ENFORCEMENT DECREE OF THE BROADCASTING ACT Presidential Decree No. 16751, Mar. 13, 2000 Amended by Presidential Decree No. 17137, Feb. 24, 2001 Presidential Decree No. 17156, Mar. 20, 2001 Presidential Decree No. 17819, Dec. 26, 2002 Presidential Decree No. 17968, Apr. 17, 2003 Presidential Decree No. 17985, May 29, 2003 Presidential Decree No. 18312, Mar. 17, 2004 Presidential Decree No. 18393, May 24, 2004 Presidential Decree No. 18493, Jul. 29, 2004 Presidential Decree No. 18548, Sep. 17, 2004 Presidential Decree No. 19045, Sep. 14, 2005 Presidential Decree No. 19390, Mar. 10, 2006 Presidential Decree No. 19806, Dec. 29, 2006 Presidential Decree No. 20219, Aug. 7, 2007 Presidential Decree No. 20323, Oct. 15, 2007 Presidential Decree No. 20649, Feb. 22, 2008 Presidential Decree No. 20672, Feb. 29, 2008 Presidential Decree No. 20896, Jul. 3, 2008 Presidential Decree No. 20947, Jul. 29, 2008 CHAPTER Ⅰ GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Decree is to prescribe matters delegated by the Broadcasting Act and matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 19390, Mar. 10, 2006> Article 1-2 (Definitions of Terms) The terms used in this Decree shall be defined as follows: <Amended by Presidential Decree No. 19390, Mar. 10, 2006> 1. The term terrestrial TV broadcasting business operator means anyone who is licensed in accordance with Article 9 (1) of the Broadcasting Act (hereinafter referred to as the Act ) to run a terrestrial TV broadcasting business airing TV broadcasts (hereinafter referred to as the terrestrial TV broadcasting business ); 2.The term terrestrial radio broadcasting business operator means anyone who is licensed in accordance with Article 9 (1) of the Act to run the terrestrial radio broadcasting business airing radio broad- casts; - 1 -
3. The term terrestrial mobile multimedia broadcasting business operator means anyone who is licensed in accordance with Article 9 (1) of the Act to run the terrestrial broadcasting business airing mobile multimedia broadcasts (hereinafter referred to as terrestrial mobile multimedia broadcasting business ); 4. The term satellite mobile multimedia broadcasting business operator means anyone who is licensed in accordance with Article 9 (1) of the Act to run the satellite broadcasting business airing mobile multimedia broadcasts (hereinafter referred to as satellite mobile multimedia broadcasting business ); 5. The term general satellite broadcasting business operator means anyone who is licensed in accordance with Article 9 (1) of the Act to run the satellite broadcasting business except the satellite mobile multimedia broadcasting business; 6.The term TV program provider means anyone who has his business registered or obtains approval for his business in accordance with Article 9 (5) of the Act to run a program provider airing TV broadcasts (hereinafter referred to as TV program provider ); 7. The term radio program provider means anyone who has his business registered or obtains approval for his business in accordance with Article 9 (5) of the Act to run the program provider airing radio broadcasts (hereinafter referred to as the radio program provider ); 8. The term data program provider means anyone who has his business registered or obtains approval for his business in accordance with Article 9 (5) of the Act to run the program providing business airing data broadcasts (hereinafter referred to as the data program provider ); 9. The term terrestrial broadcasting program provider means anyone who runs a program providing business to air terrestrial broadcasts using a channel under a broadcasting channel use contract that is concluded with any terrestrial broadcasting program provider; 10. The term terrestrial mobile multimedia program provider means anyone who runs the program providing business airing terrestrial broadcasts using a channel under a broadcasting channel use contract that is concluded with any terrestrial mobile multimedia broadcasting business operator; and 11. The term satellite mobile multimedia program provider means anyone who runs a program providing business airing satellite broadcasts using a channel under a broadcasting channel use contract that is concluded with any satellite - 2 -
mobile multimedia broadcasting business operator. [This Article Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004] Article 1-3 (Supplementary Installations by Satellite Mobile Multimedia Broadcasting Business Operators) A terrestrial wireless station, that is opened without a studio in order to supplement broadcasts aired by a satellite mobile multimedia broadcasting business operator and to solve problems in a fringe area, shall be deemed a supplementary installation to a satellite wireless station. [This Article Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004] Article 2 (Broadcast Subject to CATV Relay Broadcasting) Broadcasts as prescribed by the Presidential Decree in subparagraph 4 of Article 2 of the Act are broadcasts aired through channels that the State may use for public purposes (hereinafter referred to as public channels ) under the provisions of Article 70 (3) of the Act and the broadcasts that are published by the Broadcasting and Communications Commission in accordance with Article 56 (2) 4. <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 20672, Feb. 29, 2008> Article 3 (Scope of Specially Related Persons) (1) The term specially related person in Article 8 (2) through (4) and (10) of the Act means the principal and any person in a relationship falling under any of the following subparagraphs: <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 19390, Mar. 10, 2006> 1. In cases where the principal is an individual, anyone who falls under any of the following items: (a) The spouse (including anyone who is in a de facto marriage), a relative by blood who is related to the principal as a third cousin or more closely related thereto, or a relative who is related to the principal as a cousin or more closely related thereto; (b) The corporation (including any non-corporate association or foundation; hereafter the same shall apply in this Article) and any of its officers that the principal makes equity investment in or contributions to independently or jointly with the person referred to in item (a) in excess of 30/100 in or to, or exercises de facto influence over the major management thereof; and (c) The corporation and any of its officers that the principal makes equity investment in or contributions to independently or jointly with the person referred to in item (a) or (b) in excess of 30/100 in or to, or exercises de facto influence over the major management thereof; and 2. In cases where the principal is a corporation, anyone who falls under - 3 -
