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 1. Wire telephone services are telephone services within an area publicly notifiedby the Korea Communications Commission based on methods and conditions of use (the“**Calling Area**”), falling under any one of the following:  (a) a local telephone service which is a telephone service (excluding, throughoutthis Enforcement Decree, the island communication service referred to in (c) below)enabling communication through subscription telephones;  (b) a local public telephone service which is a telephone service enablingcommunication through public telephones; or  (c) an island communication service which is a telephone service enabling radiocommunication between shore and an island or between islands.  2. Telephone services for emergency communications are telephone services necessaryfor maintaining social order and securing human life, falling under any of thefollowing:  (a) a special telephone number service, among the key communications services,publicly notified by the Korea Communications Commission; or  (b) a wireless telephone service for vessels which is a telephone service, among thekey communications services, enabling communication between shore and a vessel orbetween vessels.  3. Telephone services of which fees are reduced or exempted for the disabled and thelow income class are telephone services offered to the disabled and the low income classfor the purpose of improving social welfare, falling under any of the following:  (a) a local telephone service and a telephone service between the Calling Areas (the“**Long Distance Telephone Service**”);  (b) a directory assistant service which is a service incidental to a local telephoneservice and the Long Distance Telephone Service;  (c) a mobile telephone service, a personal communication service, IMT-2000 service ora wireless call service among the key communications services; or  (d) an Internet subscriber connection service.
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     (3) Any of the following shall be entitled to the telephone services of which fees are reducedor exempted pursuant to subparagraph 3 of paragraph (2); provided, however, that the telephoneservices for which fees are reduced or exempt pursuant to subparagraph 8 below shall be limited tothe mobile telephone service, the personal communication service and the IMT-2000 service <Amended by Enforcement Decree No. 21060, Oct. 1, 2008; No. 22075, Mar. 15, 2010; No. 22616 Oct. 1,2010>: 1. the disabled or welfare institutions or groups for the disabled under the Welfareof Disabled Persons Act;  2. special schools under the Elementary and Secondary Education Act;  3. child welfare institutions under the Child Welfare Act;  4. among the recipients of assistance under the National Basic Livelihood SecurityAct (the “**Recipients of Assistance**”), persons falling under any of the following (orhouseholds composed of such persons in the event of a local telephone service, the LongDistance Telephone Service or an Internet subscriber connection service):  (a) the Recipients of Assistance who are either below 18 or 65 or older; except thatfor the mobile telephone service and the IMT-2000 service, the Recipients of Assistanceincluding those who are 18 or older and below 65.  (b) persons with severe disabilities under Article 2.2 of the Employment Promotionand Vocational Rehabilitation of Disabled Persons Act;  (c) persons in need of a treatment or recuperation due to a disease, an injury or anaftereffect of a disease or an injury as so determined by the head of relevant localmunicipalities through the use of labor aptitude evaluation under Article 7(1) 2 of theEnforcement Decree of the National Basic Livelihood Security Act; or  (d) persons deemed unable to work by the Minister for Health and Welfare underArticle 7 (1) 5 of the Enforcement Decree of the National Basic Livelihood Security Act.  5. the Korean Association of Wounded Soldiers and Police Officials or the
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   Association Commemorating the April 19 Democratic Revolution under the Act onEstablishment of Organizations for Persons, etc. of Distinguished Services to the State; 6. soldiers or policemen wounded in action, soldiers or policemen wounded on duty,wounded activists of the April 19 Revolution, public officials wounded on duty, woundedspecial contributor to national and social development or wounded anticommunist captiveunder the Act on Honorable Treatment and Support of Persons, etc. of DistinguishedServices to the State; or  7. wounded activists of the May 18 Democratization Movement among the persons ofdistinguished services to the May 18 democratization movement under the Act on HonorableTreatment of Persons of Distinguished Services to the May 18 Democratization Movement.  8. members of a family having at least one of its members fitting any of thedescriptions below qualifying as a member of the next needy class under Article 2(11) ofthe National Basic Livelihood Security Act; and the number of family members eligiblefor fee reduction or exemption for such family shall be determined by the KoreaCommunications Commission:  (a) a person taking part in the project required for self-support pursuant to Article9(5) of the National Basic Livelihood Security Act;  (b) a person having a rare and serious disease as described item (d) of section 3 inTable 2 and is eligible for reduction in his or her share of fees;  (c) a person receiving medical allowances pursuant to Article 2 of the MedicalAllowance Act;  (d) a person receiving necessary expenses for infant care pursuant to Article 34(1)of the Infant Care Act;  (e) a person receiving necessary expenses for early childhood education pursuant toArticle 26(1) of the Early Childhood Education Act;
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 (f) a person receiving disability allowances pursuant to Article 49 of the Welfare ofthe Disabled Persons Act and a person receiving allowances for raising and protectingdisabled children pursuant to Article 50(1) of the same Act; and  (g) a person requiring protection under Article 5 of the Single-Parent FamilyAssistance Act, including a person who has ratio of recognized income to minimum livingexpense of 130/100 or below.Article 3 (Designation of Telecommunications Business Operator who Provides UniversalServices)     (1) If the Korea Communications Commission intends to designate a telecommunications businessoperator who provides universal services (the “**Business Operator Providing Universal Services**”)under Article 4 (4) of the Act, it can do so after taking into consideration such operator’sopinion. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) A telecommunications business operator who is designated as a Business Operator ProvidingUniversal Services under paragraph (1) shall submit to the Korea Communications Commission, everyyear by no later than the last day of the year preceding the provision of the relevant services, awritten plan for provision of universal services which includes the method of, and the expendituresfor, providing the relevant services.Article 4 (Compensation for Losses Incurred through Provision of Universal Services)     (1) The Korea Communications Commission may have the telecommunications business operators whoare not Business Operators Providing Universal Services bear part of the expenses for compensatingwhole or part of the losses incurred through a provision of universal services by BusinessOperators Providing Universal Services (the “**Compensation For Losses Incurred Through UniversalServices**”) in proportion to their respective sales.     (2) A Business Operator Providing Universal Services who intends to receive the
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CompensationFor Losses Incurred Through Universal Services shall submit a report on the actual results of aprovision of universal services, including expenditures for, and incomes and losses from, theprovision thereof, to the Korea Communications Commission within three months after the expirationof the relevant fiscal year.     (3) The Korea Communications Commission may, if deemed necessary for the verification of thereport on the actual results of a provision of universal services submitted pursuant to paragraph(2), consult a professional institution to examine it.Article 5 (Universal Services Entitled To Compensation For Losses Incurred Through Universal Services)     (1) The scope of universal services entitled to the Compensation For Losses Incurred ThroughUniversal Services shall be any of the following: 1. among local telephone services pursuant to Article 2(2)1(a) hereof, a localtelephone service offered in areas where, as a result of provision of such service, theexpenditures (meaning, here as well as in subparagraph 2 and Article 6(1) hereof, theexpenses calculated in accordance with the method publicly notified by the KoreaCommunications Commission considering such factors as the population density, number oflines and efficiency of managing communication lines) exceed the incomes (including, hereas well as in subparagraph 2 and Article 6(1) hereof, any indirect advantages such asimproved brand value and user preference as a result of provision of universal services);  2. among local public telephone services pursuant to Article 2(2)1(b) hereof, a localpublic telephone service offered in areas where, as a result of provision of suchservice, the expenditures exceed the incomes;  3. an island communication service pursuant to Article 2(2)1(c) hereof; or  4. a wireless telephone service for vessels pursuant to Article 2(2)2(b) hereof.     (2) In Article 4 (2) 1 of the Act, “the telecommunications business operators
