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 (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 underArticles 7.1 and 7.2 hereof, publicly notified by the Korea Communications Commission;or  (b) a wireless telephone service for vessels which is a telephone service, among thekey communications services under Article 7(2) hereof, enabling communication betweenshore and a vessel or between 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 prescribed under Article7.2 hereof; or  (d) an Internet subscriber connection service.     (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,
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however, that the telephone services for which fees are reduced or exempt pursuant tosubparagraph 8 below shall be limited to the mobile telephone service, the personal communicationservice and the IMT-2000 service < Amended by Enforcement Decree No. 21060, Oct. 1, 2008>: 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 under 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 lasting 3 months or longer due toa disease, an injury or an aftereffect of a disease or an injury not designated by theMinister for Health, Welfare and Family Affairs under Article 7.2 of the EnforcementDecree of the National Basic Livelihood Security Act; or  (d) persons deemed unable to work by the Minister for Health, Welfare and FamilyAffairs under Article 7.5 of the Enforcement Decree of the National Basic LivelihoodSecurity Act.  5. the Korean Association of Wounded Soldiers and Police Officials or theAssociation Commemorating the April 19 Democratic Revolution under the Act onEstablishment of Organizations for Persons, etc. of Distinguished Services to the State;
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 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 (c) of section 4 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;  (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
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 (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 or below to 100.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 3-2(4) of the Act, the Information and Communications Policy Deliberation Council asprescribed in Article 44-2 of the Framework Act on Telecommunications shall deliberate thereon.     (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 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
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Commission within three months after the expiration of 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 UniversalServices)     (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 3-2(2) of the Act, “the telecommunications business operators prescribed underthe Enforcement Decree” means specific communications business operators, value-addedcommunications business operators or regional wireless call operators, and “the amount prescribedunder the Enforcement Decree” means 30 billion won.
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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 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
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value-added communications services).     (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 II. TELECOMMUNICATIONS BUSINESSArticle 7 (Types and Contents of Key Communications Services)The types and contents of key communications services pursuant to Article 4(2) of the Act are asfollows; *provided that*, a telecommunications service which sends or receives electromagneticsignals, such as voices, data or images, using any of the following services without changing theform or content of such electromagnetic signals shall be excluded: 1. a transmission service: a telecommunications service sending or receivingelectromagnetic signals, such as voices, data or images, i.e. telegraph, telephone orconnecting to the Internet, without changing the form or content of such electromagneticsignals;  2. a service provided upon being assigned frequencies: a telecommunications servicesending or receiving electromagnetic signals, such as voices, data or images, withoutchanging the form or content of such electromagnetic signals utilizing the radio stationsthat use the frequencies assigned pursuant to Article 11 or 12 of the Radio Waves Act; and  3. a telecommunications line facilities and equipment rental service: atelecommunications service renting out telecommunications line facilities and equipment.Article 8 (Scope of Premises)The “premises determined under the Enforcement Decree of the Act” in Article 4(3)2 of
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the Act means any of the following: 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  4. any buildings or sites adjacent to the buildings or sites prescribed under paragraphs 1-3and publicly notified by the Korea Communications Commission upon deliberation by theInformation and Communications Policy Deliberation Council pursuant to Article 44-2 of theFramework Act on Telecommunications.Article 9 (Permit Application, etc.)     (1) A person who wishes to obtain a permit under Article 5(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.     (2) Prior to any public notification issued by the Korea Communications Commission underArticle 5(4) of the Act, the subject matter shall be deliberated by the Information andCommunications Policy Deliberation Council, as stipulated in Article 44-2 of the Framework Act onTelecommunications; *provided that*, such requirement shall not apply to permits for minor businessesas provided for in proviso of Article 5(2) of the Act.Article 10 (Documents to be Attached to Permit Application)     (1) A person who wishes to obtain a permit for a key communications business under Article5(1) of the Act shall submit to the Korea Communications Commission a key communications businesspermit application with each of the following documentation attached thereto:
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 1. articles of incorporation of the corporation (including, throughout this Article10, the corporation to be incorporated);  2. shareholder register, or documentation relating to ownership of shares, etc. byshareholders, etc., of the corporation; and  3. a business proposal.     (2) A public official who receives a permit application pursuant to paragraph (1) shall verifythe corporate registry by using the public administrative information made available under Article21(1) of the E-Government Act; *provided that*, in the event the applicant does not consent to suchverification method, such applicant shall be required to attach the corporate registry to itslicense application.Article 11 (Exception to Deliberation by the Information and Communications PolicyDeliberation Council)“Minor businesses prescribed under the Enforcement Decree of the Act” in proviso of Article 5(2) ofthe Act means businesses providing the services publicly notified by the Korea CommunicationsCommission, among the services prescribed under Article 7.2 hereof.Article 12 (Issuance of License)     (1) When permitting a key communications business under Article 5(1) of the Act or anadditional key communications service under Article 10(1) of the Act, the Korea CommunicationsCommission shall issue a key communications business operator’s license upon making recordations ofeach of the following in a license registry of key communications business operators: 1. number and date of license;  2. title or trade name of the business and name of the representative;  3. type and details of the telecommunications service and the areas where the
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   telecommunications service is offered; 4. location of the principal office;  5. capital or asset valuation amount;  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 Aspect)     (1) The term “public interests as prescribed under the Enforcement Decree of the Act” in partsother than each subparagraph of Article 6-3(1) of the Act means the maintenance of nationalsecurity, public peace and social order.     (2) The term “important management matters prescribed under the Enforcement Decree of the Act”in Article 6-3(1)3 of the Act means the matters falling under each of the 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 communicationsbusiness.