any of the following items: (a) An officer; (b) An affiliate (referring to the affiliate provided for in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act) and any of its officers; (c) An individual who makes equity investment in or contributions to independently or jointly with the person referred to in any item of subparagraph 1 in excess of 30/100 thereof in or to the principal or exercises de facto influence over the principal s major management, and any other individual, any corporation, and its officer that maintain the relationship referred to in any item of subparagraph 1 with the individual; and (d) The corporation and any of its officers that the principal makes equity investment or contributions independently or jointly with the peson that maintains the relationship referred to in any of items (a) through (c) in excess of 30/100 in or to, or exercises de facto influence over the major management thereof. (2) Notwithstanding paragraph (1), limited to the cases under Article 8 (2) of the Act, among the persons falling under paragraph (1) 1 (b) and (d), and 2 (b) through (d), any person not falling under any of the following relationships with the principal, who is prescribed not to exercise controlling influence on major management affairs of a corporation or decision-making of an individual by the regulations of the Broadcasting and Communications Commission: <Newly Inserted by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> 1. In cases of an individual: Any person who has been or is an employer (referring to an officer in cases of a corporation, and a commercial employee and an employee by employment contract in case of an individual; hereinafter the same shall apply) of the principal; and 2. In case of a corporation: Any person who has guarantees of debts or loans to or from the principal. (3) The term officer referred to in paragraph (1) means a director, auditor, partner with unlimited liability or other person whose position is in fact equivalent to the former s positions. <Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004> (4) Exercise of de facto influence over major management matters referred to in paragraph (1) means a case falling under any of the following subparagraphs: <Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004; Presidential - 4 -
Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> 1. If the principal is authorized to select and appoint the representative of the relevant corporation or not less than a majority of its officers independently or under a contract or agreement that is concluded or reached with any other person; 2. If the principal performs transactions in funds, assets, commodities and services, etc. with the relevant corporation in excess of the ordinary scope, offers the guarantee of debts for the relevant corporation or receives the guarantee of debts from the relevant corporation; and 3. If the case equivalent to the cases referred to in subparagraphs 1 and 2 accrues, which is prescribed by the regulations of the Broadcasting and Communications Commission. (5) Scope of the persons specially related under each subparagraph of paragraph (1) shall apply mutatis mutandis to the scope of the persons specially related under Articles 4 (2) 1, (4) 3, and (5) (the former part), 53 (2), 58 (2) and 60 (1) 3. <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 20649, Feb. 22, 2008> CHAPTER Ⅱ BROADCASTING BUSINESS OPERATORS, ETC. Article 4 (Scope, etc. of Restriction on Ownership) (1) Companies belonging to business groups which shall not concurrently operate a terrestrial broadcasting business and a program providing business engaged in general programming or programming specializing in news reports or own its stocks or equity shares under Article 8 (3) of the Act and their affiliated companies shall be the enterprises which belong to a business group whose gross amount of assets is in excess of 3 trillion won as of the date on which such business group is designated as a business group subject to the mutual equity investment limit from among the business groups that are designated as the business groups subject to the mutual equity investment limit under Article 14 of the Monopoly Regulation and Fair Trade Act and from among the business groups and affiliated companies provided for in subparagraphs 2 and 3 of Article 2 of the same Act. <Amended by Presidential Decree No. 17819, Dec. 26, 2002; Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 19390, Mar. 10, 2006> (2) In excess of the scope prescribed by the Presidential Decree in the main sentence of Article 8 (5) of the Act means a case falling under any - 5 -
of the following subparagraphs: 1. If the ratio comprised of the sum of sales proceeds (limited to sales proceeds from the broadcasting business, such as incomes from commercial broadcasts, those from broadcast receiving fees, and those from sales of broadcast programs from among sales proceeds on the settlement of accounts; hereinafter the same shall apply) of a specific broadcasting business operator (excluding a program provider; hereafter the same shall apply in this subparagraph), together with the sales proceeds of a broadcasting business operator specially related to the relevant broadcasting business operator, exceeds 33/100 of the aggregate sales proceeds of the entire broadcasting business operators: Provided, That this shall not apply to the case of the broadcasting business operators prescribed in each subparagraph of Article 8 (2) of the Act; 2. If a terrestrial broadcasting business operator owns in excess of 33/100 of the stocks or equity shares of a specific satellite broadcasting business operator; or 3. If a satellite broadcasting business operator owns in excess of 33/100 of the stocks or equity shares of a specific CATV broadcasting business