Article 1(Purpose) #
The purpose of this Act is to contribute to enhancing public welfare by promoting sound development of the mobile communications industry and by protecting the rights and interests of the users thereof through establishment of sound and transparent distribution order of mobile communications terminal devices.
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Jun. 9, 2020; Dec. 29, 2020; Jan. 30, 2024>
1. The term "mobile communications services" means key communications services using radio frequencies assigned under the Radio Waves Act;
2. The term "mobile communications business operator" means a telecommunications business operator that provides mobile communications services;
3. The term "user" means a person who has concluded a contract for the use of mobile communications services with a mobile communications business operator in order to use mobile communications services;
4. The term "mobile communications terminal device" means a terminal device a user requires to use mobile communications services;
4-2. The term "secondhand mobile communications terminal device" means a mobile communications terminal device that has been previously used by a user or has a history of being subscribed to mobile communications services;
5. The term "mobile communications terminal device manufacturer" means a person that manufactures and produces mobile communications terminal devices;
5-2. The term "secondhand mobile communications terminal device distributor" means a person who engages in the business of purchasing or selling secondhand mobile communications terminal devices;.
6. The term "agent" means a person that handles contracting (including amending terms and conditions of concluded contracts), etc. between a mobile communications business operator and users by proxy or by entrustment, in accordance with an agreement with the mobile communications business operator;
7. The term "sales store" means a person that handles contracting (including amending terms and conditions of concluded contracts), etc. between a mobile communications business operator and users as a sub-agent or by re-entrustment in accordance with an agreement entered with an agent;
8. The term "ex-factory price" means a price at which a mobile communications terminal device is provided to agents by a mobile communications terminal device manufacturer, mobile communications business operator, or a person specially related prescribed by Presidential Decree with a mobile communication business operator (hereinafter referred to as "related party"), etc.;
9. The term "subsidy" means all economic benefits provided to a user to support purchase cost of a mobile communications terminal device, such as amount of discount off the purchase price of the mobile communications terminal device, cash payment, and subsidy for subscription fee;
10. The term "incentive" means any of the following:
(a) All economic benefits provided by a mobile communications terminal device manufacturer (including a related party) to agents, sales stores, etc. in connection with the sale of mobile communications devices;
(b) All economic benefits provided by a mobile communications business operator (including a related party) to agents, or sales stores, etc. in connection with the sale of mobile communications devices;
11. The term "large distributor" means an agent or sales store belonging to a large franchise and retail business operator defined in subparagraph 1 of Article 2 of the Act on Fair Transactions in Large Franchise and Retail Business; a large enterprise defined in subparagraph 12 of Article 2 of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises; or an affiliated company (referring to an affiliated company defined in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act) of a large enterprise.
Article 3(Prohibition of discriminative subsidy payment) #
(1) No mobile communications business operator, agent, or sales store shall pay an unreasonably discriminative subsidy on any of the following grounds:
1. Types of subscription, such as transferring a phone number, new subscription, and replacement of a terminal device;
2. Rate system of mobile communications services;
3. Residential area, age, or physical condition of a user.
(2) Matters necessary for the types of and criteria for payment of unreasonably discriminative subsidy referred to in paragraph (1) shall be prescribed by Presidential Decree.
Article 4(Restriction on payment of excessive subsidies and public announcement) #
(1) The Korea Communications Commission shall determine and publicly announce the standards for and upper limit of the subsidy for purchase of a mobile communications terminal device, in consideration of the anticipated average benefit of subscribers, current status of sales of mobile communications terminal devices, status of competition in communications market, etc.
(2) No mobile communications business operator shall pay a subsidy exceeding the upper limit determined and publicly announced by the Korea Communications Commission pursuant to paragraph (1); provided, this shall not apply to any mobile communications terminal device that has been released on the market for more than 15 months. <Amended on Jun. 9, 2020>
(3) A mobile communications business operator shall publicly announce, in a manner readily understandable by users, the details of and requirements for payment of subsidy, including the ex-factory price of each mobile communications terminal device, amount of subsidy, and sale price obtained by deducting the amount of subsidy from the ex-factory price.
(4) No mobile communications business operator shall pay any subsidy differently from the details publicly announced pursuant to paragraph (3).
(5) An agent or a sales store may additionally pay a subsidy to a user within 15/100 of the amount of subsidy publicly announced by a mobile communications business operator pursuant to paragraph (3).