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prescribed underthe Enforcement Decree of the Act” means value-added communications business operators or regionalwireless call operators. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (3) In Article 4 (2) 2 of the Act, “the amount prescribed under the Enforcement Decree of theAct” means 30 billion won. <Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 6 (Methods for Computing the Compensation For Losses Incurred Through UniversalServices)     (1) Losses incurred through provision of the universal services prescribed under each of theparagraphs in Article 5(1) hereof shall be the amount of expenses of providing the relevant serviceless the relevant income.     (2) The provisional Compensation For Losses Incurred Through Universal Services shall becomputed by multiplying the amount obtained under paragraph (1) and the rate of compensation forlosses determined and publicly notified by the Korea Communications Commission; *provided that*, withrespect to a wireless telephone service for vessels under Article 5(1)4 hereof, the target amountfor efficient management determined and publicly notified by the Korea Communications Commissionshall be the provisional Compensation For Losses Incurred Through Universal Services.     (3) The Compensation For Losses Incurred Through Universal Services shall be the amount of theprovisional Compensation For Losses Incurred Through Universal Services computed pursuant toparagraph (2) subtracted by each of the amounts described below: 1. the amount paid by telecommunications business operators providing any of the universalservices prescribed under each of the subparagraphs of Article 5(1) hereof based on theirsales from telecommunications services other than the relevant universal service provided(excluding value-added communications services); and  2. the amount computed by the Korea Communications Commission considering 
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   the payment capacityof telecommunications business operators paying for the Compensation For Losses IncurredThrough Universal Services (the “**Business Operators Paying For Losses**”).     (4) The Business Operators Paying For Losses shall pay for the Compensation For LossesIncurred Through Universal Services computed pursuant to paragraph (3) in proportion to theirrespective sales relating to telecommunications services (excluding value-added communicationsservices).     (5) The Korea Communications Commission shall determine and announce all other necessarydetails with respect to the rates by which telephone services fees are reduced or exempted for thedisabled and the low income class and the methods for computing the Compensation For LossesIncurred Through Universal Services.Chapter 2. Telecommunications BusinessArticle 7     < Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 8 (Scope of Premises)     The “premises determined under the Enforcement Decree of the Act” in Article 5(3)2 of the Act meansany of the following: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. a building;  2. a site (limited to that owned by one person or owned through common ownership) and anybuilding located on such site;  3. two or more buildings possessed by one person and the site on which such buildings arelocated, limited to those buildings the distance between which is not more than 500 meters; or
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 4. any buildings or sites adjacent to the buildings or sites prescribed under paragraphs 1-3and publicly notified by the Korea Communications Commission.Article 9 (Permit Application, etc.)     (1) A person who wishes to obtain a permit under Article 6(1) of the Act may make anapplication in the name of the representative of a corporation or the representative, such as ashareholder, etc., of a corporation to be established. <Amended by Enforcement Decree No. 22616Oct. 1, 2010>     (2) The “premises determined under the Enforcement Decree of the Act” in Article 6(2)4 of theAct means the following <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. matters concerning the suitability of investment plan in advancing telecommunicationfacilities;  2. matters concerning the stability and expertise of supply plan for key communicationservices; and  3. matters similar to paragraph 1 or 2 as determined and announced by the KoreaCommunications Commission.Article 10 (Documents to be Attached to Permit Application)     (1) A person who wishes to obtain a permit for a key communications business under Article6(1) of the Act shall submit to the Korea Communications Commission a key communications businesspermit application with each of the following documentation attached thereto: 1. articles of incorporation of the corporation (including, throughout this Article10, the corporation to be incorporated);
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 2. shareholder register, or documentation relating to ownership of shares, etc. byshareholders, etc., of the corporation; and  3. a business proposal.     (2) The Korea Communications Commission receiving a permit application pursuant to paragraph(1) shall verify the commercial registry extracts by using the public administrative information made available under Article 36(1) of the E-Government Act<Amended by Enforcement Decree No. 22151 of May. 4, 2010; No. 22616 Oct. 1, 2010>Article 11     <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 12 (Issuance of License)     (1) When permitting a key communications business under Article 6(1) of the Act or permittingany change under Article 16(1) of the Act, the Korea Communications Commission shall issue a keycommunications business operator’s license upon making recordation of each of the following in alicense registry of key communications business operators: <Amended by Enforcement Decree No.22616 Oct. 1, 2010>. 1. number and date of license;  2. title or trade name of the business and name of the representative;  3. the areas where the telecommunications service is offered;  4. location of the principal office;  5. capital or asset valuation amount;
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 6. details of major business facilities and equipment and the locations where suchfacilities and equipment are installed;  7. details concerning technical personnel; and  8. any conditions upon which the license is issued.     (2) A key communications business operator whose license, issued pursuant to paragraph (1), iseither lost or worn out to the extent it can no longer be used may apply for reissuance of thelicense to the Korea Communications Commission by writing the reason for such loss or damage in itsapplication thereto.Article 13 (Criteria for Examination of Public Interest Nature )     (1) The term “public interests as prescribed under the Enforcement Decree of the Act” in partsother than each subparagraph of Article 10 (1) of the Act means the maintenance of nationalsecurity, public peace and social order. <Amended by Enforcement Decree No. 22616 Oct. 1,2010>     (2) The term “important management matters, including the key communication provider’sappointment and dismissal of officer, transfer or takeover business, etc., prescribed under theEnforcement Decree of the Act” in Article 10(1)3 of the Act means the matters falling under each ofthe following subparagraphs: 1. appointment and dismissal of the representative director of a key communications businessoperator, or appointment and dismissal of one third or more of the officers;  2. transfer and takeover of a key communications business; and  3. entrance by a key communications business operator into a new key communications business.     (3) The term “case prescribed under the Enforcement Decree of the Act” in Article 10(1)4 ofthe Act means any of the following. <Amended by Enforcement Decree No.
