, such person shall be deemed to have filed a report in accordance with the amended provisions of Article 5-2 (1), and such report shall be deemed to have been accepted by the Korea Communications Commission under the amended provisions of Article 5-2 (4).

(3) If a person who has an application pending for permission under Article 5 (1) as at the time this Act enters into force engages in location information business, without handling personal location information, such person shall be deemed to have filed a report in accordance with the amended provisions of Article 5-2 (1).

Article 5 (Transitional Measures concerning Acquisition of Location Information Business or Merger of Corporations)

(1) If the transferee of all or part of the business of a person who holds authorization granted under previous Article 7 (1) as at the time this Act enters into force reports and has engaged in location information business, without handling personal location information, or a corporation incorporated by a merger or split-off or a corporation surviving a merger or split-off reports such acquisition, merger, or split-off in accordance with the amended provisions of Article 7 (4), such report shall be deemed to have been accepted by the Korea Communications Commission under the amended provisions of Article 7 (5).

(2) If a person who filed an application for authorization under previous Article 7 (1) before this Act enters into force is the transferee of all or part of the business of a person who has engaged in location information business, without handling personal location information, or a corporation incorporated by a merger or split-off or a corporation surviving a merger or split-off, such person shall be deemed to have reported the acquisition, merger, or split-off in accordance with the amended provisions of Article 7 (4).

Article 6 (Transitional Measures concerning Suspension or Discontinuation of Operations of Location Information Business)

(1) If a person who engages in location information business as at the time this Act enters into force, without handling personal location information, with approval granted under previous Article 8 (1) or (2) files a report in accordance with the amended provisions of Article 8 (1) 2 or (2) 2, such report shall be deemed to have been accepted by the Korea Communications Commission under the amended provisions of Article 8 (6).

(2) If a person who filed an application for approval under previous Article 8 (1) or (2) before this Act enters into force engages in location information business, without handling personal location information, such person shall be deemed to have filed a report in accordance with the amended provisions of Article 8 (1) 2 or (2) 2.

Article 7 Omitted.

ADDENDUM (Act nº 16087, Dec. 24, 2018)

This Act shall enter into force six months after the date of its promulgation.

01Nov/21

Act nº 14577, Digital Signature Act, Mar. 14, 2017

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)          

The purpose of this Act is to establish the basic framework for the system of digital signatures in order to secure the safety and reliability of electronic messages and to promote their use, thereby stimulating the use of electronic records and communications on a national level and advancing social benefit and convenience.

Article 2 (Definitions)     

The terms used in this Act shall be defined as follows:

1. The term “electronic message” means a piece of information generated and sent, received, or stored in digital form through an information processing system;

2. The term “digital signature” means a piece of information in digital form affixed on, or logically combined to, an electronic message in order to identify the signer and verify that the electronic message has been signed by that signer;

3. The term “certified digital signature” means a digital signature that satisfies the following requirements and is grounded upon an authorized certificate:

(a) That the digital signature creating key shall be only held by and known only to the subscriber;

(b) That the subscriber shall be controlling and managing the digital signature creating key at the time of signing;

(c) That it shall be ascertained whether there has been any alteration in the digital signature concerned since it was affixed;

(d) That it shall be ascertained whether there has been any alteration in the electronic message concerned since digital signature was affixed;

4. The term “digital signature creating key” means a sequence of bits used to affix a digital signature to an electronic message;

5. The term “digital signature verifying key” means a sequence of bits used to verify a digital signature;

6. The term “certification” means the act of ascertaining and verifying that the digital signature creating key is held and known only by the subscriber;

7. The “certificate” means a computer-based record ascertaining and verifying that the digital signature creating key is only held by and known only to the subscriber;

8. The term “authorized certificate” means a certificate that a licensed certification authority issues in accordance with Article 15;

9. The term “authorized certification work” means the affairs of offering authorized certification services, such as the issuance of authorized certificates, the maintenance of certification-related records, etc.;

10. The term “licensed certification authority” means an entity that is, in accordance with Article 4, designated as such in order to offer authorized certification services;

11. The term “subscriber” means a person whose digital signature creating key has been certified by a licensed certification authority;

12. The term “signer” means a person who holds his own digital signature creating key and signs in his or her own name or on behalf of another person;

13. The term “information on individual” means a piece of information that pertains to a living individual, such as information regarding marks, letters, voice, sound, image, and biometric characteristics which may help establish the identity of the person concerned based on his or her name, resident registration number, etc. (including cases where such information, even if this information is not enough to identify a specific person, can be combined easily with other information to establish his or her identity).

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 3 (Effect, etc. of Digital Signature)

(1) In cases where a signature, signature and seal, or name and seal is, under other Acts and subordinate statutes, required to be affixed on a paper-based document or letter, it shall be deemed that such requirements are satisfied if there is a certified digital signature affixed on an electronic message. (Amended by Act nº 6585, Dec. 31, 2001)

(2) In cases where a certified digital signature is affixed on an electronic message, it shall be presumed that such a digital signature is the signature, signature and seal, or name and seal of the signer of the electronic message concerned and that there has been no alteration in the contents of such message since it was signed digitally. (Amended by Act nº 6585, Dec. 31, 2001)

(3) A digital signature other than a certified digital signature shall have such an effect of a signature, signature and seal, or name and seal, as is agreed between the parties concerned.    (Inserted by Act nºº 6585, Dec. 31, 2001)

CHAPTER II.- LICENSED CERTIFICATION AUTHORITY

Article 4 (Designation of Licensed Certification Authority)

(1) The Minister of Science, ICT and Future Planning may designate as a licensed certification authority an entity that is deemed to be capable of performing authorized certification work (hereinafter referred to as “certification work“) in a secure and reliable manner. (Amended by Act º 6585, Dec. 31, 2001; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) The entity that can be designated as a licensed certification authority shall be limited to State agencies, local governments and corporations.

(3) The entity that desires to be designated as a licensed certification authority shall meet such requirements as technical and financial capabilities, facilities and equipment, and other required matters as provided by Presidential Decree.

(4) Where the Minister of Science, ICT and Future Planning designates a licensed certification authority under paragraph (1), he or she may designate it, for a sound development, etc. of the authorized certification market, by dividing the domain of certification work under the establishment purpose in cases of State agencies, local governments, non-profit corporations or corporations established by special Acts. (Inserted by Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(5) Procedures for designation of a licensed certification authority and other necessary matters shall be determined by Presidential Decree.

Article 5 (Grounds for Disqualification)   

No person who falls under any of the following subparagraphs shall be designated as a licensed certification authority: (Amended by Act nº 7428, Mar. 31, 2005; Act nº 12762, Oct. 15, 2014)

1. A corporation of which any executive officer falls under any of the following:

(a) A person under adult guardianship or limited guardianship, or a person who has been declared by a court as bankrupt and has not been reinstated;

(b) A person in whose case two years have not elapsed since his or her imprisonment without labor or heavier punishment declared by a court was completely executed (including cases where the execution of the sentence is deemed completed) or exempted;

(c) A person who is under suspension of the execution of imprisonment without labor or heavier punishment as declared by a court;

(d) A person who has been disqualified or whose qualification has been suspended by the court decision or under other Acts;

(e) A person who was in the position of an executive officer of a corporation at the time when its designation as a licensed certification authority was revoked pursuant to Article 12 (limited to cases where two years have not yet passed since its revocation);

2. A corporation in whose case two years have not yet passed since its designation as a licensed certification authority was revoked pursuant to Article 12.

 Article 6 (Rules, etc. of Authorized Certification Work)   

(1) A licensed certification authority shall prepare its rules of authorized certification work (hereinafter referred to as “rules of certification work“) that contains matters set forth in each of the following subparagraphs and report them to the Minister of Science, ICT and Future Planning before starting to perform certification work: (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Types of certification work;

2. Method and procedures for performing certification work;

3. Terms and conditions of use for authorized certification services (hereinafter referred to as “certification services“);

4. Such other matters as may be necessary to carry out certification work.

(2) A licensed certification authority shall prepare the rules of certification work under the standards for the rules of authorized certification work and the digital signature certification work guidelines under the provisions of Article 8 that are provided and notified by the Minister of Science, ICT and Future Planning. (Inserted by Act nº 7813, Dec. 20, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(3) In cases of the modification of the matters already reported under paragraph (1), a licensed certification authority shall report such fact to the Minister of Science, ICT and Future Planning within a period of time prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Inserted by Act nº 6585, Dec. 31, 2001; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(4) Where the contents of rules of certification work reported under the provisions of paragraph (1) to ensure the safety and reliability of certification work and to protect subscribers’ interests violate the standards for preparing the rules of authorized certification work provided and notified by the Minister of Science, ICT and Future Planning and the digital signature certification work guidelines under the provisions of Article 8 (1), the Minister of Science, ICT and Future Planning may order the licensed certification authority concerned to modify the same rules of certification work within a reasonable and fixed period of time. (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(5) A licensed certification authority shall faithfully observe all the matters prescribed by the rules of certification work. (Inserted by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005)

Article 7 (Provision, etc. of Certification Services)              

(1) No licensed certification authority shall refuse to provide certification services without any justifiable reason.

(2) No licensed certification authority shall unjustly discriminate against a subscriber or a certification service user.

Article 8 (Performance of Certification Work by Licensed Certification Authority)              

(1) In order to ensure the safety and reliability of certification work, the Minister of Science, ICT and Future Planning may draw up and notify digital signature certification work guidelines on specific matters that shall be observed by a licensed certification authority in performing certification work. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) The digital signature certification work guidelines under paragraph (1) shall contain the following: (Inserted by Act nº 7813, Dec. 30, 2005)

1. Matters concerning the management of authorized certificates;

2. Matters concerning the management of digital signature creating keys;

3. Matters concerning the protection of the facilities of licensed certification authorities;

4. Other matters concerning the certification work and operational management.

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 9 (Acquisition of Certification Work by Transfer, etc.)        

(1) A licensed certification authority, which desires to acquire the certification work of another licensed certification authority or to merge with another licensed certification authority that is a corporation, shall report it to the Minister of Science, ICT and Future Planning as prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº. 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) A licensed certification authority that has acquired the certification work as referred to in paragraph (1), or in the case of merger, the corporation that has survived or newly been established after the merger thereunder shall succeed to the status of the former licensed certification authority.

Article 10 (Cessation, Closure, etc. of Certification Work)               

(1) When a licensed certification authority desires to cease all or part of its certification work, it shall fix the period of cessation and notify its subscribers thereof not later than 30 days before the scheduled date of cessation, and also report it to the Minister of Science, ICT and Future Planning. In such cases, this period of cessation shall not exceed six months. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) When a licensed certification authority desires to close its certification work, it shall notify its subscribers thereof not later than 60 days before the scheduled date of closure, and also report it to the Minister of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(3) The licensed certification authority that has reported under paragraph (2) shall transfer to another licensed certification authority its subscriber’s authorized certificates as well as the records of the authorized certificates the validity of which was suspended and which was revoked (hereinafter referred to as the “subscriber’s certificates, etc.”): Provided, That if the subscriber’s certificates, etc. may not be transferred to another licensed certification authority due to unavoidable circumstances, the licensed certification authority shall, without delay, report such fact to the Minister of Science, ICT and Future Planning. (Amended by Act nº 6585, Dec. 31, 2001; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(4) Upon receipt of the report under the proviso to paragraph (3), the Minister of Science, ICT and Future Planning may order the Korea Internet Security Agency under Article 52 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (hereinafter referred to as the “Internet Security Agency“) to take over the subscriber’s certificates, etc. from the licensed certification authority concerned. (Amended by Act nº 6360, Jan. 16, 2001; Act nº 6585, Dec. 31, 2001; Actnº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(5) Such matters as may be necessary for the report of the cessation or closure of certification work as well as the transfer and takeover of the subscriber’s certificates, etc. as referred to in paragraphs (1) through (4) shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 11 (Corrective Order)       

The Minister of Science, ICT and Future Planning may order a licensed certification authority to take corrective measures within a fixed period of time if it falls under any of the following subparagraphs: (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Deleted; (by Act nº 7813, Dec. 30, 2005)

2. Where a licensed certification authority fails to satisfy the requirements it should meet under Article 4 (3) after it was designated as a licensed certification authority;

3. Where an executive officer of a licensed certification authority falls under any of the items of subparagraph 1 of Article 5;

4. Where a licensed certification authority fails to make a report or a report on alterations under Article 6 or where it fails to observe its rules of certification work that have been reported thereunder;

5. Where a licensed certification authority refuses to provide certification services, or unjustly discriminates against subscribers or certification service users, in violation of Article 7;

5-2. Where a licensed certification authority fails to observe specific matters set forth in the digital signature certification work guidelines, in violation of Article 8;

6. Where no report is made on the acquisition of a certification work by transfer, or on a merger between the licensed certification authorities, in violation of Article 9 (1);

7. Where a licensed certification authority fails to give notice of, or to make report on, the cessation or closure of its certification work, or where it fails to transfer its subscriber’s certificates, etc. to another certification authority at the time of the closure of its certification work, in violation of Article 10;

8. Where a licensed certification authority, the designation of which is revoked, fails to transfer its subscriber’s certificates, etc. to another certification authority, or fails to make a report it is required to do in cases of no transfer, in violation of Article 12 (2);

9. Where documents and materials as referred to in Article 14 (1) are not submitted;

9-2. Where a licensed certification authority fails to confirm the identity under the latter part of Article 15 (1);

10. Where a licensed certification authority fails to suspend or restore the validity of an authorized certificate, or where it fails to take such measures as may be necessary to confirm such fact, in violation of Article 17;

11. Where a licensed certification authority fails to revoke an authorized certificate, or where it fails to take such measures as may be necessary to confirm such fact, in violation of Article 18;

11-2. Where a licensed certification authority fails to take protective measures to ensure safety of facilities related to certification work in violation of Article 18-3;

12. Where a licensed certification authority fails to report on a failure that occurred in the information processing systems providing a certification work under the provisions of Article 22-3 (1);

13. Where a licensed certification authority fails to buy the insurance under the provisions of Article 26 (2).

Article 12 (Suspension of Certification Work or Revocation of Designation, etc.)  

(1) Where a licensed certification authority falls under any of the following subparagraphs, the Minister of Science, ICT and Future Planning may suspend all or part of its certification work for a fixed period not exceeding 6 months, or revoke its designation as a licensed certification authority: Provided, That in such cases as set forth in subparagraphs 1 and 2, its designation shall be revoked: (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Where a designation provided in Article 4 was made by fraud or other improper means;

2. Where a licensed certification authority which has been ordered to suspend its certification work fails to suspend the certification work in violation of such order;

3. Where certification work is not commenced within 6 months after designation provided in Article 4 or where certification work has been discontinued for 6 consecutive months or longer;

4. Where an order to alter the rules of certification work as provided in Article 6 (4) is violated;

5. Where a corrective order as provided in Article 11 is not implemented without good cause.

(2) A licensed certification authority the designation of which is revoked pursuant to paragraph (1) shall transfer its subscriber’s certificates, etc. to another licensed certification authority: Provided, That if the subscriber’s certificates, etc. may not be transferred due to any unavoidable cause, the licensed certification authority shall, without delay, report such fact to the Minister of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(3) The provisions of Article 10 (4) shall apply mutatis mutandis to a licensed certification authority the designation of which is revoked.

(4) Necessary matters pertaining to standards and procedures for dispositions referred to in paragraph (1) as well as transfer and takeover, etc. under paragraphs (2) and (3) shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 13 (Imposition of Penalty Surcharge)        

(1) Where a suspension of certification work as a sanction against an offence falling under any of subparagraphs of Article 12 (1) may cause subscribers, etc. serious inconvenience or may be harmful to other public interests, the Minister of Science, ICT and Future Planning may impose a penalty surcharge not exceeding 20 million won, in lieu of that suspension of certification work. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) The amount of a penalty surcharge according to the types and nature of the offences subject to penalty surcharge under paragraph (1) and other necessary matters shall be determined by Presidential Decree. (Amended by Act nº 7813, Dec. 30, 2005)

(3) When a person who is obligated to pay a penalty surcharge under paragraph (1) fails to do so by due date, the Minister of Science, ICT and Future Planning shall collect it by referring to the practices of dispositions on default of national taxes. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 14 (Inspection, etc.)          

