**Exhibit 15.7**

 

**ENFORCEMENT DECREE OF THE TELECOMMUNICATIONS BUSINESS ACT**

 

 

**Article 1 (Purpose)**

 

The purpose of this Decree is to provide for matters delegated under TelecommunicationsBusiness Act (hereinafter referred to as the “Act”) and matters necessary for its enforcement. 

 

**Article 2 (Definition)**

 

The terms inthis Decree shall be the same as defined in the Act. 

 

**Article 2-2 (Contentsof Universal Service)**

 

(1) The contents of universal services asprescribed in Article 3-2 (4) of the Act shall be as follows: <Amended by Presidential Decree No. 17237, Jun. 12, 2001> 

 

1. Wire telephone services; 

 

2. Telephone services for emergency communications; and 

 

3. Telephone services whose fees are reduced or exempted for the handicapped and the low income class. 

 

(2) The detailed contents of universal services under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Information and Communication. [This ArticleNewly Inserted by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 2-3(Designation of Telecommunications Business Operator who Provides Universal Services)**

 

(1) For the purpose of the efficient and stabilized provision of universal services, the Minister of Information and Communication may designate a telecommunications business operator who provides universal services(hereinafter referred to as a “business operator providing universal 

 

services”) in consideration of the scale, quality and level of fees of universal services and the technical capacity of a telecommunications businessoperator. 

 

(2) If the Minister of Information and Communication intends todesignate a business operator providing universal services under paragraph (1), the Information and Communications Policy Deliberation Council as prescribed in Article 44-2 of the Framework Act on Telecommunications shall deliberate thereon.

 

(3) A telecommunications business operator who is designated as a businessoperator providing universal services under paragraph (1) shall submit, to the Minister of Information and Communication every year not later than the end of the year preceding the provision of relevant services, a written plan for provision ofuniversal services which includes the method of, and the expenses for, providing the relevant services. 

 

[This Article Newly Inserted by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 2-4 (Replenishment of Losses Incurred by Provision of Universal Services)**

 

(1) The Minister of Information and Communication may have the telecommunications business operators, who are not business operators providing universal services, bearthe fund for replenishing the whole or part of losses incurred by a provision of universal services by business operators providing universal services (hereinafter referred to as the “money to replenish losses from universal services”),according to their turnovers. In this instance, the Minster of Information and Communication shall have telecommunication business operator who provides key communications business which shall be subject of an authorization with regard to thestandardized use contract as provided in second sentence of Article 29 (1) of the Act bear the fund in excess of its sharing ratio within 10% of its sharing ratio which is determined by its turnover depending on his size of business, market share,ability to bear the fund, and etc. <Amended by Presidential Decree No. 18223, Jan. 13, 2004> 

 

(2) A business operator providing universal services, who intends to receive the money to replenish losses from universal services, shall submit a report on the actual results of a provision of universal services,including expenses for and incomes and losses from the provision thereof, to the Minister of Information and Communication within three months after the expiration of the relevant fiscal year. 

 

(3) The Minister of Information and Communication may, if deemed necessary for theverification of the report on actual results of a provision of universal services under paragraph (2), request a specialized institution to examine it. 

 

(4) Matters necessary for computing method, criteria , excessive sharing, modification and etc. for sharing the money to replenish losses from universal services shall beprescribed by the Ordinance of the Ministry of Information and Communication. <Amended by Presidential Decree No. 18223, Jan. 13, 2004> 

 

[This Article Newly Inserted by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 2-5 (Application for License, etc.)**

 

(1) A person who intends to obtain a license under Article 5 (1) of the Act may make an application in the name of the representative of a juristic person, or of the nameof representative of the stockholders, etc. of a juristic person to be established. 

 

(2) If the Minister of Information and Communication intends to give a public notice under Article 5 (4) of the Act, thesubject matters shall be deliberated in advance by the Information and Communications Policy Deliberation Council as stipulated in Article 44-2 of the Framework Act on Telecommunications: Provided, That this shall not apply to the license on theminor business as provided for in proviso of Article 5 (2) of the Act. <Amended by Presidential Decree No. 15283, Feb. 22, 1997> 

 

[This Article Newly Inserted by Presidential Decree No. 14572, Apr. 6, 1995] 

 

**Article 3 (Stockholding Ratio of Foreigners, etc.)**

 

The term “ratio of holding stocks prescribed by the Presidential Decree” in the text of subparagraph 3 (c) of Article 6 of the Act shall be 80/100. However, itshall be 15/100 or more when a foreigner or a foreign government is the largest stockholder under Article 54-5 (4)2 of the Securities and Exchange Act. 

 

[This Article Wholly Amended by Presidential Decree No. 18223, Jan. 13, 2004] 

 

**Article 4**

 

Deleted. <by Presidential Decree No. 16186, Mar. 17, 1999> 

 

**Article 5 (Business Excluded from Approval for Concurrent Operation)**

 

The term “business as prescribed by the Presidential Decree” referred to in the proviso of Article 11 (1) of the Act means the business except for those falling under any of the following subparagraphs:

 

1. Business to manufacture the telecommunications equipments; 

 

2. Information and communications work business under subparagraph 3 of Article 2 of theInformation and Communications Work Business Act (excluding the business to improve or integrate the telecommunications networks); and 

 

3. Service business under subparagraph 6 of Article 2 of the Information and Communications Work Business Act (excluding the business to improve or integrate thetelecommunications networks). 