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22616 Oct. 1, 2010> 1. the case where a de facto change is made in the management right of a keycommunications business operator by an agreement of shareholders who are not the largestshareholder of such key communications business operator to jointly exercise votingrights; or  2. the control of the holding company (as that term is defined under Article 2(1)2of the Monopoly Regulation and Fair Trade Act) of the key communication provider hasactually changed hands.Article 14 (Scope of Key Communications Business Operators subject to Examination of PublicInterest Nature)The scope of key communications business operators who must file a report or who may request ascreening pursuant to Article 10 of the Act shall be any of the following: <Amended byEnforcement Decree No. 22605 Oct. 1, 2010, Dec. 31, 2010> 1. a key communications business operator managing or supervising a significantcommunication under Article 64(1) hereof;  2. a key communications business operator who owns an artificial satellite with aspace station under Article 29 Subparagraph 30 of the Enforcement Decree of the RadioWaves Act; or  3. a key communications business operator determined and publicly notified by theKorea Communications Commission under Article 39(3) hereof.Article 15 (Procedures for Examination of Public Interest Nature)     (1) A person who wishes to file a report or request a screening pursuant to Article 10(2) and10(3) of the Act shall submit to the Korea Communications Commission documentation indicating eachof the following: <Amended by Enforcement Decree No. 22605 Oct. 1, 2010>
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 1. name and address of the person filing a report or requesting a screening (in thecase of a corporation, the name and address of (i) such corporation and (ii) therepresentative of such corporation);  2. purpose of, and reason for, the report or screening request; and  3. details of any of the facts falling under each of the subparagraphs of Article10(1) of the Act.     (2) The Korea Communications Commission may, where it deems necessary, request for thedocumentation already submitted to it to be supplemented within a period reasonably fixed.     (3) Except under special circumstances, with respect to any matter the Korea CommunicationsCommission referred to the public interest nature examination committee, the public interest natureexamination committee shall notify the Korea Communications Commission of the result of itsscreening within 3 months of the date of such referral. <Amended by Enforcement Decree No. 22616Oct. 1, 2010>     (4) The Korea Communications Commission shall notify the person filing a report or requestinga screening of the result of examination of public interest Nature under paragraph (3).Article 16 (Composition etc. of Public Interest Nature Examination Committee)     (1) The term “related central administrative agencies prescribed under the Enforcement Decreeof the Act” in parts other than each subparagraph of Article 11(2) of the Act means the agenciesfalling under each of the following: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     1. the Ministry of Strategy and Finance;     2. the Ministry of Foreign Affairs and Trade;
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     3. the Ministry of Justice;     4. the Ministry of National Defense;     5. the Ministry of Public Administration and Security; and     6. the Ministry of Knowledge Economy.     (2) The term of office of the members shall be two years and consecutive appointment may bepermitted; *provided that*, the term of office of the members who are public officials shall be theperiod of service in their positions as public officials.Article 17 (Operation etc. of Public Interest Nature Examination Committee)     (1) The chairman of the Public Interest Nature Examination Committee shall represent thePublic Interest Nature Examination Committee and exercise an overall control of its affairs.     (2) If the chairman is inevitably unable to perform his duties, a member previously appointedby the chairman shall act on her or his behalf.     (3) The chairman shall convene and preside over a meeting of the Public Interest NatureExamination Committee.     (4) Deliberation of a meeting of the Public Interest Nature Examination Committee shall startby the attendance of a majority of all incumbent members, and its resolution shall require theconsent of a majority of those present.     (5) The Public Interest Nature Examination Committee shall have one secretary general in orderto deal with its affairs, but the secretary general shall be appointed by the chairman among thepublic officials belonging to the Korea Communications Commission.     (6) Any matters necessary for the operation of the Public Interest Nature ExaminationCommittee shall be determined by the chairman through a resolution of
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the Public Interest NatureExamination Committee.Article 18 (Imposition and Payment etc. of Charges for Compelling Execution)     (1) When determining the amount of charges for compelling execution pursuant to Article 13 ofthe Act, the Korea Communications Commission shall take into account such factors as the reasonsfor failure to comply with corrective orders and the scale of benefits to be gained by suchfailure. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) The date of compliance with corrective orders pursuant to Article 13(2) of the Act shallbe determined by the classifications falling under each of the following: <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>     1. delivery date of shares in the case of disposal of shares;     2. date of executing a contract in the case of amending details of a contract;     3. date of suspending the relevant acts in the case of suspending the acts impeding publicbenefits; and     4. date of satisfying relevant conditions in the case of conditional performance.     (3) Where the Korea Communications Commission wishes to impose charges for compellingexecution pursuant to Article 13 of the Act, it shall furnish a notification thereof in writing,indicating such matters as the amount of charges for compelling execution per day, reasons forimposition, payment term and receiving agency, methods of raising objections, and agencies to wheresuch objections must be directed. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (4) Any person who has been notified under paragraph (3) shall pay the charges for compellingexecution within 30 days of the date of receiving such notice; *provided that*, in the event suchperson is unable to pay the charges for compelling execution within said period due to a naturaldisaster or other unavoidable circumstances, such person shall pay the charges for compellingexecution within 30 days of the day on which said causes have disappeared.
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     (5) In collecting charges for compelling execution and in the event a corrective order has notbeen complied with after 90 days elapsed from the date of expiration of the period set by thecorrective order, the Korea Communications Commission may collect charges for compelling executionbased on the dates on which each 90 day period elapses from said expiration date.     (6) Article 49 hereof shall apply *mutatis mutandis*to any reminder of charges for compellingexecution.Article 19 (Permit to Change)     (1) A person who wishes to obtain a permit to change to a key communications business pursuantto Articles 16 (1) of the Act shall submit to the Korea Communications Commission an applicationfor a permit to change to a key communications business with supporting documents confirmingproposed changes attached thereto: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     1. —<Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>     2. <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) The Korea Communications Commission shall issue public notice with respectto details about application guidelines, submission procedures, submission method, etc. for apermit to change to a key communications business under Article 16(1) of the Act. <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>     (3) <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>.     (4) The “important matters prescribed under the Enforcement Decree of the Act” in Article16(1) of the Act means each of the following; <Amended by Enforcement Decree No. 22616 Oct. 1,2010> 1. matters concerning changes to key communication business pursuant to
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   Article 6(1)of the Act (including the case where services cancelled under Article 20(1) of the Actare to be resumed); and 2. matters concerning the permission criteria under Article 6(4) of the Act.Article 20 (Authorization Application for Transfer, Merger, etc.)     (1) A person who wishes to obtain authorization of the transfer of the whole or part of a keycommunications business pursuant to Article 18(1)1 of the Act shall submit to the KoreaCommunications Commission an authorization application for the transfer of a key communicationsbusiness with each of the following documentation attached thereto: <Amended by EnforcementDecree No. 22616 Oct. 1, 2010> 1. a copy of the transfer agreement;  2. articles of incorporation of the transferor and the transferee, and documentationsupporting the transfer;  3. shareholder register, or documentation related to ownership of shares, etc. byshareholders, etc., of the transferee;  4. present status of the transferor and the transferee; and  5. post-transfer business proposal.     (2) A person who wishes to obtain authorization of the merger with a corporation that is a keycommunications business pursuant to Article 18(1)2 of the Act shall submit to the KoreaCommunications Commission an authorization application for the merger with a key communicationsbusiness with each of the following documentation attached thereto: <Amended by EnforcementDecree No. 22616 Oct. 1, 2010> 1. a copy of the merger agreement;  2. articles of incorporation of the parties to the merger agreement, anddocumentation supporting the merger;
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 3. shareholder register, or documentation related to ownership of shares, etc. byshareholders, etc., of the corporation that shall continue to exist after the merger orbe incorporated through the merger;  4. present status of the parties to the merger agreement; and  5. post-merger business proposal.     (3) A key communications business operator who wishes to obtain authorization of the sale oftelecommunications line facilities and equipment pursuant to Article 18(1)3 of the Act shall submitto the Korea Communications Commission an authorization application for the sale of line facilitiesand equipment with each of the following documentation attached thereto: <Amended by EnforcementDecree No. 22616 Oct. 1, 2010> 1. a copy of the sale and purchase agreement concerning telecommunications linefacilities and equipment, and other documentation supporting such agreement;  2. articles of incorporation of the seller and the purchaser, and documentationsupporting the sale and purchase;  3. shareholder register, or documentation related to ownership by shareholders,etc., of the purchaser;  4. present status of the seller and the purchaser; and  5. post-sale business proposal.     (4) A person who wishes to own 15% or more of the total outstanding shares of a keycommunications business operator or become the largest shareholder of a key communications businessoperator pursuant to Article 18(1)4 of the Act shall submit to the Korea Communications Commissionan authorization application for the ownership of shares, or for becoming the largest shareholder,of a key communications business with each of the following documentation attached thereto:<Amended by Enforcement