(1) In order to confirm the following matters intended to ensure the safety and reliability of certification work, to protect subscribers, etc., the Minister of Science, ICT and Future Planning may order a licensed certification authority to submit the relevant documents and materials, and cause the relevant public official to enter its office, work site, or any other necessary premises to inspect facilities, equipment, books, records and other items concerning certification work: (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Whether or not the procedures and methods for an identity confirmation by a licensed certification authority under the provisions of Article 15 are appropriate;

2. Whether or not the safety and reliability of confirmation work provided in the provisions of Articles 18-3, 19 through 22, 22-2, 23 and 24 are ensured.

(2) Where the Minister of Science, ICT and Future Planning has the relevant public official inspect under the provisions of paragraph (1), he or she shall notify the relevant licensed certification authority of the inspection plans such as the inspection date, details and reasons for inspection, not later than 7 days before the beginning of inspection. (Inserted by Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(3) The public official who enters the premises to conduct an inspection pursuant to paragraph (1) shall show a certificate verifying his or her authority to interested persons, and deliver to the interested persons at the time of entry the document containing his or her name, time of entry and purpose of entry, etc. (Amended by Act nº 7813, Dec. 30, 2005)

CHAPTER III.-  AUTHORIZED CERTIFICATE

Article 15 (Issuance of Authorized Certificate)    

(1) A licensed certification authority shall issue an authorized certificate to the person who applies for the issuance of an authorized certificate. In such cases, the licensed certification authority shall verify the identity of the applicant. (Amended by Act nº 6585, Dec. 31, 2001)

(2) An authorized certificate issued by a licensed certification authority shall contain such particulars as set forth in the following subparagraphs: (Amended by Act nº 6585, Dec. 31, 2001)

1. Subscriber’s name (in cases of a corporation, its name or trade name);

2. Subscriber’s digital signature verifying key;

3. Description of algorithm used by the subscriber and the licensed certification authority to sign the authorized certificate;

4. Serial number of the authorized certificate;

5. Effective period of the authorized certificate;

6. Name of the licensed certification authority and other information that can be used to verify the identity of the licensed certification authority;

7. If there is any limit imposed on the scope or purposes of the use of the authorized certificate, matters pertaining thereto;

8. If the subscriber has the proxy, etc. to act for another or if he or she asks his or her professional title, etc. to be entered, matters pertaining thereto;

9. A mark verifying the authorized certificate.

(3) Deleted. (by Act nº 6585, Dec. 31, 2001)

(4) If a person applies for the issuance of an authorized certificate, a licensed certification authority may issue an authorized certificate having limits on the scope or purposes of its use. (Amended by Act nº 6585, Dec. 31, 2001)

(5) A licensed certification authority shall give an appropriate period of validity to an authorized certificate, taking into account the scope or purposes of its use as well as the safety and reliability of the computing techniques used for its issuance. (Amended by Act nº 6585, Dec. 31, 2001)

(6) Necessary matters concerning the procedures and methods of verifying the identity of an applicant for the issuance of an authorized certificate shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Inserted by Act nº 6585, Dec. 31, 2001; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 16 (Termination, etc. of Validity of Authorized Certificate)             

(1) Where any of the following circumstances arises, with respect to an authorized certificate issued by a licensed certification authority, the validity of that authorized certificate shall terminate at the time of the occurrence of such circumstances: (Amended by Act nº 6360, Jan. 16, 2001; Act nº 6585, Dec. 31, 2001)

1. Where the period of validity of an authorized certificate expires;

2. Where the designation of a licensed certification authority is revoked pursuant to Article 12 (1);

3. Where the validity of an authorized certificate is suspended pursuant to Article 17;

4. Where an authorized certificate is revoked pursuant to Article 18;

5. Deleted. (by Act nº 6585, Dec. 31, 2001)

(2) Where the digital signature creating key of a licensed certification authority, whose certification work was discontinued or closed under the provisions of Article 10 or suspended under the provisions of Article 12, has been lost, damaged, or stolen and outflowed, etc., the Minister of Science, ICT and Future Planning may, for ensuring the safety and reliability of certification work, suspend the validity of all authorized certificates issued by the relevant licensed certification authority. (Amended by Act nº 7813, Dec. 30, 2005; Act nº. 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(3) When the Minister of Science, ICT and Future Planning has suspended the validity of authorized certificates pursuant to paragraph (2), he or she shall instruct the Internet Security Agency to take, without delay, such measures as may be necessary for this information to be at all times accessible to the public. The same shall also apply where the validity of authorized certificates terminates pursuant to paragraph (1) 2. (Amended by Act nº 6585, Dec. 31, 2001; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 17 (Suspension, etc. of Validity of Authorized Certificate)               

(1) If there is a request on the part of a subscriber or his or her agent, a licensed certification authority shall suspend the validity of an authorized certificate or restore it by terminating the suspension. In such cases, the request for the restoration of its validity shall be made within 6 months from the date on which the validity of the authorized certificate was suspended. (Amended by Act nº 6585, Dec. 31, 2001)

(2) In cases where a licensed certification authority has suspended or restored the validity of an authorized certificate under paragraph (1), it shall, without delay, adopt such measures as may be necessary for this information to be at all times accessible to the public. (Amended by Act nº 6585, Dec. 31, 2001)

Article 18 (Revocation of Authorized Certificate)               

(1) In any of the following circumstances with respect to an authorized certificate, the licensed certification authority shall revoke this certificate: (Amended by Act nº 6585, Dec. 31, 2001)

1. Where a subscriber or his or her agent requests the revocation of an authorized certificate;

2. Where the licensed certification authority becomes aware that a subscriber has been issued an authorized certificate by fraud or other improper means;

3. Where the licensed certification authority becomes aware that a subscriber has been declared dead or missing by a court, or that a subscriber as a corporation has been dissolved;

4. Where the licensed certification authority becomes aware that a subscriber’s digital signature creating key has been lost, damaged, stolen or disclosed to a third party.

(2) Where a licensed certification authority has revoked an authorized certificate pursuant to paragraph (1), it shall, without delay, take such measures as may be necessary to confirm such fact. (Amended by Act nº 6585, Dec. 31, 2001)

Article 18-2 (Personal Identification by Authorized Certificate)   

A person may identify himself or herself by means of an authorized certificate issued by a licensed certification authority under this Act unless the act of identifying a person himself or herself by such means is restricted or precluded by any other Act.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

CHAPTER IV.- ENSURING SAFETY AND RELIABILITY OF CERTIFICATION WORK

Article 18-3 (Ensuring Safety of Licensed Certification Authority)               

A licensed certification authority shall take protective measures prescribed by Ordinance of the Ministry of Science, ICT and Future Planning to ensure safety of facilities related to certification work. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 19 (Operation of Certification Work System)         

(1) A licensed certification authority shall securely operate its facilities and equipment for performing certification work, including a certification work system that serves to enable the public to ascertain at all times whether the authorized certificates it issues remain valid.

(2) A licensed certification authority shall be subject to a regular inspection by the Internet Security Agency to ascertain whether its facilities and equipment as provided in paragraph (1) are securely operated. (Amended by Act nº 11690, Mar. 23, 2013)

(3) Where a licensed certification authority replaces the facilities and equipment as provided in paragraph (1) after it was designated as such, it shall, without delay, report it to the Minister of Science, ICT and Future Planning. In such cases, the Minister of Science, ICT and Future Planning may direct the Internet Security Agency to inspect the new facilities and equipment in question for any problems in their safety. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 20 (Time-Stamp of Electronic Messages)  

A licensed certification authority may stamp by an authorized digital signature the time at which an electronic message is presented for its certification, if there is any request therefor on the part of a subscriber or an authorized certificate user (hereinafter referred to as the “user“). (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005)

Article 21 (Control of Digital Signature Creating Key)       

(1) A subscriber shall hold and keep control of his or her digital signature creating key in a secure and confidential manner, and, when he or she becomes aware that it has been lost, hacked, stolen, or disclosed to a third person or that it is in danger of being likely to be hacked, he or she shall notify the licensed certification authority thereof. In such cases, the subscriber shall, without delay, inform the users of the contents of the said notification he or she has sent to the licensed certification authority.

(2) A licensed certification authority shall provide its subscribers with the computational device by which they can inform or notify such facts as referred to in paragraph (1).

(3) A licensed certification authority shall not hold a subscriber’s digital signature creating key unless the subscriber so requests; notwithstanding, if by the request of a subscriber it holds his or her digital signature creating key, it shall not use or disclose the said key without the consent of the subscriber.

(4) A licensed certification authority shall hold and keep control of the digital signature creating key that it is using, in a secure and confidential manner. When it becomes aware that such a digital signature creating key has been lost, hacked, stolen or disclosed outside or that the digital signature creating key is in danger of being likely to be hacked, it shall, without delay, notify the Internet Security Agency thereof and take such measures as to secure the safety and reliability of certification work. (Amended by Act nº 11690, Mar. 23, 2013)

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 22 (Keeping Records of Certification Work)            

(1) A licensed certification authority shall keep and control records of the issuance of authorized certificates for its subscribers and the performance of its certification work in a secure manner. (Amended by Act nº 6585, Dec. 31, 2001)

(2) A licensed certification authority shall retain its subscriber’s certificates, etc. for a period of 10 years after the termination of the validity of the certificates concerned. (Amended by Act nº 6585, Dec. 31, 2001)

Article 22-2 (Control, etc. of Authorized Certificates)       

(1) A licensed certification authority and its subscriber shall exercise due care to maintain the accuracy and integrity of the contents of the authorized certificate concerned or the information associated with the authorized certificate while it remains valid.

(2) A licensed certification authority shall provide users with an easy way to ascertain the matters set forth in the following subparagraphs by using the authorized certificate:

1. Name of the licensed certification authority and other information that can help verify the identity of the licensed certification authority;

2. The fact that the subscriber is controlling and managing the digital signature creating key at the time of the issuance of the authorized certificate concerned;

3. The fact that the digital signature creating key remained valid prior to the issuance of the authorized certificate.

(3) A licensed certification authority shall provide the users with an easy way to ascertain the matters set forth in the following subparagraphs:

1. Methods by which the identity of the signer can be verified;

2. Limits on the purpose of use of, or the amount permissible for, the digital signature creating key or the authorized certificate;

3. The scope or limits of liability incurred by the licensed certification authority.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 22-3 (Report on Occurrence of Obstacles to Certification Work)   

(1) Where any obstacles have occurred to the information processing systems that provide the certification work, a licensed certification authority shall report such facts without delay to the Minister of Science, ICT and Future Planning or the president of the Internet Security Agency, and shall prepare the countermeasures capable of rapidly overcoming the obstacles. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) When the Minister of Science, ICT and Future Planning or the president of the Internet Security Agency has received a report on obstacles to the certification work under the provisions of paragraph (1), he or she shall take the measures of the following subparagraphs: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Collection and dissemination of the information on obstacles;

2. Technological support and cooperation concerning overcoming the obstacles.

(Article Inserted by Act nº 7813, Dec. 30, 2005)

Article 23 (Security of Digital Signature Creating Key, etc.)            

(1) No person shall use by stealth or disclose another person’s digital signature creating key. (Amended by Act nº 6585, Dec. 31, 2001)

(2) No person shall have an authorized certificate issued in the name of another person, or aid such issuance. (Amended by Act nº 6585, Dec. 31, 2001)

(3) No person shall use a similar mark that leads or may lead others to confuse an unauthorized certificate, etc. with an authorized certificate or shall falsely indicate the use of an authorized certificate. (Inserted by Act nº 6585, Dec. 31, 2001)

(4) No person shall unlawfully use an authorized certificate by ridding oneself of the utilization scope or usage. (Inserted by Act nº 7813, Dec. 30, 2005)

(5) No person shall transfer or rent an authorized certificate to other persons for the purpose of being exercised, or receive any transfer or rent of other persons’ authorized certificate for the purpose of exercising. (Inserted by Act nº 7813, Dec. 30, 2005)

Article 24 (Protection of Information on Individual)          

(1) A licensed certification authority shall protect information on individual regarding its performance of certification work.

(2) Deleted. (by Act nº 10465, Mar. 29, 2011)

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 25 (Digital Signature Certification Control Service)              

(1) In order to create an environment in which the public may safely and reliably use digital signatures and to exercise efficient control over licensed certification authorities, the Internet Security Agency shall perform the functions set forth in the following subparagraphs: (Amended by Act nº 11690, Mar. 23, 2013)

1. In cases of designating a licensed certification authority under Article 4, assistance with the examination of such facilities and equipment as the applicant for the designation shall prepare to meet requirements for the said designation;

2. Assistance with the inspection of a licensed certification authority as provided in Article 14 (1);

3. Examination of and technical assistance for protective measures as provided in Article 18-3;

4. Regular inspection as provided in Article 19 (2) as to whether facilities and equipment are securely operated;

5. Certification work, such as the issuance, control, etc. of authorized certificates for the licensed certification authorities;

6. Development of technology relating to digital signature certification, dissemination thereof, and research on standardization thereof;

7. Assistance with the promotion of international cooperation, including research on systems relating to digital signature certification and the reciprocal recognition thereof;

8. Other necessary matters concerning digital signature certification control service.

(2) Articles 6, 7, 15 through 18, 18-2, 18-3, 19 (1), and 22 shall apply mutatis mutandis to the digital signature certification control service of the Internet Security Agency. In such cases, the “licensed certification authority” shall be deemed the “Internet Security Agency” and the “subscriber” the “licensed certification authority”. (Amended by Act nº 7813, Dec. 30, 2005; Act nº 11690, Mar. 23, 2013)

(3) The Internet Security Agency may levy charges, etc. for its performance of digital signature certification control service as referred to in paragraph (1), such as examination, technical assistance, inspection, issuance of authorized certificates. (Amended by Act nº 11690, Mar. 23, 2013)

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 25-2 (Obligation of Users)              

The users shall take the following measures in order to verify whether or not a certified digital signature is true by referring to the particulars, etc. of the authorized certificate as set forth in Article 15 (2) 1 through 6:

1. A measure to ascertain whether the authorized certificate remains valid;

2. A measure to ascertain whether the authorized certificate has been suspended or revoked;

3. A measure to ascertain such matters as set forth in Article 15 (2) 7 and 8.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 25-3 (Prohibition from Demand for Specific Authorized Certificate)            

In verifying a digital signature by means of an authorized certificate, no person shall demand an authorized certificate issued only by a specific licensed certification authority without any justifiable reason therefor.

(ArticleInserted by Act nº 6585, Dec. 31, 2001)

Article 26 (Compensation Responsibility)              

(1) Where a licensed certification authority has caused damages to the subscribers or the users who have trusted its authorized certificates in connection with the performance of the certification work, it shall compensate such damages: Provided, That if the licensed certification authority proves that it has no fault, such compensation responsibility shall be exempted.

(2) A licensed certification authority shall subscribe for an insurance for compensating the damages under the provisions of paragraph (1).