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     (3) The term “case prescribed under the Enforcement Decree of the Act” in Article 6-3(1)4 ofthe Act means 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 voting rights.Article 14 (Scope of Key Communications Business Operators subject to Examination of PublicInterest Aspect)The scope of key communications business operators who must file a report or who may request ascreening pursuant to Article 6-3 of the Act shall be any of the following: 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 27 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(2) hereof.Article 15 (Procedures for Examination of Public Interest Aspect)     (1) A person who wishes to file a report or request a screening pursuant to Article 6-3(2) or6-3(3) of the Act shall submit to the Korea Communications Commission documentation indicating eachof the following: 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 Article
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   6-3(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 aspect examination committee, the public interest aspectexamination committee shall notify the Korea Communications Commission of the result of itsscreening within 3 months of the date of such referral.     (4) The Korea Communications Commission shall notify the person filing a report or requestinga screening of the result of examination of public interest aspect under paragraph (3).Article 16 (Composition etc. of Public Interest Aspect Examination Committee)     (1) The term “related central administrative agencies prescribed under the Enforcement Decreeof the Act” in parts other than each subparagraph of Article 6-4(2) of the Act means the agenciesfalling under each of the following: 1. the Ministry of Strategy and Finance;  2. the Ministry of Foreign Affairs and Trade;  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
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are public officials shall be the period of service in their positions as public officials.Article 17 (Operation etc. of Public Interest Aspect Examination Committee)     (1) The chairman of the Public Interest Aspect Examination Committee shall represent thePublic Interest Aspect 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 AspectExamination Committee.     (4) Deliberation of a meeting of the Public Interest Aspect 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 Aspect 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 Aspect ExaminationCommittee shall be determined by the chairman through a resolution of the Public Interest AspectExamination 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 7-2 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.     (2) The date of compliance with corrective orders pursuant to Article 7-2(2) of the Act shallbe determined by the classifications falling under each of the following:
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 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; and  3. date of suspending the relevant acts in the case of suspending the acts impeding publicbenefits.     (3) Where the Korea Communications Commission wishes to impose charges for compellingexecution pursuant to Article 7-2 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.     (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.     (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 10(1) and 10(2) of the Act shall submit to the Korea Communications Commission anapplication for a permit to change to a key communications business with each of the followingdocumentation attached thereto:
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 1. a business proposal — for adding a key communications service; and  2. documentation demonstrating the plan to change to a keycommunications business — for changing any material aspect for which a permit was issued.     (2) The Korea Communications Commission shall issue public notice with respect to theapplication guidelines for a permit to change under Article 10(1) of the Act, such as the detailedcriteria for examination of an application for a permit to add a key communications business,application deadline and relationship with an application for a new permit.     (3) The “key communications service prescribed under the Enforcement Decree of the Act” in theproviso of Article 10(1) of the Act means the telecommunications line facilities and equipmentrental service under Article 7(3) hereof.     (4) The “material aspects prescribed under the Enforcement Decree of the Act” in Article 10(2)of the Act means the aspects relating to Article 12(1)8 hereof.Article 20 (Approval Application for Transfer, Merger, etc.)     (1) A person who wishes to obtain approval of the transfer of the whole or part of a keycommunications business pursuant to Article 13(1)1 of the Act shall submit to the KoreaCommunications Commission an approval application for the transfer of a key communications businesswith each of the following documentation attached thereto: 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
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 5. post-transfer business proposal.     (2) A person who wishes to obtain approval of the merger with a corporation that is a keycommunications business pursuant to Article 13(1)2 of the Act shall submit to the KoreaCommunications Commission an approval application for the merger with a key communications businesswith each of the following documentation attached thereto: 1. a copy of the merger agreement;  2. articles of incorporation of the parties to the merger agreement, anddocumentation supporting the merger;  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 approval of the sale oftelecommunications line facilities and equipment pursuant to Article 13(1)3 of the Act shall submitto the Korea Communications Commission an approval application for the sale of line facilities andequipment with each of the following documentation attached thereto: 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;
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 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 13(1)4 of the Act shall submit to the Korea Communications Commissionan approval application for the ownership of shares, or for becoming the largest shareholder, of akey communications business with each of the following documentation attached thereto: 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 of acquisition 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 public official who receives an approval application for transfer, merger, sale,
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share acquisition or changing the largest shareholder pursuant to paragraphs (1)-(4) shallverify the corporate registry of the party seeking to transfer, merge, sell, acquire shares orbecome the largest shareholder by using the public administrative information made available underArticle 21(1) of the E-Government Act; *provided that*, in the event the applicant does not consentto such verification method, such applicant shall be required to attach the corporate registry toits approval application.     (6) The Korea Communications Commission shall issue a key communications business operator’slicense upon approving the approval application for transfer or merger pursuant to paragraph (1) or(2).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 13(1) of the Act means facilitiesand equipment for exchange, transmission and wire pursuant to Article 3(8)-(10) of the Regulationson Telecommunications Facilities and Equipment of which the sum of the sales prices is not lessthan 5 billion won.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 13(1) of the Act shall submit to theKorea Communications Commission a report on sale of telecommunications line facilities andequipment with each of the following documentation attached thereto: 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 (Establishment of Corporation for Providing Key Communications Services)