 

[This Article Wholly Amended by PresidentialDecree No. 17237, Jun. 12, 2001] 

 

**Article 6**

 

Deleted. <by Presidential Decree No. 16186, Mar. 17, 1999> 

 

**Article 7**

 

Deleted. <by Presidential Decree No. 16424, Jun. 30, 1999> 

 

**Articles 8 through 8-4**

 

Deleted. <by Presidential Decree No. 16186, Mar. 17, 1999> 

 

**Article 9 (Report, etc. of Value-Added Communications Business Operator)**

 

(1) A person who intends to make a report of a value-added communications business under the text of Article 21 of the Act shall submit, to the Minister of Informationand Communication, a telecommunications business report as determined by the Ordinance of Ministry of Information and Communication. 

 

(2) The term “minor business” in the proviso of Article 21 of the Act refers to the business providing the service which does not intermediate other’scommunication by leasing telecommunications line facilities. [This Article Wholly Amended by Presidential Decree No. 14572, Apr. 6, 1995] 

 

**Article 10 (Services Subject to Reduction and Exemption of Fees)**

 

Telecommunications services subject to the reduction and exemption of fees under Article 32 of the Act shall be as follows: <Amended by Presidential Decree No. 14572,Apr. 6, 1995> 

 

1. Telecommunications services for the communicationsconcerning the rescue of human lives and properties in danger, and the rescue from disasters or for the communications by the victims of disasters; 

 

2. Telecommunications services for the whole or part of exclusive line communications used by such agencies, in case where the exclusive line communications of agencieswhich are fully responsible for military, public order and national security, and a part of self-communications network of the State, local governments or government-invested institutions are integrated into the telecommunications net-work of a keycommunications business; 

 

3. Telecommunications services for the communicationsrequired for military operations in wartime; 

 

4. Telecommunications servicesfor the newspapers and news agency service under the Registration, etc. of Periodicals Act, and for communication for news reports by the broadcasting stations under the Broadcasting Act; 

 

5. Telecommunications services for a communication which is required for facilitating the use, and for diffusing the distribution, ofinformation communications; 

 

6. Telecommunications services for a communicationby those who are in need of the protection for the improvement of social welfare; 

 

7. Telecommunications services for a communication which is required for the promotion of interchange and cooperation between North and South Korea; and 

 

8. Telecommunications services for a communication which is specially required for the operation of postal and telegraphic services.

 

**Article 10-2**

 

Deleted. <by Presidential Decree No. 18223, Jan. 13, 2004> 

 

**Article 10-3 (Provision of Transmission or Line Facilities, etc.)**

 

A CATV broadcasting business operator, a signal transmission network business operator, or a relay CATV broadcasting business operator under the Broadcasting Act may,pursuant to Article 32-4 (1) of the Act, provide the transmission or line facilities or the CATV broadcasting facilities (hereinafter referred to as the “transmission or line facilities, etc.”) to the key communications business operatorin a manner falling under one of the following subparagraphs: 

 

1. Sale or leaseof transmission or line facilities, etc.; 

 

2. Commissioned performance of thecommunications or exchange operations, etc. by making use of transmission or line facilities, etc.; and 

 

3. Manners corresponding to subparagraphs 1 and 2, which are determined by a consultation between a CATV broadcasting business operator, a signal transmission network business operator, or a relay CATV broadcastingbusiness operator. 

 

[This Article Wholly Amended by Presidential Decree No.17237, Jun. 12, 2001] 

 

**Article 10-4 (Subsidy for Purchase Price ofTelephone, etc.)**

 

(1) Telecommunications business operator may support orsubsidize part or whole of the purchase price of telephone for users as provided in the second sentence of Article 36-3 (1) 5 in the following circumstances: 

 

1. When the phones are necessary for provision of key communications services which market size and diffusion rate falls short of standard fixed by Ordinance of theMinistry of Information and Communication and it is recognized that allowing assistance or subsidy for such phones will not hamper fair competitions or users’ interests. 

 

2. When new technology is applied to the phones in order for development or promotion of new information communication technology or activeuse of new key communications services or when it is recognized that there is need to promote the spread of the phones which are necessary for provision of new key communications services. 

 

(2) Minister of Information and Communication shall prescribe and give public notice ofdetailed standards on support or assistance for cost under paragraph (1) and the limit thereof. In this instance, the Minister of Information and Communication shall consider, among other factors, progress of telecommunications technology,production and sales of phones and competition in the communications market. 

 

[This Article Newly Inserted by Presidential Decree No. 18223, Jan. 13, 2004] 

 

**Article 10-5 (Types and Standards of Prohibited Acts)**

 

(1)Types and standards of prohibited acts prescribed by Article 36-3 (3) of the Act shall be stated in attached Table 1. 