(Article Amended by Act nº 7813, Dec. 30, 2005)

CHAPTER V.- ADOPTION, ETC. OF DIGITAL SIGNATURE CERTIFICATION POLICY

Article 26-2 (Formulation, etc. of Policies for Development of Digital Signature Certification System)       

The Government shall formulate and carry out policies on matters set forth in the following subparagraphs in order to promote the development of digital signature and certification work, including ensuring the safety and reliability of digital signatures, promoting the widespread use thereof, etc.:

1. Matters concerning a basic policy for ensuring the safety and reliability of digital signature and promoting the widespread use thereof;

2. Matters concerning smooth cooperation among certification authorities in achieving the mutual recognition and common use of different certificates of digital signature and matters concerning technical standardization for such certificates;

3. Matters concerning development of digital signature-related technique;

4. Matters concerning education and publicity designed for the promotion of widespread use of digital signature;

5. Matters concerning improvement in systems and readjustment of the relevant Acts and subordinate statutes to promote widespread use of digital signatures;

6. Matters concerning the provision of assistance and relevant information to organizations related to digital signatures;

7. Matters concerning the protection of rights and interests of subscribers and users that are related to certification work;

8. Matters concerning the reciprocal recognition of foreign digital signature and certificates as well as the promotion of international cooperation;

9. Matters concerning the promotion of digital signature-related industry and the training of manpower available for this industry;

10. Matters concerning protective measures to ensure the safety of a licensed certification authority;

11. Matters concerning the adoption of pilot projects designed for the promotion of widespread use of digital signatures as well as matters concerning the survey of statistics and actual conditions in relation to the use of digital signature;

12. Matters concerning the use of encryption designed to ensure the safety and reliability of electronic messages;

13. Such other matters as may be necessary for ensuring the safety and reliability of digital signatures and for promoting the widespread use of digital signatures.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 26-3 (Cooperation among Certification Authorities in Achieving Mutual Recognition and Common Use of Different Certificates of Digital Signature)             

(1) The Minister of Science, ICT and Future Planning shall carry out the following matters in order to promote smooth cooperation among certification authorities in achieving the mutual recognition and common use of different certificates of digital signature: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Survey, research, and development on domestic and foreign standards for the mutual recognition and common use of different certificates of digital signature;

2. Establishment of standards related to the mutual recognition and common use of different certificates of digital signature and promotion of widespread use thereof;

3. Adjustment of digital signatures and certification policy for the mutual recognition and common use of different certificates of digital signature;

4. Other matters concerning the mutual recognition and common use of different certificates of digital signature.

(2) The Minister of Science, ICT and Future Planning may, where necessary to carry out matters set forth in the subparagraphs of paragraph (1), cause the relevant agency or organization to act for him or her. In such cases, he or she may subsidize the expenses incurred therein as prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 26-4 (Development of Digital Signature-Related Techniques and Manpower Training)       

The Minister of Science, ICT and Future Planning shall carry out the following matters for the purposes of technical development and specialized manpower training that are necessary to promote the widespread use of digital signatures: (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1. Matters concerning research on digital signature-related technical level, technical study and development, and application thereof;

2. Matters concerning cooperation in and transfer of digital signature-related techniques;

3. Matters concerning the provision of information on digital signature-related techniques and the promotion of cooperation with agencies and organizations related thereto;

4. Matters concerning research on the supply of and demand for manpower specializing in digital signatures and assistance for specialized manpower training;

5. Such other matters as may be necessary for the development of digital signature-related techniques and manpower training.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 26-5 (Implementation of Digital Signature-Related Pilot Projects)               

(1) The Minister of Science, ICT and Future Planning may carry out pilot projects to promote the wide use of digital signatures as prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(2) The Government may provide administrative, financial, and technical assistance in carrying out pilot projects as provided in paragraph (1).

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 26-6 (Assistance to Promote Use of Digital Signatures)     

(1) The State or the local governments may provide financial assistance in promoting the wide use of digital signatures.

(2) In order to secure the safety and reliability of electronic commerce, the Government may formulate and carry out policies to reduce, or to give exemption from, fees, etc. payable for electronic commerce if authorized digital signatures are used in electronic transactions.

(3) Where a corporation or organization related to digital signatures carries out a project to encourage the use of digital signatures, the Government may subsidize wholly or partially the expenses required for the execution of the project concerned within the limits of budget.

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 26-7 Deleted. (by Act nº 10008, Feb. 4, 2010)         

CHAPTER VI.- SUPPLEMENTARY PROVISIONS

Article 27 (Protection of Subscribers and Users)  

(1) The Government shall adopt such necessary measures as to deal with the complaints filled or damages suffered by subscribers and users in a prompt and fair manner.

(2) Detailed matters filled concerning measures as provided in paragraph (1) shall be prescribed by Ordinance of the Ministry of Science, ICT and Future Planning. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(Article Inserted by Act nº 6585, Dec. 31, 2001)

Article 27-2 (Reciprocal Recognition)       

(1) The Government may enter into an agreement with a foreign government on the reciprocal recognition of digital signatures.

(2) In cases of the conclusion of an agreement under paragraph (1), it may form the basic contents of the agreement to grant a foreign certification authority or a certificate issued thereby the same legal status or effect as the licensed certification authority or the authorized certificate as provided in this Act. (Amended by Act nº 6585, Dec. 31, 2001)

(3) When an agreement on the reciprocal recognition of digital signatures has been concluded with a foreign government under paragraph (1), the Minister of Science, ICT and Future Planning shall give publicity to the contents of the agreement. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

(4) If an agreement has been concluded with a foreign government under paragraph (1), a foreign digital signature or certificate shall be deemed to have the same legal effect as an authorized digital signature or an authorized certificate. (Inserted by Act nº 6585, Dec. 31, 2001)

Article 28 (Imposition of Fees)   

A licensed certification authority may impose necessary fees, such as service charges, on those who apply for the issuance of an authorized certificate or receive certification services. (Amended by Act nº 6585, Dec. 31, 2001)

Article 29 (Hearings)       

The Minister of Science, ICT and Future Planning shall hold a hearing if he or she intends to revoke a designation in accordance with Article 12 (1). (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

Article 30 (Delegation of Authority)         

Part of the authority held by the Minister of Science, ICT and Future Planning under this Act may be delegated to the head of a subordinate agency or entrusted to the President of the Korea Post, as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

CHAPTER VII.- PENALTY PROVISIONS

Article 31 (Penalty Provisions)    

Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: (Amended by Act nº 6585, Dec. 31, 2001)

1. A person who holds a subscriber’s digital signature creating key without receiving any request from the latter or who uses or discloses a subscriber’s digital signature creating key without the consent of the latter, who has asked the former to hold the said key, in violation of Article 21 (3);

2. A person who steals or discloses another person’s digital signature creating key in violation of Article 23 (1);

3. A person who has an authorized certificate issued in the name of another person or supports such issuance, in violation of Article 23 (2).

Article 32 (Penalty Provisions)    

Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won: (Amended by Act nº 7813, Dec. 30, 2005)

1. A person who fails to retain the subscriber’s certificates, etc. in violation of Article 22 (2);

2. Deleted; (by Act nº 7813, Dec. 30, 2005)

3. A person who uses an authorized certificate beyond the scope of its intended use or for a purpose other than its original purpose, in violation of Article 23 (4);

4. A person who transfers or rents an authorized certificate to other persons for the purpose of making them exercise authority related thereto, or who receives a transfer or rent of the other persons’ said certificate for the purpose of exercising authority related thereto, in violation of Article 23 (5).

(Article Amended by Act nº 6585, Dec. 31, 2001)

Article 33 (Joint Penalty Provisions)         

If the representative of a juristic person, or an agent or employee of, or any other person employed, by a juristic person or an individual commits a violation under Article 31 or 32 with respect to the business affairs of the juristic person or individual, not only shall such offender be punished, but also the juristic person or individual shall be punished by a fine under the relevant Article: Provided, That this shall not apply where such juristic person or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation.

(Article Amended by Act nº 9208, Dec. 26, 2008)

Article 34 (Administrative Fines)               

(1) Any of the following persons shall be subject to an administrative fine not exceeding five million won: (Amended by Act nº 6585, Dec. 31, 2001; Act nº 7813, Dec. 30, 2005; Act nº 8852, Feb. 29, 2008; Act nº 11690, Mar. 23, 2013)

1.  A person who fails to report, or report the modification of, the rules of certification work in violation of Article 6 (1) or (3) (including cases of application mutatis mutandis as referred to in Article 25 (2)) or who fails to implement an order to modify the rules of certification work as provided in paragraph (4) of the same Article (including cases of application mutatis mutandis as referred to in Article 25 (2));

2. A person who refuses to provide certification services without good cause, or unjustly discriminates against subscribers or users, in violation of Article 7 (including cases of application mutatis mutandis as referred to in Article 25 (2));

3. A person who fails to file a report under Article 9 (1);

4. A person who fails to notify his or her subscribers of, or to report thereon to the Minister of Science, ICT and Future Planning, the cessation of certification work as provided in Article 10 (1) or the closure thereof as provided in paragraph (2) of the same Article;

5. A person who fails to transfer the subscriber’s certificates, etc. to another licensed certification authority, or to report the impossibility of such a transfer, without good cause, in violation of Article 10 (3) or 12 (2);

6. A person who fails to submit the relevant documents and materials as referred to in Article 14 (1) or submits false records, or who refuses, obstructs, or evades an entrance and inspection by the relevant public officials;

7. A person who fails to give a notification as provided in Article 21 (4);

7-2. A person who fails to report on a failure that occurred in the information processing systems providing the certification work under the provisions of Article 22-3 (1);

8. A person who uses a similar mark that leads or may lead others to mistake an unauthorized certificate, etc. for an authorized certificate, or who falsely indicates the use of an authorized certificate, in violation of Article 23 (3);

9. A person who demands only the authorized certificate of a specific licensed certification authority in violation of Article 25-3;

10. A person who fails to buy an insurance in violation of Article 26 (2).

(2) The administrative fine as referred to in paragraph (1) shall be imposed and collected by the Minister of Science, ICT and Future Planning as prescribed by Presidential Decree. (Amended by Act nº 8852, Feb. 29, 2008; Actnº 11690, Mar. 23, 2013)

(3) through (5) Deleted. (by Act nº 14577, Mar. 14, 2017)

ADDENDUM

This Act shall enter into force on July 1, 1999.

ADDENDA (Act nº 6360, Jan. 16, 2001)

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2001.

Articles 2 through 6 Omitted.

ADDENDA (Act nº 6585, Dec. 31, 2001)

Article 1 (Enforcement Date)

This Act shall enter into force on April 1, 2002.

Article 2 (Transitional Measures concerning Liability)

The previous provisions shall apply to liability for any damage incurred by a licensed certification authority in the process of performing its certification work before this Act enters into force.

Article 3 (Transitional Measures concerning Application of Penalty Provisions)

The previous provisions shall prevail in the application of penalty provisions to an offence committed before this Act enters into force.

Article 4 Omitted.

ADDENDA (Act nº 7428, Mar. 31, 2005)

Article 1 (Enforcement Date)

This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted.

ADDENDA (Act nº 7813, Dec. 30, 2005)

(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 4 (4) of the Act shall enter into force on the date of its promulgation.

(2) (Transitional Measures concerning Application of Penalty Provisions) The previous provisions shall govern any application of penalty provisions for the acts committed before this Act enters into force.

ADDENDA (Act nº 8852, Feb. 29, 2008)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDUM (Act nº 9208, Dec. 26, 2008)

This Act shall enter into force on the date of its promulgation.

ADDENDUM (Act nº 10008, Feb. 4, 2010)

This Act shall enter into force on the date of its promulgation.

ADDENDA (Act nº 10465, Mar. 29, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.

ADDENDA (Act nº 11690, Mar. 23, 2013)

Article 1 (Enforcement Date)

(1) This Act shall enter into force on the date of its promulgation.

(2) Omitted.

Articles 2 through 7 Omitted.

ADDENDA (Act nº 12762, Oct. 15, 2014)

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation.

Articles 2 (Transitional Measures concerning Ground for Disqualification of Incompetent Persons, etc.)

Notwithstanding the amended provisions of subparagraph 1 (a) of Article 5, the previous provisions shall apply to persons who have already been adjudged incompetent or quasi-incompetent and for whom the effect of adjudication of incompetence or quasi-incompetence is maintained under Article 2 of the Addenda to the Civil Act (Act nº 10429) at the time the same amended provisions enter into force.

ADDENDUM (Act nº 14577, Mar. 14, 2017)

This Act shall enter into force on the date of its promulgation.

31Oct/21

Act on Promotion of Information and Communications Network Utilization and Data Protection of 2001, established by Act nº 6360, Jan. 16, 2001

Act on Promotion of Information and Communications Network Utilization and Data Protection of 2001, established by Act nº 6360, Jan. 16, 2001, amended by Act nº 10138, Mar. 17, 2010, amended by Act nº 10560, Apr. 5, 2011, amended by Act nº 11322, Feb. 17, 2012, amended by Act nº 12681, May 28, 2014, amended by Act nº 13014, Jan. 20, 2015, amended by Act nº 13280, Mar. 27, 2015, amended by Act nº 13344, June 22, 2015, amended by Act nº 13520, Dec. 1, 2015.

ACT ON PROMOTION OF INFORMATION AND COMMUNICATIONS NETWORK UTILIZATION AND DATA PROTECTION, ETC.

Established by Act nº 6360, Jan. 16, 2001

Amended by Act nº 10138, Mar. 17, 2010

Amended by Act nº 10560, Apr. 5, 2011

Amended by Act nº 11322, Feb. 17, 2012

Amended by Act nº 12681, May 28, 2014

Amended by Act nº 13014, Jan. 20, 2015

Amended by Act nº 13280, Mar. 27, 2015

Amended by Act nº 13344, June 22, 2015

Amended by Act nº 13520, Dec. 1, 2015

CHAPTER I.- GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to promote the utilization of information and communications networks, to protect the personal information of users utilizing information and communications services, and to build a safe and sound environment for the information and communications networks in order to improve the citizen’s lives and enhance the public welfare.

Article 2 (Definitions)

(1) The terms used in this Act shall be defined as follows:

1. “Information and communications networks” mean the information and communications system under which telecommunications facilities and equipment as prescribed in subparagraph 2 of Article 2 of the Telecommunications Business Act are utilized, or the telecommunications facilities and equipment, computers and the technology of using computers are utilized together to collect, process, store, search, transmit and receive information;

2. “Information and communications services” mean the telecommunications services as prescribed in subparagraph 6 of Article 2 of the Telecommunications Business Act, and the provision of information or the intermediation of information services utilizing the telecommunications services;

3. “Information and communications service provider” means the operator of telecommunications as prescribed in subparagraph 8 of Article 2 of the Telecommunications Business Act and other person who provides information or intermediate information services for profit utilizing the services rendered by the telecommunications service providers;

4. “Users” mean the persons who utilize the information and communications services rendered by the information and communications service provider;

5. “Electronic message” means the standardized data in the form of document in which information is electronically compiled, sent or received, or stored by equipment, including computers, etc., that are capable of doing information processing;

6. “Personal information” means the information pertaining to any living person, which contains the code, letter, voice, sound and image, etc. that make it possible to identify such individual by his/her name and resident registration number, etc. (including the information that does not, on its own, permit direct identification of a specific individual, but that does identify specific individual when it is easily combined with other information.);

7. “Incidents” mean accidents caused by such attack on the information and communications networks or related information systems as hacking, computer viruses, logical bomb, mail bomb, denial of service, high-powered electromagnetic wave, etc.;

8. Deleted (Jun. 22, 2015);

9. “Bulletin boards” mean the computer programs or technological devices, regardless of their names, to which the users may post the code, letter, voice, sound, image, video clips and other information for the purpose of making public by using the information and communications networks;

10. “Communications billing services” mean the information and communications services carrying out the business as defined in the following items:

a. The business which claims and collects the prices of goods or services sold or provided by others together with the charges for the telecommunications services provided by itself; or

b. The business which transmits or receives the transaction data electronically, or conducts the settlement of charges as a proxy or intermediary so that the prices of the goods or services sold or provided by others may be claimed and collected together with the telecommunications service charges stated in Item a.

11. “Communications billing service provider” means the operator who provides the communications billing services subject to the registration pursuant to Article 53;

12. “Communications billing service users” mean the persons who purchase and use the goods or services by means of the communications billing services provided by the communications billing service provider; and

13. “Electronic transmission media” mean the media by which code, letter, voice, sound, image, video clips and other information are transmitted to the receiver in such an electronic form as electronic messages, etc. via the information and communications networks. (Amended May 28, 2014)

(2) The definitions stated herein, except otherwise provided for in paragraph (1), shall be subject to the National Informatization Framework Act.

Article 3 (Duties of Information and Communications Service Provider and Users)

(1) Any information and communications service provider shall protect the personal information of users, and contribute to the protection of the rights and interests of such users and to the enhancement of its information utilization capability by rendering the information and communications services in a safe and sound manner.

(2) Every user shall endeavor to help a sound information society take hold.

(3) The government may assist the organizations of information and communications service providers and the organizations of users in carrying out their activities designed to protect the personal information and the youth in the information and communications networks.

Article 4 (Policy for Promotion of Information and Communications Network Utilization and Data Protection, etc.)

(1) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall formulate a policy to lay the foundation for building an information society through the promotion of utilization and the secure management and operation of information and communications networks, and the protection of personal information of users (hereinafter referred to as the “promotion of the utilization of information and communications networks and data protection, etc.”).