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Decree No. 22616 Oct. 1, 2010> 1. documentation supporting the share purchase, such as a copy of the share purchaseagreement;  2. articles of incorporation of the share purchaser, or the person seeking to be thelargest shareholder, and the counterparty to the share purchase agreement;  3. present status of the shareholders of the share purchaser, or the person seekingto be the largest shareholder, and the counterparty to the share purchase agreement;  4. present status of the share purchaser, or the person seeking to be the largestshareholder, and the counterparty to the share purchase agreement;  5. purpose of, reasons for and an analysis of the effect ofacquisition of the shares;  6. proposal for dual appointment of officers (only when considering dual appointmentof an officer of the counterparty); and  7. post-share acquisition business proposal (only when seeking to become the largestshareholder).     (5) A person who wishes to obtain authorization for purchase of shares or execution of anagreement under Article 18(1)5 shall attach the following to an authorization application submitthem to the Korea Communications Commission. <Newly Inserted by Enforcement Decree No. 22616Oct. 1, 2010>     1. documents confirming the acquisition of managerial control such as copies of sharepurchase agreement or other agreement, etc.     2. articles of incorporation of the purchaser or the party to the agreement and thecounterparty;
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     3. shareholders registers of the purchaser or the party to the agreement and thecounterparty     4. descriptions of businesses of the purchaser or the party to the agreement and thecounterparty     5. purposes of and impact analysis of the share purchase or execution of the agreement;     6. a plan for overlapping officers and directors (applicable when such officers ordirectors also act as officers or directors the counterparty); and     7. a business plan for the period following the-share acquisition or execution of theagreement.     (6) The “premises determined under the Enforcement Decree of the Act” in Article 18(1)5 of theAct means any of the following. <Newly Inserted by Enforcement Decree No. 22616 Oct. 1,2010>     1. where one person alone or together with his specially related persons seek to acquire shares(including shares issued by specially related persons to largest shareholders) issued by thelargest shareholder of a key communications business operator and effectively exercises thevoting rights of such largest shareholder;     2. where persons (including specially related persons) with the common aim ofcontrolling a key communications business operator seek to acquire more shares than thevoting rights held by the largest shareholder of such key communications businessoperator;     3. where the control of a key communications business operator is sought by way ofbusiness lease, delegation of managerial control or other agreements with the keycommunications business operator or its largest shareholder; and     4. where a shareholder of a key communications business operator seeks
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enter into anagreement with other shareholders, except the largest shareholder to exercise jointlymore voting rights than the largest shareholder.     (7) A key communications business operator that seeks to receive an authorization to establish acorporation to provide part of the key communications services it has provided with theauthorization under Article 18(1)6 shall attach the following documents to an incorporationauthorization application and submit them to the Korea Communications Commission. <NewlyInserted by Enforcement Decree No. 22616 Oct. 1, 2010>     1. articles of incorporation of the corporation to be incorporated     2. shareholder register, or documentation relating to ownership of shares, etc. byshareholders, etc., of the corporation to be incorporated;     3. business status of the services to be provided (applicable only to the keycommunications business that already provides the services to be provided by thecorporation to be incorporated; and     4. a business plan of the corporation to be incorporated.     (8) The authorization application and attachments under paragraphs (1) through (5) and (7)may be submitted electronically. <Newly Inserted by Enforcement Decree No. 22616 Oct. 1,2010>     (9) The Korea Communications Commission receiving an authorization application for transfer,merger, sale, share acquisition or changing the largest shareholder pursuant to paragraphs(1)-(7) shall verify the commercial registry extracts of the party seeking to transfer, merge,sell, become the largest shareholder, acquire shares, execute an agreement or incorporate acorporation by using the public administrative informationmade available under Article 36(1) of the E-Government Act. <Amended by EnforcementDecree No. 22616 Oct. 1, 2010>     (10) The Korea Communications Commission shall issue a key communications businessoperator’s license upon approving the authorization application for transfer, merger orincorporation pursuant to paragraph (1) , (2) or (7). <Amended by
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Enforcement Decree No. 22616 Oct. 1, 2010>Article 21 (Criteria for Major Telecommunications Line Facilities and Equipment)The “major telecommunications line facilities and equipment prescribed under the Enforcement Decreeof the Act” in provisos other than each subparagraph of Article 18(1) of the Act means facilitiesand equipment for exchange, transmission and wire pursuant to Article 3(1)8-10 of the Regulationson Telecommunications Facilities and Equipment of which the sum of the sales prices is not lessthan 5 billion won. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010; No. 22616 Jan. 4,2011>Article 22 (Report on Sale of Telecommunications Line Facilities and Equipment)A person who wishes to file a report on sale of telecommunications line facilities and equipmentpursuant to provisos other than each subparagraph of Article 18(1) of the Act shall submit to theKorea Communications Commission a report on sale of telecommunications line facilities andequipment (including electronic application) with each of the following documentation (includingelectronic documentation) attached thereto: <Amended by Enforcement Decree No. 22616 Oct. 1,2010> 1. documentation supporting the sale, such as a copy of the sales agreement concerningtelecommunications line facilities and equipment;  2. types, details and prices of the facilities and equipment being sold; and  3. plans for service provision and user protection subsequent to the sale.Article 23<Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 24 (Application for an Approval to Suspend Business, etc.)
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A person who wishes to obtain approval to suspend or discontinue business pursuant to Article 19(1)of the Act shall submit to the Korea Communications Commission each of the following documentationat least 60 days prior to the expected suspension or closedown date. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. details of the business to be suspended or discontinued, and drawings of suchbusiness’s territories;  2. documentation indicating details of major telecommunications facilities andequipment relating to the business to be suspended or discontinued;  3. written permission (only where the whole business is discontinued); and  4. statement of reasons for such suspension or closedown.  5. notice about the proposed suspension or closedown; and  6. documentation stating a plan for customer protection in connection with theproposed suspension or disconsolation.     [Title of this Article amended on 2010.10.1]Article 25 (Criteria, Procedures, etc. for Revocation of Permits)     (1) The criteria for revocation of permits, cancellation of registration and suspension orclosedown of business pursuant to Articles 20(2) and 27(3) of the Act are as provided in Table 1attached hereto. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>:     (3) Upon revocation of permits, cancellation of registration or suspension or closedown ofbusiness under paragraph (1), the Korea Communications Commission
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shall issue public notificationthereof without delay, and notify the relevant telecommunications business operator in writing.Article 26 (Application for Registration)     (1) A person who wishes to register as a specific communications business operator pursuant toArticle 21(1) of the Act shall submit to the Korea Communications Commission an application(including an electronic application) to register as a specific communications business operatorwith each of the following documentation (including electronic documentation) attached thereto:<Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. a business proposal relating to a specific communications business;  2. articles of incorporation of the corporation (including, throughout this Article,the corporation to be established);  3. details, installment locations and a network map of major business facilities andequipment;  4. standardized terms and conditions containing provisions relating to userprotection, and details of, and a management proposal for, an office for user protection;and  5. <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) The Korea Communications Commission receiving who receives a registration applicationpursuant to paragraph (1) shall verify the commercial registry extracts and national technicalqualification certificates of the technical personnel by using the public administrativeinformation available pursuant to Article 36(1) of the E-Government Act; *provided that*, in theevent the applicant does not consent to such verification method, such applicant shall be requiredto attach the relevant documentation copies thereof to its license application. .<Amended byEnforcement Decree No. 22151 of May. 4, 2010; No. 22616 Oct. 1, 2010>
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Article 27 (Issuance of Certificates of Registration)     (1) Upon receipt of a registration application under Article 26(1) hereof, the KoreaCommunications Commission shall verify whether such registration application meets the registrationrequirements under Article 28 hereof, make recordation of each of the following in a registrationregistry of specific communications business operators and issue to the applicant a certificate ofregistration as a specific communications business operator within 30 days of the date ofapplication: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. number and date of registration;  2. title or trade name of the business and name of the representative;  3. location of the principal office;  4. capital;  5. types of services provided;  6. details of major business facilities and equipment and the locations where suchfacilities and equipment are installed;  7. details concerning technical personnel;  8. any conditions upon which the registration is authorized; and  9. <Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>.     (2) The Korea Communications Commission may, where it deems necessary, request for aregistration application already submitted to it under Article 26 hereof to be supplemented orrevised by no later than 7 days thereafter; *provided that*, such period may be extended upon requestof the applicant and may not count towards the processing time referred to in paragraph (1).