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     (1) A key communications business operator who wishes to obtain authorization for establishinga corporation for the purpose of providing part of the key communications services such keycommunications business operator is permitted to provide pursuant to Article 13(2) of the Act shallsubmit to the Korea Communications Commission an authorization application (including an electronicauthorization application) for establishing a corporation for providing key communications serviceswith each of the following documentation (including electronic documentation) attached thereto;*provided that*, in the event the information contained in any of the following documentation can beverified through the public administrative information available pursuant to Article 21(1) of theE-Government Act, such verification may substitute for the relevant documentation: 1. articles of incorporation of the corporation to be established;  2. shareholder register, or documentation related to ownership of shares, etc. byshareholders, etc., of the corporation to be established;  3. present status of the services to be provided (only for key communicationsbusiness operators who are already providing the services they seek to provide byestablishing a corporation); and  4. business proposal prepared by the corporation to be established.     (2) The Korea Communications Commission shall issue a key communications business operator’slicense upon authorizing the authorization application for establishing a corporation pursuant toparagraph (1).Article 24 (Application for a Permit to Suspend Business, etc.)     A person who wishes to obtain authorization to suspend or discontinue business pursuant to Article14(1) of the Act shall submit to the Korea Communications Commission each of the followingdocumentation: 1. details of the business to be suspended or discontinued, and drawings of suchbusiness’s territories;
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 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 discontinuation.Article 25 (Criteria, Procedures, etc. for Revocation of Permits)     (1) The criteria for revocation of permits, cancellation of registration and suspension ordiscontinuation of business pursuant to Articles 15(2) and 28(3) of the Act are as provided inTable 1 attached hereto.     (2) In the event a telecommunications business operator commits several violations and: 1. the heaviest penalty for those violations is revocation of the permit ordiscontinuation of business, such heaviest penalty shall be imposed; or  2. the penalty for each violation is suspension of business, all such suspension periodsshall be aggregated; *provided that*, the aggregated suspension period may not exceed 1year.     (3) Upon revocation of permits, cancellation of registration or suspension or discontinuationof business under paragraph (1), the Korea Communications Commission shall issue publicnotification thereof without delay, and notify the relevant telecommunications business operator inwriting.Article 26 (Application for Registration)     (1) A person who wishes to register as a specific communications business operator pursuant toArticle 19(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:
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 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. terms of use containing provisions relating to user protection (including aprovision for the aggregated issue amount of prepaid calling cards), and details of, anda management proposal for, an office for user protection; and  5. a copy of surety insurance certificate.     (2) A public official who receives a registration application pursuant to paragraph (1) shallverify the corporate registry and national technical qualification certificates of the technicalpersonnel by using the public administrative information available pursuant to Article 21(1) of theE-Government Act; *provided that*, in the event the applicant does not consent to such verificationmethod, such applicant shall be required to attach the relevant documentation (in the case ofnational technical qualification certificates, copies thereof) to its license application.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 recordations 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: 1. number and date of registration;  2. title or trade name of the business and name of the representative;
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 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. aggregated issue amount of prepaid calling cards (for specific communicationsbusiness operators only).     (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).     (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 19(4) ofthe Act are as provided in Table 2 attached hereto.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 thetext of Article 21 of the Act shall submit to the Korea
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Communications Commission a value-added communications business report (including anelectronic report) with a network map diagram (including an electronic diagram, but applicable onlywhere new types of value-added communications services are reported and the Korea CommunicationsCommission deems such diagram to be necessary and requests for it) attached thereto.     (2) A public official who receives a report pursuant to paragraph (1) shall verify thecorporate registry by using the public administrative information available pursuant to Article21(1) of the E-Government Act; *provided that*, in the event the person filing the report does notconsent to such verification method, such person shall be required to attach the corporate registryto its report.     (3) When there is an error in a value-added communications business report or thedocumentation attached to such report is insufficient, the Korea Communications Commission mayrequest for such report to be supplemented by no later than 7 days thereafter; *provided that*, suchperiod may be extended upon request by the person filing the report.     (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 proviso of Article 21 of the Act means value-addedcommunications business operators who provide value-added communications services using theInternet and who satisfy each of the following criteria: 1. where the capital is 100 million won or less; and
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 2. where the scale of the telecommunications facilities and equipment complies withthe standards publicly notified by the Korea Communications Commission.     (2) In the event a value-added communications business operator who did not file a reportunder paragraph (1) no longer satisfies all of the criteria set forth in paragraph (1), 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 text of Article 21 of the Act.Article 31 (Amendment of Registration or Report)     (1) “As prescribed under the Enforcement Decree of the Act” in Article 22 of the Act meanseach of the following: 1. title or trade name, and address;  2. representative;  3. types of services provided;  4. capital (for specific communications business operators only); and  5. aggregated issue amount of prepaid calling cards (for specific communicationsbusiness operators only).     (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