(2) The policy referred to in paragraph (1) shall contain the matters stated in the following subparagraphs:

1. Development and distribution of technologies related to the information and communications networks;

2. Standardization of the information and communications networks;

3. Activation of utilization of the information and communications networks such as the development of information contents and applied services of the information and communications networks subject to Article 11;

4. Facilitation of joint utilization of information via information and communications networks;

5. Activation of utilization of the Internet;

6. Protection of personal information collected, processed, stored and utilized via information and communications networks, and development and distribution of related technologies;

7. Protection of the youth in the information and communications networks;

8. Enhancement of safety and reliability of the information and communications networks; and

9. Other matters necessary to promote the utilization of the information and communications networks and data protection, etc.                                                         (3) In formulating the policy referred to in paragraph (1), the Minister of Science, ICT and Future Planning or the Korea Communications Commission shall endeavor to coordinate such policy with the basic plan for promoting informatization as prescribed in Article 6 of the National Informatization Framework Act.

Article 5 (Relation with Other Acts)

The promotion of utilization of information and communications networks and data protection, etc. shall be governed by this Act except specially provided for in other acts; provided, however, that, in case this Act and the Electronic Financial Transactions Act compete to apply with respect to the communications billing services stated in Chapter VII, this Act shall prevail.

CHAPTER Ⅱ.- PROMOTION OF INFORMATION AND COMMUNICATIONS NETWORK UTILIZATION

Articles 6 – 17 Omitted1)

CHAPTER Ⅲ Deleted

Articles 18 – 21 Deleted (Jun. 22, 2015)

CHAPTER Ⅳ PROTECTION OF PERSONAL INFORMATION

Section 1. Collection of Personal Information

Article 22 (Consent to the Collection and Utilization of Personal Information, etc.)

(1) Any information and communications service provider shall, when it intends to gather user’s personal information, notify the user of the whole matters stated in the following subparagraphs, and obtain his/her consent thereof. The same shall apply to any change of the following subparagraphs:

1. The purpose of collection and utilization of personal information;

2. The items of personal information collected hereunder; and

3. The period of retention and utilization of personal information.

(2) The information and communications service provider may collect and utilize the user’s personal information without consent subject to paragraph (1) in case any of the following subparagraphs applies:

1. Where, as for the personal information, which is necessary to perform the contract for the provision of information and communications services, it is evidently difficult to obtain ordinary consent on account of economical and technological reasons;

2. Where it is necessary to calculate the fees for the provision of information and communications services; or

3. Where special provisions exist in this Act or other acts.

Article 22-2 (Consent to the Authorized Access)

(1) The information and communications service provider shall notify the user of the following subparagraphs so that he/she may understand them explicitly, and obtain his/her consent thereof when the information and communications service provider needs the authorized access to the data stored in the mobile communication device of the user and the functions of such device (hereinafter referred to as the “authorized access”) for its service for the user:

1. In case where the authorized access is inevitable for the relevant service

a. The items of data and functions in need of the authorized access; and

b. The reason why the authorized access is necessary.

2. In case where the authorized access is not inevitable for the relevant service

a. The items of data and functions in need of the authorized access;

b. The reason why the authorized access is necessary; and

c. The fact that user may abstain from consent to the authorized consent.

(2) The information and communications service provider shall not refuse the relevant services on the grounds that the user does not consent to the authorized access which is not necessarily required for the relevant service.

(3) The maker of basic operating systems of mobile communication devices (that means the infrastructure environment to run softwares of such devices) and the manufacturers of such devices and the supplier of softwares of such devices shall take such measures as consent to, and withdrawal from, the authorized access which are necessary for the protection of user’s data when the information and communications service provider intends to access the data stored in the mobile communication devices and the functions of such devices.

(4) The scope of the authorized access subject to paragraph (1), method of consent, necessary measures for the protection of user’s data and other necessary matters shall be prescribed by the Presidential Decree.

(Article Inserted Mar. 22, 2016)

Article 23 (Restrictions on Collecting Personal Information, etc.)

(1) No information and communications service provider shall collect the personal information, including ideology, belief, family and relative relations, academic record, medical record and other social career, etc., which is likely to excessively infringe upon the right, interest and privacy of the relevant user; provided, however, that the same shall not apply to the necessary mínimum extent where the consent of the user is obtained pursuant to Article 22(1) or the subject of collecting personal information is specified in other acts.

(Amended May 28, 2014)

(2) Any information and communications service provider shall, when it collects the personal information of users, collect only the minimum personal information to the extent necessary to provide the information and communications services. (Amended May 28, 2014)

(3) The information and communications service provider shall not refuse the relevant services on the grounds that the user does not provide any other personal information than the necessary minimum personal information. In this case, the necessary minimum personal information shall mean the inevitable information necessary to perform the fundamental function of the relevant service. (Inserted May 28, 2014)

Article 23-2 (Restriction of Use of Resident Registration Numbers)

(1) The information and communications service provider shall not collect and use the resident registration numbers of users except otherwise applicable to any of the following subparagraphs:

1. Where it has been designated as an identification agency pursuant to Article 23-3;

2. Where the collection and use of resident registration numbers of users are permitted by statutes; or

3. Where the information and communications service provider regards it as inevitable to collect and use the resident registration numbers of users for the conduct of business, as notified by the Korea Communications Commission.

(2) Although the collection and use of resident registration numbers are permitted pursuant to subparagraphs 2 or 3 of paragraph (1), alternative means to identify the user other than his/her resident registration number (hereinafter referred to as the “alternative means”) shall be provided to the users.

(Article Amended Feb. 17, 2012)

Article 23-3 (Designation, etc. of Identification Agency)

(1) The Korea Communications Commission may, upon assessing the following matters, designate the person, who is determined capable of safe and trustful conduct of developing, providing and managing the alternative means (hereinafter referred to as the “identification operations“) as the identification agency:

1. Physical, technical and managerial measures and planning to ensure the safe and secure identification operations;

2. Technological and financial capability to conduct the identification operations; and

3. Appropriateness of facilities to conduct the identification operations.

(2) When the identification agency wants to have recess of the whole or part of identification operations, it shall notify the recess plan and period to users 30 days prior to the start day and report it to the Korea Communications Commission. In this case, the recess period shall not exceed six months.

(3) When the identification agency wants to repeal its identification operations, it shall notify the repeal plan to users 60 days in advance, and report it to the Korea Communications Commission.

(4) Necessary matters for the detailed assessment criteria pursuant to paragraphs (1) through (3), designation procedure and the recess, repeal, etc. Of identification operations shall be prescribed by the Presidential Decree.

(Article Inserted Apr. 5, 2011)

Article 23-4 (Suspension of Identification Operations and Withdrawal of Designation)

(1) When any of the following subparagraphs is applicable to the identification agency, the Korea Communications Commission may order the suspension of the whole or part of identification operations for a period of not more than six months or withdraw the designation of identification agency; provided, however, that the withdrawal of designation shall be mandatory in case of subparagraph 1or 2:

1. Where it has been designated as an identification agency by fraud or other unjust means;

2. Where it has failed to stop its operations in violation of the order to suspend the identification operations;

3. Where it has failed to start the identification operations within six months from the designation day, or has recess of the identification operations continuously for more than six months; or

4. Where it does not satisfy the criteria pursuant to Article 23-3(4).

(2) The criteria for administrative disposition pursuant to paragraph (1), its procedure and other necessary matters shall be prescribed by the Presidential Decree.

(Article Inserted Apr. 5, 2011)

Article 24 (Restrictions on Utilizing Personal Information)

No information and communications service provider shall utilize the personal information collected pursuant to Article 22 and the proviso of Article 23(1) for other purpose than the purpose consented by the relevant user or referred to in each subparagraph of Article 22(2).

Article 24-2 (Consent to the Provision of Personal Information, etc.)

(1) Any information and communications service provider shall, when it intends to provide user’s personal information to a third party, notify the user of the whole matters stated in the following subparagraphs except the cases falling under subparagraphs 2 and 3 of Article 22(2), and obtain his/her consent thereof. The same shall apply to any change of the following subparagraphs:

1. The receiver of personal information;

2. The purpose of utilizing personal information of such receiver;

3. The items of personal information provided hereunder; and

4. The period of retention and utilization of personal information by the receiver.

(2) The receiver of the personal information of users provided by the information and communications service provider pursuant to paragraph (1) shall not provide such personal information to a third party, nor utilize such personal information for other use than the purpose of being provided except the cases specified in other acts.

(3) The information and communications service provider, etc. as stated in Article 25(1) shall, upon obtaining the consent to the provision pursuant to paragraph (1) and the consent to entrusting handling of personal information pursuant to Article 25(1), separate such consent from the consent to the collection and use of personal information pursuant to Article 22, and shall not refuse to provide its service on ground that the user would not give consent to it. (Amended Mar. 22, 2016)

Article 25 (Entrusting Processing of Personal Information)

(1) The information and communications service provider and the receiver of the personal information of users provided by such provider pursuant to Article 24-2(1) (hereinafter referred to as the “information and communications service provider, etc.”) shall, if they entrust the work (hereinafter collectively referred to as “entrusting processing” of personal information) of collecting, creating, connecting, interlocking, recording, retaining, processing, editing, retrieving, printing out, modifying, restoring, utilizing, providing, disclosing, destroying and similarly doing (hereinafter collectively referred to as “processing“) the personal information of users to a third party, notify the user of the whole matters stated in the following subparagraphs, and obtain his/her consent thereof. The same shall apply to any change of the following subparagraphs: (Amended Mar. 22, 2016)

1. The person entrusted processing of personal information (hereinafter referred to as the “trustee“); and

2. Particulars of entrusted work of processing of personal information.

(2) The information and communications service provider, etc. may skip the notice and consent procedure as prescribed in paragraph (1) in case the whole matters of each subparagraph of paragraph (1) are made public pursuant to Article 27-2(1) or notified to users in such a manner like sending e-mails as stated in the Presidential Decree, which is necessary to perform the contract for the provision of information and communications services and to augment the users’ convenience, etc. The same shall apply to any change of the subparagraphs of paragraph (1). (Amended May 28, 2014; Mar. 22, 2016)

(3) The information and communications service provider, etc. shall, when it intends to entrust processing of personal information, define the purpose in advance for which the trustee shall process the personal information of users.

The trustee shall not process the personal information of users beyond such purpose. (Amended Mar. 22, 2016)

(4) The information and communications service provider, etc. shall manage, supervise and educate the trustee lest it should violate the provisions in this Chapter. (Amended Mar. 22, 2016)

(5) The trustee, who caused damage to the users regarding the work processing entrusted hereunder in violation of the provisions in this Chapter, shall be deemed as an employee of the information and communications service provider, etc. only with respect to compensation for such damage. (Amended Mar. 22, 2016)

(6) What the information and communications service provider, etc. Has entrusted processing of personal information to a trustee shall be in writing. (Inserted Mar. 22, 2016)

(7) The trustee may re-entrust the work entrusted pursuant to paragraph (1) only when he/she has obtained the consent of the information and communications service provider, etc. who has entrusted processing of personal information. (Inserted Mar. 22, 2016)(Amended Mar. 22, 2016)

Article 26 (Transfer of Personal Information following the Business Transfer, etc.)

(1) In the event that the information and communications service provider, etc. transfers the personal information of users to others owing to the transfer of business in whole or in part, or merger, etc., it shall notify the users of the whole matters prescribed in the following subparagraphs in such a manner like sending e-mails, posting at the Website and so forth as stated in the Presidential Decree:

1. The fact that the personal information is to be transferred;

2. The name (referring to the company name in case of a juridical person; hereafter the same shall apply in this Article), address, telephone number and other contact points of a person who has received the personal information (hereinafter referred to as the “business transferee, etc.”);

3. The method and procedure to withdraw the consent in case the user would not want the transfer of personal information.

(2) The business transferee, etc. shall, without delay upon the transfer of personal information, notify the users of such fact and the name, address, telephone number and other contact points in such a manner like posting at the Website, sending e-mails and so forth as stated in the Presidential Decree.

(Amended May 28, 2014)

(3) The business transferee, etc. may utilize or provide the personal information of users within the scope of the initial purpose for which the information and communications service provider, etc. is allowed to utilize or provide such personal information; provided, however, that the same shall not apply where the users have consented specifically.

Article 26-2 (Method to Obtain Consent)

The method how to obtain the consent pursuant to Article 22(1), the proviso of Article 23(1), Article24-2(1) and (2), Article 25(1), the proviso of Article 26(3) or Article 63(2) (hereinafter collectively referred to as the “consent to the collection, utilization, provision, etc. of personal information”) shall be stated by the Presidential Decree in view of the media for collecting personal information, the nature of business operations, the number of users, and so forth.

Section 2. The Management and Destruction of Personal Information

Article 27 (Designation of Person in Charge of Data Protection)

(1) The information and communications service provider, etc. shall designate the person in charge of data protection to protect the personal information of users and deal with complaints of users related with the personal information; provided, however, that the same may not apply to the information and communications service provider, etc. who satisfies the number of employees and users, and other criteria specified by the Presidential Decree. (Amended Mar. 22, 2016)

(2) In case the information and communications service provider, etc. Subject to the proviso of paragraph (1) do not designate the person in charge of data protection, its owner or representative shall become the person in charge of data protection. (Amended Mar. 22, 2016)

(3) Qualification requirements for the person in charge of data protection and other matters necessary to designate the person shall be prescribed by the Presidential Decree. (Amended Mar. 22, 2016)

(4) When the person in charge of data protection finds out any fact in violation of this Act and other relevant laws and regulations, he/she shall immediately take measures to correct such violations, and, if necessary, report such measures to the business owner or representative of the information and communications service provider, etc.; provided, however, that, if the business owner or representative shall become the person in charge of data protection, the provision regarding report of corrective measures shall not apply. (Amended Mar. 22, 2016)

Article 27-2 (Disclosure of Personal Information Policy Statement)

(1) In case of processing the personal information of users, the information and communications service provider, etc. shall establish and disclose the personal information policy statement in such a manner as stated in the Presidential Decree so that users may identify the policy with ease at any time.

(Amended Mar. 22, 2016)

(2) The personal information policy statement subject to paragraph (1) shall contain each and all following subparagraphs: (Amended Feb. 17, 2012; Mar. 22, 2016)

1. The purpose of collection and utilization of the personal information, particulars of personal information collected hereunder and the method of collection thereof;

2. The name (referring to the company name in case of a juridical person) of a person who has received the personal information, the purpose of utilization, and particulars, of the personal information in case the personal information is provided to a third party;

3. The period of retention and utilization of personal information, the procedure and method of destruction of personal information (including the ground of preservation and the particulars of personal information to be preserved in case of preserving such information subject to the proviso except each subparagraph of Article 29)

4. The content of business for which processing of personal information is entrusted and the trustee (including the processing policy statement, if applicable);

5. The rights of users and legal representatives, and how to excise the rights;

6. The installation and operation of the device collecting automatically the personal information like the Internet logon files, etc. and how to deny such device;

7. The name or a person in charge of data protection, or the department to protect the personal information of users and deal with complaints of users related with the personal information, and the contact points like telephone numbers.

(3) In case of change of the personal information policy statement pursuant to paragraph (1), the information and communications service provider, etc. Shall make public without delay the reason and changes thereof in such a manner as stated in the Presidential Decree so that users may identify the change of policy statement with ease at any time. (Amended Mar. 22, 2016)

Article 27-3 (Notification and Report of Personal Information Leakage, etc.)

(1) Upon knowing the loss, theft and leakage of personal information (hereinafter referred to as “leakage, etc.”), the information and communications service provider, etc. shall, without delay, inform each of the following subparagraphs of the relevant users, and report it to the Korea Communications Commission or the Korea Internet and Security Agency, and shall not delay, without justifiable reasons, such notification and report exceeding 24 hours from the time when it got to know the fact; provided, however, that it may take other measures, if there is such a justifiable reason as whereabouts of users are still unknown, as replaceable with the notification as prescribed by the Presidential Decree: (Amended May 28, 2014; Mar. 22, 2016)

1. Personal information items affected by leakage, etc.;

2. Time when leakage, etc. took place;

3. Measures that users may take;       

4. Countermeasures that the information and communications service provider, etc. may take; and                                                                                                                             

5. Department where users may place inquiries, etc. and other contact points.       

2) Upon receiving the report pursuant to paragraph (1), the Korea Internet and Security Agency shall, without delay, inform the fact of the Korea Communications Commission. (Inserted May 28, 2014)                                                                            

(3) The information and communications service provider, etc. shall explain the justifiable reasons pursuant to the main sentence and proviso of paragraph (1) to the Korea Communications Commission. (Inserted May 28, 2014)                                    

(4) The method, procedure, etc. of notification and report pursuant to paragraph (1) and other necessary matters shall be prescribed by the Presidential Decree. (Amended May 28, 2014) 

(5) The information and communications service provider, etc. shall prepare for the leakage, etc. of personal information, and explore ways to establish measures to minimize the damage to victims. (Amended May 28, 2014; Mar. 22, 2016)

Article 28 (Data Protection Measures)

(1) In case of processing the personal information of users, the information and communications service provider, etc. shall take such technological and managerial measures as mentioned in the following subparagraphs to prevent the loss, theft, leakage, forgery, alteration of, or damage to, the personal information and to ensure the safety of personal information by the standard as specified by the Presidential Decree. (Amended Mar. 22, 2016)

1. To establish and implement the in-house management plan to process the personal information more safely;

2. To install and operate the access control system like firewall to block illegal access to the personal information;

3. To take measures to prevent the forgery or falsification of logon files;

4. To take security measures using encryption technologies in order to store and transmit the personal information more safely;

5. To take such preventive measures as download and operation of the vaccination softwares to protect from computer viruses; and                                                               6. To take other protective measures necessary to secure the safety of the personal information.