operator. (3) In excess of the scope prescribed by the Presidential Decree in Article 8 (6) of the Act means a case falling under any of the following subparagraphs: <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20219, Aug. 7, 2007> 1. If a specific terrestrial broadcasting business operator runs a program providing business in excess of 3/100 (if the number calculated by dividing the total number of business operators by 3/100 is less than six, it shall be six) of the total number of business operators by a TV program provider, the radio program provider or the data program provider (referring to a case where he concurrently runs any other business or owns not less than 5/100 of the total stocks or equity shares thereof; hereinafter the same shall apply); 2. If a specific CATV broadcasting business operator or satellite broadcasting business operator runs a program providing business in excess of 1/5 of the total number of business operators by a TV program provider, the radio program provider or the data program provider; 3. If a program provider runs the CATV broadcasting business in the area exceeding one fifth of the entire CATV broadcasting zones; or 4. If a signal transmission network business operator (limited to a gov- - 6 -
ernment-invested corporation under Article 2 of the Framework Act on the Management of Government-Invested Institutions, or a juristic person falling under an enterprises subject to Article 2 of the Act on the Improvement of Managerial Structure and Privatization of Public Enterprises) runs the CATV broadcasting business in the area exceeding one tenth of the entire CATV broadcasting zones. (4) Cases exceeding the scope prescribed by the Presidential Decree in the main sentence of Article 8 (7) of the Act are cases falling under any of the following subparagraphs: <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 20649, Feb. 22, 2008; Presidential Decree No. 20672, Feb. 29, 2008> 1.Cases where a terrestrial TV Broadcasting business operator or a terrestrial radio broadcasting business operator falls under any of the following items: (a) Cases where he owns stocks or 7/100 of equity shares of other terrestrial TV broadcasting business operator or terrestrial radio broadcasting business operator; (b) Cases where he owns stocks or 5/100 of equity shares of another terrestrial TV broadcasting business operator or terrestrial radio broadcasting business operator who owns his stocks or equity shares; and (c) Cases where he owns stocks or equity shares of other terrestrial broadcasting business operator (excluding terrestrial mobile multimedia broadcasting business operators) in excess of 1/10 of the total number of terrestrial broadcasting business operators; 2. Cases falling under any of the following items by broadcasting zones that are published by the Broadcasting and Communications Commission, taking into account administrative districts and broadcasting fields, in cases where a terrestrial TV broadcasting business operator or terrestrial radio broadcasting business operator carries out a terrestrial mobile multimedia broadcasting business: (a) The case where the terrestrial TV broadcasting business operator or terrestrial radio broadcasting business operator runs a terrestrial mobile multimedia broadcasting business in excess of 1/3 of the total number of terrestrial mobile multimedia broadcasting business operators by broadcasting zones, in a case where the number of terrestrial mobile multimedia broadcasting business operators by broadcasting zones is not less than 3 to less than 6; and (b) The case where the terrestrial TV broadcasting business operator - 7 -
or terrestrial radio broadcasting business operator runs a terrestrial mobile multimedia broadcasting business in excess of 1/5 of the total number of terrestrial mobile multimedia broadcasting business operators by broadcasting zones, in a case where the number of terrestrial mobile multimedia broadcasting business operators by broadcasting zones is 6 or more; 3. If the ratio comprised of the sum of sales proceeds of a specific CATV broadcasting business operator, together with the sales proceeds of a CATV broadcasting business operator specially related to the relevant CATV broadcasting business operator, exceeds 33/100 of the aggregate sales proceeds of the entire CATV broadcasting business operators; 4. If a specific CATV broadcasting business operator operates a business of CATV broadcasting in the area exceeding one fifth of the entire CATV broadcasting zones; 5. If a specific satellite broadcasting business operator holds in excess of 33/100 of shares or equity of another satellite broadcasting business operator; and 6. If a specific satellite broadcasting business operator runs not less than 2 satellite broadcasting businesses of other satellite broadcasting business operators. (5) In excess of the scope prescribed by the Presidential Decree in Article 8 (8) of the Act means a case where the ratio comprised of the sum of sales proceeds of a specific broadcasting program provider, together with the sales proceeds of a program provider specially related to the relevant program provider, exceeds 33/100 of the aggregate sales proceeds of the entire program providers. in such cases, the sales proceeds of the program provider engaged in a specialized programming of product presentation and marketing shall not be included in the calculation. (6) The calculation of the number of program providers pursuant to paragraph (3) 1 and 2, if any, shall be in accordance with the standards for calculating the number of program providing businesses referred to in Article 13-3. <Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007; Presidential Decree No. 20649, Feb. 22, 2008> Article 5 (License of Broadcasting Business, etc.) (1) A person who intends to carry out a terrestrial broadcasting business, satellite broadcasting business, CATV broadcasting business and CATV relay broadcasting business in accordance with Article 9 (1) and (2) of the Act shall submit an application for license to the Broadcasting and Communications Commission, attaching the documents as mentioned in - 8 -
