🌐 Language / 語言 / 言語 / Idioma: English 中文 日本語 Español 📋 Korean Law Insight | Korean Legal System By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul Public Notary (공증) System in Korea: A Complete Legal Guide to Document Authentication for Foreign Individuals and Businesses Korea's notarization system — operating under the Notary Public Act (공증인법) and the Civil Procedure Code's provisions on notarial deeds — differs significantly from common-law notary systems familiar to many foreign businesspeople and individuals. Understanding how Korean public notaries (공증인) function is essential for anyone executing powers of attorney, loan agreements, corporate resolutions, or other documents intended for use in Korea or abroad. 1. What Is a Korean Public Notary, and How Does It Differ from the Western Notary? In common-law jurisdictions (US, UK, etc.), a "notary public" is typically a low-level official who verifies identity and witnesses signatures. I...
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Korean Telecommunications Law and ICT Regulations for Foreign Companies (EN/中文/日本語/Español)
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🌐 Language / 語言 / 言語 / Idioma:
📋 Korean Law Insight | Telecommunications & ICT
By Attorney NOH UJIN | HANBYOL LAW LLC, Seoul
Korean Telecommunications Law and ICT Regulations for Foreign Companies
South Korea is one of the world's most advanced digital economies, home to world-class 5G infrastructure, a vibrant OTT market, and cutting-edge semiconductor and ICT industries. For foreign companies seeking to enter the Korean telecoms market—whether as network operators, Internet service providers, over-the-top (OTT) content platforms, messaging app providers, or cloud-based communications services—understanding the legal landscape is essential.
The primary legislation governing Korea's telecommunications sector is the Telecommunications Business Act (전기통신사업법, TBA) and its subordinate regulations, administered primarily by the Ministry of Science and ICT (MSIT, 과학기술정보통신부) and the Korea Communications Commission (KCC, 방송통신위원회). The regulatory framework has undergone significant changes in recent years, including the 2021 TBA Amendment that introduced obligations for large platform operators, and the ongoing legislative push for an Online Platform Competition Promotion Act.
1. Classification of Telecommunications Businesses
Under the TBA, telecommunications businesses are classified into three main categories:
Leases network capacity from Type 1 carriers to resell services
Registration (등록) with MSIT
Value-Added Service Provider (VAN)
부가통신사업자
Provides services over existing networks (internet portals, OTT, messaging apps, cloud services)
Registration or simple notification depending on scale
Foreign companies most commonly enter the market as Value-Added Service Providers (VAN), which involves a simpler registration process. However, providing OTT voice services that substitute traditional telephony may trigger stricter obligations.
2. Licensing and Registration Requirements for Foreign Entities
Foreign-invested companies that wish to operate in the Korean telecoms market must generally establish a local corporate entity. Foreign direct investment in facilities-based carriers is restricted: foreign nationals and foreign corporations may not hold more than 49% of shares in a Type 1 carrier, and no foreign government may own shares at all (TBA Art. 6).
For Value-Added Service Providers with annual revenue exceeding KRW 10 billion (approx. USD 7.5 million) or with 1 million or more daily active users in Korea, the 2021 TBA Amendment introduced additional obligations:
Designation as a "significant platform operator" by MSIT
Obligation to maintain service continuity and avoid unilateral service interruptions
Duty to explain service changes to users in advance
Obligation to comply with KISA's network stability and security standards
3. Spectrum Licensing and Radio Frequency Management
Radio frequency allocation and spectrum licensing in Korea is governed by the Radio Waves Act (전파법), administered by MSIT. Foreign companies seeking to operate wireless communication networks — including private 5G networks in industrial complexes, satellite communications, or fixed wireless access — must obtain:
Wireless station license (무선국 허가) for each transmitting facility
Compliance with the Radio Equipment Standards (전자파적합등록) for all devices
Spectrum usage fees, which can be substantial for major frequency bands
In 2023, MSIT auctioned 5G millimeter-wave (mmWave) spectrum for private 5G networks, opening opportunities for foreign industrial and logistics companies to deploy their own standalone 5G networks in Smart Factory and logistics hub settings.
4. OTT and Internet Platform Regulation
South Korea has been aggressive in regulating large online platforms. Key laws affecting foreign OTT and platform operators include:
4.1 In-App Purchase (IAP) Regulations
Korea was the first country in the world to pass a law requiring app store operators to allow alternative payment methods. The Telecommunications Business Act Amendment (2021) prohibits app market operators (Google, Apple) from mandating the use of their own payment systems, backed by enforcement by the KCC.