(2) The information and communications service provider, etc. shall limit the persons to process the personal information of users to the minimum.

(Amended Mar. 22, 2016)

Article 28-2 (Prohibition of Leakage of Personal Information)

(1) Any person who is processing, or once processed, the personal information of users shall not damage, infringe upon or leak out the information acquired in the course of business. (Amended Mar. 22, 2016)

(2) No one shall be provided with the personal information for profit or unjust purposes while knowing such information has been leaked out.

Article 29 (Destruction of Personal Information)

(1) The information and communication service provider, etc. shall, without  delay, destroy the relevant personal information lest it should be restored or recovered in case any of the following cases applies; provided, however, that the same shall not apply where other acts require the preservation of such information: (Amended Feb. 17, 2012; May 28, 2014)

1. When the purpose of collecting or utilizing the personal information consented pursuant to Article 22(1), the proviso of Article 23(1) or Articles 24-2(1) and (2), or the relevant purpose as specified by any of the subparagraphs of Article 22(2) has been attained;

2. When the period of retention and utilization of personal information consented pursuant to Article 22(1), the proviso of Article 23(1) or Articles 24-2(1) and (2) has expired;

3. When the period of retention and utilization of personal information subject to Article 27-2(2) iii in case of collecting or utilizing the personal information without the consent of users pursuant to Article 22(2) has expired; or

4. When its business has been closed.

(2) The information and communication service provider, etc. shall take necessary measures, including the destruction of personal information and others as prescribed by the Presidential Decree, to protect the personal information of users who would not use the information and communications services for one year; provided, however, that it does not apply when the said period is otherwise fixed by other laws and regulations, or user’s request. (Inserted Feb. 17, 2012; Dec. 1, 2015)

(3) The information and communication service provider, etc. shall inform the users of the fact that their personal information will be destroyed, the expiry date, the particulars of the said personal information, etc. as prescribed by the Presidential Decree by means of email, etc. as prescribed by the Presidential Decree. (Inserted Dec. 1, 2015)

Section 3.- User’s Right

Article 30 (User’s Right, etc.)

(1) Every user may at any time withdraw his/her consent given to the information and communications service provider, etc. for the collection, utilization or provision of the personal information.

(2) Every user may request the access to, or provision of, any of the following items related with him/her, and if his/her personal information is found to be erroneous, he/she may request the correction thereof:

1. The personal information of users retained by the information and communications service provider, etc.;

2. The content of how the information and communications service provider, etc. has utilized, or provided to a third party, the personal information of users; or

3. The status at which the information and communications service provider, etc. has obtained consent for the collection, utilization or provision of the personal information.

(3) In case that a user withdraws his/her consent pursuant to paragraph (1), the information and communications service provider, etc. shall, without delay, take necessary measures, i.e., destroying his/her personal information collected lest it should be restored or recovered. (Amended May 28, 2014)

(4) The information and communications service provider, etc. shall, upon receiving a request for the access to, provision of, personal information pursuant to paragraph (2), take necessary measures without delay.

(5) The information and communications service provider, etc. shall, immediately upon receiving a request for the correction of erroneous personal information pursuant to paragraph (2), correct the erroneous information or take necessary measures, i.e., explaining why it failed to correct such information, and shall not utilize or provide the relevant personal information until the correction thereof; provided, however, that the same shall not apply where other acts require the provision of such information.

(6) The information and communications service provider, etc. shall make the withdrawal of consent pursuant to paragraph (1), or how to request access to, provision of, or correction of errors in, the personal information much easier than the method how to collect the personal information.

(7) The provisions of paragraphs (1) through (6) shall apply mutatis mutandis to the business transferee, etc. In this case, the information and communications service provider, etc. shall be deemed the business transferee, etc.

Article 30-2 (Notification of Personal Information Use Statement)

(1) The information and communications service provider, etc., which satisfies the criteria as prescribed by the Presidential Decree, shall notify periodically the use statement (including the provision pursuant to Article 24-2 and entrusting processing of personal information pursuant to Article 25) of personal information collected pursuant to Articles 22 and 23(1) proviso; provided, however, that the same shall not apply where such personal information as contact points to be notified was not collected. (Amended Mar. 22, 2016)

(2) The type of information to be notified to the users pursuant to paragraph (1), notification interval and method and other matters necessary to notify the use statement shall be prescribed by the Presidential Decree.

Article 31 (Legal Representative’s Right)

(1) The information and communications service provider, etc. shall, when it intends to obtain consent for the collection, utilization or provision of the personal information from a minor of age below 14, obtain the consent therefor from his/her legal representative. In this case, the information and communications service provider may demand from the child the necessary minimum information, including the name, etc. of the legal representative, so as to obtain the consent.

(2) The legal representative may exercise user’s right as for the personal information of the relevant child pursuant to Articles 30 (1) and (2).

(3) The provisions of Article 30 (3) through (5) shall apply mutatis mutandis to the withdrawal of consent, and the request for the access to, or the correction of, the personal information by the legal representative pursuant to paragraph (2).

Article 32 (Damages)

If a user suffers any damage caused by the violation of the provisions in this Chapter on part of the information and communications service provider, etc., such user may claim for the damages against the information and communications service provider, etc. In this case, the information and communications service provider, etc. may not be released from the damages if it fails to prove non-existence of its intention or negligence.

Article 32-2 (Claim for Statutory Damage)

(1) The user may, when all of the following subparagraphs are satisfied, claim for compensation of considerable amount up to three million won in place of damages pursuant to Article 32 against the information and communications service provider, etc. within the period as prescribed by the Presidential Decree.

In this case, the accused information and communications service provider, etc. cannot evade the responsibility unless it proves non-existence of intention or negligence: (Amended Mar. 22, 2016)

1. Where the information and communications service provider, etc. Violates provisions in this Chapter intentionally or negligently; and

2. Where the personal information was lost, stolen, leaked, forged, altered or damaged.

(2) The court may, upon the claim pursuant to paragraph (1), acknowledge a reasonable amount of damages within the scope of paragraph (1) based upon the examination of evidence and review of all the arguments during the proceedings.

(3) The user who has filed a lawsuit for damages pursuant to Article 32 may change it to the claim for damages subject to paragraph (1) until the closing of oral proceedings at the trial court. (Inserted Mar. 22, 2016)

Article 32-3 (Deletion and Blocking of Exposed Personal Information)                       

(1) The information and communications service provider, etc. shall exert itself lest users’ personal information including resident registration numbers, bank account numbers, credit card numbers, etc. should be exposed to public via information and communications network. (Amended Mar. 22, 2016)                                                      

(2) Upon the request of the Korea Communications Commission or the Korea Internet and Security Agency, the information and communications service provider, etc. shall take necessary measures including deletion, blocking, etc. Of personal information exposed under paragraph (1). (Inserted Mar. 22, 2016)

Section 4.- Deleted

Articles 33 through 40 Deleted 2)

CHAPTER Ⅴ.- PROTECTION OF THE YOUTH IN INFORMATION AND COMMUNICATIONS NETWORKS

Articles 41 through 44-10 Omitted

CHAPTER Ⅵ.- SECURING STABILITY OF INFORMATION AND COMMUNICATIONS NETWORKS, ETC.

Articles 45 through 46-2 Omitted

Article 46-3 Deleted

Article 47 (Certification of Data Protection Management System)

(1) The Minister of Science, ICT and Future Planning may certify for the purpose of securing the stability and reliability of the communications network whether the person who has established and operated a consolidated management system including the managerial, technical and physical safeguards (hereinafter referred to as the “Data Protection Management System” or DPMS) could satisfy the criteria subject to paragraph (4). (Amended Feb. 17, 2012; Mar. 23, 2013; Dec. 1, 2015)

(2) Any person who falls on any of the following paragraphs as a telecommunications business operator subject to Article 2 viii of the Telecommunications Business Act and an information provider/intermediary taking advantage of the telecommunications services of the said telecommunications business operator shall obtain the certification pursuant to paragraph (1). (Inserted Feb. 17, 2012; Dec. 1, 2015)

1. Any person who has obtained the permission subject to Article 6(1) of the Telecommunications Business Act and provides information and communications service as prescribed by the Presidential Decree;

2. An integrated information and communications facility operator; or

3. Any person with the annual sales, revenue, etc. of more than 150 billion won or the number of users daily average of one million people for the previous three months, who satisfies the criteria as prescribed by the Presidential Decree.

(3) The Minister of Science, ICT and Future Planning may omit parts of certification examination subject to paragraph (1) in case that the person in need of certification has obtained the international standard certification of data protection or taken other measures for data protection as prescribed by the Ordinance of the Ministry of Science, ICT and Future Planning. In this case, the scope of omission in detail of the said certification examination shall be decided and notified by the Minister of Science, ICT and Future Planning. (Inserted Dec. 1, 2015)

(4) The Minister of Science, ICT and Future Planning may prescribe and notify the certification criteria including the managerial, technical and physical safeguards and other necessary matters for the DPMS certification subject to paragraph (1). (Amended Feb. 17, 2012; Mar. 23, 2013; Dec. 1, 2015)

(5) The duration of the DPMS certification subject to paragraph (1) shall be three years; provided, however, that the person who has obtained the data protection degree pursuant to Article 47-5(1) is deemed to have been certified subject to paragraph (1) for the duration of such data protection degree.

(Inserted Feb. 17, 2012; Dec. 1, 2015)

(6) The Minister of Science, ICT and Future Planning may delegate the certification matters subject to paragraphs (1) and (2) of the following subparagraphs to the Korea Information and Security Agency or other institution designated by the Minister of Science, ICT and Future Planning (hereinafter referred to as the “DPMS Certification Agency”): (Inserted Feb. 17, 2012; Mar. 23, 2013; Dec. 1, 2015)

1. The certification examination to clarify the DPMS of a certification applicant being in conformity with certification criteria subject to paragraph (4) (hereinafter referred to as the “DPMS Certification Examination”);

2. Deliberation of the DPMS Certification Examination results;

3. Issuance and management of the DPMS Certificate;                                                   

4. Ex post facto management of the DPMS Certification;                                               

5. Fostering and qualification management of the DPMS Certification examiners; and 

6. Other matters in relation to the DPMS Certification.                                                 

(7) The Minister of Science, ICT and Future Planning may designate the institution to conduct the said certification examination (hereinafter referred to as the “DPMS Examination Agency”) if necessary to conduct the said certification task efficiently. (Inserted Dec. 1, 2015)                                                                                                    

(8) The Korea Information and Security Agency, the DPMS Certification Agency and the DPMS Examination Agency shall conduct ex post facto management at least once a year to enhance the effectiveness of the DPMS, and notify its result to the Minister of Science, ICT and Future Planning. (Inserted Feb. 17, 2012; Mar. 23, 2013; Dec. 1, 2015)                                                                                                                               

(9) The person who has obtained the DPMS certification pursuant to paragraphs (1) and (2) may represent or promote the DPMS Certification as prescribed by the Presidential Decree. (Amended Feb. 17, 2012; Dec. 1, 2015)                                                          

(10) The Minister of Science, ICT and Future Planning may withdraw the PIMS certification when finding out any reason which falls on any of the following subparagraph; provided, however, that the Minister shall cancel the said certification in case of subparagraph 1: (Inserted Feb. 17, 2012; Mar. 23, 2013; Dec. 1, 2015)            

1. Where the DPMS Certification has been obtained by fraud or other unjust means;    

2. Where the certification criteria subject to paragraph (4) fail to be satified; Or            

3. Where the ex post facto management subject paragraph (8) has been denied or obstructed.                                                                                                                     

(11) The method, procedure, scope and tariffs of certification subject to paragraphs (1) and (2), the method and procedure of ex post facto management subject to paragraph (8), the method and procedure of withdrawal of certification subject to paragraph (10), other necessary matters shall be prescribed by the Presidential Decree. (Amended Feb. 17, 2012; Dec. 1, 2015)                                                                                                

(12) Necessary matters for the designation criteria, procedure, duration, etc. Of the DPMS Certification Agency and the DPMS Examination Agency shall be prescribed by the Presidential Decree. (Amended Feb. 17, 2012; Dec. 1, 2015)                            (Article Amended Jun. 13, 2008.)

Article 47-2 (Withdrawal, etc. of Designation of DPMS Certification Agency and DPMS Examination Agency)

(1) The Minister of Science, ICT and Future Planning may withdrawal the designation of the DPMS Certification Agency and the DPMS Examination Agency, or suspend a whole or part of the DPMS operations for the period not exceeding one year when the juridical person or association designated as such pursuant to Article 47 falls on any of the following subparagraphs; provided, however, that the Minister shall withdraw the said designation in case of subparagraphs 1 and 2: (Inserted Feb. 17, 2012; Mar. 23, 2013; Dec. 1,2015)

1. Where the designation of the DPMS Certification Agency or DPMS Examination Agency has been obtained by fraud or other unjust means;

2. Where the certification or certification examination has been conducted  during the period of suspension of the said operation;

3. Where the certification or certification examination has not been conducted with justifiable reasons;

4. Where the certification or certification examination has been conducted in violation of Article 47(11); or

5. Where the designation criteria Article 47(12) fail to be satified.

(2) Necessary matters for the designation withdrawal and suspension of operation, etc. subject to paragraph (1) shall be prescribed by the Presidential Decree.

(Article Amended Jun. 13, 2008; Amended Dec. 1, 2015)

Article 47-3 (Certification of Personal Information Management System)

(1) The Korea Communications Commission may certify for the purpose of carrying out systemic and sustainable personal information protection activities in the communications network whether the person who has established and operated a consolidated management system including the managerial, technical and physical safeguards (hereinafter referred to as the “Personal Information Management System” or PIMS) could satisfy the criteria subject to paragraph (2).

(2) The Korea Communications Commission may prescribe and notify the certification criteria including the managerial, technical and physical safeguards and other necessary matters for the PIMS certification subject to paragraph (1).

(3) Articles 47(6) through (12) shall apply mutatis mutandis to the PIMS agencies, ex post facto management, etc. In this case, paragraphs (1) and (2) shall read paragraph (1). (Amended Dec. 1, 2015)

(4) Articles 47-2 shall apply mutatis mutandis to the designation withdrawal, etc. of the PIMS Certification Agency.

(Article Inserted Feb. 17, 2012)

(The previous Article 47-3 moved to Article 47-4 Feb. 17, 2012)

Article 47-4 (Data Protection of Users)

(1) The government may advise to the users to observe by establishing necessary standards for the data protection of users, and take necessary measures, i.e., checking the weak points and providing technological assistance, so as to prevent the incidents and block the dissemination thereof.

(2) through (4) Omitted

Article 47-5 (Grant of Data Protection Management Degree)

(1) The person who has obtained the DPMS certification pursuant to Article 47 may be granted the data protection management degree by the Minister of Science, ICT and Future Planning to enhance the consolidated corporate data protection management level and secure the reliability of data protection services from users. (Amended Mar. 23, 2013)

(2) The Minister of Science, ICT and Future Planning may delegate the grant of degree matters subject to paragraph (1) to the Korea Information and Security Agency. (Amended Mar. 23, 2013)

(3) The person who has been granted the data protection management degree pursuant to paragraph (1) may represent or promote the said data protection management degree.