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shall issue either a registration certificate on which the relevant amendment is recorded or areport certificate.     (4) A public official who receives an application to register amendment or a report ofamendment pursuant to paragraph (2) shall verify the corporate registry (only if an amendment ismade with respect to the trade name, title, address, representative or capital of a corporation) orbusiness registration certificate (only if an amendment is made with respect to the trade name,title or address of an individual) by using the public administrative information availablepursuant to Article 21(1) of the E-Government Act; *provided that*, in the event the applicant orperson filing the report does not consent to such verification method, such applicant or personshall be required to attach the corporate registry or business registration certificate to itsreport.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 25 of the Act shall submit to the KoreaCommunications Commission a business transfer application (including an electronic application)with each of the following documentation (including electronic documentation) attached thereto: 1. a copy of the business transfer agreement;  2. documentation prescribed under each of the subparagraphs of Article 26(1) hereof,or documents to be attached under 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 25 of the Act shall submit to the Korea Communications Commission a merger application(including an electronic application) with each of the following documentation (includingelectronic documentation) attached thereto: 1. a copy of the merger agreement;
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 2. documentation prescribed under each of the subparagraphs of Article 26(1) hereof,or documents to be attached under Article 29(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 25 of the Act shall submit to the Korea CommunicationsCommission an inheritance report (including an electronic application) with documentation(including electronic documentation) demonstrating that she or he is the heir attached thereto.     (4) A public official who receives a report under paragraphs (1)-(3) shall verify thecorporate registry of the transferor or party to a merger agreement (meaning the existing or newlyestablished corporation), national technical qualification certificates of the technical personnelor a certificate of the heir’s family register; *provided that*, in the event the person filing thereport does not consent to such verification method, such person shall be required to attach therelevant documentation (in the case of national technical qualification certificates, copiesthereof) to its report.     (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 Discontinuation of Business)A person who wishes to file a report on either (i) suspension or discontinuation 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 submit to the Korea Communications Commission a report on suspension,discontinuation or dissolution of a specific communications business or a value-addedcommunications business (including an electronic application) with documentation (includingelectronic documentation) demonstrating that users have been notified of such suspension ordiscontinuation attached thereto; *provided that*, in the event the information contained in
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any of such documentation can be verified through the public administrative information availablepursuant to Article 21(1) of the E-Government Act, such verification may substitute for therelevant documentationCHAPTER III. TELECOMMUNICATIONS OPERATIONArticle 34 (Approval of Terms of Use)     (1) The services for which key communications business operators must obtain approval of termsof use pursuant to the proviso of Article 29(1) of the Act shall be any of the following<Amended by Enforcement Decree No. 21060, Oct. 1, 2008>: 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 the end of June each year, the Korea Communications Commission shall designate andissue public notification of the key communications business operators and services prescribedunder paragraph (1); *provided that*, the Korea Communications Commission shall designate and issuepublic notification of the key communications business operators and services falling undersubparagraph 2 of paragraph (1) immediately after the date of report on business consolidationthereunder.     (3) Notwithstanding the provisions under paragraph (1), a key communications business operatorwho wishes to amend minor aspects of terms of use as prescribed by
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the Korea Communications Commission may file a report with the Korea CommunicationsCommission.Article 35 (Application for Approval of Terms of Use)A person who wishes to file a report (including a report on amendment) or obtain an approval(including an approval of amendment) on terms of use with respect to telecommunications servicespursuant to Article 29(1) of the Act shall submit to the Korea Communications Commission terms ofuse containing each of the following with documentation demonstrating the bases for pricecomputation attached thereto: 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 Article32 of the Act shall be as follows: 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
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   State, local governments or government-invested institutions are integrated into thetelecommunications net-work of a key communications business; 3. Telecommunications services for the communications required for military operationsin wartime;  4. Telecommunications services for the newspapers under the Registration, etc. ofPeriodicals Act, 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 and telegraphic services.Article 37 (Provision of Transmission or Line Facilities and Equipment, etc.)Pursuant to Article 32-4(1) of the Act, a CATV broadcasting business operator, signal transmissionnetwork business operator or CATV relay broadcasting business operator under the Broadcasting Actmay provide transmission or line facilities and equipment or the CATV broadcasting facilities andequipment (the “Transmission or Line Facilities and Equipment, etc.”) to key communicationsbusiness operators in a manner falling under one of the following: 1. sale or lease of transmission or line facilities, etc.;  2. commissioned performance of the communications or exchange operations,
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   etc. by making use of transmission or line facilities, etc.; or 3. manners corresponding to subparagraphs 1 and 2, which are determined by aconsultation between a CATV broadcasting business operator, a signal transmissionnetwork business operator, or a CATV relay broadcasting business operator.CHAPTER IV. 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 33-4(2) of the Act, all of the following factors shall beconsidered: 1. demand substitutability and supply substitutability of the services;  2. geographical scope of the services provided;  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:
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 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)     (1) The “key communications business operators satisfying the criteria prescribed under theEnforcement Decree of the Act” inArticles 33-5(2)2, 34(3)2, 34-3(3)2 and 34-4(3)2 of the Actmeans, where sales of certain key communications business operators in each service from thepreceding year exceed the amount determined and publicly notified by the Korea CommunicationsCommission with respect to each service, those business operators whose market share in relation tothe national aggregate sales from the relevant service is 50% or higher.     (2) By the end of June each year, the Korea Communications Commission shall designate andissue public notification of the key communications business operators prescribed under Articles33-5(2), 34(3), 34-3(3) and 34-4(3) of the Act.Article 40 (Report on Accord, etc. concerning Interconnections, etc.)     (1) A person who wishes, under Article 34-6(1) or 34-6(2) of the Act, to file a report on, orobtain an approval of (i) the provision, common use or interconnection of telecommunicationsfacilities and equipment or (ii) the execution or termination of, or an amendment to, an accord onprovision of information on shall submit to the Korea Communications Commission each of thefollowing documentation:
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 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 provision, common use or interconnection of, orconditions upon which information shall be provided on, telecommunications facilities andequipment, and any other costs related to the accord;  4. drawings indicating provision, common use or interconnection of, or a summary ofthe information to be provided on, telecommunications facilities and equipment; and  5. documentation comparing the new accord against the old (applicable only to filingof a report of amendment or applying for an approval of amendment).     (2) Upon receipt of documentation under paragraph (1), the Korea Communications Commissionshall examine whether such documentation comply with the criteria for provision, common use orinterconnection of, or provision of information on, telecommunications facilities and equipmentpursuant to Article 33-5(3), 33-7(3), 34(2), 34-3(2) or 34-4(2) of the Act.     (3) Pursuant to Article 21(3) of the Framework Act on Telecommunications, upon receipt ofdocumentation under paragraph (1), the Korea Communications Commission shall examine whether suchdocumentation complies with the criteria for provision, common use or interconnection of, orprovision of information on, telecommunications facilities and equipment pursuant to Article33-5(3) of the Act, and whether the private telecommunications facilities and equipment providedwere installed by an individual to be used for her or his own telecommunications.Article 41 (Reporting Offenses)     (1) Any person recognizing any of the offenses prescribed under Article 36-3(1) of
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the Act may report to the Korea Communications Commission of such act and request any measuresprescribed under each of the subparagraphs of Article 37(1) of the Act to be taken.     (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 offense; and  4. measures necessary for addressing the offense.     (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.Article 42 (Types of and Criteria for Offenses)     (1) The types of, and criteria for, the offenses pursuant to Article 36-3(3) of the Act shallbe as provided in Table 3 attached hereto.     (2) The Korea Communications Commission may, where it deems necessary for the purpose ofapplying to specific telecommunications fields or specific offenses, determine and issue publicnotification of the details concerning the types of, and criteria for, the offenses under paragraph(1).Article 43 (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 theaffairs of a telecommunications business operator, pursuant to Article 36-5(2)
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of the Act shall have the parties concerned from the relevant office or business place be presentat the time of investigation.Article 44 (Measures Taken, etc. on Offenses)     The term “other matters necessary for implementation of the provisions under subparagraph 1 or9 as prescribed under the Enforcement Decree of the Act” in Article 37(1)10 of the Act refers toeach of the following: 1. submission of a plan for implementing the provisions under Article 37(1)1-9 ofthe Act; and  2. report on the results of the implementation of the provisions under Article37(1)1-9 of the Act.Article 45 (Implementation Period of Corrective Orders)The period by the end of which telecommunications business operators shall implement the correctiveorder issued by the Korea Communications Commission pursuant to Article 37(2) of the Act shall beas provided in Table 4 attached hereto.Article 46 (Offenses Subject to Imposition of Penalties and Amount of Such Penalties, etc.)The classifications of offenses subject to imposition of penalties, the upper limit of suchpenalties and the criteria for imposition of such penalties pursuant to Article 37-2(3) of the Actshall be as provided in Table 5 attached hereto.Article 47 (Computation Methods of Penalties)     (1) The term “sales as prescribed under the Enforcement Decree of the Act” in the text ofArticle 37-2(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; *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
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sales of the period from the commencement of the relevant business until the last day of thepreceding fiscal year, converted into annual average sales, or if the relevant business has beencommenced in the applicable fiscal year, such term shall mean sales of the period from thecommencement date of the relevant business until the date of commission of the offense, convertedinto annual sales.     (2) The term “where there has been no sales or it is difficult to compute sales as prescribedunder the Enforcement Decree of the Act” in the proviso of Article 37-2(1) of the Act means any ofthe following: 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 Penalties)     (1) The Korea Communications Commission shall, where it intends to impose penalties pursuantto Article 37-2 of the Act and subsequent to its investigation and verification of the relevantoffense, notify, in writing, the person subject to such penalties of the fact of offense, theamount thereof and the method of, and the period for, raising objection thereto.     (2) A person who receives a notification under paragraph (1) shall pay the relevant penaltiesto a financial institution designated by the Korea Communications Commission within 20 days fromthe date of receiving such a notification; *provided that*, if the person is unable to pay thepenalties within such period due to a natural disaster or other unavoidable circumstances, theperson shall pay the penalties within 7 days from the date on which said reason ceases to exist.     (3) A financial institution in receipt of a payment of penalties under paragraph (2) shalldeliver a receipt thereof to the person who paid the penalties.Article 49 (Demand for Penalties)     (1) A demand for penalties pursuant to Article 37-2(5) of the Act shall be made in
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writing within 7 days from the date on which the payment deadline expires.     (2) Where a demand note is issued under paragraph (1), a deadline for payment of any penaltiesin 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 38-3(1) of the Act means the Long Distance Telephone Service.Article 51 (Provision of Directory Assistant Service)     (1) Telecommunications business operators providing a directory assistant service pursuant toArticle 38-6(1) of the Act may furnish any of the following information: 1. name or trade name of the user;  2. telephone number of the user; or  3. address of the user up to Eup/Myeon/Dong.     (2) Telecommunications business operators shall obtain users’ consent to a directory assistantservice through a method that can be used to verify as to whether such consent has been indeedgiven by the user, such as the user’s handwritten or electronic signature, and to prove at a laterdate that such consent has been given.     (3) Users may withdraw their consent given under paragraph (2) at any time, andtelecommunications business operators shall, without any delay, take the necessary measures so thata directory assistance service shall not be provided with respect to such users who withdrew theirconsent; *provided that*, where the pertinent directory assistance service is provided through awritten material, a user shall have to withdraw her consent at least 30 days prior to the printdate of such written material for the withdrawal to take effect.