4.2 Network Usage Fee (망 이용대가) Disputes
Korea's TBA Art. 22-7 allows MSIT to mandate "reasonable compensation" agreements between large content providers (e.g., Netflix, YouTube) and ISPs. In 2021, a Seoul court ruled against Netflix in a landmark case (SKB v. Netflix), finding that Netflix must pay network usage fees. Foreign streaming companies must anticipate these commercial and legal obligations.
4.3 Content Blocking and Must-Carry Obligations
The KCC has authority under the Broadcasting Act and the TBA to issue content blocking orders for illegal content (gambling, defamation, etc.). Must-carry obligations apply primarily to broadcast channels on cable and IPTV platforms.
5. Data Localization and Security Requirements
Foreign ICT companies operating in Korea must comply with the Act on Promotion of Information and Communications Network Utilization and Information Protection (정보통신망 이용촉진 및 정보보호 등에 관한 법률, Network Act) and the Personal Information Protection Act (PIPA). Key obligations include:
Appointment of a local Privacy Officer (개인정보 보호책임자, CPO) and, for significant platform operators, a local representative
Compliance with KISA's Information Security Management System (ISMS, 정보보호관리체계) certification requirements for operators above statutory thresholds
Mandatory reporting of information security incidents within 24 hours to KISA
User data storage and processing subject to PIPA's consent, purpose limitation, and cross-border transfer rules
6. Broadcasting and IPTV Regulation
Foreign companies entering Korea's pay-TV or streaming market must navigate additional layers of regulation under the Broadcasting Act (방송법) and the IPTV Act (인터넷 멀티미디어 방송사업법). Foreign ownership of terrestrial broadcasters is prohibited. Cable and satellite broadcasting allows up to 49% foreign ownership. IPTV services are regulated as a hybrid between telecoms and broadcasting.
OTT platforms with significant Korean user bases may be subject to content quotas (Korean content must constitute a minimum percentage of catalogues), content rating obligations, and advertising restrictions under the evolving OTT regulation framework.
7. Anti-Competitive Conduct and Interconnection Disputes
MSIT has authority to investigate and sanction anti-competitive conduct in the telecom sector. Interconnection agreements between carriers are subject to mandatory cost-based pricing. The KFTC (Korea Fair Trade Commission) jointly enforces competition rules with MSIT for platform-related conduct. Foreign companies should be aware of:
Mandatory interconnection obligations for dominant carriers
Prohibition on discriminatory access to essential facilities
KFTC review of M&A transactions involving significant digital platforms
8. Practical Compliance Checklist for Foreign ICT Companies
Entity Setup: Establish a Korean subsidiary or branch; obtain business registration and relevant telecom licenses/registrations.
License Classification: Determine whether you are a facilities-based carrier, MVNO, or VAN; initiate the corresponding registration or licensing process with MSIT.
Spectrum: If wireless operations are planned, apply for radio station licenses under the Radio Waves Act.
ISMS Certification: Assess whether your operation triggers mandatory KISA ISMS certification thresholds (revenue, user numbers).
PIPA & Network Act: Appoint a CPO, prepare Korean-language privacy policy, comply with PIPA 2024 cross-border transfer requirements.
Platform Obligations: If exceeding platform scale thresholds, prepare for TBA Art. 22-series obligations and possible KFTC scrutiny.
Network Usage Fee: Engage Korean ISPs early to negotiate network usage fee arrangements and avoid litigation.
Content Compliance: Implement content rating and moderation systems compliant with Korean standards.
Q1: Can a 100% foreign-owned company obtain a telecom license in Korea?
For facilities-based (Type 1) carriers, foreign ownership is capped at 49%. However, for Value-Added Service Providers (VAN), there is no foreign ownership restriction, and a 100% foreign-owned Korean subsidiary may register freely. MVNO (Type 2) registration is also available to foreign-invested entities without ownership caps.
Q2: Does my foreign OTT service need to comply with Korean law if it has Korean subscribers?
Yes. If your OTT platform actively targets Korean users (Korean-language interface, Korean payment methods, Korean content), Korean law applies, including the TBA, PIPA, and potentially the Broadcasting Act. The 2021 TBA Amendment specifically extends obligations to large foreign platforms, requiring local representative appointment and service continuity obligations above threshold user/revenue levels.
Q3: What is the ISMS certification requirement and does it apply to foreign companies?
The ISMS (정보보호관리체계) certification under the Network Act is mandatory for: (1) telecoms carriers with 1 million+ users, (2) hospitals and universities above thresholds, and (3) online service providers with KRW 10 billion+ annual revenue or 1 million+ daily users. Foreign companies operating local Korean subsidiaries that meet these thresholds must obtain ISMS certification from KISA.