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     (3) A specific communications business operator whose certificate of registration, issuedpursuant to paragraph (1), is either lost or worn out to the extent it can no longer be used mayapply for reissuance of the certificate of registration to the Korea Communications Commission.Article 28 (Registration Requirements for Specific Communications Business)The registration requirements for a specific communications business pursuant to Article 21(5) ofthe Act are as provided in Table 2 attached hereto. <Amended by Enforcement Decree No. 22616Oct. 1, 2010>Article 29 (Reporting Procedures, etc. of Value-Added Communications Business)     (1) A person who wishes to file a report of a value-added communications business under theformer part of Article 22(1) of the Act shall submit to the Korea Communications Commission avalue-added communications business report (including an electronic report) and each of thefollowing documentation (including an electronic documentation) : 1. a network map diagram (applicable only where new types of value-addedcommunications services are reported and the Korea Communications Commission deems suchdiagram to be necessary and requests for it); and  2. a report about the privacy protection system (applicable only when personal dataare handled).     (2) The Korea Communications Commission receiving a report pursuant to paragraph (1) shallverify the commercial registry extracts by using the public administrative information availablepursuant to Article 36(1) of the E-Government Act. .<Amended by Enforcement Decree No. 22151 ofMay. 4, 2010, Amended by Enforcement Decree No. 22616 of Oct. 1, 2010>     (3) When there is an error in a value-added communications business report or thedocumentation attached to such report is insufficient, the Korea Communications
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Commission mayrequest for such report to be supplemented by no later than 10 days thereafter; *provided that*, suchperiod may be extended upon request by the person filing the report.< Amended by EnforcementDecree No. 22616 of Oct. 1, 2010>     (4) Upon receipt of a value-added communications business report under paragraph (1), theKorea Communications Commission shall issue a report certificate to the person filing such report.     (5) A value-added communications business operator whose report certificate, issued pursuantto paragraph (4), is either lost or worn out to the extent it can no longer be used may apply forreissuance of the certificate of report to the Korea Communications Commission.Article 30 (Exemption from Value-added Communications Business Operator Report)     (1) The “small-scale value-added communications business meeting the criteria prescribed underthe Enforcement Decree of the Act” in the latter part of Article 22 of the Act means value-addedcommunications business operators who provide value-added communications services using theInternet and where the capital is 100 million won or less < Amended by Enforcement Decree No.22616 of Oct. 1, 2010>     (2) In the event a value-added communications business operator who is exempted from filing areport pursuant to paragraph (1) comes to have more than 100 million won as its capital, suchvalue-added communications business operator shall file a report, within 1 month of the date onwhich it ceased to satisfy such criteria, in accordance with the former part of Article 22 (1) ofthe Act. <Amended by Enforcement Decree No. 22616 of Oct. 1, 2010>Article 31 (Amendment of Registration or Report)     (1) “As prescribed under the Enforcement Decree of the Act” in Article 23 of the Act meanseach of the following: 1. title or trade name, and address;
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 2. representative;  3. types of services provided;  4. capital (for specific communications business operators only);  5. expert personnel (for specific communications business operators only); and  6. changes to specific communications business or added-value communications businessunder Article 21(1) and the former part of Article 22(1) (includes cases wherebusinesses which have been subject to partial cancellation of the registration or partialsuspension under main bodies of Article 27(1) and (2) are sought to be resumed ).     (2) In order to amend any of the information set forth in paragraph (1), an application toregister amendment to the specific communications business, or a report of amendment to thevalue-added communications business (including an electronic application or report), anddocumentation (including electronic documentation) supporting the relevant amendment shall besubmitted to the Korea Communications Commission.     (3) Upon receipt and registration, or receipt and processing, of an application to registeramendment or a report of amendment, the Korea Communications Commission shall issue either aregistration certificate on which the relevant amendment is recorded or a report certificate.     (4) The Korea Communications Commission receiving an application to register amendment or areport of amendment pursuant to paragraph (2) shall verify the commercial registry extracts orbusiness registration certificate by using the public administrative information available pursuantto Article 36(1) of the E-Government Act; *provided that*, in the event the applicant or personfiling the report does not consent to such verification method, such applicant or person shall berequired to attach the corporate registry or business registration certificate to its report.<Amended by Enforcement Decree No. 22616 of Oct. 1, 2010>
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Article 32 (Report on Transfer of Business)     (1) A person who wishes to file a report on transfer of a specific communications business ora value-added communications business pursuant to Article 24 of the Act shall within 30 days fromthe date on which a business transfer agreement is executed submit to the Korea CommunicationsCommission a business transfer application (including an electronic application) with each of thefollowing documentation (including electronic documentation) attached thereto: <Amended byEnforcement Decree No. 22616 of Oct. 1, 2010> 1. a copy of the business transfer agreement;  2. documentation prescribed under each of the subparagraphs of Article 26(1)hereof or Article 29(1) hereof; and  3. a registration certificate or a report certificate.     (2) A person who wishes to file a report on merger of a corporation that is either a specificcommunications business operator or a value-added communications business operator pursuant toArticle 24 of the Act shall within 30 days from the date on which a merger agreement is executedsubmit to the Korea Communications Commission a merger application (including an electronicapplication) with each of the following documentation (including electronic documentation) attachedthereto: <Amended by Enforcement Decree No. 22616 of Oct. 1, 2010> 1. a copy of the merger agreement;  2. documentation prescribed under each of the subparagraphs of Article 26(1) or29(1) hereof; and  3. a registration certificate or a report certificate.     (3) A person who wishes to file a report on inheritance of a value-added communicationsbusiness operator pursuant to Article 24 of the Act shall within 30 days from the date on which thecause for the inheritance has occurred submit to the Korea