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CHAPTER V. PROTECTION OF TELECOMMUNICATIONS FACILITIES AND EQUIPMENTArticle 52 (Designation of Alert Areas for Submarine Cable)     (1) A key communications business operator who wishes to apply for designation of alert areasfor submarine cable under Article 50(3) of the Act shall submit to the Korea CommunicationsCommission documentation demonstrating each of the following: 1. need to designate alert areas; and  2. legs and width of the alert areas indicated by using coordinates of latitude andlongitude.     (2) The Korea Communications Commission may, where necessary for designation of alert areasfor submarine cable, request additional information further to the documentation prescribed underparagraph (1) from any key communications business operator who applies for such designation.     (3) Upon receipt of the documentation submitted to it under paragraphs (1) and (2), the KoreaCommunications Commission shall send such documentation to the heads of the relevant stateadministrative organs prescribed under Article 50(4) of the Act for consultation.     (4) Except under ordinary circumstances, the Korea Communications Commission shall, within 60days of the date of application for designation of an alert area for submarine cable, notify thekey communications business operator making such application, and if such designation is approved,issue, without any delay, public notification of the newly designated alert area.     (5) Once the Korea Communications Commission designates and issues public notification of anew alert area under paragraph (4), the key communications business operator who applied for suchdesignation shall disclose the location of the new alert area on its website, etc., and may placebuoys, etc. in the new alert area for marking purposes.
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CHAPTER VI. SUPPLEMENTARY PROVISIONSArticle 53 (Protection of Communication Secrets)     (1) Telecommunications business operators shall preserve the ledger of communications datasupplied, prescribed under Article 54(5) of the Act, for a period of 1 year.     (2) Reports on, and notification of, the status of communications data supplied pursuant toArticles 54(6) and 54(7) of the Act respectively, must be provided within 30 days after theexpiration of each half-year.     (3) An office dedicated to protection of communication secrets pursuant to Article 54(8) ofthe Act (the “**Dedicated Office**”) shall undertake to perform each of the following: 1. oversee tasks related to communication secrets of users;  2. regulate illegal or undue infringement of communication secrets of users byemployees of telecommunications business operators or third parties;  3. report on the present status of communications information supplied under Article54(6) of the Act;  4. furnish notification of the recordations in the ledger of communications datasupplied under Article 54(7) of the Act;  5. address complaints or opinions from users with respect to communication secrets;  6. train the employees in charge of tasks connected with communication secrets; and  7. any other matters necessary for protection of communication secrets of users.     (4) The Dedicated Office shall be based at the headquarters of each
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telecommunications business operator with the officers thereof in charge.     (5) An authorized signatory for documentation under Article 54(9) of the Act shall be either(i) a judge, a prosecutor or an investigatory entity (including, throughout this EnforcementDecree, a military investigatory body, the National Tax Service and regional tax services) (ii) apublic official of Grade 4 or higher who belongs to an intelligence agency (including a publicofficial of Grade 5 who is the head of an investigatory body or intelligence agency) or (iii) apublic official who belongs to senior executive service; *provided that*, (x) with respect to thepolice or marine police, such authorized signatory shall be a public officer whose position issenior superintendent or higher (including a superintendent who is the head of a district policyagency) and (y) with respect to a military investigatory body, it shall be a military prosecutor ora person whose rank is lieutenant colonel or higher (including a major with respect to a militaryinvestigatory body at which a major is the commanding officer).     (6) The documentation prescribed under Article 54(9) of the Act shall clearly indicate theauthorized signatory’s name and rank; *provided that*, with respect to intelligence agenciesprescribed under Article 2(6) of the Regulation on Planning and Coordination of InformationSecurity, only the title of the authorized signatory shall be indicated, and with respect tocourts, the title and name of the authorized signatory shall be indicated.Article 54 (Caller Identification, etc.)     (1) Telecommunications business operators may not impose charges on users who choose, pursuantto the latter part of Article 54-2(1) of the Act, not to allow their telephone numbers to beidentified when making telephone calls.     (2) A person who wishes to be informed of the telephone number of the caller pursuant toArticle 54-2(2) of the Act shall make a written request therefor to the pertinenttelecommunications business operator with any of the following documentation demonstrating indetail that the person has been subjected to abusive language, threats or harassment over thetelephone attached thereto: 1. written records of the date, time and contents of threats, etc. over thetelephone;
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 2. voice records of threats, etc. over the telephone; 3. documentation supporting that a crime report has been filed with the police inconnection with threats, etc. over the telephone;  4. documentation supporting that advice has been sought from a clinic with respectto the damages incurred from threats, etc. over the telephone;  5. any other documentation equivalent or similar to those set forth in subparagraphs1-4.     (3) “As prescribed under the Enforcement Decree of the Act” in Article 54-2(2) of the Actmeans where each of the following telephone services is used: 1. to report international terror-related crime (111);  2. to report crime (112);  3. to report spies (113);  4. to report cyber terror and seek advice in relation thereto (118);  5. to report fire or seek emergency rescue (119);  6. to report marine accidents or crime (122);  7. to report smuggling (125); or  8. to report drug offenders (127).Article 55 (Restriction on and Suspension of Service)     (1) Where the Korea Communications Commission issues, under Article 55 of the Act, an order torestrict or suspend the whole or part of the telecommunications business of telecommunicationsbusiness operators, it may allow communications for