the following subparagraphs thereto: 1. Documents stating matters on the applicant; 2. Business plan; and 3. Plan for installation of facilities. (2) The application for license referred to in paragraph (1) shall comply with the criteria mentioned in the following subparagraphs: 1. The application for a license of terrestrial broadcasting business is required to be made for each type of broadcasting; 2. The application for a license of satellite broadcasting business is required to be filed by a satellite wireless station. In such cases, the procedure of licensing any wireless station that is opened by any satellite mobile multimedia business operator without installing any studio to rescue difficulties in viewing TV broadcasts and listening to radio broadcasts shall be governed by the Enforcement Decree of the Radio Waves Act; and 3. The application for a license of CATV broadcasting business and CATV relay broadcasting business is required to be made for each broadcasting zone. (3) The Broadcasting and Communications Commission shall, when it has received an application for a license referred to in paragraph (1), examine the matters mentioned in the subparagraphs of Article 10 (1) of the Act and matters prescribed by the Acts and subordinate statutes concerning radio waves to decide whether to grant a license or not within 90 days from the date of receipt, and when it grants a license, deliver a written license to the applicant. (4) A person who intends to run a CATV broadcasting business or CATV relay broadcasting business shall satisfy the requirements in the following subparagraphs: 1. The plan for the installation of facilities shall conform to the technical standards of CATV broadcasting business or CATV relay broadcasting business referred to in Article 79 (1) of the Act; 2. The convenience of receivers and the minimum quality of broadcasting shall be guaranteed; and 3. Detailed procedures and methods necessary for licensing as referred to in paragraphs (1) through (4) shall be determined by the regulations of the Broadcasting and Communications Commission. [This Article Wholly Amended by Presidential Decree No. 20672, Feb. 29, 2008] Article 6 Deleted. <by Presidential Decree No. 20672, Feb. 29, 2008> Article 7 (Authorization of CATV Broadcasting Business to CATV Relay - 9 -
Broadcasting Business Operator) (1) If a CATV relay broadcasting business operator seeks authorization for a CATV broadcasting business under Article 9 (3) of the Act, he shall submit a written application for authorization to the Broadcasting and Communications Commission, along with the plans for facilities conversion by satisfying the requisites in the following subparagraphs: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1. The plans for facilities conversion shall conform to the technological standards for a CATV broadcasting business under Article 79 (1) of the Act; and 2. The ratio of the number of subscribers of a CATV relay broadcasting business operator, occupying among the number of entire households in the CATV broadcasting zone where he is located, shall be in excess of the ratio announced publicly by the Broadcasting and Communications Commission in consideration of the scope and characteristics of the relevant business zone. (2) The Broadcasting and Communications Commission shall, upon receipt of an application for authorization under paragraph (1), examine the matters in each subparagraph of paragraph (1) and of Article 10 (1) of the Act, and notify the applicant of the relevant results within ninety days. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) Definite procedures and methods necessary for the authorization for a CATV broadcasting business shall be determined by the regulations of the Broadcasting and Communications Commission. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> Article 7-2 Deleted. <by Presidential Decree No. 20649, Feb. 22, 2008> Article 8 (Registration of Program Providing Business) (1) A person who intends to operate a program providing business under the text of Article 9 (5) of the Act shall submit a written application for registration stating the matters in the following subparagraphs to the Broadcasting and Communications Commission, along with the programming plans and the business plans: <Amended by Presidential Decree No. 18548, Sep. 17, 2004; Presidential Decree No. 20649, Feb. 22, 2008; Presidential Decree No. 20672, Feb. 29, 2008> 1. Name of the business operator; 2. Representative and the person in charge of programming; 3. Paid-in capital and real capital; 4. Supply fields of the broadcast programs; 5.Composition of shareholders and investors who hold not less than 5/100 of shares issued or equity; - 10 -
6. Location of the principal office; and 7. Location of transmitting facilities referred to in Article 9-2 (1) 2 of the Act. (2) The Broadcasting and Communications Commission shall, upon receipt of an application for registration under paragraph (1), deliver a certificate of registration to the applicant within thirty days, after undergoing a verification of whether the contents of application are in violation of Acts and subordinate statutes and a confirmation of factual relations. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) Definite procedures and methods necessary for the registration of a program providing business shall be determined by the regulations of the Broadcasting and Communications Commission. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> Article 9 (Registration of Electronic Sign Board Broadcasting Business and CATV Music Broadcasting Business) (1) A person who intends to operate an electronic sign board broadcasting business or a CATV music broadcasting business under the text of Article 9 (5) of the Act shall submit to the Broadcasting and Communications Commission a written application for registration stating the matters in the following subparagraphs: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1. Name of the business operator; 2. Representative and the person in charge of programming; 3. Business zones; and 4. Business objectives and details. (2) Provisions of Article 8 (2) and (3) shall apply mutatis mutandis to the registration of an electronic sign board broadcasting business or a CATV music broadcasting business. Article 10 (Authorization for Program Providing Business) (1) A person who intends to operate a business using broadcast channels engaged in general programming or specialized programming of news reports or product presentation and marketing in accordance with the provisions of the proviso to Article 9 (5) of the Act, shall submit a written application for authorization for a program providing business to the Broadcasting and Communications Commission, along with the matters on the applicant and the business plans. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (2) The Broadcasting and Communications Commission shall, upon receipt of an application for authorization under paragraph (1), decide whether the authorization is to be granted by examining the matters in each subpara- - 11 -