(4) The Minister of Science, ICT and Future Planning may withdraw the degree granted as such when finding out any reason which falls on any of the following subparagraph; provided, however, that the Minister shall cancel the said degree in case of subparagraph 1: (Amended Mar. 23, 2013; Dec. 1, 2015)

1. Where the data protection management degree has been granted by fraud or other unjust means; or

2. Where the degree criteria subject to paragraph (5) fail to be satisfied.

(5) The criteria for grant of degree, the method, procedure and tariffs of grant of degree subject to paragraph (1), the duration of degree, the method and procedure of withdrawal of degree subject to paragraph (4), and other necessary matters shall be prescribed by the Presidential Decree.

(Article Newly Inserted Feb. 17, 2012)

Articles 48 through 48-4 Omitted

Article 49 (Protection of Secrets, etc.)

No one is allowed to damage the information of other persons or infringe upon, steal or leak the secrets of other persons, which are processed, stored or transmitted via the information and communications networks.

Article 49-2 (Prohibition of Collection of Personal Information by Means of Deceptive Activities)

(1) No one shall collect, or entice other person to provide with, the personal information of other person by means of deceptive activities in the information and communications networks.

(2) Any information and communications service provider shall report to the Minister of Science, ICT and Future Planning, the Korea Communications Commission or the Korea Information and Security Agency immediately upon finding out the violation of paragraph (1). (Amended Apr. 22, 2009; Mar. 22, 2016)

(3) The Minister of Science, ICT and Future Planning, the Korea Communications Commission or the Korea Information and Security Agency shall, upon receiving the report pursuant to paragraph (2) or finding out the violation of paragraph (1), take necessary measures prescribed in the following subparagraphs: (Amended Apr. 22, 2009; Mar. 22, 2016)

1. Collecting and disseminating the violation of paragraph (1);

2. Forecasting or warning of similar violations; and

3. Emergency measures to prevent present and further violations including request for blocking the access paths or request for notification of users’information exposed to the violations under paragraph (1) to the information and communications service provider.

(4) The Minister of Science, ICT and Future Planning or the Korea Communications Commission may order the information and communications service provider, prior to taking measures subject to paragraph (3) iii, to take necessary measures including sharing information in relation to deceptive activities via information and communications networks among service providers.

(Inserted Mar. 22, 2016)

Article 50 (Restrictions on Transmitting Advertisement Information Made for Profit) (1) Anybody, who intends to transmit via electronic transmission media any advertisement information made for profit, shall obtain the prior explicit consent of the relevant addressee; provided, however, that the same shall not apply to any of the following subparagraphs: (Amended Mar. 22, 2016)

1. Where somebody, who collects directly from the addressees the contact points through transactions of goods and services, intends to transmit the advertisement information made for profit within the period as prescribed by the Presidential Decree regarding the same kind of goods, etc. processed by himself and traded with the receiver; and

2. Where a call center operator subject to the Act Regarding Visiting Sales, etc. solicits over the telephone with his/her voice after informing the addressee of the sources of personal information.

(2) Notwithstanding paragraph (1), anybody, who intends to transmit via electronic transmission media any advertisement information made for profit, shall not transmit advertisement information made for profit if the addressee expresses refusal of such information or withdraw prior consent.

(3) Anybody, who intends to transmit any advertisement information made for profit via electronic transmission media to the addressee during the hours from 9:00 p.m. to 8:00 a.m. the next day, shall obtain the separate prior consent of the relevant addressee in spite of paragraph (1); provided, however, that the same shall not apply to the media as prescribed by the Presidential Decree.

(4) Anybody, who transmits advertisement information made for profit via electronic transmission media, shall indicate concretely the matters stated in the following subparagraphs in such a manner as prescribed by the Presidential Decree:                      1. The name and contact points of the sender; and

2. Other matters regarding the measure and methods to easily indicate the refusal of, or withdrawal of consent to, such information.

(5) Anybody, who transmits advertisement information made for profit via electronic transmission media, shall not take any measure specified in the following subparagraphs:

1. Measures to avoid and hinder the refusal or withdrawal of consent of the addressee of advertisement information;

2. Measures to automatically generate the contact points of addressee i.e., by combining numbers, codes or letters into new telephone numbers or e-mail addresses;

3. Measures to automatically register telephone numbers or e-mail addresses in order to transmit advertisement information made for profit;

4. Measures to conceal the identity of the sender of advertisement information or the source of advertisement transmission; or

5. Various measures to induce reply by deceiving the addressee for the purpose to transmit advertisement information made for profit.

(6) Anybody, who transmits advertisement information for profit via electronic transmission media, shall take necessary measures in such a manner as prescribed by the Presidential Decree lest the addressee should be charged the monetary cost incurred when telephoning a message to refuse, or withdraw the consent of, such information.

(7) Anybody, who transmits advertisement information for profit via electronic transmission media, shall, when the addressee expresses prior consent pursuant to paragraph (1), or refusal to receive or withdrawal of consent to receive pursuant to paragraph (2), inform to the addressee the result after processing prior consent, refusal to receive or withdrawal of consent as prescribed by the Presidential Decree.

(8) Anybody, who has obtained the consent pursuant to paragraphs (1) or (3), shall confirm periodically whether the addressee really consented to receive such advertisement information as prescribed by the Presidential Decree.

(Article Amended May 28, 2014)

Article 50-2 Deleted (May 28, 2014)

Article 50-3 (Entrusting Transmission of Advertisement Information Made for Profit)

(1) Anybody, who entrusts other person with a task to transmit advertisement information made for profit, shall control and supervise him/her lest the trustee should violate Article 50. (Amended May 28, 2014)

(2) Anybody, who is entrusted by a person with a task to transmit advertisement information made for profit pursuant to paragraph (1), shall be deemed an employee of such person in compensating the damage caused by violating the relevant acts related with such task.

Article 50-4 (Restrictions on Information Transmission Services, etc.)

(1) The information and communications service provider may take measures to refuse to provide the relevant services in any of the following subparagraphs:

1. Where obstacles occur or are expected to occur in providing services owing to transmitting or receiving advertisement information;                                                  

2. Where users would not want to receive advertisement information; or                        

3. Deleted (Amended May 28, 2014)                                                                                         

(2) The information and communications service provider, which intends to take measures to refuse pursuant to paragraph (1) or (4), shall include such provisions as how to refuse the relevant services in an end-user agreement with the user of such services. (Amended May 28, 2014)                                                                                  

(3) The information and communications service provider, which intends to take measures to refuse pursuant to paragraph (1) or

Article 50-5 (Installation of Advertisement Programs for Profit, etc.)

The information and communications service provider, which intends to show up advertisement information made for profit or install the programs to collect personal information in the users’ computer or other data processing devices as prescribed by the Presidential Decree, shall obtain the consent of users. In this case, it shall notify the usage of such programs and the method how to delete.

Article 50-6 (Distribution of Softwares to Block the Transmission of Advertisement Programs Made for Profit)

(1) The Korea Communications Commission may develop and distribute softwares and computer programs by which the addressee can conveniently block or report the advertisement information made for profit transmitted in violation of Article 50.

(2) The Korea Communications Commission may provide necessary support to the relevant public institutions, corporations, associations, etc. in order to promote the development and distribution of softwares and computer programs to block and report pursuant to paragraph (1).

(3) The Korea Communications Commission may advise the information and communications service provider to take such necessary measures as development of technologies, education, public relations, etc. for the protection of addressees when the services of the information and communications service provider are used to transmit the advertisement information made for profit in violation of Article 50.

(4) Necessary matters for the development and distribution pursuant to paragraph (1) and the support pursuant to paragraph (2) shall be prescribed by the Presidential Decree.

Article 50-7 (Restrictions on Posting Advertisement Information Made for Profit)

(1) Anybody, who intends to post any advertisement information made for profit on the Internet homepage, shall obtain prior consent of the webmaster or homepage manager; provided, however, that the same does not apply to a bulletin board which anybody has an easy access and may post messages without authorization.

(2) Notwithstanding paragraph (1), anybody, who intends to post any advertisement information made for profit on the Internet homepage, shall not post advertisement information made for profit if the webmaster or homepage manager expresses explicit refusal of posting such information or withdraw prior consent.

(3) A system operator or administrator of the Internet homepage may take such measures as deleting the advertisement information made for profit which is posted in violation of paragraph (1) or (2).

(ArticleAmended May 28, 2014)

Article 50-8 (Prohibition of Transmission of Advertisement Information for Illegal Act)

Nobody shall transmit advertisement information regarding goods or services prohibited by this Act or other acts via the information and communications networks.

Article 51 (Restrictions on Outflow of Material Information into Foreign Countries)

(1) The government may have each information and communications service provider or the relevant user of information and communications services take measures necessary to prevent material information regarding the domestic industry, economy, science and technology, etc. from being flowed out of Korea into foreign countries via the information and communications networks.

(2) The scope of material information referred to in paragraph (1) shall be as follows:

1. Security information related with the national security and major policy information; or

2. Information regarding state-of-the-art technologies or equipment developed domestically.

(3) The government may have each information and communications service provider processing the information referred to any of the subparagraphs of paragraph (2) take the following measures: (Amended Mar. 22, 2016)

1. Establishing systemic and technological devices to prevent improper utilization of the information and communications networks;

2. Taking systemic and technological measures to block the illegal destruction or manipulation of information; or

3. Taking measures to prevent the leakage of material information acquired in the course of processing information by the information and communications service provider.

Article 52 (Korea Information and Security Agency)

(1) The government shall establish the Korea Information and Security Agency (hereinafter referred to as “KISA“) to implement efficiently such policies as to enhance the information and communications networks (excluding the establishing, improving and managing such networks), as to promote the safe usage, and as to support the international cooperation and going abroad related with broadcasting and communications.

(2) KISA shall be a juridical person.

(3) KISA shall conduct the business referred to in the following subparagraphs: (Amended Mar. 23, 2013; Nov. 19, 2014; Jun. 22, 2015)                                                 

1. To survey and research into legal regimes, policies and systems for the utilization and protection of the information and communications networks, and the international cooperation and going abroad related with broadcasting and communications;              

2. To do research and analysis of statistics related with the utilization and protection of the information and communications networks;                                                              

3. To analyze negative effects of informatization and to research into countermeasures;

4. To conduct public relations, education and training for the utilization and protection of the information and communications networks;                                                           

5. To secure data protection in the information and communications networks, and to achieve technological development and standardization related with the Internet address resources;                                                                                                                          

6. To help establish the policy for the data protection industries, and to conduct related technological development and training of human resources;                                         

7. To implement and support the assessment, certification, etc. of data protection including the DPMS certification and the assessment and certification of data protection system;                                                                                                                                

8. To do research into effective measures for data protection, and to support the development and distribution of data protection technologies;                                        

9. To support the operation of the Dispute Mediation Committee and to opérate the Reporting Center for Personal Information Infringement;                                             

10. To do counseling and process claims regarding the transmission of advertisement information and the Internet advertisement;                                                                   

11. To deal with and analyze causes of the incidents infringing upon the information and communications networks, and to operate the incident response system;                

12. To manage the authentication of electronic signature pursuant to Article 25(1) of the Electronic Signature Act;                                                                                                

13. To support the efficient operation of the Internet and the promotion of utilization thereof;                                                                                                                            

14. To help protect the stored information of the Internet users;                                      

15. To support the service policy related with the Internet;                                           

16. To protect users in the Internet, and to help flow and disseminate sound information;

17. To conduct business regarding the Internet addresses under the Act on the Internet Resources;                                                                                                                       

18. To support operation of the Internet Address Dispute Mediation Committee pursuant to Article 16 of the Act on the Internet Resources;                                         

19. To support operation of the Mediation Committee pursuant to Article 25(7) of the Act on the Promotion of Data Protection Industry;                                                           

20. To assist the international cooperation, going abroad and overseas public relations related with broadcasting and communications;                                                            

21. Other activities incidental to the business of subparagraphs 1 through 20; and

22. Other tasks prescribed by this Act, and other acts and regulations to be conducted by KISA, or entrusted by the Minister of Science, ICT and Future Planning and the Minister of Interior, the Korea Communications Commission, or the head of other administrative agencies;                                                                                                  

(4) The government may make contributions to cover expenses necessary for the operation of KISA.

(5) The provisions regulating the incorporated foundation in the Civil Act shall apply mutatis mutandis to the matters not prescribed by this Act with respect to KISA.

(6) Other person than KISA shall not use the name of the Korea Information and Security Agency.

(7) Other matters necessary to operate, and conduct business of, KISA shall be prescribed by the Presidential Decree.

CHAPTER VII.- COMMUNICATIONS BILLING SERVICES

Articles 53 – 61 Omitted

CHAPTER VIII.- INTERNATIONAL COOPERATION

Article 62 (International Cooperation)

In performing the function stated in the following subparagraphs, the government shall cooperate with other states or international organizations:

1. Cross-border transfer of personal information and data protection;

2. Protection of the youth in the information and communications network;

3. Prevention of the incidents threatening the safety of information and communications network; and

4. Other activities to ensure safe and sound utilization of information and communications services.

Article 63 (Protection of Cross-Border Transfer of Personal Information)

(1) The information and communications service provider, etc. shall not enter into any international contract of which contents violate the provisions of this Act with respect to the personal information of users.

(2) The information and communications service provider, etc. shall obtain the consent of users when they intend to provide (including being subject to inquiry), entrust processing, store (hereinafter referred to as “transfer” in this Article) the personal information of such users to abroad; provided, however, that, if it is necessary to perform the contract for providing information and communications services and to enhance users convenience, etc., the provisions regarding the consent of users subject to entrusting processing and storing personal information abroad may not apply in case of disclosing under Article 27-2(1), or notifying to users by means as prescribed by Presidential Decree like email, all items of subparagraphs of paragraph (3). (Amended Mar. 22, 2016)

(3) The information and communications service provider, etc. shall, when they intend to obtain the consent pursuant to paragraph (2), notify the user in advance of the whole matters stated in the following subparagraphs:

1. The items of personal information to be transferred;

2. The state to which personal information will be transferred, the date and time of transfer and the method thereof;

3. The name (referring to the company name and the contact points of the officer in charge of data protection in case of a juridical person) of a person who will be provided with the personal information; and

4. The purpose of utilization, and the period of retention and utilization, of personal information on the part of a person who will be provided with the personal information.

(4) The information and communications service provider, etc. shall take the protective measures as prescribed by the Presidential Decree when they transfer the personal information to abroad with the consent pursuant to paragraph (2).

CHAPTER IX.- SUPPLEMENTARY PROVISIONS

Article 64 (Submission of Materials, etc.)

(1) The Minister of Science, ICT and Future Planning or the Korea Communications Commission may request the information and communications service provider, etc. (in this Article, including any person to whom Article 67 applies mutatis mutandis) to submit relevant goods, documents, etc. in case any of the following subparagraphs shall apply:

1. Where the violation of this Act is detected or knowingly suspected;

2. Where the violation of this Act is reported or any claim thereon is received; or

3. Where such other cases as prescribed by the Presidential Decree are necessary to protect the users.

(2) The Korea Communications Commission may request the information and communications service provider, etc. to have access to, or submit, data with respect to the name, address, resident registration number, period of utilization, etc. of the person who transmitted advertisement information made for profit in violation of this Act in order to take the measures stated in the following subparagraphs against such transmitter:                                                                                                                         1. Corrective measures pursuant to paragraph (4);

2. Imposition of fine for negligence pursuant to Article 76; and

3. Other measures amounting to the above-mentioned subparagraphs.

(3) When the information and communications service provider, etc. fails to submit materials pursuant to paragraphs (1) and (2), or it is deemed to have violated this Act, the Minister of Science, ICT and Future Planning or the Korea Communications Commission may have its officials enter the business place of the information and communications service provider, etc. and other concerned persons related with breach of the relevant laws to inspect its current business operations and examine ledger and books, or other documents, etc. (Amended Mar. 29, 2011; Mar. 23, 2013; Mar. 22, 2016)

(4) The Minister of Science, ICT and Future Planning or the Korea Communications Commission may order that the information and communications service provider, etc. in violation of this Act should take necessary corrective measures, and demand such information and communications service provider, etc., who has been ordered to do so, to make such fact public. In this case, such necessary matters as the method how to make it public, the criteria and procedure thereof, etc. shall be prescribed by the Presidential Decree.

