Ministry of Science and ICT Approves Amendment to Telecommunications Business Act... Revising Public Interest Review Regulations for Foreign De Facto Corporations

[Asia Economy Reporter Eunmo Koo] The Ministry of Science and ICT announced that the partial amendment to the Telecommunications Business Act, which was approved at the National Assembly plenary session on the 28th of last month and then sent to the government, was approved at the Cabinet meeting on the 12th.

The recently approved partial amendment to the Telecommunications Business Act mainly includes provisions for establishing and operating an electronic information system related to universal service, and revising regulations on public interest reviews concerning foreign quasi-corporations.

First, regarding universal service, the amendment allows for the establishment and operation of an electronic information system to efficiently manage and utilize information on beneficiaries of communication fee reductions, and permits outsourcing this task to institutions designated by Presidential Decree.

Regarding foreign quasi-corporations, since the amendment of the Telecommunications Business Act in August 2013, foreign quasi-corporations whose major shareholders are foreigners from countries with major Free Trade Agreements (FTAs) (the United States, EU, Canada, Australia) were allowed exceptions to own more than 49% of shares in period telecommunication operators if they passed a public interest review. The amendment explicitly states these exceptions as grounds for public interest review under the Telecommunications Business Act.

The amendment to the Telecommunications Business Act approved at the Cabinet meeting will take effect six months after promulgation following the President’s approval. The Ministry of Science and ICT stated that clarifying the legal provisions will enhance transparency in the future implementation of related policies.

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