Q4: How does the network usage fee (망 이용대가) obligation work for streaming companies?
Under TBA Art. 22-7, MSIT can designate large content providers and mandate negotiations with ISPs over network usage fees. While fees are market-negotiated, ISPs can seek MSIT arbitration if negotiations fail. Following the 2021 SKB v. Netflix ruling, major foreign streaming platforms have been expected to enter cost-sharing agreements with Korean ISPs. Failure to do so can lead to legal proceedings.
Q5: What are the penalties for operating without required telecom registration?
Operating as a facilities-based carrier without a license carries criminal penalties of up to 3 years imprisonment or KRW 300 million fine (TBA Art. 95). Operating as a VAN without registration (if required) carries fines up to KRW 20 million. MSIT may also order suspension of services.
Q6: Are there Korean content quotas for foreign streaming platforms?
Currently, Korean OTT regulations impose a "Korean content promotion" obligation but no strict hard quota (unlike French or EU rules). However, the Broadcasting Act does impose quotas on cable, satellite, and IPTV channels. Proposed OTT regulations under discussion may introduce content investment obligations for large foreign platforms.
Q7: How does Korea regulate AI-generated content and deepfakes in the telecom/OTT context?
The AI Basic Act (2024) and the Act on Prevention of Sexual Exploitation Online require OTT and social media platforms to implement detection and removal systems for AI-generated non-consensual intimate images. MSIT has issued guidelines for labeling AI-generated content. Foreign platforms should implement technical compliance systems before launch in Korea.
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📋 Perspectiva Legal Coreana | Telecomunicaciones y TIC
Por la Abogada NOH UJIN | HANBYOL LAW LLC, Seúl
Ley de Telecomunicaciones y Regulaciones TIC en Corea para Empresas Extranjeras
Corea del Sur es una de las economías digitales más avanzadas del mundo, con infraestructura 5G de clase mundial, un vibrante mercado OTT y una industria de semiconductores y TIC de vanguardia. Para las empresas extranjeras que buscan entrar al mercado coreano de telecomunicaciones —ya sean operadores de red, proveedores de servicios de Internet, plataformas de contenido OTT, aplicaciones de mensajería o servicios de comunicaciones en la nube— comprender el panorama legal es esencial.
La principal legislación que rige el sector de telecomunicaciones de Corea es la Ley de Negocios de Telecomunicaciones (전기통신사업법, TBA) y sus reglamentos subordinados, administrados principalmente por el Ministerio de Ciencia y TIC (MSIT) y la Comisión de Comunicaciones de Corea (KCC).
1. Clasificación de los Negocios de Telecomunicaciones
Categoría
Término Coreano
Descripción
Licencia/Registro Requerido
Operador de Instalaciones (Tipo 1)
기간통신사업자
Posee y opera infraestructura de red (terrestre, satelital, por cable)
Licencia de MSIT — más estricta
Operador de Red Virtual (Tipo 2/MVNO)
별정통신사업자
Arrienda capacidad de red del Tipo 1 para revender servicios
Registro ante MSIT
Proveedor de Valor Agregado (VAN)
부가통신사업자
Presta servicios sobre redes existentes (portales, OTT, mensajería, nube)
Registro o notificación según escala
2. Requisitos para Entidades Extranjeras
Las empresas extranjeras que deseen operar en el mercado coreano de telecomunicaciones generalmente deben establecer una entidad corporativa local. La inversión extranjera en operadores de instalaciones está restringida: personas y corporaciones extranjeras no pueden poseer más del 49% de las acciones de un operador Tipo 1. Para proveedores de valor agregado con ingresos anuales superiores a 10.000 millones de won o con más de 1 millón de usuarios activos diarios en Corea, la enmienda TBA de 2021 introdujo obligaciones adicionales.
3. Regulación de OTT y Plataformas de Internet
Corea fue el primer país del mundo en aprobar una ley que exige a los operadores de tiendas de aplicaciones permitir métodos de pago alternativos. La enmienda TBA de 2021 prohíbe a los operadores de mercados de aplicaciones (Google, Apple) exigir el uso de sus propios sistemas de pago. En cuanto a las tarifas de uso de red, la sentencia del tribunal de Seúl de 2021 en el caso SKB vs. Netflix determinó que Netflix debe pagar tarifas de uso de red a los ISP coreanos.
4. Requisitos de Localización de Datos y Seguridad
Las empresas TIC extranjeras que operan en Corea deben cumplir con la Ley de Redes y PIPA, incluyendo: nombramiento de un Oficial de Privacidad local (CPO), obtención de certificación ISMS de KISA para operadores que superen los umbrales legales, notificación de incidentes de seguridad a KISA dentro de las 24 horas.