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undertaking the matter falling under each of the following in the order of their priority, inproportion to the scope and severity of the relevant restriction or suspension: 1. top 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 UnitedNations in Korea; 3. third priority (a) affairs of the enterprises subject to resources control and the firms of defenseindustry; and  (b) affairs of government-invested institutions, and medical institutions; and 4. forth priority: matters other than those listed in subparagraphs 1 through 3.     (2) The restriction or suspension on the telecommunication services under
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paragraph (1) shall be the least of those required for securing the important communications.     (3) A telecommunications business operator shall, in case where he restricts or suspends thewhole or part of telecommunications services under paragraph (1), report the content thereofwithout delay to the Korea Communications Commission.Article 56 (Approval, etc. for International Telecommunications Services) <Amended byEnforcement Decree No. 21060, Oct. 1, 2008>     (1) The term “international telecommunications business as prescribed under the EnforcementDecree of the Act” in Article 59(2) of the Act means the services falling under any of thefollowing:     1.     installation and lease of a satellite for providing international telecommunicationsservices; or     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 Korea Communications Commission: 1. duplicate copy of written agreement or contract;  2. comparative table between new and old agreements or contracts (limited to thecases where an application for modified approval is filed); and  3. document certifying the fact that the agreements or contracts have been abrogated(limited to the cases where an application for approval of abrogation is filed).Article 57 (Revocation of Approval for Agreement to Provide Transboundary Key CommunicationsServices)     (1) The criteria for revocation of approval for agreements to provide
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transboundary key communications services and for suspension of provision of transboundary keycommunications services pursuant to Article 59-2(3) of the Act shall be as follows: 1. first violation shall result in suspension of 6 months or less, or suspension ofinvitation of new users; and  2. second violation shall result in revocation of approval.     (2) Upon revoking approval or ordering suspension, the Korea Communications Commission shallissue public notification and notify the relevant telecommunications business operator in writingthereof.Article 58 (Report on Statistics)     (1) The types of statistics telecommunications business operators must report to the KoreaCommunications Commission pursuant to Article 62(1) of the Act are as follows: 1. present status of telecommunications facilities, including those for exchange,transmission, wire and power per service;  2. use records of telecommunications, including sales and times of use per service,period, distance stage, time zone, country (including the use records per foreigntelecommunications business operator) and Calling Area and between Calling Areas;  3. present status of telecommunications users, including the number of subscribersper service, city and province and Calling Area;  4. information related to call volume, including (i) call volume between CallingAreas and per service, period, distance stage, time zone, city and province, country(including the call volume per foreign telecommunications business operator) and CallingArea and (ii) information on provision of facilities and equipment and oninterconnection;
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 5. information related to accounting, including a sales report prepared for eachservice and business provided; and  6. aggregated issue amount of prepaid calling cards and use records of the CallingAreas (applicable only to specific communications business operators).     (2) The Korea Communications Commission shall determine the format, submission method andreporting deadline of the relevant statistics under paragraph (1) and any other matters relatedthereto.Article 59 (Submission of Documentation)     (1) Pursuant to Article 62(2) of the Act, key communications business operators and theirshareholders shall submit to the Korea Communications Commission each of the following: 1. present status of the corporation’s outstanding shares (including, throughoutthis Article, equities);  2. present shareholding (including, throughout this Article, equity investmentratios) status of shareholders owning the corporation’s outstanding shares (including,throughout this Article, equity investors) and their related parties;  3. purpose of shareholding and reasons for the change (applicable only toshareholders of key communications business operators);  4. date of acquiring the shares and details of capital used for such acquisition(applicable only to shareholders of key communications business operators);  5. form of shareholding (applicable only to shareholders of key communicationsbusiness operators); and  6. documentation supporting any of the information set forth in subparagraphs 1-5.
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     (2) Business operators obliged to submit documentation under paragraph (1) shall submit suchdocumentation to the Korea Communications Commission by the following date <Amended July 29,2008> : 1. if the business operator is a key communications business operator whose sharecertificates are listed on a stock exchange under Article 9(15)3 of the FinancialInvestment Services and Capital Markets Act, within 30 days from the date its shareholderregistry is closed; or  2. if the key communications business operator does not fall under subparagraph 1, byJanuary 30 of each year.Article 60 (Methods for Computing Penalties)     (1) The term “sales calculated under the conditions prescribed under the Enforcement Decree ofthe Act” in the main sentence of Article 64(1) of the Act means the annual average sales for 3fiscal years immediately preceding of the telecommunications services by the relevanttelecommunications business operator; *provided that*, where 3 years have not elapsed since the startof business as of the first day of the relevant fiscal year, it shall mean sales from the periodfrom the start of the relevant business until the end of the immediately preceding fiscal year,converted into annual average sales; and where a business was started in the relevant fiscal year,it shall mean sales from the period from the date of starting the business until the date of anoffense, converted into annual sales.     (2) The term “where there exists no sales or the computation of sales is difficult, and whereit is prescribed under the Enforcement Decree” in the proviso of Article 64 (1) of the Act meansthe case falling under any of the following: 1. where there exists no business record due to a failure of starting a business ora suspension of business, etc.;  2. where a telecommunications business operator has refused to submit the data forcomputing sales or has submitted false data; or  3. other cases where it is difficult to compute the amount of objective sales.