(6) An agent or a sales store shall post the details publicly announced by a mobile communications business operator under paragraph (3) and the additional amount of subsidy referred to in paragraph (5) in its place of business, etc. so as to be readily visible to users.
(7) The Korea Communications Commission shall determine and publicly announce the standards concerning the methods of making a public announcement and publishing it under paragraphs (3) and (6), and the contents, frequency, etc. thereof.
[The amended provisions of Article 4 (1) and (2) of Act No. 12679 (May 28, 2014) shall be effective until September 30, 2017 under Article 2 of Addenda of that Act]
Article 5(Restriction on concluding individual contract linked with subsidy) #
(1) In concluding a contract with a user for using mobile communications services, no mobile communications business operator, agent, or sales store shall, separately from the terms and conditions of use, conclude an individual contract, the terms and conditions of which are to reject or exclude from the subscription for or the use or termination of services, or to restrict the exercise of such rights by imposing an obligation to use a specific rate system, supplementary services, etc. for a fixed period on condition of paying a subsidy and imposing a penalty when such obligation is violated. <Amended on Jun. 9, 2020>
(2) An individual contract concluded by a mobile communications business operator, an agent, or a sales store with a user in violation of paragraph (1) shall be invalid.
Article 6(Provision of benefits to users not paid subsidies) #
(1) In order to resolve discrimination to users and to assist users’ reasonable selection in subscribing for mobile communications services, a mobile communications business operator shall provide such benefit as a discount, etc. of communication charges, the amount of which corresponds to the subsidy, to a user who intends to subscribe for mobile communications services without receiving any subsidy from the mobile communications business operator (including a user who intends to subscribe only for services without purchasing a mobile communications terminal device).
(2) Article 28 of the Telecommunications Business Act shall apply mutatis mutandis to the modification of the terms and conditions of the use for provision of benefits under paragraph (1).
(3) The Minister of Science and ICT shall determine and publicly announce the standards for provision of benefits, such as discount of the service charges, the amount of which corresponds to the subsidy referred to in paragraph (1). <Amended on Jul. 26, 2017>
Article 7(Separate notification of purchase cost of mobile communications terminal devices) #
(1) A mobile communications business operator shall notify and claim the purchase cost of a mobile communications terminal device, making clear distinction to avoid confusion with the mobile communications service charges.
(2) No mobile communications business operator, agent, or sales store shall lead any user to misunderstand the purchase cost of a mobile communications terminal device as a subsidy by explaining, indicating, or advertising a discounted service charge applied when agreeing on the use of services in accordance with the terms and conditions of the use.
(3) In selling a mobile communications terminal device on an installment basis, a mobile communications business operator, an agent, or a sales store shall clearly notify the user of the period of installments and the expense to be claimed additionally, etc. to enable him or her to make an informed choice.
Article 8(Consent to appointment of sales stores) #
(1) An agent shall not appoint a sales store without the prior written consent of a mobile communications business operator, and shall not engage in any transaction regarding the conclusion of a contract between the mobile communications business operator and a user (including modification to the content of the concluded contract) with a person that has not obtained the prior consent. <Amended on Jan. 23, 2024>
(2) Where an agent appoints a sales store with prior consent of a mobile communications business operator, it shall assume the responsibility to appoint and supervise it for the mobile communications business operator.
(3) A sales store shall indicate the fact that it has obtained prior consent from a mobile communications business operator in accordance with paragraph (1) and post the fact at the place of business; provided, where it conducts the act of proposing, offering, or otherwise suggesting the payment of subsidies for mobile communications terminal devices through an information and communications network under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, the fact shall be posted in accordance with the standards determined by the Korea Communications Commission. <Amended on Jan. 23, 2024>
(4) A mobile communications business operator shall determine and notify in advance the requirements and standards for denying, delaying, or withdrawing prior consent under paragraph (1), and shall not deny, delay, or withdraw such prior consent without good cause other than for the purpose of preventing or correcting a sales store's violation of its obligations under this Act. <Amended on Jan. 23, 2024>
(5) Where a sales store that has obtained prior consent performs an act that meets the requirements for withdrawal of prior consent under paragraph (4), the relevant mobile communications business operator may withdraw the sales store's prior consent. <Added on Jan. 23, 2024>
(6) A mobile communications business operator shall submit data on the status of agents and sales stores, respectively, to the Minister of Science and ICT and the Korea Communications Commission each quarter. <Amended on Jul. 26, 2017; Jan. 23, 2024>
[Title Amended on Jan. 23, 2024]
Article 9(Creation of fair distribution environment) #
(1) No mobile communications terminal device manufacturer shall do any act that hinders fair and orderly distribution of mobile communications terminal devices by unduly rejecting to supply mobile communications terminal devices, such as discriminating against a specific business operator, without any reasonable grounds, to a mobile communications business operator (including a related party; hereafter the same shall apply in this Article).