 

(2) In case it is recognized by the Minister of Information and Communication that it is necessary for application tospecific field of telecommunications or specific prohibited act, he may prescribe and make public announcement of detailed standards on types and standards of prohibited acts under paragraph (1). 

 

[This Article Newly Inserted by Presidential Decree No. 18309, Mar. 9, 2004] 

 

**Article 11 (Investigation of Facts)**

 

A public official who intends to enter and investigate an office and business place of atelecommunications business operator or a business place of a person who is entrusted with the affairs of a telecommunications business operator pursuant to Article 36-4 (2) of the Act, shall have any parties concerned of the relevant office orbusiness place be present at the investigation. <Amended by Presidential Decree No. 16186, Mar. 17, 1999> 

 

[This Article Newly Inserted by Presidential Decree No. 15579, Dec. 31, 1997] 

 

**Article 12 (Measures, etc. on Prohibited Acts)**

 

The term “other matters as prescribed by the Presidential Decree” in Article 37 (1) 9 of the Act refers to the followings: <Amended by Presidential DecreeNo. 15283, Feb. 22, 1997; Presidential Decree No. 17237, Jun. 12, 2001; Presidential Decree No. 18006, Jun. 23, 2003> 

 

1. Suspension of an act which unjustly hinders a participation of a new telecommunications business operator; 

 

2. Suspension of the provision of the services, installation of telecommunicationsfacilities, or other similar acts which are likely to actually restrict the competitions among the telecommunications business operators, or substantially hamper the user’s interests; and 

 

3. Improvement of working procedures which actually restrict competition among thetelecommunications business operators. 

 

**Article 12-2 (Period to Carry OutOrder for Corrective Measures)**

 

The period for a telecommunicationsbusiness operator to carry out the order to take corrective measures from the Korea Communications Committee under Article 37 (2) of the Act shall be stated in attached Table 1-2. <Amended by Act No. 18309, Mar. 9, 2004> 

 

[This Article Newly Inserted by Presidential Decree No. 18006, Jun. 23, 2003] 

 

**Article 13 (Offenses Subject to Imposition of Penalty Surcharge, and Amount of PenaltySurcharge, etc.)**

 

(1) The classifications of offenses subject to theimposition of a penalty surcharge under Article 37-2 (2) of the Act and the upper limit of the penalty surcharge on such offences shall be stated in attached Table 2. <Amended by Presidential Decree No. 18006, Jun. 23, 2003> 

 

(2) In determining the amount of a penalty surcharge under paragraph (1), the Communication Committee shall take thefollowing reasons into consideration: <Amended by Presidential Decree No. 16774, Apr. 1, 2000; Presidential Decree No. 18006, Jun. 23, 2003 > 

 

1. Contents and levels of the offenses; 

 

2. Period and frequency of the offenses; 

 

3. Scale of any profits acquired by the offenses; and 

 

4. Amount of sales of telecommunications services relating to the prohibited act of a business operator who has committed a violation. 

 

[This Article Newly Inserted by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 13-2 (Computation Methods of Penalty Surcharge)**

 

(1) The term “turnover as prescribed by the Presidential Decree” in the text ofArticle 37-2 (1) of the Act means the average annual turnover for three preceding business years of the telecommunications services related to the prohibited acts of the relevant telecommunications business operator: Provided, That if three yearshave not elapsed since the commencement of business as of the first day of the relevant business year, it shall mean the amount of converting the turnover till the end of preceding business year since the commencement of the said business into theaverage annual turnover, and if the business is commenced in the said business year, it shall mean the amount of converting the turnover from the commencement of business to the date of offense into the average annual turnover. 

 

(2) The term “where there is no turnover or it is difficult to calculate the turnover asprescribed by the Presidential Decree” in the proviso of Article 37-2 (1) of the Act means any of the following subparagraphs: 

 

1. Where there is no actual business result due to a non-commencement of business or a suspension thereof, etc.; 

 

2. Where a telecommunications business operator refuses a submission of the data for turnovercomputation, or submits the false data; and 

 

3. Where it is difficult to makean objective computation of turnovers. 

 

[This Article Newly Inserted byPresidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 13-3 (Imposition andPayment of Penalty Surcharge)**

 

(1) The Minister of Information andCommunication shall, in case where he intends to impose a penalty surcharge under Article 37-2 of the Act, notify a person subject to an imposition of penalty surcharge, after investigating and confirming the relevant offense, of the paymentthereof, by clarifying in writing the fact of offense, the amount of imposition, the method of objection and its period. 

 

(2) A person in receipt of a notification under paragraph (1) shall pay it to a postal agency within twenty days from the date of receiving such a notification: Provided,That if he is unable to pay a 

 

penalty surcharge within the relevant period due to a natural disaster or other inevitable reasons, he shall pay it within seven days from the date when thesaid reasons have disappeared. 

 

(3) A postal agency in receipt of a payment ofpenalty surcharge under paragraph (2), shall deliver a receipt to a person who has paid it. 

