Ministry of Science and ICT Reviews Easing Entry Regulations for Foreigners in the Telecommunications Market

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The Ministry of Science and ICT announced that when a foreign business operator applies as a new mobile telecommunications operator, the limit on foreign ownership of domestic mobile telecommunications operators, currently capped at 49%, can be increased.

On the 10th, Park Yoon-kyu, the 2nd Vice Minister of the Ministry of Science and ICT, made this announcement at the 'Ministry of Science and ICT Sejong Office Plaque Ceremony.'

He stated, "There are several regulations related to foreign ownership restrictions, so we will support the applying companies by seeing what they require," adding, "If they want more than 49% ownership for direct investment in domestic mobile carriers or intend to invest indirectly, we will prepare the system accordingly."

He further explained, "This is unrelated to existing telecommunications companies and is only for new operators; if there are capital-related issues, we intend to resolve them."

Under current law, a corporation in which foreigners or foreign majority shareholders hold 15% or more of shares cannot directly invest in domestic core telecommunications operators exceeding 49% ownership. However, foreigners from FTA partner countries or OECD member countries can indirectly invest up to 100% ownership in telecommunications companies if they pass a public interest review.

In response to reporters' questions about whether there are companies stepping forward as the 4th mobile telecommunications operator, Vice Minister Park said, "We will wait a little longer and look into it."

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