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Communications Commission an inheritance report (including an electronic application) withdocumentation (including electronic documentation) demonstrating that she or he is the heirattached thereto. <Amended by Enforcement Decree No. 22616 of Oct. 1, 2010>     (4) The Korea Communications Commission receiving a report under paragraphs (1)-(3) shallverify, through the information sharing channel under Article 36(1) of the Electronic GovernmentAct, the commercial registry extracts of the transferor or party to a merger agreement (meaning theexisting or newly established corporation), national technical qualification certificates of thetechnical personnel or a certificate of the heir’s family register; *provided that*, in the event theperson filing the report does not consent to such verification method, such person shall berequired to attach the relevant documentation (copies of national technical qualificationcertificates or a certificate of the heir’s family register) to its report. .<Amended byEnforcement Decree No. 22151 of May. 4, 2010, Amended by Enforcement Decree No. 22616 of Oct. 1,2010>     (5) Upon receipt of a report to register on transfer or merger of a specific communicationsbusiness or a value-added communications business under paragraph (1) or (2), the KoreaCommunications Commission shall issue either a specific communications business registrationcertificate or a value-added communications business report certificate.Article 33 (Report on Suspension or Closedown of Business)A person who wishes to file a report on either (i) suspension or closedown of a specificcommunications business or a value-added communications business or (ii) dissolution of acorporation that is a specific communications business operator or a value-added communicationsbusiness operator shall at least 15 days prior to the expected suspension or closedown date submitto the Korea Communications Commission a report on suspension, closedown or dissolution of aspecific communications business or a value-added communications business (including an electronicapplication) with documentation (including electronic documentation) demonstrating that users havebeen notified of such suspension or closedown attached thereto; *provided that*, in the event theinformation contained in any of such documentation can be verified through the publicadministrative information available pursuant to Article 36(1) of the E-
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Government Act, such verification may substitute for the relevant documentation. <Amended byEnforcement Decree No. 22151 of May. 4, 2010, Amended by Enforcement Decree No. 22616 of Oct. 1,2010>Chapter 3. Telecommunications OperationArticle 34 (Authorization of Standardized Terms and Conditions)     (1) The services for which key communications business operators must obtain authorization(including an authorization of amendment) of standardized terms and conditions pursuant to the mainbody of Article 28(2) of the Act shall be any of the following <Amended by Enforcement DecreeNo. 21060, Oct. 1, 2008; No. 22616 Oct. 1, 2010 >: 1. among the services provided by the key communications business operator with thehighest market share with respect to the aggregate national sales based on sales fromeach service in the preceding year, the service from which sales in the preceding yearreach or exceed the amount determined and publicly notified by the Korea CommunicationsCommission with respect to each service; or  2. if a key communications business operator providing the service prescribed undersubparagraph 1 completes business consolidation with another key communications businessoperator pursuant to Article 12(1)1 or 12(1)4 of the Monopoly Regulation and Fair TradeAct, the service prescribed under subparagraph 1 provided by such other keycommunications business operator.     (2) By 31. December each year, the Korea Communications Commission shall designate and issuepublic notification of the key communications business operators and services prescribed underparagraph (1); *provided that*, the Korea Communications Commission shall designate and issue publicnotification of the key communications business operators and services falling under subparagraph 2of paragraph (1) immediately after the date of report on business consolidation thereunder.<Amended by Enforcement Decree No. 22616 Oct. 1, 2010>
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     (3) Notwithstanding the provisions under paragraph (1), a key communications business operatorwho wishes to amend minor aspects of standardized terms and conditions as prescribed by the KoreaCommunications Commission may file a report with the Korea Communications Commission.Article 35 (Application for Authorization of Standardized terms and conditions )A person who wishes to file a report (including a report on amendment) on standardized terms andconditions with respect to telecommunications services pursuant to Article 28(1) or (2) of the Actor obtain an authorization (including an authorization of amendment) pursuant to the main body ofArticle 28(2) of the Act shall submit to the Korea Communications Commission standardized terms andconditions containing each of the following with documentation demonstrating the bases for pricecomputation pursuant to Article 28 (4) of the Act attached thereto: <Amended by EnforcementDecree No. 22616 Oct. 1, 2010> 1. types and details of telecommunications services;  2. areas in which telecommunications services are provided;  3. prices of telecommunications services, including fees and actual expenses;  4. details concerning the responsibilities of telecommunications business operatorsand users of telecommunications services; and  5. any other information necessary the provision or use of the relevanttelecommunications services.Article 36 (Services Entitled to Reduction or Exemption of Fees)     Telecommunications services entitled to the reduction or exemption of fees pursuant to Article29 of the Act shall be as follows. .<Amended by Enforcement Decree No. 22003 of Jan. 27, 2010;No. 22616 Oct. 1, 2010 >
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 1. Telecommunications services for the communications concerning the rescue of humanlives and properties in danger, and the rescue from disasters or for the communicationsby the victims of disasters;  2. Telecommunications services for the whole or part of exclusive line communicationsused by such agencies, in case where the exclusive line communications of agencies whichare fully responsible for military, public order and national security, and a part ofself-communications network of the State, local governments or government-investedinstitutions are integrated into the telecommunications net-work of a key communicationsbusiness;  3. Telecommunications services for the communications required for military operationsin wartime;  4. Telecommunications services for the newspapers under the Act on the Promotion ofNewspapers, etc., and for communication for news reports by the broadcasting stationsunder the Broadcasting Act;  5. Telecommunications services for a communication which is required for facilitatingthe use, and for diffusing the distribution, of information communications;  6. Telecommunications services for a communication by those who are in need of theprotection for the improvement of social welfare;  7. Telecommunications services for a communication which is required for the promotionof interchange and cooperation between North and South Korea; and  8. Telecommunications services for a communication which is specially required for theoperation of postal services.Article 37 (Provision of Transmission or Line Facilities and Equipment, etc.)