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Article 61 (Offenses Subject to Imposition of Penalties and Amount of Penalties, etc.)     (1) Classifications of offenses subject to the imposition of a penalty and the amount of apenalty under Article 64(2) of the Act shall be as provided in Table 6 attached hereto.     (2) In determining the amount of penalties under paragraph (1), the Korea CommunicationsCommission shall take into account such factors as the peculiarities of providingtelecommunications services and the severity and frequency of each offense.     (3) The provisions under Articles 48 and 49 hereof shall apply *mutatis mutandis*to theimposition, payment and demand of penalties under Article 64 of the Act.Article 62 (Extension of Payment Due Date, and Installment Payment, of Penalties)     (1) A person who intends to extend the payment due date of a penalty or pay it in installmentsunder Article 64-2 of the Act shall make an application to the Korea Communications Commissionalong with the document certifying grounds of the extension of payment due date or the payment ininstallments not later than 10 days prior to the relevant due date of payment.     (2) The term “amount as prescribed under the Enforcement Decree” in Article 64-2(1) of the Actmeans either the amount equal to the sales under Article 47 multiplied by 1%, or 300 million won.     (3) The extension of the payment due date of a penalty under Article 64-2 of the Act shall notexceed 1 year from the day immediately following said payment due date.     (4) When making installment payments under Article 64-2 of the Act, the intervals between therespective installment payment due dates shall not exceed 4 months, and the frequency ofinstallments shall not exceed three times.     (5) The Korea Communications Commission may, if a person liable for a payment of a penalty forwhom the payment due date has been extended or installment payments have been permitted underArticle 64-2 of the Act comes to fall under any of the
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following, revoke such extension of payment due date, or the decision to allow such installmentpayments, and collect it in a lump sum: 1. where the person fails to pay a penalty for which the payment in installments has beendecided, within the payment due date thereof;  2. where the person fails to implement an order necessary for a change of security or othersecurity integrity, which is given by the Korea Communications Commission; or  3. where it is deemed that the whole or remainder of a penalty is uncollectible, such as thecompulsory execution, commencement of auction, adjudication of bankruptcy, dissolution of ajuristic person or dispositions on national or local taxes in arrears, etc.Article 63 (Classification and Appraisal, etc. of Securities)The provisions of Articles 29 through 34 of the Framework Act on National Taxes, and of Articles 13through 17 of its Enforcement Decree shall apply *mutatis mutandis*to the provision of securityunder Article 64-2 of the Act.Article 64 (Important Communications)     (1) The term “important communications” in Article 65(2)3 of the Act means: 1. business telecommunications related to the national security, military affairs,public peace and order, civil defense alarm transmission and radio wave control; or  2. other communications publicly notified by the Korea Communications Commission inorder to efficiently perform the State affairs.     (2) The government may grant a subsidy for the expenses required for the construction andmanagement of the important communications in order to secure the important communications underparagraph (1).
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Article 65 (Delegation of Authority) <Amended July 3, 2008>The Korea Communications Commission shall delegate the authority falling under any of the followingto the Director General of the Central Radio Management Office pursuant to Article 68 (1) of theAct <Amended July 3, 2008; amended by Enforcement Decree No. 21060, Oct. 1, 2008>: 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 textof Article 21 of the Act;  3. acceptance of a modified registration for the specific communications business,and of a modified report for value-added communications business, under Article 22 ofthe Act;  4. acceptance of a report on the transfer or takeover of a specific communicationsbusiness or a value-added communications business, and on the merger or succession of ajuristic person, under Article 25 of the Act;  5. acceptance of a report on the suspension or discontinuation of a specificcommunications business or a value-added communications business, and on the dissolutionof a juristic person under Article 27 of the Act;  6. order to cancel registration of or suspend a specific communications businessunder Article 28(1) of the Act;  7. order to closedown or suspend a value added communications business under Article28(2) of the Act;  8. permission for a felling or transplanting of the plants under the former part ofArticle 42 (3) of the Act;  9. hearing on the order to cancel registration of a specific communications businessor to closedown a value-added communications business under
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   Article 63(2) of the Act; 10. imposition and collection of surcharge under Article 64 of the Act and permissionfor extension of time limit for payment of and payment in installment of such surchargeunder Article 64-2 of the Act, except against a key communications business operator;  11. correction order under Article 65(1) of the Act, except against a keycommunications business operator;  12. order to suspend the provision of telecommunications service or to removetelecommunications facilities under Article 65(3) of the Act, except against a keycommunications business operator;  13. imposition and collection of surcharge under Article 78 of the Act, exceptagainst a key communications business operator.Chapter 7. Deleted. <As amended by Enforcement Decree No. 21060, Oct. 1, 2008>Article 66 Deleted. < As amended by Enforcement Decree No. 21060, Oct. 1, 2008>Article 67 Deleted. < As amended by Enforcement Decree No. 21060, Oct. 1, 2008>ADDENDA