(2) When providing an incentive, no mobile communications terminal device manufacturer shall instruct, coerce, demand, induce, etc. a mobile communications business operator, an agent, or a sales store to provide an unreasonably discriminative subsidy to a user. <Amended on Jun. 9, 2020>
(3) When concluding an agreement with an agent, no mobile communications business operator shall instruct, coerce, demand, induce, etc. an agent to provide an unreasonably discriminative subsidy to a user or make a special agreement or set conditions that makes the agent recommend any specific supplementary service, rate system, etc. in an unfairly discriminative manner. <Amended on Jun. 9, 2020>
(4) A mobile communications business operator shall prepare a standard form agreement for its agreements with agents and report it to the Minister of Science and ICT. <Amended on Jul. 26, 2017>
(5) No mobile communications business operator shall unjustly direct, coerce, demand, induce, etc., any agent, sales store, or other mobile communications business operator, with respect to the distribution of a particular universal subscriber identity module of mobile communications terminal devices. <Added on Feb. 21, 2018>
(6) When the Korea Communications Commission receives a report or becomes aware that a mobile communications terminal device manufacturer is committing a violation against paragraph (1), it may request the Fair Trade Commission to conduct an investigation and take measures as necessary.
Article 9-2(Facilitation of trading of secondhand mobile communications devices) #
(1) The Minister of Science and ICT may certify a secondhand mobile communication terminal device distributor that meets the certification standards prescribed by Presidential Decree, including user protection requirements, as a safe transaction business operator in order to establish a transparent distribution order in the distribution of secondhand mobile communication terminal devices and to promote user convenience.
(2) A person who intends to obtain certification under paragraph (1) shall file an application for certification with the Minister of Science and ICT as prescribed by Presidential Decree.
(3) The term of validity of certification under paragraph (1) shall be prescribed by Presidential Decree within the extent not exceeding 5 years.
(4) The Minister of Science and ICT may inspect whether a secondhand mobile communications terminal device distributor certified under paragraph (1) (hereinafter referred to as "safe transaction business operator") complies with the certification standards under that paragraph, and may request the submission of data if necessary. In this case, the safe transaction business operator requested to submit data shall comply with the request unless there is a compelling reason not to do so.
(5) The Minister of Science and ICT may revoke the certification of a safe transaction business operator if they falls under any of the following subparagraphs; provided, in the case of subparagraph 1, the relevant certification shall be revoked:
1. Where certification is obtained by fraud or other improper means;
2. Where they refuses an inspection under paragraph (4) without good cause;
3. Where they no longer meets the certification standards under paragraph (1).
(6) Other matters necessary for the standards and procedures for certifying safe transaction business operators, the inspection of whether the certification standards are complied with, etc. shall be prescribed by Presidential Decree.
[This Article Added on Jan. 30, 2024].
Article 10(Prevention of export of lost or stolen terminal devices) #
(1) No person shall export overseas any mobile communications terminal device reported to a mobile communications business operator, etc. in connection with loss, theft, etc. (hereinafter referred to as "lost or stolen terminal device") or damage, forge, or falsify the mobile equipment identity of a lost or stolen terminal device for the purpose of export.