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Pursuant to Article 31(1) of the Act, the composite cable TV business operator, transmissionnetwork business operator, or relay cable broadcasting business operator under the Broadcasting Actmay provide transmission or line facilities and equipment or the cable TV broadcasting facilitiesand equipment (the “Transmission or Line Facilities and Equipment, etc.”) to key communicationsbusiness operators in a manner falling under one of the following: <Amended by EnforcementDecree No. 22616 Oct. 1, 2010> 1. sale or lease of transmission or line facilities, etc.;  2. commissioned performance of the communications or exchange operations, etc. bymaking use of transmission or line facilities, etc.; or  3. manners corresponding to subparagraphs 1 and 2, which are determined by aconsultation between key communications business operator and the composite cable TVbusiness operator or transmission network business operator or relay cable broadcastingbusiness operatorArticle 37-2 (Prepaid phone services and subscription of guarantee insurance)     (1) A key communications services operator that seeks to provide telecommunications serviceson a prepaid basis (“prepaid phone services”) pursuant to the main body of Article 32(3) shallsubmit each of the following items to the Korea Communications Commission, provided that a specificcommunications business operator shall submit it to the head of the Central Radio ManagementOffice. 1. a copy of guarantee insurance;  2. data about the aggregate service charges for the prepaid phone services for the pertinentyear (“prepaid phone service charges”);  3. guide for the use of the prepaid phone services;  4. other materials specified and announced by the Korea Communications
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     Commission for prepaid phone services business standards and customer protection, etc.     (2) A telecommunications business operator seeking to provide the prepaid phone services underparagraph (1) shall abide by each of the following:1. the prepaid phone services shall be provided within the coverage period of the guaranteeinsurance;2. if additional prepaid phone services are to be provided within the coverage period of theguarantee insurance, such additional prepaid phone services shall be provided within theactually used portion of the prepaid phone service charges;3. if the prepaid phone service charges are to be changed, the guarantee insurance shall berenewed at least 30 days prior to such change. In this case, a copy of the renewed guaranteeinsurance policy shall be provided to the Korea Communications Commission or the head of theCentral Radio Management Office within 7 days of such renewal;4. if the services are to be provided after the expiration of the guarantee insurance, theguarantee insurance shall be renewed at least 30 days prior t the expiration date. In thiscase, financial statements and other materials specified by the Korea CommunicationsCommission shall be provided to the Korea Communications Commission or the head of theCentral Radio Management Office within seven; and5. measures to make paragraph (1)3 and 4 easily comprehensible to users shall be taken.     (3) The “amount calculated according to standards specified under the Enforcement Decree ofthe Act” in the main body of Article 32(3) is an amount not less than 50% of the prepaid phoneservice charges and determined in accordance with the standards announced by the KoreaCommunications Commission, taking into consideration the prepaid phone service provider’s pain-incapital and the prepaid phone service charges.     (4) The “case specified under the Enforcement Decree of the Act” in the proviso of Article32(3) means each of the following case:
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1. average annual revenue from telecommunication services provided by a telecommunicationsbusiness operator for the recent 3-year period is 30 billion won or more;2. aggregate prepaid phone service charges is less than 10% of the annual revenue fromtelecommunication services provided by a telecommunications business in the past year; and3. provision of prepaid phone services in the past 3-year period without suspension orclosedown.     (5) When the beneficiary receives insurance proceeds, such shall be distributed to userswithin 60 days from the date of receipt under Article 32(4) of the Act, provided that if thedistributions payable amount exceeds the insurance proceeds, the insurance proceeds will bedistributed in proportion to loss amounts.     (6) business standards and methods concerning the guarantee insurance and insurance proceedsnot other wise specified in paragraph (2 )and (5) shall be determined and announced by the KoreaCommunications Commission.[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]Chapter 4. Promoting Competition In Telecommunications BusinessArticle 38 (Criteria and Procedures for, and Methods of, Evaluating Competition Status)     (1) When making determination concerning unit markets for the purpose of evaluatingcompetition status pursuant to Article 34(2) of the Act, all of the following factors shall beconsidered: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. demand substitutability and supply substitutability of the services;  2. geographical scope of the services provided;
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 3. transaction stages of the services provided such as retail (meaning transactionsbetween telecommunications business operators and ultimate users of the servicesprovided by such telecommunications business operators) and wholesale (meaningtransactions through which telecommunications facilities and equipment, etc., installedto provide wholesale services, are offered to other telecommunications businessoperators); and  4. special characteristics of users such as differences in purchasing power andnegotiating edge or uniqueness of demand.     (2) Evaluation of competition status with respect to the unit markets determined underparagraph (1) shall be implemented by comprehensively considering each of the following factors: 1. market structure such as market share and entrance barrier;  2. response capacity of users such as accessibility of information related toservice use and ease of switching service providers;  3. activities of telecommunications business operators such as those relating toprice and quality competition and technology innovation; and  4. market performances such as the level of price and quality and the size ofexcess profits made by telecommunications business operators.     (3) Where it deems necessary for evaluating competition status, the Korea CommunicationsCommission may invite opinions from relevant professionals and related parties.Article 39 (Criteria applicable to Key Communications Business Operators, etc.)     (1) The “key communications business operators satisfying the criteria prescribed under theEnforcement Decree of the Act” in Articles 35(2)3, 39(3)2, 41(3)2 and 42(3)2 of the Act means,where sales of certain key communications business
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operators in each service from the preceding year exceed the amount determined and publiclynotified by the Korea Communications Commission with respect to each service, those businessoperators whose market share in relation to the national aggregate sales from the relevant serviceis 50% or higher. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) A facility management institution under Article 35(2)3 is a facility managementinstitution whose the aggregate size of facilities, etc. under Article 35(1) (“facilities, etc.”)owned last year or revenue from providing facilities, etc. exceeds certain thresholds announced bythe Korea Communications Commission. <Newly Inserted by Enforcement Decree No. 22616 Oct. 1,2010>     (3) By 31. December, each year, the Korea Communications Commission shall designate and issuepublic notification of the key communications business operators prescribed under Articles 35(2)1and 3, 39(3), 41(3) and 42(3) of the Act and facilities management institution prescribed underArticle 35(2)3 of the Act. <Amended by Enforcement Decree No. 22616 Oct. 1, 2010>Article 39-2 (Submission of Data on Facilities, etc. and Procedures, etc.)     (1) Each telecommunications business operator and facilities management institution shallprovide each of the following to the Korea Communications Commission by March 31 of each year.1. status of facilities, etc., as announced by the Korea Communications Commission, aboutthe facilities, etc. owned by the telecommunications business operator and facilitiesmanagement institution; and2. status of facilities, etc. provided to a telecommunications business operator by a keycommunications business operator or a facilities management institution.     (2) The Korea Communications Commission may provide financial support within its budget toexpert institutions for their operation under Article 35(6).[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]
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Article 39-3 (Standards for Providing Obligatory Wholesale Services)     (1) The “telecommunications services of a key communications business operator specifiedunder Article 38(2) of the Act” means services of the key communications business operator withthe highest market share of the aggregate domestic revenue on the basis of revenue per servicelast year that exceed thresholds specified for individual services announced by the KoreaCommunications Commission.     (2) The Korea Communications Commission shall designate and announce key communicationsbusiness operators under paragraph (1) by December 31 of each year.[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]Article 40 (Report on Accord, etc. concerning Interconnections, etc.)     (1) A person who wishes, under Article 38(5) or 44(1) or (2) of the Act, to file a report on,or obtain an authorization of wholesale provision, provision, common use or interconnection offacilities, etc. and equipment or the execution or termination of, or an amendment to, an accord onprovision of information shall submit to the Korea Communications Commission each of the followingdocumentation to the Korea Communications Commission, provided that in case of termination, onlyparagraphs 1 and 6 need to be submitted and in case of nominal matters such as no change in servicecharges, etc. announced by the Korea Communications commission, only paragraph 5 needs to besubmitted.: <Amended by Enforcement Decree No. 22616 Oct. 1, 2010> 1. copy of the accord;  2. documentation demonstrating the amounts due from, or payable to, the parties to theaccord, the computation methods with respect to such amounts and how the accord shall beimplemented;  3. documentation demonstrating wholesale provision, provision, common use orinterconnection of, or conditions upon which information shall be provided on,facilities, etc. and equipment, and any other costs related to the accord;
