The Science and ICT Committee's Disruptions Continue... Dramatic Agreement Reached on the 20th for the 'Network Usage Fee Public Hearing'

Ongoing Conflict Between Ruling and Opposition Parties, but United on Network Usage Fees
Considering Inviting SKB and US Netflix Officials

On the 24th of last month, at the Science, Technology, Information and Broadcasting and Communications Committee plenary meeting held at the National Assembly in Yeouido, Seoul, Chairman Jeong Cheong-rae is conducting the meeting while members of the People Power Party are not attending.
[Image source=Yonhap News]

[Asia Economy Reporter Oh Soo-yeon] Starting in July, the National Assembly's Science, Technology, Information and Broadcasting Communications Committee, which has been deadlocked due to conflicts between the ruling and opposition parties, will hold a public hearing on network usage fees on the 20th. Although the issue is politically contentious, it was agreed to promptly review the matter as network usage fees significantly impact the IT industry sectors such as telecommunications and content.

On the 14th, a committee official announced that the public hearing on network usage fees will be held at 10 a.m. on the 20th. Despite the committee's deadlock since July 27 due to escalating conflicts between the ruling and opposition parties, with just over two weeks left before the National Assembly audit begins on the 4th of next month, they decided to swiftly hold the hearing and review the network usage fee issue.

Committee members have reached a consensus on the network usage fee legislation despite ongoing partisan conflicts. Including the bill proposed by Yoon Young-chan of the Democratic Party of Korea on the 8th, a total of seven bills related to network usage fees are pending. Besides Yoon, Democratic Party members Jeon Hye-sook, Kim Sang-hee, and Lee Won-wook, People Power Party members Kim Young-sik and Park Sung-joong, and independent lawmaker Yang Jeong-sook have each introduced bills. While the details differ, the direction of regulating the obligation to pay network usage fees and contract formation is similar.

The bills were also submitted to the committee's bill review subcommittee in April. Given the complexity involving multiple stakeholders, both parties agreed on the need for careful review and decided to hold a public hearing to gather opinions from the industry, relevant ministries, and experts. A staff member from a committee member's office explained, "During the first half of the National Assembly's bill subcommittee, both parties agreed to hold a public hearing."

At this public hearing, representatives from telecommunications, content industries, and experts are expected to be invited to discuss regulatory appropriateness and the burden of network usage. There is also consideration to invite representatives from SK Broadband and Netflix headquarters, the parties involved in the lawsuit. After discussing the bills at this hearing, they will proceed through the committee's bill subcommittee, full committee meeting, and the Legislation and Judiciary Committee before reaching the National Assembly plenary session.

However, given the ongoing partisan conflicts, it is uncertain whether the bills will quickly pass the bill subcommittee after the hearing. The People Power Party continues to boycott meetings over the resignation of Committee Chair Jung Cheong-rae and the chairmanship of the bill subcommittee. There is even talk of possible absence from the hearing. Since this is an issue without disagreement between the parties, some expect the discussion to proceed swiftly. A telecommunications industry official said, "In the past, issues without partisan conflicts were quickly processed as non-controversial bills, and the network usage fee bills could follow the same process."

The network usage fee bills originated from the dispute between SK Broadband and Netflix. SK Broadband and Netflix have been in conflict over network usage fee payments since 2019. The second trial is currently underway.

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