graph of Article 10 (1) of the Act, and notify the applicant of the relevant results within sixty days. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) The provisions of Article 7 (3) shall apply mutatis mutandis to the authorization for a program providing business. Article 11 (Authorization for Satellite Broadcasting Business, etc. Using Artificial Satellite of Foreign Country) (1) A person who intends to conduct a satellite broadcast using wireless facilities of an artificial satellite of a foreign country or to use a specific channel of a wireless station on an artificial satellite of a foreign country under Article 9 (6) and (8) of the Act, shall submit a written application for authorization to the Broadcasting and Communications Commission, along with the documents referred to in the following subparagraphs: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1. Documents stating the matters on the applicant; 2. Contract for use of wireless facilities or of specific channels of a wireless station on an artificial satellite of a foreign country; 3. Business plans; and 4. Plans for an installation of facilities. (2) The Broadcasting and Communications Commission shall, upon receipt of an application for authorization under paragraph (1), examine the matters referred to in each subparagraph of Article 10 (1) of the Act, and notify the applicant of the relevant results within ninety days. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) Provisions of Article 7 (3) shall apply mutatis mutandis to the authorization of a business of satellite broadcasting using an artificial satellite of a foreign country or a program providing business. Article 12 (Registration of Signal Transmission Network Business) (1) A person who intends to operate a signal transmission network business under Article 9 (10) of the Act shall submit a written application for registration stating the matters referred to in the following subparagraphs, to the Broadcasting and Communications Commission, along with the business plans and the plans for installation of facilities: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1. Registration applicant; 2. Funds required at the time of an incorporation; 3. Current status of technical manpower; and 4. Business zones. (2) Upon receipt of an application for registration under paragraph (1), the Broadcasting and Communications Commission shall deliver a certificate - 12 -
of registration to the applicant within thirty days, upon verification of whether the content of application is in violation of the registration requirements prescribed by a public notice made by the Broadcasting and Communications Commission and other Acts and subordinate statutes, and a confirmation of the factual relations. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) When a signal transmission network business operator intends to modify the registered matters, he shall make a modified registration with the Broadcasting and Communications Commission under the conditions as determined by a public notice made by the Broadcasting and Communications Commission. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (4) Definite procedures and methods necessary for the registration of a signal transmission network business shall be prescribed by a public notice made by the Broadcasting and Communications Commission. Article 13 (Application, etc. for License of Community Radio Broadcasting Business) (1) A person who intends to operate a community radio broadcasting business under Article 9 (11) of the Act shall submit to the Broadcasting and Communications Commission an application for license, which is prepared in the form prescribed by its regulations, attaching documents mentioned in the following subparagraphs thereto: 1. Documents stating the matters on the applicant; 2. Business plans; and 3. Plans for installation of facilities. (2) The Broadcasting and Communications Commission shall, when it has received an application for license pursuant to paragraph (1), examine the matters mentioned in the subparagraphs of Article 10 (1) of the Act and matters prescribed by the Acts and subordinate statutes concerning radio waves to decide whether to grant a license or not within 90 days from the date of receipt, and when it grants a license, deliver a written license to the applicant. (3) Detailed procedures and methods necessary for licensing as referred to in paragraphs (1) and (2) shall be determined by the regulations of the Broadcasting and Communications Commission. [This Article wholly Amended by Presidential Decree No. 20672, Feb. 29, 2008] Article 13-2 (Management, etc. by Community Radio Broadcasting Business Operator) (1) A community radio broadcasting business operator shall provide broadcasting services at least six hours a day and broadcast programs - 13 -