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 4. drawings indicating wholesale provision, provision, facilities, etc. provision,common use or interconnection of, or a summary of the information (including outlay ofconnection grid and connection points) to be provided on, facilities, etc. and equipment;and  5. documentation comparing the new accord against the old (applicable only to filingof a report of amendment or applying for an authorization of amendment).  6. documentation confirming closedown (including electronic documentation)     (2) Upon receipt of documentation under paragraph (1), the Korea Communications Commissionshall examine whether such documentation comply with the criteria for provision, common use,wholesale provision or interconnection of, or provision of information on, facilities, etc. andequipment pursuant to Article 35(3), 37(3), 38(4), 39(2), 41(2) or 42(2) of the Act. <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>     (3) A key communications business operator that has received authorization for execution,amendment or termination of an agreement under Article 44(2) of the Act shall publish details ofsuch on its website. <Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010>     (4) Pursuant to Article 65(3) of the Act , upon receipt of documentation under paragraph (1),the Korea Communications Commission shall examine whether such documentation complies with thecriteria for provision, common use or interconnection of, or provision of information on,telecommunications facilities and equipment pursuant to Article 35(3) of the Act, and whether theprivate telecommunications facilities and equipment provided were installed by an individual to beused for her or his own telecommunications. <Amended by Enforcement Decree No. 22616 Oct. 1,2010>Article 40-2 (Request for Arbitration)A person wishing to make a request for arbitration under Article 45(1) of the Act shallattach each of the following documentation to its arbitration application
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and submit them to the Korea Communications Commission, provided that the item underparagraph 3 shall be submitted only in the case of the request under Article 45(1)3.1. documents about overview of the arbitration request;2. documents about negotiation between the parties; and3. each of the documentation under Article 40(1).     ‚After reviewing the application documents under paragraph (1), the Korea CommunicationsCommission may demand the applicant to submit additional information within a certain period oftime for any of the following reasons:1. in the case where any required document is missing2. in the case where any entry in the application and attachments is vague.     ƒIf the applicant fails to provide additional information within the time period specifiedunder paragraph (2), the Korea Communications Commission shall return the application along with areason for such return.[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]Article 40-3 (Arbitration Decision)     An arbitration decision by the Korea Communications Commission shall be made in writing.     ‚The arbitration decision under paragraph (1) shall state the ruling, reason and date ofdecision, be signed by the Commissioner of the Korea Communications Commission and commissionmembers who attended the arbitration deliberation and be sent to the parties to the dispute.[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]
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Article 41 (Reporting prohibited acts)     (1) Any person recognizing any of the prohibited acts prescribed under Article 50(1) of theAct may report to the Korea Communications Commission of such act and request any measuresprescribed under each of the subparagraphs of Article 52(1) of the Act to be taken. <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>     (2) A person who wishes to make a report under paragraph (1) shall submit to the KoreaCommunications Commission documentation indicating each of the following: 1. name (if a corporation, the name of the corporation and its representative) andaddress of the person making the report;  2. trade name, or name (if a corporation, the name of its representative), and addressof the person being reported;  3. details of the prohibited act; and  4. measures necessary for addressing the prohibited act.     (3) The Korea Communications Commission may, where it deems necessary, request that thedocumentation submitted to it under paragraph (2) be supplemented within a period reasonably fixed.     (4) The details of handling procedures and methods concerning application, supplementation,prohibition and violation under paragraphs (1) through (3) shall be determined and announced by theKorea Communications Commission.<Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 42 (Types of and Criteria for Prohibited Acts)     (1) The types of, and criteria for, the prohibited acts pursuant to Article 50(3) of the
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Act shall be as provided in Table 3 attached hereto. <Amended by Enforcement Decree No. 22616Oct. 1, 2010>     (2) The Korea Communications Commission may, where it deems necessary for the purpose ofapplying to specific telecommunications fields or specific prohibited acts , determine and issuepublic notification of the details concerning the types of, and criteria for, the prohibited actsunder paragraph (1).Article 43<Deleted by Enforcement Decree No. 22616 Oct. 1, 2010>Article 44 (Measures Taken, etc. on Offenses)     The term “other matters prescribed under the Enforcement Decree of the Act” in Article 52(1)11of the Act refers to each of the following: <Amended by Enforcement Decree No. 22616 Oct. 1,2010> 1. submission of a plan for implementing the provisions under Article 52(1)1-10 ofthe Act; and  2. report on the results of the implementation of the provisions under Article52(1)1-10 of the Act.Article 44-2 (Announcement of Corrective Order)The details of contents and method of announcement about corrective order made under Article 52(1)8shall be determined and announced by the Korea Communications Commission.[This Article Newly Inserted by Enforcement Decree No. 22616 Oct. 1, 2010]Article 45 (Implementation Period of Corrective Orders)
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The period by the end of which telecommunications business operators shall implement the correctiveorder issued by the Korea Communications Commission pursuant to Article 52(2) of the Act shall beas provided in Table 4 attached hereto. <Amended by Enforcement Decree No. 22616 Oct. 1,2010>Article 46 (Offenses Subject to Imposition of Penalty surcharge and Amount of Such Penaltysurcharge, etc.)     (1) The classifications of offenses subject to imposition of penalty surcharge, the upperlimit of such penalty surcharge and the criteria for imposition of such penalty surcharge pursuantto Article 53(1) of the Act shall be as provided in Table 5 attached hereto. <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>     (2) The types of violation subject to fine under Article 53(2) of the Act, maximum fine amountand fine calculation method are set forth in Table 5-2. <Newly Inserted by Enforcement DecreeNo. 22616 Oct. 1, 2010>Article 47 (Computation Methods of Penalty Surcharge)     (1) The term “sales as prescribed under the Enforcement Decree of the Act” in the text ofArticle 53(1) of the Act means the average annual sales for the 3 preceding fiscal years of thetelecommunications services related to the offense committed by the relevant telecommunicationsbusiness operator and the “sales as prescribed under the Enforcement Decree of the Act” in Article53(2) of the Act means the average annual sales for the 3 preceding fiscal years of thetelecommunications services related to the offense committed by the relevant telecommunicationsbusiness operator; *provided that*, if, as of the first day of the applicable fiscal year, less than3 years have elapsed since the commencement of the relevant business as of the first day of therelevant fiscal year, such term shall mean the sales of the period from the commencement of therelevant business until the last day of the preceding fiscal year, converted into annual averagesales, or if the relevant business has been commenced in the applicable fiscal year, such termshall mean sales of the period from the commencement date of the relevant business until the dateof commission of the offense, converted into annual sales. <Amended by Enforcement Decree No.22616 Oct. 1, 2010>
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     (2) The term “the time prescribed under the Enforcement Decree of the Act” in the provision ofArticle 53(1) of the Act means any of the following: <Amended by Enforcement Decree No. 22616Oct. 1, 2010> 1. where there has been no sales result due to such reasons as non-commencement orsuspension of business; or  2. where it is difficult to make an objective computation of sales.Article 48 (Imposition and Payment of Penalty Surcharge)     (1) The Korea Communications Commission shall, where it intends to impose penalty surchargepursuant to Article 53 of the Act and subsequent to its investigation and verification of therelevant offense, notify, in writing, the person subject to such penalty surcharge of the fact ofoffense, the amount thereof and the method of, and the period for, raising objection thereto.<Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) A person who receives a notification under paragraph (1) shall pay the relevant penaltysurcharge to a financial institution designated by the Korea Communications Commission within 20days from the date of receiving such a notification; *provided that*, if the person is unable to paythe penalty surcharge within such period due to a natural disaster or other unavoidablecircumstances, the person shall pay the penalty surcharge within 7 days from the date on which saidreason ceases to exist.     (3) A financial institution in receipt of a payment of penalty surcharge under paragraph (2)shall deliver a receipt thereof to the person who paid the penalty surcharge .Article 49 (Demand for Penalty surcharge)     (1) A demand for penalty surcharge pursuant to Article 53(6) of the Act shall be made inwriting within 7 days from the date on which the payment deadline expires.
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<Amended by Enforcement Decree No. 22616 Oct. 1, 2010>     (2) Where a demand note is issued under paragraph (1), a deadline for payment of any penaltysurcharge in arrear shall be within 10 days from the date on which such demand note is issued.Article 50 (Services Subject To Prior Selection)The “telecommunications services prescribed under the Enforcement Decree of the Act” in the latterpart of Article 57(1) of the Act means the Long Distance Telephone Service. <Amended byEnforcement Decree No. 22616 Oct. 1, 2010>