(5) The Minister of Science, ICT and Future Planning or the Korea Communications Commission may, when it ordered necessary corrective measures pursuant to paragraph (4), make the fact public. In this case, such necessary matters as the method how to make it public, the criteria and procedure thereof, etc. shall be prescribed by the Presidential Decree.

(6) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall, when it requests the relevant information and communications service provider, etc. to submit or have access to data, etc. pursuant to paragraphs (2) and (3), notify in writing (including the electronic message) of the reason for request, legal grounds, time limit of submission thereof or the date and time to have access thereto, the content of data to be submitted or accessed in detail.

(7) In case of inspection pursuant to paragraphs (3), the inspection plan including the inspection date and time, reasons for inspection, particulars to be inspected shall be notified to the relevant information and communications service provider, etc. at least seven days before the scheduled inspection date; provided, however, that the same does not apply in case of emergency or when it deems such prior notification inappropriate to attain the inspection purpose because of probable destruction of evidences.

(8) The officials, who conduct the inspection pursuant to paragraph (3), shall carry certificates showing their authority, produce them to persons concerned, and deliver them the document containing officials’ names, inspection hours, purposes thereof, etc.

(9) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall, when it received, had access to, or inspected the data, etc. pursuant to paragraphs (1) and (3), notify in writing the relevant information and communications service provider, etc. of the inspection result (in case of making an order to take corrective measures subsequent to the inspection, including such order).

(10) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall, for the purpose of request of submission or inspection of data, etc. pursuant to paragraphs (1) and (4), may ask the head of KISA for technical advices and other necessary support.

(11) Any request of submission of, access to, or inspection of, data, etc. pursuant to paragraphs (1) and (4) shall be made within the minimum scope necessary to implement this Act, and shall not be misused for other purposes.

Article 64-2 (Preservation and Destruction of Materials, etc.)

(1) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall not provide to a third party the documents, materials, etc. submitted or collected pursuant to Article 64 nor make them public, if and when it is requested by the relevant information and communications service provider, etc. to preserve such materials.

(2) In case the Minister of Science, ICT and Future Planning or the Korea Communications Commission received the materials submitted via the information and communications networks, or made them digitalized, it shall take systemic and technological security measures lest the personal information, trade secrets etc. should be leaked out.

(3) The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall destroy immediately the documents, materials, etc. submitted or collected pursuant to Article 64, if there occurs a case applicable to any of the following subparagraphs except otherwise specifically provided in other acts. The same shall apply to the person to whom the Minister of Science, ICT and Future Planning or the Korea Communications Commission delegates or entrusts the whole or part of its authority pursuant to Article 65:                                                                                        1. Where the purpose for which the request for submission of materials, visit and inspection, order to take corrective measures, etc. take place pursuant to Article 64 has been attained;

2. Where an administrative judgment is filed in disobedience of the order to take corrective measures pursuant to Article 64(4), or, in case of the administrative lawsuit, the relevant administrative dispute settlement proceedings have been closed;

3. Where the fine for negligence is levied pursuant to Article 76(4) and there is no objection thereto until the period of objection is over pursuant to Article 76(5); or

4. Where any objection is raised against the imposition of fine for negligence pursuant to Article 76(4) and the non-litigation proceedings of the competent court with jurisdiction are over.

Article 64-3 (Imposition, etc. of Penalty Surcharge)

(1) In case an action is in violation of any of the following subparagraphs, the Korea Communications Commission may impose the penalty surcharge3) amounting to not more than three percent (3/100) of total sales related with such violation on the wrong-doing information and communications service provider, etc.. the penalty surcharge of not more than 100 million won may be imposed to the violator of subparagraph 6: (Amended Feb. 17, 2012; May 28, 2014; Mar. 22, 2016)

1. To collect personal information without obtaining the consent of a user in violation of Article 22(1) including the case of application mutatis mutandis pursuant to Article 67;

2. To collect personal information which is most likely to infringe upon the right and interest, or the privacy, of an individual without obtaining the consent of the subject in violation of Article 23(1) including the case of application mutatis mutandis pursuant to Article 67;

3. To utilize personal information in violation of Article 24 including the case of application mutatis mutandis pursuant to Article 67;

4. To provide personal information to a third party in violation of Article 24-2 including the case of application mutatis mutandis pursuant to Article 67;

5. To entrust handling of personal information without obtaining the consent of a user in violation of Article 25(1) including the case of application mutatis mutandis pursuant to Article 67;

5-2. To allow negligent management, supervision or education under Article 25(4), including the case of application mutatis mutandis pursuant to Article 67, to cause the trustee in violation of Chapter IV;

6. To leave the personal information of a user lost, stolen, leaked, forged, altered or damaged, and fail to take measures required by Articles 28(1) ii through v including the case of application mutatis mutandis pursuant to Article 67;

7. To collect the personal information of a minor of age below 14 without obtaining the consent of his/her legal representative in violation of Article 31(1) including the case of application mutatis mutandis pursuant to Article 67; or 8. To provide the personal information of users abroad without obtaining their consent thereto in violation of the main sentence of Article 63(2).

(2) In case the penalty surcharge is imposed pursuant to paragraph (1), if such information and communications service provider, etc. denies to submit data for the calculation of sales or submits false data, its sales amount may be estimated on the basis of financial statements and other accounting information of the information and communications service provider, etc. with a similar size, and the business data including the number of subscribers, tariff table of users, etc. provided, however, that, in such a case of no sales report at all or the difficulty to calculate the amount of sales as prescribed by the Presidential Decree, the penalty surcharge of not more than 400 million won may be imposed to such operator.

(3) When imposing the penalty surcharge pursuant to paragraph (10, the Korea Communications Commission shall take the particulars stated in the following subparagraphs into consideration:

1. The substance and status of violations;

2. The duration and times of violations; and

3. The size of profit acquired out of violations.

(4) The penalty surcharge pursuant to paragraph (1) shall be assessed with the provision of paragraph (3) taken into consideration, but the detailed criteria and procedure for the assessment of penalty surcharge shall be prescribed by the Presidential Decree.

(5) When the person, who is required to pay the penalty surcharge pursuant to paragraph (1), fails to pay the penalty surcharge until the due date, the Korea Communications Commission shall collect the additional charge amounting to six percent per annum (6% p.a.) of such penalty surcharge for the period from the following day of the due date.

(6) When the person, who is required to pay the penalty surcharge pursuant to  paragraph (1), fails to pay the penalty surcharge until the due date, the Korea Communications Commission shall press for the payment by designating the extended period. If and when the person fails to pay the penalty surcharge and the additional charge for the extended period pursuant to paragraph (5), the Korea Communications Commission finally shall collect the penalty surcharge and the additional charge likewise by the disposition for recovery of the National Tax arrears.

(7) In case the penalty surcharge imposed pursuant to paragraph (1) is refunded owing to the court judgment, etc., the additional fee in the amount of six percent per annum (6% p.a.) of such penalty surcharge to be refunded shall be paid for the period from the payment date of penalty surcharge to the refund date.

Article 64-4 (Hearings)

The Minister of Science, ICT and Future Planning or the Korea Communications Commission shall hold hearings in case any of the following subparagraphs shall apply:

1. Where it intends to withdraw the designation of the certification agency pursuant to Article 9(2);

2. Where it intends to withdraw the designation of the identification agency pursuant to Article 23-4(1);

3. Where it intends to cancel the DPMS certification pursuant to Article 47(10) including the case of application mutatis mutandis pursuant to Article 47-3(3);

4. Where it intends to withdraw the designation of the DPMS Certification Agency pursuant to Article 47-2(1) including the case of application mutatis mutandis pursuant to Article 47-3(4);

5. Where it intends to cancel the data protection management degree pursuant to Article 47-5(4); or

6. Where it intends to cancel the registration pursuant to Article 55(1).

(Article Inserted Dec. 1, 2015)

Article 65 (Delegation and Entrustment of Authority)

(1) The authority of the Minister of Science, ICT and Future Planning or the Korea Communications Commission under this Act may be delegated or entrusted in part to the head of its administrative agency under the control of the Ministry of Science, ICT and Future Planning or the head of the Regional Post Agency in such a manner as prescribed by the Presidential Decree.

(2) The Minister of Science, ICT and Future Planning may entrust the Project to promote the utilization of the information and communications networks, etc. pursuant to Article 13 to the National Information Society Agency (NIA) established pursuant to Article 14 of the Nation’s Informatiztion Framework Act in such a manner as prescribed by the Presidential Decree.

(3) The Minister of Science, ICT and Future Planning or the Korea Communications Commission may entrust doing job to request the submission of, and inspect, the materials pursuant to Articles 64(1) and (2) to KISA in such a manner as prescribed by the Presidential Decree.

(4) The provision of Article 64(8) shall apply mutatis mutandis to the employees of KISA who are subject to paragraph (3).

Article 65-2 Deleted

Article 66 (Confidentiality, etc.)

Any person who is or was engaged in the business stated in the following subparagraphs shall not leak secrets acquired while performing his/her duties to any other person, or use such secrets for other purposes than the initial duties; provided, however, that the same shall not apply where other acts specifically prescribe otherwise:

1. Deleted

2. Certification of DPMS under Article 47;

2-2. Certification of PIMS under Article 47-3;

3. Assessment of the data protection system under Article 52(3) iv;

4. Deleted

5. Mediation of any dispute conducted by the defamation dispute mediation panel under Article 44-10.

Article 67 (Application mutatis mutandis to Broadcasting Service provider)

(1) The provisions of Chapter IV shall apply mutatis mutandis to the person who falls under Article 2 iii Items a through e and Article 2 vi, ix, xii and xiv of the Broadcasting Act, and would collect, use and provide to a third party personal information of audience and viewers. In this case, the “information and communications service provider” and the “information and communications service provider, etc.” shall be deemed the “person who falls under Article 2 iii Items Ga through Ma and Article vi, ix, xii and xiv of the Broadcasting Act,” and the “user” shall be deemed the “audience and viewers,” respectively.

(2) The provisions of Articles 22, 23, 23-2 through 23-4, 24, 24-2, 26, 26-2, 27, 27-2, 27-3, 28, 28-2, 29, 30, 30-2 and 31 shall apply mutatis mutandis to the trustee as prescribed in Article 25(1).

(Article Inserted Feb. 17, 2012)

Article 68 Deleted (Mar. 22, 2010)

Article 68-2 Deleted (Jun. 22, 2015)

Article 69 (Legal Fiction of Officials in Applying Penal Provisions)

The officers and employees of NIA and KISA, who are conducting the job entrusted by the Minister of Science, ICT and Future Planning or the Korea Communications Commission pursuant to Articles 65(2) and (3), shall be deemed government officials in the application of Articles 129 through 132 of the Criminal Act.

Article 69-2 (Accusation)

(1) When the Korea Communications Commission deems any of the subparagraphs of Article 64-3(1) to be applicable, the Commission may accuse the breaching information and communications service provider, etc. to the investigation authorities including the prosecution office.

(2) The Korea Communications Commission may recommend the information and communications service provider, etc. in violation of this Act in relation to personal information protection to take a disciplinary measure of the person responsible therefor (including a representative and/or director and officer responsible in charge). In this case, the person who has received such recommendation shall be respectful of it and notify the Korea Communications Commission of the result. (Inserted Mar. 22, 2016)

CHAPTER X.- PENAL PROVISIONS

Article 70 (Penal Provisions)

(1) Any person who has defamed other person by alleging openly facts via the information and communications networks with the purpose of slandering him/her shall be subject to imprisonment with prison labor for not more than 3 years or by a fine not exceeding 30 million won. (Amended May 28, 2014)

(2) Any person who has defamed other person by alleging openly false facts via the information and communications networks with the purpose of slandering him/her shall be subject to imprisonment with prison labor for not more than 7 years or the suspension of qualification for not more than 10 years, or by a fine not exceeding 50 million won.

(3) The offense stated in paragraphs (1) and (2) shall not be indicted against the will expressed by the victim.

Article 70-2 (Penal Provisions)

Any person who has relayed or distribute malicious programs in violation of Article 48(2) shall be subject to imprisonment with prison labor for not more than 7 years or by a fine not exceeding 70 million won.

Article 71 (Penal Provisions)

(1) Any person referred to in the following subparagraphs shall be subject to imprisonment with prison labor for not more than 5 years or by a fine not exceeding 50 million won:

1. A person who has collected the personal information of users without the consent of users in violation of Article 22(1) including the case of application mutatis mutandis under Article 67;

2. A person who has collected the personal information likely to excessively infringe upon the right, interest and privacy of the individual without the consent of users in violation of Article 23(1) including the case of application mutatis mutandis under Article 67;

3. A person who has utilized the personal information of users, provided such personal information to a third party, or received such personal information knowingly for profit or unjust purposes in violation of Articles 24, 24-2(1) and (2) or 26(3) including the case of application mutatis mutandis under Article 67;

4. A person who has entrusted handling of the personal information without the consent of users in violation of Article 25(1) including the case of application mutatis mutandis under Article 67;

5. A person who has damaged, infringed upon or leaked the personal information of users in violation of Article 28-2(1) including the case of application mutatis mutandis under Article 67;

6. A person who has received the personal information for profit or unjust purposes knowing such information leaked out in violation of Article 28-2(2);

7. A person who has provided or utilized the personal information without taking necessary measures in violation of Article 30(5) including the case of application mutatis mutandis under Articles 30(7), 31(3) and 67;

8. A person who has collected the personal information of a minor below 14 without the consent of his/her legal representative in violation of Article 31(1) including the case of application mutatis mutandis under Article 67;

9. A person who has conveyed or distributed malicious programs in violation of Article 48(2);

10. A person who has caused troubles in the information and communications networks in violation of Article 48(3); and

11. A person who has damaged the information of other person, or infringed upon, stolen or leaked the secrets of other person in violation of Article 49.

(2) An attempted crime of paragraph (1) ix shall be punished. (Inserted Mar. 22, 2016)

Article 72 (Penal Provisions)

(1) Any person referred to in the following subparagraphs shall be subject to imprisonment with prison labor for not more than 3 years or by a fine not exceeding 30 million won: (Amended Jan. 20, 2015; Mar. 27, 2015)

1. A person who has infiltrated the information and communications networks in violation of Article 48(1);

2. A person who has collected the personal information of other person in violation of Article 49-2(1);

2-2. A person who has transmitted the advertisement information in violation of Article 50-8 taking advantage of large-scale catastrophic situation subject to 14(1) of the Framework Act on the Management of Disasters and Safety;

3. A person who has done business without registration required by Article 53(1);

4. A person who has lent money, or has arranged, intermediated, solicited and promoted such transaction by conducting action applicable to any of the following Items:

a. To do transactions of communications billing services by pretending to sell or provide the goods or services, or exceeding the real sales, or to let others do so on his/her behalf; or

b. To purchase the goods or services at a discount which were bought or used by the user of communications billing services just after such user was induced to buy or use such goods or services by means of the communications billing services.

5. A person who has leaked the secrets to other person acquired while performing his/her duties, or utilized such secrets for other purpose than the initial duties in violation of Article 66.

(2) Deleted (Mar. 22, 2016)

Article 73 (Penal Provisions)

Any person referred to in the following subparagraphs shall be subject to imprisonment with prison labor for not more than 2 years or by a fine not exceeding 20 million won: (Amended May 28, 2014; Mar. 22, 2016)

1. A person who has lost, stolen, leaked, forged, altered or damaged the personal information of users by failing to take such technological and managerial measures as prescribed in Articles 28(1) ii through v including the case of application mutatis mutandis under Article 67;

1-2. A person who fails to destroy personal information in violation of Article 29(1) including the case of application mutatis mutandis under Article 67;

2. A person who has provided media materials harmful to the youth for profit without indicating the harmful nature in violation of Article 42;

3. A person who has transmitted to the youth, or exhibit publicly without taking any measure off-limits to the youth the information to advertize the media materials harmful to the youth in violation of Article 42-2;

4. A person who has used the information of users for other purposes tan filing civil or criminal lawsuits;

5. A person who has not observed the order of the Korea Communications Commission pursuant to Articles 44-7(2) and (3);

6. A person who has not preserved the relevant materials in violation of the order pursuant to Article 48-4(3);

7. A person who has enticed other person to provide with personal information in violation of Article 49-2 (1); or

8. A person who has not observed the order pursuant to Article 61.

Article 74 (Penal Provisions)

(1) Any person referred to in the following subparagraphs shall be subject to imprisonment with prison labor for not more than 1 year or by a fine not exceeding 10 million won: (Amended Feb. 17, 2012; May 28, 2014)

1. A person who has put any label on goods, or sold such goods bearing such label or displayed such goods for the purpose of selling them in violation of  Article 8 (4);

2. A person who has distributed, sold, rented, or openly displayed lascivious codes, letters, sounds, images or video clips in violation of Article 44-7(1) i;

3. A person who has repeatedly sent codes, letters, sounds, images or video clips inciting fears and uneasiness to other person in violation of Article 44-7(1) iii;

4. A person who has taken measures in violation of Article 50(5);

5. Deleted (May 28, 2014)

6. A person who has transmitted advertisement information in violation of Article 50-8; or

7. A person who has not registered the change of the registry nor reported business transfer, or the merger and succession of business in violation of Article 53(4).