in the main broadcast field which he has obtained a license for at least 60/100 of the total monthly broadcasting time of the channel. (2) The financial resources of a community radio broadcasting business operator shall consist of the following: 1. Contributions; 2. Subsidies from local governments; 3. Revenues from commercials under Article 73 (2) of the Act; 4.Revenues from announcements of sponsors under Article 74 of the Act; and 5. Other revenues. [This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 13-3 (Applicable Criteria, etc. of Capital Requirements for Registration of Program Providing Business) (1) In cases where one person runs several program providing businesses in accordance with Article 9-2 (2) of the Act concurrently, the capital requirements referred to in Article 9-2 (1) 1 of the Act shall apply to each of the TV program providers in cases of a TV program provider, to each of 15 radio program providers in cases of a radio program provider, and to each of three data program providers in cases of a data program provider. (2) The criteria of calculation of the number of TV program providers, which becomes a criterion for the application of capital requirements referred to in paragraph (1) are as prescribed in the following subparagraphs: 1. Each broadcasting field such as a TV program provider, radio program provider or data program provider, which is units of the registration application of a program providing business shall be calculated as one program providing business; 2. In cases where one person broadcasts in the same broadcasting field through several channels in a specific interval of time, it shall be calculated as one program providing business; and 3. In cases of a program provider which provides broadcast programs to enable viewers to view specific broadcast programs of their selection at a specific time, each of the same broadcasting field provided by the same provider shall be calculated as one program providing business. [This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 14 (Investment and Contribution by Foreign Capital) Ratio prescribed by the Presidential Decree in Article 14 (1) 3 of the Act means a case where the total sum of stocks or equity shares of the relevant corporation owned by a foreign government, a foreign organization - 14 -
or a foreigner corresponds to 50/100 of the total numbers of stocks or equity shares of the relevant corporation (including cases where a foreign government, a foreign organization or a foreigner is the largest sum investor). [This Article Wholly Amended by Presidential Decree No. 17156, Mar. 20, 2001] Article 15 (Modified License, etc.) Modification of important facilities as prescribed by the Presidential Decree in Article 15 (1) 7 of the Act means a modification falling under any of the following subparagraphs: <Amended by Presidential Decree No. 17819, Dec. 26, 2002; Presidential Decree No. 17968, Apr. 17, 2003> 1. Modification of the main signal transmission devices (including the relocation of the main signal transmission devices in the cases of CATV broadcasting business operator, CATV relay broadcasting business operator and CATV music broadcasting business operator) causing an alternation of the broadcasting zone; and 2. Modification of operating channels or facilities that have effect on whether the technological standards under Article 79 (1) of the Act are met. Article 15-2 (Approval for Change in Greatest Amount Investor, etc.) (1) A person who seek approval under the main sentence of Article 15-2 (1) of the Act shall apply to the Broadcasting and Communications Commission for approval within a period described in any of the following subparagraphs: <Amended by Presidential Decree No. 20672, Feb. 29, 2008; Presidential Decree No. 20947, Jul. 29, 2008> 1. If he intends to become the largest sum investor (referring to a person who holds the highest percentage of voting stocks or equity shares by adding his stocks or equity shares and those of persons specially related to him; hereinafter the same shall apply): (a) In cases of acquisition of stocks or equity shares in over-the-counter transactions under Article 166 of the Capital Market and Financial Investment Business Act, thirty days after a contract or agreement is made; and (b) In cases of acquisition of stocks in the securities market or KOSDAQ, sixty days prior to such acquisition; and 2. If he intends to substantially control management rights: (a) In cases of paragraph (2) 1 and 2, thirty days after a contract or agreement is made; and (b) In cases of paragraph (2) 3, thirty days after performing any act - 15 -
of causing the exercise of substantial influence on decision-making; (2) Cases where a person has gained substantially control of the management rights in Article 15-2 (4) of the Act are the following cases: 1. In cases where a person exercises his voting rights equivalent to 50/ 100 or more (30/100 or more, in case of terrestrial broadcasting business and program providing business engaged in general programs or specialized in news programs) by contract or agreement with stockholders or equity share holders; 2. In cases where stockholders or equity shareholders, other than the largest sum investor, agree to jointly exercise their voting rights equivalent to 50/100 or more (30/100 or more, in cases of terrestrial broadcasting business and program providing business engaged in general programs or specialized in news programs); and 3. In cases where a person exercises substantial influence over decisionmaking on the appointment or dismissal of the chief executive officer or 1/2 or more of officers or the transfer or takeover of business. (3) The Broadcasting and Communications Commission shall, in cases where it receives an application for approval under paragraph (1), notify the applicant of the result thereof within sixty days after such receipt: Provided, That it may, when there is any unavoidable reason, extend the period for such notification by a further period of up to thirty days. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (4) Deleted. <by Presidential Decree No. 20672, Feb. 29, 2008> (5) A CATV broadcasting business operator or CATV relay broadcasting business operator in whose case the largest sum investor is approved under paragraph (4) shall be reissued a license in accordance with Acts and subordinate statutes related to radio waves. (6) Any person who intends to file a report under the proviso of Article 15-2 (1) of the Act shall file such report with the Broadcasting and Communications Commission within a period referred to in any subparagraph of paragraph (1). <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (7) Except as provided for in paragraphs (1) through (6), matters necessary for the procedures for approval and reports shall be provided by the regulations of the Broadcasting and Communications Commission. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> [This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 16 (Renewed License, etc.) (1) The valid terms of a license and an authorization under Article 16-16 -