 

[This Article Newly Inserted by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 13-4 (Demand for Penalty Surcharge Payment)**

 

(1) A demand under Article 37-2 (4) of the Act shall be made in writing within 7 days from the date on which the payment deadline elapsed. 

 

(2) Where a demand note is issued under paragraph (1), a deadline for payment of any penalty surcharge in arrear shall be within 10 daysfrom the date on which such demand note is issued. 

 

[This Article WhollyAmended by Presidential Decree No. 16774, Apr. 1, 2000] 

 

**Article 14**

 

Deleted. <by Presidential Decree No. 16424, Jun. 30, 1999>

 

**Article 15 (Reduction and Exemption of Expenses for Moving)**

 

(1) Expenses necessary for a moving of telecommunications facilities or a removal ofother obstacles may be reduced or exempted by the key communications business operator under the proviso of Article 51 (3) of the Act in the cases of the following subparagraphs: 

 

1. Where the plan for a moving of relevant telecommunications facilities or a removal of other obstacles has already been fixed; 

 

2. Where a moving of relevant telecommunications facilities or a removal of otherobstacles is beneficial to other telecommunications facilities; and 

 

3. Wherethe telecommunications facilities in the private land inflict a significant impediment to the use of relevant land. 

 

(2) Apart from the cases under paragraph (1), if the State or the local government requests a moving of telecommunications facilities or a removal of other obstacles, theexpenses necessary for a moving and other measures for a removal of obstacles may be reduced or exempted in consultation with the relevant requester. 

 

**Article 15-2 (Request for Order to Cease Dealing with Unlawful Communication, etc.)**

 

(1) In the event a head of the central administrative agency wishes to make a request to the Minister of Information and Communication undersecond sentence of Article 52 (2) to give an order to the telecommunications business operator to reject, cease or to restrict handling telecommunication under the subparagraphs 7 to 9 of this paragraph (1), he shall submit documents containing thefollowing 

 

along with documents relating to evidence and relevant documents to the Minister of Information and Communication. 

 

1. Purpose and reason for the request; 

 

2. Pertinent laws and content of violations; 

 

3. List of relevant information and source; and 

 

4. Contact information, such as, name, address, phone number, email address, etc., of therelevant telecommunications business operator and user. 

 

(2) If the Minister ofInformation and Communication discovers a flaw in the documents and etc, submitted in accordance with paragraph (1) above, he may make a demand for supplementation to the head of the central administrative agency within three days of receiving thedocuments. In this instance, five days for supplementation must be given. 

 

(3)If after seven days from the due date of supplementation, no supplementary documents are received, the Minister of Information and Communication may return the relevant documents to the central administrative agency. 

 

[This Article Newly Inserted by Presidential Decree No. 18223, Jan. 13, 2004] 

 

**Article 16 (Reasons for Exceptions to Presentation of Opinion )**

 

The term “instances as prescribed by the Presidential Decree” under Article 53 (3)(2) of the Act means any of the followings:****

 

(1) When the user of thetelecommunications cannot be ascertained (limited to the instance where user presents an opinion); 

 

(2) When it is determined that the content of the order becoming public beforehand as a result of giving a chance to present an opinion will materially harm the public interest; 

 

(3) When it is determined that a opinion hearing is unnecessary because the fact making upthe premise of the order becomes objectively proven due to a judgement of the court, and etc. 

 

[This Article Wholly Amended by Presidential Decree No. 18223, Jan. 13, 2004] 

 

**Article 16-2 (Organization of Information Communication Ethics Committee, etc.)**

 

(1) The Chairman of the Information Communication Ethics Committee (hereinafter referred to as the “Committee”) under Article 53-2 of the Act shall be electedby mutual vote among the members of the Committee. <Amended by Presidential Decree No. 18006, Jun. 23, 2003> 

 

(2) The Chairman shall represent the Committee, assume overall control of the business of the Committee, convene the Committee, and preside over the Committee.

 

(3) The term of the members shall be two years and terms may be renewed.[Newly Inserted by Presidential Decree No. 18006, Jun. 23, 2003] 

 

(4) The Committee shall deliberate on the matters of each of the following subparagraphs: <Amended by PresidentialDecree No. 15579, Dec. 31, 1997; Presidential Decree No. 18006, Jun. 23, 2003> 

 

1. Basic principles concerning the ethics of information and communication; 

 

1-2. Matters on unlawful telecommunication under Article 53 of the Act. 

