Assemblyman Kim Young-sik, "Frequency Reallocation, Haphazard" Radio Wave Act Amendment Proposed

[Asia Economy Reporter Seulgina Jo] A bill clarifying the criteria for calculating frequency allocation fees, which have been determined in a haphazard manner, has been proposed in the National Assembly.

Kim Young-sik, a member of the People Power Party from Gumi-eul, Gyeongbuk, and a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee (STIBC), announced on the 18th that he had officially proposed a partial amendment to the Radio Waves Act on the 16th to clarify the criteria for calculating frequency allocation fees under radio wave regulations, aiming to prevent discrepancies amounting to trillions of won in frequency allocation fees.

The amendment stipulates that frequency allocation fees should be calculated by considering ▲ the expected revenue from the business operating the allocated frequency ▲ the allocated frequency and bandwidth ▲ the frequency allocation fees for the same or similar frequencies within the past three years before calculating the fee ▲ and the usage period, purpose, and technical method of the allocated frequency.

The current Radio Waves Act sets a minimum competitive price during frequency auctions and allows imposing allocation fees when assigning or reassigning frequencies through evaluation. The criteria for calculating allocation fees include expected revenue, allocated frequency, and bandwidth, and the method for calculating fees based on these criteria is to be stipulated in the enforcement decree.

However, there has been continuous criticism that, due to the lack of specific delegation provisions related to fee calculation, the government currently calculates fees in a haphazard manner. In particular, it was revealed during this year's audit that the frequency fee for next year's reassignment was excessively estimated at 5.5 trillion won, which is likely to increase the burden on mobile carriers’ 5G network investments next year, according to Representative Kim.

Kim stated, “There is no proper standard for calculating the appropriate value of frequencies, so controversies continue every time frequencies are allocated. To resolve this issue, I aimed to elevate the criteria for calculating frequency allocation fees stipulated in the enforcement decree of the Radio Waves Act to statutory law and to specify detailed calculation methods in the enforcement decree to enhance market predictability regarding allocation fees amounting to trillions of won.”

Currently, there is a significant gap between the government and operators regarding appropriate allocation fee levels, and concerns have been raised that the government can consider past allocation fees without legal standards indefinitely. Additionally, since the results of old frequency auctions conducted under very different conditions and environments are still being reflected, there are worries that this distorts the future value of frequency usage.

Kim concluded, “I will strive to ensure that the bill passes within the regular session so that excessive frequency reassignment fees do not restrict mobile carriers’ network investments.”

This content was produced with the assistance of AI translation services.