(2) A person who intends to export a secondhand mobile communications device shall verify whether the relevant terminal device is a lost or stolen terminal device, and matters necessary for the method of verification, etc. thereof shall be determined and publicly announced by the Minister of Science and ICT. <Amended on Jul. 26, 2017>
(3) The Minister of Science and ICT may entrust the affairs necessary for the verification referred to in paragraph (2) to the Korea Association for ICT Promotion established under Article 15 of the Framework Act on Broadcasting Communications Development, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
(4) Where necessary to block the overseas exportation of lost or stolen terminal devices, the Minister of Science and ICT may request the heads of related administrative agencies and public institutions to provide cooperation. <Amended on Jul. 26, 2017>
Article 11(Emergency order for suspension) #
(1) Where any act violating Article 3 (1), 4 (2), (4) or (5), or 9 (2), (3) or (5) falls under any of the following and where deemed urgently necessary to prevent such act, the Korea Communications Commission may order a mobile communications business operator (including a related party), an agent, sales store, or mobile communications terminal device manufacturer to suspend the relevant act temporarily. In such cases, it may order the temporary suspension of the relevant act, classifying it into types of subscription: <Amended on Feb. 21, 2018>
1. Where it will be obviously difficult to prevent loss to users if the above-listed parties wait for a corrective order referred to in Article 14 (2), because the offense is serious and is likely to cause damage to users beyond recovery;
2. Where it will be obviously difficult to prevent occurrence of damage to a competing business operator beyond recovery, if the above-listed partieswait for a corrective order referred to in Article 14 (2), because the offense is serious and is likely to cause significant obstruction in the business activities of the competing business operator or cause significant damage to property.
(2) A person dissatisfied with an order issued pursuant to paragraph (1) may file an appeal with the Korea Communications Commission within seven days from the date such order is received.
(3) Matters necessary for the standards, targets, and period of orders issued under paragraph (1), the procedures and methods of filing an appeal therefor, etc. shall be prescribed by Presidential Decree.
Article 12(Submission and keeping of data) #
(1) A mobile communications business operator (including a related party; hereafter the same shall apply in this Article) shall submit data concerning the distribution of mobile communications terminal devices, such as the sales volume, ex-factory prices, and sales amount of mobile communications terminal devices, subsidies, the scale and finances as incentives paid by the mobile communications business operator to agents or sales stores, respectively to the Minister of Science and ICT and the Korea Communications Commission, as prescribed by Presidential Decree, and shall keep the relevant documents; provided, the data to be submitted by a mobile communications business operator shall not be prepared in the way that the scale of incentive paid to the mobile communications business operator by each mobile communications terminal device manufacturer is ascertainable. <Amended on Jul. 26, 2017>
(2) A mobile communications terminal device manufacturer shall submit the scale of incentives paid directly to agents or sales stores and the ex-factory prices of mobile communications terminal devices that users purchase without going through mobile communications business operators, respectively to the Minister of Science and ICT and the Korea Communications Commission, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017>
(3) A mobile communications terminal device manufacturer shall keep data concerning the scale of incentives paid directly to agents or sales stores and the ex-factory prices of mobile communications terminal devices that users purchase without going through mobile communications business operators.
(4) The Minister of Science and ICT and the Korea Communications Commission shall not disclose any data concerning the scale of incentives submitted pursuant to paragraph (2), to any third party or the general public for any purpose other than the enforcement of this Act. <Amended on Jul. 26, 2017>
(5) No public official who engages or has engaged in the duties prescribed by this Act shall disclose any trade secret (referring to the trade secret defined in subparagraph 2 of Article 2 of the Unfair Competition Prevention and Trade Secret Protection Act) of mobile communications business operators, agents, sales stores, and mobile communications terminal device manufacturers, of which he or she has become aware in the course of performing his or her duties, or use it for any purpose other than the enforcement of this Act.
[The amended provisions of Article 12 (2) of Act No. 12679 (May 28, 2014) shall be effective until September 30, 2017 under Article 2 of Addenda of that Act]
Article 13(Fact-finding inspection) #
(1) Where the Korea Communications Commission deems, by a report or recognition, that there is any violation against Article 3 (1), 4 (2) through (6), 5 (1), 7 (2) or (3), 8 (1), (3) or (4), or 9 (2), (3) or (5), it may require a public official under its jurisdiction to conduct necessary inspection to verify as such. <Amended on Feb. 21, 2018; Jan. 23, 2024>
(2) If necessary to conduct an inspection under paragraph (1), the Korea Communications Commission may require a public official under its jurisdiction to access the offices and the places of business of a mobile communications business operator (including a related party), an agent, a sales store, or mobile communications terminal device manufacturer and investigate the books, documents, and other data or things.