 

2. Deliberation on the information under Article 16-3, and request for correction thereof; 

 

3. Matters on the settlement of users’ discontents related to the restriction on the use of information under Article 16-3; 

 

4. Plans for ensuring a soundness of information circulated by using telecommunications lines; 

 

5. Formulation and amendment of the Committee’s regulations; 

 

6. Formulation and amendment of the regulations on information and communication ethics; 

 

7. Business plans, budget and settlement of accounts of the Committee; 

 

8. Matters to be deliberated by the Committee as determined under other regulations; and

 

9. Other matters referred by the Chairman. 

 

(5) The Committee may establish specialized committees by field in order to efficiently carryout the deliberation on the matters listed in any subparagraphs of paragraph (4). <Amended by Presidential Decree No. 15579, Dec. 31, 1997; Presidential Decree No. 18006, Jun. 23, 2003> 

 

[This Article Newly Inserted by Presidential Decree No. 14572, Apr. 6, 1995] 

 

**Article 16-3 (Scope of Information Subject to Deliberation)**

 

(1) The term “Information as prescribed by the Presidential Decree” under Article53-2 (4) 2 of the Act means information transmitted through telecommunications services provided by a telecommunications business operator other than any of the followings: 

 

1. Information provided by the State, local governments or public organizations; and 

 

2. Information subject to a deliberation pursuant to other Acts and subordinate statutes.

 

(2) Notwithstanding the provisions of paragraph (1), the Committee maydeliberate on the information as deemed necessary to restrain the unlawful communication and telecommunication harmful to juveniles under Article 53 (1) of the Act, from among those provided by the public organizations under paragraph (1) 1 andthose falling under subparagraph 2 of the same paragraph. <Newly Inserted by Presidential Decree No. 15579, Dec. 31, 1997; Presidential Decree No. 18006, Jun. 23, 2003> 

 

[This Article Newly Inserted by Presidential Decree No. 14572, Apr. 6, 1995] 

 

**Article 16-4 (Request, etc. for Corrections)**

 

(1) The Committee may, as a result of its deliberation on the information pursuant to Article 53-2 (4) 2 of the Act, request anytelecommunications business operator to correct the following matters: 

 

1.Warning against the users; 

 

2. Deletion of the relevant information; and

 

3. Suspension and termination of use by the users. 

 

(2) The Committee must follow the regulations on information and communication ethics underArticle 16-2 (4) 6 when making deliberation on the information pursuant to paragraph (1). 

 

(3) A telecommunications business operator in receipt of a request for corrections under paragraph (1) shall notify the results of relevant measures to the Committee. 

 

(4) The Committee may, in case where a telecommunications business operator fails to complywith a request for corrections under paragraph (1), recommend the Minister of Information and Communication to order the refusal, suspension or restriction on handling the communication under the subparagraphs of Article 53 (1) of the Act.

 

(5) In case where the Minister of Information and Communication orders atelecommunications business operator to refuse, suspend or restrict the handling of the communication upon receiving a recommendation under paragraph (4), deliberation by the Committee under Article 53 (2) of the Act shall not be required.

 

[This Article Wholly Amended by Presidential Decree No. 18006, Jun. 23, 2003]

 

**Article 16-5 (Request for Objection, etc.)**

 

(1) A telecommunications business operator and relevant user which has received a requestfor correction under Article 16-4 (1) may make an objection by presenting to the Committee documents containing matters of each of the subparagraph below within thirty days of receiving the request for correction. 

 

1. Name with address, phone number and email address of the person making the objection;

 

2. Document number of request for correction; 

 

3. Reason for the objection; 

 

4. Affixing of seal or signature of person making the objection; and 

 

5. Other matters necessary for the objection. 

 

(2) The Committee shall deliberate within thirty days of the objection under paragraph (1). 

 

(3) An objection cannot be made to the result of deliberation under paragraph (2). 

 

[This Article Wholly Amended by Presidential Decree No. 18006, Jun. 23, 2003] 

 

**Article 16-6 (Secretariat of Information and Communication Ethics Committee)**

 

(1) Under the Committee, a Secretariat shall be established in order to assist the Committeein its affairs. 

 

(2) There shall be one Secretary-General and the necessarypersonnel in the Secretariat, and the Secretary-General shall handle the relevant affairs under orders of the Chairman. <Amended by Presidential Decree No. 16186, Mar. 17, 1999> 

 

(3) Organization, regular staff and operation of the Secretariat and other necessary matters shall be determined by rule of the Committee.<Amended by Presidential Decree No. 16186, Mar. 17, 1999> 

 

[This ArticleNewly Inserted by Presidential Decree No. 15579, Dec. 31, 1997] 

 

**Article16-7 (Report of Current Status of Supplying Communication Data)**

 

A reportof the current status of supplying communication data under Article 54 (6) of the Act shall be made within 30 days after the end of every half term. 

 

[This Article Newly Inserted by Presidential Decree No. 16774, Apr. 1, 2000] 

 

**Article 17 (Restriction on and Suspension of Service)**

 

(1) If the Minister of Information and Communication issues, under Article 55 of the Act, an order to restrict or suspend the whole or part of telecommunications servicesof the telecommunications business operators, he may allow the communications for performing the business falling under any of the following subparagraphs, in accordance with the scope and level of the relevant restriction or suspension: <Amendedby Presidential Decree No. 14572, Apr. 6, 1995> 

 

1. First priority:

 

(a) National security; 

 

(b) Military affairs and public security; 

 

(c) Transmission of the civil defense alarm; and 

 

(d) Electronic wave control. 