(2) The offense stated in paragraph (1) iii shall not be indicted against the Will expressed by the victim.

Article 75 (Joint Penal Provisions)

If a representative of a corporation, or the agent, manager or other employee of a corporation or an individual violated the provisions of Articles 71 through 73 or 74 (1) with respect to the business of such corporation or individual, the actor shall be punished, but also the corporation or individual shall be subject to a fine prescribed in the relevant Article; provided, however, that the same shall not apply where such corporation or individual was not negligent in taking due care and supervisory duty to do the relevant business.

Article 75-2 (Confiscation and Additional Imposition of Fine)

The monies or other profits acquired by a person who committed any of the crimes set forth in Article 71(1) i through viii, Article 72(1) ii and Article 73 i, i-2, vii in relation to the relevant violations may be confiscated, and, if such confiscation is impossible, its equivalent amount may be imposed additionally. In this case, such confiscation or additional imposition my be levied in addition to other punishment. (Inserted Mar. 22, 2016)

Article 76 (Fine for Negligence)

(1) A person who is referred to in the following subparagraphs and abets other person to do the action applicable to Items 7 through 11 shall be subject to a fine for negligence not exceeding 30 million won: (Amended Mar. 29, 2011; Feb. 17, 2012; Mar. 23, 2013; May 28, 2014; Jun. 22, 2015; Dec. 1, 2015; Mar. 22, 2016)

1. A person who has denied services in violation of Articles 22-2(2) or 23(3) including the case of application mutatis mutandis under Article 67;

1-2. A person who has failed to take measures necessary for the protection of personal information of users including methods of consent to, and withdrawal from, the authorized access in violation of Article 22-2(3) including the case of application mutatis mutandis under Article 67;

2. A person who collects and uses resident registration numbers in violation of Article 23-2(1) or fails to take necessary measures in violation of Article 23-2(2) including the case of application mutatis mutandis under Article 67;

2-2. A person who has failed to notify or report to users, the Korea Communications Commission and KISA in violation of Article 27-3(1) including the case of application mutatis mutandis under Article 67, or delays exceeding 24 hours to notify or report with no justifiable reasons;

2-3. A person who has failed to explain or deceptively explained subject to Article 27-3(3);

3. A person who has failed to take technological and managerial measures as prescribed in Articles 28(1) i and vi including the case of application mutatis mutandis under Article 67);

4. A person who has failed to destroy personal information in violation of Article 29(2) including the case of application mutatis mutandis under Article 67;

5. A person who has failed to take necessary measures in violation of Articles 30(3), (4) and (6) including the case of application mutatis mutandis under Articles 30(7), 31(3) and 67);

5-2. A person who has failed to notify the detailed statement on the use of the personal information in violation of the main sentence of Articles 30-2(1) including the case of application mutatis mutandis under Article 67;

6. Deleted (May 28, 2014)

6-2. A person who has failed to report the designation of the chief privacy officer in violation of Articles 45-3 (1);

6-3. A person who has failed to obtain the DPMS certification in violation of Articles 47 (2);

7. A person who has transmitted advertisement information made for profit in violation of Articles 50 (1) through (3);

8. A person who has failed to indicate advertisement information or indicated fraudulently in violation of Articles 50 (4) or (5);                                                            

9. A person who has got the addressee charged the cost in violation of Article 50 (6);

9-2. A person who has failed to confirm the consent to receive in violation of Articles 50(8);

10. A person who has installed the programs without obtaining the consent of users in violation of Article 50-5;

11. A person who has posted advertisement information made for profit on the Internet homepage in violation of Article 50-7 (1) or (2); or

12. A person who has not observed the order to take corrective measures delivered by the Minister of Science, ICT and Future Planning or the Korea Communications Commission pursuant to Article 64(4) in violation of this Act.

(2) A person referred to in the following subparagraphs shall be subject to a fine for negligence not exceeding 20 million won: (Amended Mar. 22, 2016)

1. A person who has failed to make public or notify the users of entrusting the handling of personal information in violation of Article 25(2) including the case of application mutatis mutandis under Article 67;

1-2. A person who has re-entrusted to a third person without obtaining the consent of the initial information and communications service provider, etc. In violation of Article 25(7) including the case of application mutatis mutandis under Article 67;

2. A person who has failed to notify the users of transferring the personal information in violation of Articles 26(1) and (2) including the case of application mutatis mutandis under Article 67;

3. A person who has failed to designate the officer in charge of data protection in violation of Article 27(1) including the case of application mutatis mutandis under Article 67;

4. A person who has failed to make public the personal information policy statement in violation of Article 27-2(1) including the case of application mutatis mutandis under Article 67; or

5. A person who has provided the personal information of users abroad without disclosing all the items of subparagraphs of Article 63(3) or informing users of such fact in violation of the proviso of Article 63(2).

(3) A person referred to in the following subparagraphs shall be subject to a fine for negligence not exceeding 10 million won: (Amended Apr. 5, 2011; Feb. 17, 2012; Jun. 22, 2015; Dec. 1, 2015; Mar. 22, 2016)

1. Deleted (Jun. 22, 2015)

2. Deleted (Jun. 22, 2015)

2-2. A person who has conducted the identification operations without appropriate designation of the identification agency in violation of Article 23-3(1);

2-3. A person who has failed to notify to users, or report to the Korea Communications Commission, the recess of the identification operations pursuant to Article 23-3(2) or the repeal of the identification operations pursuant to Article 23-3(3);

2-4. A person who continues to conduct identification operations in spite of the suspension of identification operations or withdrawal of designation of the identification agency pursuant to Article 23-4(1);

2-5. A person who fails to entrust processing personal information to a trustee in writing in violation of Article 25(6) including the case of application mutatis mutandis under Article 67;                                                                                                                         

3. A person who has failed to designate the officer in charge of youth protection in violation of Article 42-3(1);

4. A person who has failed to keep information in custody in violation of Article 43;

5. A person who has failed to insure the information and communications facilities in violation of Article 46 (2);

6. Deleted (Dec. 1, 2015);

7. A person who has made fraudulent promotion on the result of authentication of the data protection management system in violation of Articles 47(9) and 47-3(3);

8. Deleted

9. Deleted

10. A person who has failed to inform the user of software in violation of Article 47-4(3);

11. A person who has not observed the order of correction pursuant to Article 48-2(4);

12. A person who has obstructed, rejected or dodged the entry and inspection of business pursuant to Article 48-4 (4);

12-2. A person who has failed to observe the order of the Minister of Science, ICT and Future Planning or the Korea Communications Commission in violation of Article 49-2(4).

12-3. A person who has failed to inform to the addressee the result after processing prior consent, refusal to receive or withdrawal of consent in violation of Article 50(7).

12-4. A person who fails to take necessary measure in violation of Article 50-4(4).

13. A person who has used the name of KISA in violation of Article 52(6);

14. A person who has failed to report the recess, closure or dissolution of business in violation of Article 53(4);

15. A person who has failed to report the general terms and conditions of business in violation of Article 56(1);

16. A person who has failed to take managerial and technological measures in violation of Article 57(2);

17 through 21. Omitted 4)

22. A person who has failed to submit related goods and documents, etc. pursuant to Article 64(1) or submitted false goods and documents, etc.;

23. A person who has denied the access to data and request of data production pursuant to Article 64(2); or

24. A person who has rejected, obstructed or dodged the entry and inspection of business pursuant to Article 64(3).

(4) The fine for negligence stated in paragraphs (1) through (3) shall be imposed and collected by the Minister of Science, ICT and Future Planning or the Korea Communications Commission as prescribed by the Presidential Decree.

(5) Any person who is dissatisfied with a fine for negligence imposed pursuant to paragraph (4) may file an objection with the Minister of Science, ICT and Future Planning or the Korea Communications Commission within 30 days from the day of notification of such disposition.

(6) If any person who has been subject to a fine for negligence pursuant to paragraph (4) filed an objection pursuant to paragraph (5), the Minister of Science, ICT and Future Planning or the Korea Communications Commission shall promptly notify the competent court of the fact, and the competent court shall, upon receiving the notification thereof, put the case on trial in accordance with the Non-Contentious Litigation Procedure Act.

(7) If any person fails to file an objection within the period under paragraph (5) and would not pay the fine for negligence, the fine for negligence in question shall be collected likewise by the disposition for recovery of the national taxes in arrears.

ADDENDA

(Act nº 6360, January 1, 2001)

Article 1 (Enforcement Date)

This Act shall enter into force on July 1, 2001.

Articles 2 and 3. Omitted

Article 4 (Transitional Measures Regarding Application of Penal Provisions)

The application of the penal provisions to any act committed prior to the enforcement of this Act shall be governed by the previous provisions.

Article 5. Omitted

Article 6 (Relations to Other Acts and Regulations)

If other acts and regulations cite the former “Act on the Promotion, etc. Of  Utilization of Information System” or its provisions at the time of enforcement of this Act and if there exist corresponding provisions thereto in this Act, this Act or the corresponding provisions in this Act shall be regarded as being cited.

ADDENDA

Omitted for the period from December 2001 to December 2008.

ADDENDA

(Act nº 9637, July 23, 2009)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 3 months elapse after its promulgation for the establishment of the Korea Internet and Security Agency.

Articles 2 and 3 Omitted

Article 4 (Amendment to Other Acts) Omitted

Article 5 (Relations to Other Acts and Regulations)

If other acts and regulations cite the former “Act on Promotion of Information and Communications Network Utilization and Data Protection, etc.” or its provisions at the time of enforcement of this Act and if there exist corresponding provisions thereto in this Act, this Act or the corresponding provisions in this Act shall be regarded as being cited.

ADDENDUM

(Act nº 10138, March 17, 2010)

This Act shall enter into force on the day of promulgation.

ADDENDA

(Act nº 10165, September 23, 2010)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation.

Articles 2 through 5 Omitted

Article 6 (Amendment to Other Acts)

(9) The part of the Act on Promotion of Information and Communications Network Utilization and Data Protection, etc. shall be amended as follows:

Article 68 shall be deleted.

Article 7 Omitted

ADDENDA

(Act nº 10465, September 30, 2011)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation (in line with the enforcement the Personal Information Protection Act).

Articles 2 through 5 Omitted

Article 6 (Amendment to Other Acts)

(11) The part of the Act on Promotion of Information and Communications Network Utilization and Data Protection, etc. shall be amended as follows: (. . .) the Minister of Public Administration and Security, the Minister of Knowledge and Economy or the Korea Communications Commission shall read the Minister of Knowledge and Economy or the Korea Communications Commission; and the Minister of Public Administration and Security or the Korea Communications Commission shall read the Korea Communications Commission, respectively.

Article 7 Omitted

ADDENDA

Omitted for the period from April 2011 to September 2011.

ADDENDA

(Act nº 11322, August 18, 2012)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation; provided, however, that the revised provisions of Articles 45, 45-2, 45-3, 46-3, 47, 47-2, 47-3, 47-5, 52(3) vii, 66 and 76(3) vi through ix shall enter into force one year after its promulgation.

Article 2 (Transitional Measures Regarding the Restriction of Collection and Use of Resident Registration Number)

(1) The information and communications service provider, who has provided membership application method by means of resident registration number at the time of enforcement of this Act, shall destroy its resident registration number data within two years therefrom; provided, however, that the same shall not apply to any of the subparagraphs of Article 23-2(1).

(2) The failure to destroy the resident registration number data within the period prescribed in paragraph (1) shall be deemed in violation of the revised provision of Article 23-2(1).

Article 3 (Transitional Measures Regarding the Repeal of Data Protection Safety Diagnosis)

Omitted

Article 4 (Transitional Measures Regarding the Authentication of Personal Information Protection Management System)

Omitted

Article 5 (Transitional Measures Regarding Fine for Negligence)

The application of the fine for negligence to any act committed prior to the enforcement of this Act shall be governed by the previous provisions.

ADDENDA

(Act nº 11690, March 23, 2013)

Article 1 (Enforcement Date)

(1) This Act shall enter into force on the day of promulgation.5)

(2) Omitted

Articles 2 through 5 Omitted

Article 6 (Amendment to Other Acts)

(687) The part of the Act on Promotion of Information and Communications Network Utilization and Data Protection, etc. shall be amended as follows: (. . .) the Minister of Knowledge and Economy shall read the Minister of Science, ICT and Future Planning.

ADDENDA

(Act nº 12681, May 28, 2014)

Article 1 (Enforcement Date)

(1) This Act shall enter into force on the day when 6 months elapse after its promulgation; provided, however, that the revised provisions of Articles 44(3), 44-5 and 76(1) vi shall enter into force on the day of promulgation.

Article 2 (Transitional Measures Regarding Penalty Surcharge and Penal Provisions)

The application of the penalty surcharge and penal provisions to any act committed prior to the enforcement of this Act shall be governed by the previous provisions.

ADDENDA

(Act nº 13344, July 22, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation.

Article 2 (Exemplary Application of Administrative Disposition)

The amendments of Article 55(1) shall apply to the administrative disposition on the violations prior to the enforcement of this Act.

ADDENDA

(Act nº 13520, December 1, 2015)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation; provided, however, that the amendments of Articles 29(2) and (3) shall enter into force on the day of promulgation.

Article 2 (Exemplary Application of Destruction, etc. of Personal Information)

The amendments of Article 29(2) and (3) shall apply to the personal  information collected and transferred prior to the entry into force of the said amendments.

Article 3 (Exemplary Application of Omission of DPMS Certification Examination)

The amendments of Article 47(3) shall apply to the person who applied for the DPMS certification prior to the enforcement of this Act, and has undergone the said procedure.

Article 4 (Transitional Measures Regarding DPMS Certification)

The imposition of the fine for negligence on the violations prior to the enforcement of this Act shall be subject to the previous penal provisions.

ADDENDA

(Act nº 14080, March 22, 2016)

Article 1 (Enforcement Date)

This Act shall enter into force on the day when 6 months elapse after its promulgation; provided, however, that the amendments of Articles 22(2), 76(1) i and 76(1) i-2 shall enter into force when one year elapses after promulgation; the amendments of Articles 32(2) and (3), 32-2(3) on July 25, 2016; the amendment of Article 52(4) on the day of promulgation, respectively.

Article 2 (Exemplary Application of Damages)

The amendments of Articles 32(2), 32(3) and 32-2(3) shall apply to the claim for damages arising out of the loss, theft, leakage, forgery, alteration of, or damage to, personal information after the entry into force of the same amendments.

Article 3 (Transitional Measures Regarding Guide of Data Exposed to Violations)

The information and communications service provider shall establish the facilities to send guide message to users pursuant to the amendment of Article 49-2(3) within six months after the promulgation of this Act.

Article 4 (Transitional Measures Regarding Penal Provisions)

In case of application of penal provisions against violations prior to the entry into force of this Act, the previous provisions shall apply.

Article 5 (Amendment to Other Act)

The part of the Internet Address Resources Act shall be amended as follows:

Of the first sentence of Article 15(2), “Article 71 i” shall be “Article 71(1) i”, and “Article 76(1) i through v” shall be “Article 76(1) i through v (excluding Article 76(1) i-2)”

——————————————————–

1) Translation of the provisions of Articles unrelated with data protection is Omitted

2) The provisions regarding the Personal Information Dispute Mediation Committee were deleted on March 29, 2011 when the Personal Information Protection Act was promulgated.

3) In this Act, the penalty surcharge means the administrative penalty.

4) These are violators in relation to communications billing services.

5) This amendment was in line with the enforcement of the newly amended Government Organization Act.