of the Act shall be three years. (2) A person intending to renew a license under Article 17 (1) of the Act shall apply for the renewal of a license to the Broadcasting and Communications Commission not later than six months prior to the expiration of the valid term of the license. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (3) A person who seeks a renewal of authorization under Article 17 (2) of the Act shall apply for a renewal of authorization to the Broadcasting and Communications Commission not later than six months prior to the expiration of valid term of the authorization. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (4) The Broadcasting and Communications Commission shall, upon receipt of an application for a renewed license under paragraph (2), check (hereinafter referred to as check for granting renewed license ) the technologies and facilities under the conditions as announced by the Broadcasting and Communications Commission in order to maintain the quality of broadcasts and to protect receivers. <Amended by Presidential Decree No. 17819, Dec. 26, 2002; Presidential Decree No. 20672, Feb. 29, 2008> (5) The provisions of Articles 5 and 6 shall apply mutatis mutandis to the procedure of the renewal of license referred to in paragraph (2), and the provisions of Article 10 to the procedure of the renewal of authorization referred to in paragraph (3). <Amended by Presidential Decree No. 20672, Feb. 29, 2008> Article 17 (Revocation, etc. of License, Authorization or Registration) (1) The criteria for the revocation of license, authorization or registration and suspension of business under Article 18 (3) of the Act shall be according to the attached Table 1. <Amended by Presidential Decree No. 17156, Mar. 20, 2001> (2) The Broadcasting and Communications Commission shall, where making a revocation of license, authorization or registration and a disposition of suspending business under paragraph (1), notify of such in writing to the relevant broadcasting business, CATV relay broadcasting business, CATV music broadcasting business, electronic sign board broadcasting business, or transmission network business. <Amended by Presidential Decree No. 17156, Mar. 20, 2001; Presidential Decree No. 20672, Feb. 29, 2008> (3) Deleted. <by Presidential Decree No. 20672, Feb. 29, 2008> Articles 18 and 19 Deleted. <by Presidential Decree No. 20219, Aug. 7, 2007> CHAPTER Ⅲ COMMITTEES, ETC. OF BROADCASTING AND COMMUNICATIONS COMMISSION - 17 -
Article 20 Deleted. <by Presidential Decree No. 20672, Feb. 29, 2008> Article 21 (Deliberation of Information Similar to Broadcast) (1) Information as prescribed by the Presidential Decree in Article 32 (1) of the Act, is information circulated by a broadcasting business operator, a CATV relay broadcasting business operator and an electronic sign board broadcasting business operator through the telecommunication circuits, using such a title as broadcast, TV or radio, etc. and according to a specific programming plan. (2) When the information prescribed under paragraph (1) is in violation of the provisions concerning the deliberation of broadcasts under Article 33 of the Act, the Broadcasting and Communications Deliberation Committee may recommend a correction thereof to the provider of the relevant information. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> Article 21-2 (Commercials Subject to Prior Deliberation) Commercials prescribed by the Presidential Decree in Article 32 (2) of the Act are TV commercials, radio commercials and data broadcasting commercials (limited to commercials that carry images and voices) that are aired by broadcasting business operators with the exception of commercials falling under any of the following subparagraphs: <Amended by Presidential Decree No. 19045, Sep. 14, 2005; Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20219, Aug. 7, 2007; Presidential Decree No. 20672, Feb. 29, 2008> 1. Non-business public-interest commercials provided for in Article 73 (4) of the Act; 2. Commercials that fall under the provisions of Article 59 (4) 1 and 2; 3. Commercials that are aired for any election campaign provided for in Article 70 (1) of the Public Official Election Act; 3-2. Commercials of the main film categorized as Admission for All Ages or Admission for 12 Years or Older in film rating under Article 21 (3) of the Promotion of the Motion Pictures Industry Act; 3-3. Commercials providing information on non-profit events or activities organized or sponsored by a CATV broadcasting business operator, satellite broadcasting business operator or program provider; and 4. Other commercials for the public interest, which are published by the Broadcasting and Communications Deliberation Committee. [This Article Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004] Article 21-3 (Organization and Operation of Broadcasting Dispute Conciliation Committee) (1) The Broadcasting Dispute Conciliation Committee established under - 18 -
the Broadcasting and Communications Commission under Article 35-3 (1) of the Act shall deliberate on the following matters: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1.Conciliation of any dispute related to the supply of or demand for broadcast programs; 2. Conciliation of any dispute related to broadcasting business zones; 3. Conciliation of any dispute related to interest in property rights, such as the right to relay broadcasting; 4. Matters related to any joint business of broadcasting business operators: Provided, That those falling under any of subparagraphs of Article 19 (1) of the Monopoly Regulation and Fair Trade Act shall not be included; and 5. Conciliation of any dispute related to the management of broadcasting business. (2) The Broadcasting Dispute Conciliation Committee referred to in paragraph (1) shall consist of not less than five, but not more than seven members, including one Chairperson. (3) The Chairperson of the Broadcasting Dispute Conciliation Committee shall be appointed by the Chairperson of the Broadcasting and Communications Commission from among the members of the Broadcasting Dispute Conciliation Committee. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (4) The Chairperson of the Broadcasting and Communications Commission shall, in cases where he commissions members of the Broadcasting Dispute Conciliation Committee under Article 35-3 (2) of the Act, do so from among the following persons: Provided, That one person recommended by the Minister of Culture, Sports and Tourism shall be included: <Amended by Presidential Decree No. 20672, Feb. 29, 2008> 1. Persons whose term of service as judge, public prosecutor or attorneyat-law is not less than five years; 2. Persons whose term of service as certified public accountant is not less than five years; 3. Persons whose term of service as professor of law, administration, management, accounting, newspaper or broadcasting at university is not less than five years: and 4. Other persons who have much professional knowledge and experience in broadcasting. (5) The term of office for each member of the Broadcasting Dispute Conciliation Committee shall be two years, and he may be recommissioned - 19 -