 

2. Second priority: 

 

(a) Disaster relief; 

 

(b) Telecommunications, navigation safety, weather, fire fighting, electricity, gas, water service, transportation and the press; 

 

(c) Affairs of the State and local government, except for those mentioned in items (a) and (b); and 

 

(d) Affairs of the foreign diplomatic missions and the organizations of the United Nations inKorea; 

 

3. Third priority: and 

 

(a) Affairs of the enterprises subject to resources control and the firms of defense industry; and 

 

(b) Affairs of government-invested institutions, and medical institutions; 

 

4. Forth priority: 

 

Other matters than those in subparagraphs 1 through 3. 

 

(2) The restriction or suspension on the telecommunication services under paragraph (1) shall be the least of those required for securing the important communications.

 

(3) A telecommunications business operator shall, in case where he restrictsor suspends the whole or part of telecommunications services under paragraph (1), report the content thereof without delay to the Minister of Information and Communication. <Amended by Presidential Decree No. 14572, Apr. 6, 1995> 

 

**Article 18**

 

Deleted. <by Presidential Decree No. 16424, Jun. 30, 1999> 

 

**Article 19 (Approval, etc. for International Telecommunications Services)**

 

(1) The term “international telecommunications business as prescribed by thePresidential Decree” in Article 59 

 

(2) of the Act means the servicesfalling under any of the following subparagraphs: <Amended by Presidential Decree No. 15579, Dec. 31, 1997; Presidential Decree No. 16774, Apr. 1, 2000> 

 

1. Installation and lease of a satellite for providing international telecommunications services; and 

 

2. Transboundary provision of key communications services under Article 59-2 of the Act. 

 

(2) A person who intends to obtain approval under Article 59 (2) of the Act shall submit thefollowing documents to the Minister of Information and Communication: <Amended by Presidential Decree No. 16424, Jun. 30, 1999; Presidential Decree No. 16774, Apr. 1, 2000> 

 

1. Duplicate copy of written agreement or contract; 

 

2. Comparative table between new and old agreements or contracts (limited to the cases where an application for modified approval is filed); and 

 

3. Document certifying the fact that the agreements or contracts have been abrogated (limitedto the cases where an application for approval of abrogation is filed). 

 

[ThisArticle Wholly Amended by Presidential Decree No. 15283, Feb. 22, 1997] 

 

**Article 19-2**

 

Deleted. <by Presidential Decree No. 16424,Jun. 30, 1999> 

 

**Article 20 (Method of Penalty Calculation, etc.)**

 

(1) “Revenue to be calculated as set forth by the Presidential Decree” of first sentence of Article 64 (1) of the Act shall meanthe average revenue of telecommunications service for three fiscal years immediately prior to the relevant year of the telecommunications business operator. Provided that, if three years has not passed since the commencement of the business as ofthe first date of current fiscal year, it shall mean the average of annual revenue calculated from the revenue from commencement of business to the end of the fiscal year immediately prior to the relevant year and if business has been commenced inthe relevant fiscal year, it shall mean the annual average revenue calculated from the revenue from the date of commencement of business to the date of offence. 

 

(2) “Instance where there is no such revenue or if it is difficult to calculate such revenue as set by the Presidential Decree as” of second sentence ofArticle 64 (1) of the Act shall mean an instance falling under any of the following: 

 

1. Where there is no business result because business has not been commenced or business has been ceased, etc.; 

 

2. Where telecommunications business operator refuses to submit revenue calculation materials or submits falsified materials; and 

 

3. Other circumstances where objective calculation of revenue is difficult. 

 

[This Article Newly Inserted by Presidential Decree No. 18006, Jun. 23, 2003] 

 

**Article 21 (Offences Subject to Imposition of Penalty Surcharge, and Amount of PenaltySurcharge, etc.)**

 

(1) Classifications of offenses subject to theimposition of a penalty surcharge and the amount of a penalty surcharge under Article 64 (2) of the Act shall be stated in attached Table 3. <Amended by Presidential Decree No. 16186, Mar. 17, 1999; Presidential Decree No. 18006, Jun. 23,2003> 

 

(2) The Minister of Information and Communication in prescribing theamount of penalty surcharge under paragraph (1), shall consider the characteristics of the services provided by the telecommunications business and the level and frequency of offenses, etc. <Amended by Presidential Decree No. 18006, Jun. 23,2003> 

 

(3) The provisions of Articles 13-3 and 13-4 shall apply *mutatismutandis* to the imposition, payment and demand of a penalty surcharge under Article 64 of the Act. <Newly Inserted by Presidential Decree No. 16186, Mar. 17, 1999; Presidential Decree No. 16774, Apr. 1, 2000> 

 

**Article 22 (Extension of Time Limit of Payment of Penalty Surcharge, and Payment inInstallments Thereof)**

 

(1) A person who intends to extend the time limitof payment of a penalty surcharge or pay it in installments under Article 64-2 of the Act shall make an application to the Minister of Information and Communication along with the document certifying grounds of the extension of time limit of paymentor the payment in installments not later than ten days prior to the relevant time limit of payment. 

 

(2) The term “amount as prescribed by the Presidential Decree” in Article 64-2 (1) of the Act means the amountarrived at by multiplying a turnover under Article 13-2 by 1/100, or 300 million won. 

