Kospo, Venture Companies Association, and Others Appeal to National Assembly for Passage of 'Telecommunications Business Act Amendment'

Joint Letter Delivered by Leading ICT Organizations

[Asia Economy Reporter Kim Cheol-hyun] The Korea Startup Forum, the Korea Venture Business Association, the Korea Women Venture Association, and the Korea Internet Corporations Association (hereinafter ICT organizations) announced on the 19th that they delivered a joint letter to ruling and opposition members of the National Assembly's Legislation and Judiciary Committee, urging the passage of the amendment to the Telecommunications Business Act that prohibits Google's mandatory in-app payment policy.

In the letter, the ICT organizations expressed concern that if Google's mandatory in-app payment policy is fully enforced starting this October, many young creators will lose their motivation and foundation for creation, leading to the devastation of South Korea's content ecosystem. They appealed to the National Assembly to promptly pass the amendment to the Telecommunications Business Act for the future of South Korea's content industry.

They also noted that the amendment is not limited to specific countries or companies, and that similar bills have recently been introduced in both the U.S. House and Senate, indicating a strong trend in overseas legislation. The global top 100 law firm Shepherd Mullin has clearly stated that this does not violate the Korea-U.S. FTA, so there is no possibility of trade disputes. Furthermore, the ICT organizations explained that the ICT industry is a highly dynamic sector with rapid market changes, and since the current Telecommunications Business Act includes preventive provisions, overlapping regulations will not be an issue.

The ICT organizations pointed out, "The most important issue is not jurisdictional conflicts between ministries but the fact that South Korea's content industry is currently facing ecosystem destruction," urging the National Assembly to take action so that young creators can express their creative ideas and consumers can enjoy them.

Choi Sung-jin, CEO of the Korea Startup Forum, said, "For fair competition in the digital economy and coexistence in the mobile content ecosystem, we request the National Assembly to promptly pass the amendment to the Telecommunications Business Act."

Yoo Jung-hee, Deputy Director of the Innovation Venture Policy Research Institute at the Korea Venture Business Association, stated, "The amendment to the Telecommunications Business Act prohibiting mandatory in-app payments is important because it fosters a fair mobile ecosystem, advances the content industry, and benefits consumers."

Currently, the amendment to the Telecommunications Business Act has passed the full meeting of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee and is awaiting review by the Legislation and Judiciary Committee and the plenary session.

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