(3) In order to conduct an inspection under paragraph (1), the Korea Communications Commission shall notify the relevant business operator of an inspection plan, including the scheduled period, grounds for, and details of the inspection by not later than seven days before the inspection is conducted; provided, the same shall not apply in an emergency or where it is deemed impossible to attain the objectives of the inspection due to destruction of evidence, etc. if the inspection plan is notified in advance.
(4) A person who conducts an inspection by having access to the relevant business operator's office and places of business under paragraph (2) shall carry a certificate that indicates his or her authority and present it to a related party, and shall, when he or she conducts the inspection, require the related party of the relevant office or business place to participate therein.
(5) A relevant public official who conducts an inspection under paragraph (2) may order the relevant business operator to submit necessary data or articles, and may keep the relevant data or things in temporary custody where there is any possibility to destroy evidence, including the disposal, concealment, or replacement of the submitted data or things.
(6) If any data or articles in custody fall under any of the following, the Korea Communications Commission shall immediately return them:
1. Where the data or articles in custody are deemed irrelevant to the inspection as the result of the examination thereof;
2. Where the data or articles need not be kept in custody due to the achievement of the objectives of the relevant inspection, etc.
Article 14(Corrective order) #
(1) Where a mobile communications business operator, an agent, or a sales store is deemed to have committed a violation against Article 6 (1) or 7 (1), the Minister of Science and ICT may issue an order to correct it. <Amended on Jul. 26, 2017>
(2) Where it is deemed that there is a violation against Article 3 (1), 4 (2) through (6), 5 (1), 7 (2) or (3), 8 (1), (3) or (4), or 9 (2), (3) or (5), the Korea Communications Commission may order a mobile communications business operator (including a related party), an agent, sales store, or mobile communications terminal device manufacturer to take any of the following measures; provided, where issuing an order to take measures falling under any of subparagraphs 1 through 3 and 6, it shall hear the opinion of the Minister of Science and ICT: <Amended on Jul. 26, 2017; Feb. 21, 2018; Jan. 23, 2024>
1. Disclosure of information on the sale of mobile communications services and mobile communications terminal devices;
2. Conclusion, performance, or amendment of the terms and conditions of an agreement between a mobile communications business operator (including a related party), an agent, sales store, or mobile communications terminal device manufacturer;
3. Modification of terms and conditions for the use or the articles of incorporation of a mobile communications business operator;
4. Suspension of an offense;
5. Publication that a corrective order has been received due to an offense;
6. Improvement of business processing procedures of a mobile communications business operator (including a related party), an agent, a sales store, or mobile communications terminal device manufacturer;
7. Prohibition of new recruitment of users (the period of prohibition shall not exceed three months, and the prohibition shall be limited to where the same offense occurs repeatedly on at least three occasions despite the measures prescribed in subparagraphs 1 through 6 or where it is obviously impracticable to prevent the loss to users only by taking such measures);
8. Matters prescribed by Presidential Decree as necessary to take measures prescribed in subparagraphs 1 through 7.
(3) A mobile communications business operator (including a related party), an agent, a sales store, or mobile communications terminal device manufacturer shall comply with an order of the Korea Communications Commission issued under paragraph (2) within the period prescribed by Presidential Decree; provided,, where the Korea Communications Commission deems it impossible for the relevant business operator to comply with the order within such period due to a natural disaster or any other extenuating circumstance, the period may be extended only once. <Amended on Jun. 9, 2020>
Article 15(Penalty surcharges) #
(1) Where a mobile communications business operator (including a related party) or a mobile communications terminal device manufacturer violates any of Article 3 (1), 4 (2) or (4), 5 (1), 7 (2) or (3), 8 (4), or 9 (2), (3) or (5), the Korea Communications Commission may impose the relevant mobile communications business operator (including a related party) or mobile communications terminal device manufacturer a penalty surcharge equivalent to 3/100 of the sales amount prescribed by Presidential Decree or less; provided, where there is no sales amount or in cases prescribed by Presidential Decree among the cases where it is difficult to compute the sales amount, a penalty surcharge not exceeding one billion won may be imposed. <Amended on Feb. 21, 2018>
(2) Where an agent or a sales store of a mobile communications business operator violates Article 3 (1), 4 (5) or (6), 5 (1), or 7 (2) or (3), the Korea Communications Commission may impose the relevant mobile communications business operator, a penalty surcharge prescribed in paragraph (1); provided, the same shall not apply where the mobile communications business operator has paid due attention to and has not negligently supervised the relevant business in order to prevent the violation.