 

(3) The extension of time limit of payment of a penalty surcharge under Article 64-2 of the Act shall not exceed one year as from the day following the said time limit. 

 

(4) In a case of making payment in installments under Article 64-2 of the Act, the intervals between a respective time limit of installmentpayment shall not exceed four months, and the frequency of installments shall not exceed three times. 

 

(5) The Minister of Information and Communication may, if a person liable for a payment of penalty surcharge for whom the time limit of payment has been extended or the payment in installments has been permitted underArticle 64-2 of the Act comes to fall under any of the following subparagraphs, revoke such extension of the time limit of payment or a decision of such payment in installments, and collect it in a lump sum: 

 

1. Where he fails to pay a penalty surcharge for which the payment in installments has beendecided, within the time limit of payment thereof; 

 

2. Where he fails toimplement an order necessary for a change of security or other security integrity, which is given by the Minister of Information and Communication; or 

 

3. Where deemed that the whole or remainder of a penalty surcharge is uncollectable, such as the compulsory execution, commencement of auction, adjudication ofbankruptcy, dissolution of a juristic person or dispositions on national or local taxes in arrears, etc. 

 

[This Article Wholly Amended by Presidential Decree No. 16186, Mar. 17, 1999] 

 

**Article 23 (Classification and Appraisal, etc. of Securities)**

 

The provisions of Articles 29 through 34 of the Framework Act on National Taxes, and of Articles 13 through 17 of its Enforcement Decree shall apply mutatis mutandis to the furnishing of security under Article 64-2 ofthe Act. 

 

[This Article Wholly Amended by Presidential Decree No. 16186, Mar.17, 1999] 

 

**Article 23-2 (Important Communications)**

 

(1) The term “important communications” in Article 65 (2) 3 of the Act means:

 

1. Business telecommunications related to the national security, militaryaffairs, public peace and order, civil defense alarm transmission and radio wave control; 

 

2. Deleted; and <by Presidential Decree No. 16424, Jun. 30, 1999> 

 

3. Other communications publicly notified by the Minister of Information and Communication in order to efficiently perform the State affairs. 

 

(2) The Government may grant a subsidy for the expenses required for the construction and management of the important communications inorder to secure the important communications under paragraph (1). 

 

[This Article Newly Inserted by Presidential Decree No. 15579, Dec. 31, 1997] 

 

**Article 24 (Delegation of Authority)**

 

The Minister of Industry and Communication shall delegate the authority falling under any ofthe following subparagraphs to the Commissioner of the competent Communications Office pursuant to Article 68 (1) of the Act: 

 

1. Registration of specific communications business under Article 19 (1) of the Act; 

 

2. Acceptance of a report on the value-added communications business under the text of Article 21 of the Act; 

 

3. Acceptance of a modified registration for the specific communications business, and of amodified report for value-added communications business, under Article 22 of the Act; 

 

4. Acceptance of a report on the transfer or takeover of a specific communications business or a value-added communications business, and on the merger or succession of a juristic person, under Article 25 of the Act; 

 

5. Acceptance of a report on the suspension or discontinuation of a specific communicationsbusiness or a value-added communications business, and on the dissolution of a juristic person under Article 27 of the Act; 

 

6. Cancellation of a registration for a specific communications business, and an order for business suspension under Article 28 (1) of the Act; 

 

7. Orders for a closedown and suspension of a value-added communications business underArticle 28 (2) of the Act; 

 

8. Permission for a felling or transplanting of theplants under the former part of Article 42 (3) of the Act; 

 

9. Hearings on adisposition of cancelling a registration of a specific communications business, and on a disposition of closing down a value-added communications business, under subparagraph 2 of Article 63 of the Act; 

 

10. Imposition and collection of a penalty surcharge under Article 64 of the Act (excludingthe case of a key communications business operator); 

 

11. Correction ordersunder Article 65 (1) of the Act (excluding the case of a key communications business operator); and 

 

12. Imposition and collection of a fine for negligence under Article 78 of the Act (excluding the case of a key communications business operator). [This Article Wholly Amended by Presidential Decree No. 16774, Apr. 1,2000] 

 

**Article 25 (Fine for Negligence)**

 

(1) The Minister of Information and Communication shall, where he imposes a fine for negligence under Article 78 (2) of the Act, specify inwriting the fact of violation, method of objection, objection period, etc., after investigating and confirming the relevant offence, and give notice to pay the said fine to the person subject to a disposition of a fine for negligence. <Amended byPresidential Decree No. 14572, Apr. 6, 1995> 

 

(2) The Minister ofInformation and Communication shall, where he intends to impose a fine for negligence under paragraph (1), provide the person subject to a disposition of fine for negligence with an opportunity for stating his opinion orally or in writing withfixing a period of not less than 10 days. In this case, he shall deem it as non-existence of opinion, if no oral or written statement of opinion is presented within the specified period. <Amended by Presidential Decree No. 14572, Apr. 6, 1995>

 

(3) In determining the amount of a fine for negligence, the Minister ofInformation and Communication shall take into account the motivation of the offence and the consequences thereof. <Amended by Presidential Decree No. 14572, Apr. 6, 1995> 