for only one consecutive term: Provided, That a member who is commissioned to fill a vacancy occurring prior to the expiration of the term of office of his predecessor shall hold office for the remainder of that term. (6) If the Chairperson of the Broadcasting Dispute Conciliation Committee is unable to perform his duties for any unavoidable reasons, a member of the Broadcasting Dispute Conciliation Committee nominated by the Chairperson of the Broadcasting and Communications Commission shall act on behalf of that Chairperson. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (7) Matters necessary for the operation of the Broadcasting Dispute Conciliation Committee and the conciliation procedures, etc. shall be provided by the regulations of the Broadcasting and Communications Commission. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> [This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 22 (Collection of Broadcast Development Fund) (1) If the Broadcasting and Communications Commission intends to collect the Broadcast Development Fund under Article 36 of the Act (hereinafter referred to as the Fund ) from a terrestrial broadcasting business operator under Article 37 (2) of the Act, it shall make a public notice of the collection rate which is determined within the limit of 6/100 of the sales proceeds from commercials, in consideration of the financial status of the relevant terrestrial broadcasting business operator and the public nature of the broadcasting operations, etc. in such cases, the collection rate for the Korean Broadcasting System and the Educational Broadcasting System under the Korea Educational Broadcasting System Act (hereinafter referred to as the Educational Broadcasting System ) shall be two thirds of the collection rate for the terrestrial broadcasting business operators, whose largest financer is the Broadcasting Culture Promotion Association under the Broadcasting Culture Promotion Association Act. <Amended by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> (2) If the Broadcasting and Communications Commission intends to collect the Fund from a CATV broadcasting business operator and a satellite broadcasting business operator under Article 37 (3) of the Act, it shall make a public notice of the collection rate which is determined within the limit of 6/100 of the annual sales proceeds in consideration of the financial status of the relevant CATV broadcasting business operator and the satellite broadcasting business operator, the number of receivers and the receiving fees, and the public nature of the broadcasting operations, etc. <Amended by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> - 20 -
(3) If the Broadcasting and Communications Commission intends to collect the Fund, under Article 37 (4) of the Act, from a program provider engaged in a specialized programming of a product presentation and marketing, it shall make a public notice of the collection rate which is determined within the limit of 15/100 of the trading profits upon settlement of accounts for the current year related to the broadcasting business, in consideration of the financial status of the relevant program provider and the number of receivers, etc. <Amended by Presidential Decree No. 20672, Feb. 29, 2008> (4) A CATV broadcasting business operator and a satellite broadcasting business operator shall submit the documents and data referred to in the following subparagraphs which are necessary for the calculation of the Fund under paragraph (2) to the Broadcasting and Communications Commission not later than March 31 of the year following the year when a sale is generated: <Amended by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> 1. Income statement and attached specifications; 2. Audit certificate issued by a certified public accountant; and 3. Other materials deemed as especially necessary in assessing the Fund, and requested by the Broadcasting and Communications Commission. (5) If the Broadcasting and Communications Commission intends to collect the Fund under paragraph (2), it shall forward a notice of payment, which clearly states the amount to be paid as the Fund, the deadline and the receiving agency, to the CATV broadcasting business operator and the satellite broadcasting business operator not later than June 30 of the year following the year when a sale occurs. <Newly Inserted by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> (6) A CATV broadcasting business operator and a satellite broadcasting business operator in receipt of the notice under paragraph (5) shall pay the Fund to the receiving agency designated by the Broadcasting and Communications Commission, within the deadline. <Newly Inserted by Presidential Decree No. 19390, Mar. 10, 2006; Presidential Decree No. 20672, Feb. 29, 2008> (7) The provisions of paragraphs (4) through (6) shall apply mutatis mutandis to a collection of the Fund from a program provider engaged in a specialized programming of product presentation and marketing. In this case, year when a sale is generated shall be deemed as year when the trading profits upon settlement of accounts for the current year occur. <Newly Inserted by Presidential Decree No. 19390, Mar. 10, 2006> (8) Other necessary matters for the procedures for collection of the Fund shall be prescribed by the regulations of the Broadcasting and Communica- - 21 -