5. Lista de Verificación de Cumplimiento
Establecer subsidiaria o sucursal coreana y obtener licencias/registros de telecomunicaciones relevantes
Determinar la clasificación empresarial e iniciar el proceso de registro o licencia correspondiente ante MSIT
Si se planean operaciones inalámbricas, solicitar licencias de estación de radio bajo la Ley de Ondas de Radio
Evaluar si las operaciones activan los umbrales de certificación ISMS obligatoria de KISA
Nombrar CPO, preparar política de privacidad en coreano, cumplir requisitos de transferencia transfronteriza de datos de PIPA 2024
Si se superan los umbrales de escala de plataforma, prepararse para las obligaciones del Artículo 22 de TBA y el escrutinio de la KFTC
Negociar con los ISP coreanos acuerdos de tarifas de uso de red desde una etapa temprana
Implementar sistemas de clasificación y moderación de contenido conformes con los estándares coreanos
P1: ¿Puede una empresa de propiedad 100% extranjera obtener una licencia de telecomunicaciones en Corea?
Para operadores de instalaciones (Tipo 1), la propiedad extranjera está limitada al 49%. Sin embargo, para Proveedores de Servicios de Valor Agregado (VAN), no existe restricción de propiedad extranjera, y una subsidiaria coreana de propiedad 100% extranjera puede registrarse libremente. El registro MVNO (Tipo 2) también está disponible para entidades de inversión extranjera sin límites de propiedad.
P2: ¿Necesita mi servicio OTT extranjero cumplir con la ley coreana si tiene suscriptores coreanos?
Sí. Si su plataforma OTT se dirige activamente a usuarios coreanos (interfaz en coreano, métodos de pago coreanos, contenido coreano), la ley coreana se aplica, incluyendo TBA, PIPA y potencialmente la Ley de Radiodifusión. La enmienda TBA de 2021 extiende explícitamente las obligaciones a grandes plataformas extranjeras que superen los umbrales de usuarios/ingresos.
P3: ¿El requisito de certificación ISMS se aplica a empresas extranjeras?
La certificación ISMS bajo la Ley de Redes es obligatoria para: (1) operadores de telecomunicaciones con más de 1 millón de usuarios, (2) hospitales y universidades por encima de los umbrales, (3) proveedores de servicios en línea con ingresos anuales superiores a 10.000 millones de won o más de 1 millón de usuarios activos diarios. Las subsidiarias locales extranjeras que cumplan estos umbrales deben obtener la certificación ISMS de KISA.
P4: ¿Cómo funciona la obligación de tarifas de uso de red para empresas de streaming?
Bajo el Artículo 22-7 de TBA, MSIT puede designar grandes proveedores de contenido y exigir negociaciones con los ISP sobre tarifas de uso de red. Si las negociaciones fracasan, los ISP pueden solicitar arbitraje ante MSIT. Tras el fallo SKB vs. Netflix de 2021, se espera que las principales plataformas de streaming extranjeras celebren acuerdos de reparto de costos con los ISP coreanos.
P5: ¿Cuáles son las sanciones por operar sin el registro requerido de telecomunicaciones?
Operar como operador de instalaciones sin licencia conlleva penas penales de hasta 3 años de prisión o multa de 300 millones de won (Artículo 95 de TBA). Operar como VAN sin registro lleva multas de hasta 20 millones de won. MSIT también puede ordenar la suspensión de servicios.
P6: ¿Existen cuotas de contenido coreano para plataformas de streaming extranjeras?
Actualmente, las regulaciones OTT coreanas imponen una obligación de "promoción de contenido coreano" pero no una cuota estricta (a diferencia de las normas francesas o de la UE). Sin embargo, la Ley de Radiodifusión sí impone cuotas en canales de cable, satélite e IPTV. Las propuestas de regulación OTT en discusión podrían introducir obligaciones de inversión en contenido para grandes plataformas extranjeras.
P7: ¿Cómo regula Corea el contenido generado por IA y los deepfakes en el contexto de telecomunicaciones/OTT?
La Ley Básica de IA (2024) y la Ley de Prevención de Explotación Sexual en Línea requieren que las plataformas OTT y de redes sociales implementen sistemas de detección y eliminación de imágenes íntimas no consensuadas generadas por IA. MSIT ha emitido directrices para el etiquetado de contenido generado por IA. Las plataformas extranjeras deben implementar sistemas de cumplimiento técnico antes de lanzarse en Corea.
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