 

(4) Collection procedures for a fine for negligence shall be determined by the Ordinance of Ministry of Information and Communication.<Amended by Presidential Decree No. 14572, Apr. 6, 1995> 

 

**ADDENDA**

 

**Article 1 (Enforcement Date)**

 

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

 

**Article 2 (Contents of Restructuring)**

 

The number of key communications business operators, their business areas and scopes ofbusiness under Article 7 in Addenda of the Act shall be as follows: 

 

1.Operations of local telephone business from among the general telecommunications business may be given to the Korea Telecommunication Corporation (hereinafter refer to as the “Corporation”) under the Telecommunication Corporation Act, andthe international telephone business may be operated by the Corporation and a person deemed to have received a designation for a universal telecommunications service provider under Article 2 (2) of Addenda of the Act, and the long distance telephonebusiness may be operated by one designated telecommunications service provider in addition to the Corporation; and 

 

2. The mobile telephone business among the special communications businesses may be operated by one telecommunications business operator with a nation-wide business areawho is additionally permitted, and the special telecommunications business other than the mobile telephone business (excluding the minor business under the proviso of Article 16 (2) of the Act) may be operated by less than two telecommunicationsbusiness operators who are additionally permitted by telecommunications service provided or by service area. Article 3 Omitted. 

 

**ADDENDA** <Presidential Decree No. 13935, Jul. 23, 1993> 

 

(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation. 

 

(2) (Transitional Measures on Registration of Value-Added Communications Business) In case where the Information andCommunication Promotion Association receives an application for the registration of the value-added communications business under the previous provisions at the time when this Decree enters into force, it shall send a registration application alongwith accompanying documents to the chief of the competent Communication Office. 

 

**ADDENDUM** <Presidential Decree No. 14572, Apr. 6, 1995> 

 

This Decree shall enter into force on April 6, 1995. 

 

**ADDENDUM**<Presidential Decree No. 15283. Feb. 22, 1997> 

 

This Decree shall enterinto force on the date of its promulgation. 

 

**ADDENDA** <PresidentialDecree No. 15328, Mar. 31, 1997> 

 

**Article 1 (Enforcement Date)**

 

This Decree shall enter into force on April 1, 1997. 

 

**Articles 2 through 5**

 

Omitted 

 

**ADDENDUM** <Presidential Decree No. 15579, Dec. 31, 1997> 

 

This Decree shall enter into force on January 1, 1998. 

 

**ADDENDUM** <Presidential Decree No. 16186, Mar. 17, 1999> 

 

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

 

**ADDENDUM** <Presidential Decree No. 16424, Jun. 30, 1999> 

 

This Decree shall enter into force on July 1, 1999. 

 

**ADDENDA** <Presidential Decree No. 16751, Mar. 13, 2000> 

 

**Article 1 (Enforcement Date)**

 

This Decree shall enter into force on March 13, 2000. (Proviso Omitted.) 

 

**Articles 2 through 10**

 

Omitted. 

 

**ADDENDUM** <Presidential Decree No. 16774, Apr. 1, 2000> 

 

This Decree shall enter into force on April 1, 2000. 

 

**ADDENDUM** <Presidential Decree No. 17237, Jun. 12, 2001> 

 

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

 

**ADDEND****A** <Presidential Decree No. 18006, Jun. 23, 2003> 

 

**Article 1 (Enforcement Date)**

 

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

 

**Article 2 (Amendments to other Provisions)**

 

Relevant section of the Enforcement Decree of the Telecommunications Foundation ProtectionLaw shall be amended as follows: 

 

“Data Protection Firm” in Article12 (2) 2 shall be replaced with “Data Protection Consulting Specialized Firm”. 

 

**ADDEND****A** <Presidential Decree No. 18223, Jan. 13, 2004> 

 

**Article 1 (Enforcement Date)**

 

ThisDecree shall enter into force on the date of its promulgation. 

 

**Article 2(Valid Term)**

 

The amended provisions of second sentence of Article 2-4 (1)shall continue to be valid for three years after the enforcement date. 

 

**A****DDENDA** <Presidential Decree No. 18309, Mar. 9, 2004> 

 

**Article 1 (Enforcement Date)**

 

This Decree shall enter intoforce on the date of its promulgation. 

 

**Article 2 (Exception for CombinationSales)**

 

After three years from the date of promulgation of this Decree,the amended provision of Table 1 IV (6) shall be applied only to telecommunications service of key telecommunications business operator (including telecommunications service supplied by specific communications business or value-added communicationsservice managed by a key communications business operator). 

 
 •Table 1: Classifications of offenses subject to the imposition of a penalty surcharge and the upper limit of the penalty surcharge on such offences [Related to Article 13(1)]
 

 •Table 2: Classifications of offenses subject to the imposition of a penalty surcharge and the upper limit of the penalty surcharge on such offences [Related to Article 13(1)]
 
 •Table 3: Classifications of offenses subject to the imposition of a penalty surcharge and the amount of a penalty surcharge [Related to Article 21 (1)]