(3) In imposing a penalty surcharge under paragraph (1), the Korea Communications Commission shall compute it based upon the following, and the detailed standard and procedures for computation thereof shall be prescribed by Presidential Decree:
1. Details and seriousness of the violation;
2. Period and instances of the violation.
3. Whether the violation has been committed by intention or negligence;
4. Scale of gains acquired from the violation;
5. Sales amount related to the violation.
(4) If a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to pay it within the payment deadline, the Korea Communications Commission shall collect an additional due equivalent to 6/100 per annum on the delinquent penalty surcharge from the day following the deadline.
(5) If a person liable to pay a penalty surcharge under paragraph (1) or (2) fails to pay it within the deadline for payment, the Korea Communications Commission shall demand him or her to make payment within a fixed period, and if he or she fails to pay the penalty surcharge and the additional due prescribed in paragraph (4) within the fixed period, it shall collect them in the same manner as delinquent national taxes are collected.
Article 16(Extension of deadlines for payment of penalty surcharges and installment payment thereof) #
(1) Where a penalty surcharge to be paid by a business operator under Article 15 exceeds the amount prescribed by Presidential Decree and it is deemed impracticable for the relevant person liable to pay a penalty surcharge for any of the following reasons to pay the full penalty surcharge in lump sum, the Korea Communications Commission may extend the deadline for payment or allow him or her to pay it in installments. In such cases, it may require him or her to provide security, where deemed necessary:
1. Where he or she suffers significant loss to property due to a natural disaster, fire, etc.;
2. Where his or her business is in serious crisis due to the deterioration of business environment;
3. Where he or she is expected to face a significant financial difficulty, if he or she pays the penalty surcharge in lump sum.
(2) Matters necessary for the extension of deadline for payment of a penalty surcharge, installment payment thereof, provision of security, etc. shall be prescribed by Presidential Decree.
Article 17(Relationship with other Acts) #
Where an order has been issued to conduct an inspection under Article 13 or to take measures under Article 14, or a penalty surcharge under Article 15 has been imposed for an offense against this Act, no corrective measures or penalty surcharge shall be imposed under the Monopoly Regulation and Fair Trade Act or the Telecommunications Business Act against the same act of the relevant business operator for the same reason.
Article 18(Compensation for damage) #
Where any measures under Article 14 (1) or (2) is taken, a person suffering from an offense against this Act may claim damages to a person who has committed the offense, and the person who has committed the offense shall not evade the responsibility, unless he or she proves that he or she has not committed it intentionally or by gross negligence.
Article 19(Delegation and entrustment of authority) #
(1) The Minister of Science and ICT or the Korea Communications Commission may partially delegate his or her or its authority conferred by this Act to the heads of institutions under his or her or its jurisdiction, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017; Jan. 30, 2024>
(2) The Minister of Science and ICT may entrust some tasks necessary for certification under Article 9-2 (1) to a related institution or organization as prescribed by Presidential Decree. <Added on Jan. 30, 2024>
[Title Amended Jan. 30, 2024].
Article 20(Penal provisions) #
(1) Any of the following persons shall be punished by imprisonment for not more than three years or by a fine not exceeding 150 million won:
1. A person who exports any lost or stolen terminal device overseas or damages, forges, or falsifies the mobile equipment identity of a lost or stolen terminal device for the purpose of exportation, in violation of Article 10 (1);
2. A mobile communications business operator (including a related party) or a mobile communications terminal device manufacturer who fails to comply with an emergency order for suspension issued under Article 11 (1);
3. A mobile communications business operator (including a related party) or a mobile communications terminal device manufacturer who fails to comply with an order issued under Article 14 (2).
(2) Any of the following mobile communications business operators (including related parties) or mobile communications terminal device manufacturers shall be punished by a fine not exceeding 300 million won: <Amended on Feb. 21, 2018; Jun. 9, 2020>
1. A person who pays an unduly discriminative subsidy in violation of Article 3 (1);
2. A person who, when providing a subsidy, instructs, coerces, demands, induces, etc. a mobile communications business operator (including a related party), an agent, or a sales store to provide an unduly discriminative subsidy to a user in violation of Article 9 (2);
3. A person who instructs, coerces, demands, induces, etc. an agent to provide an unreasonably discriminative subsidy to a user or make a special agreement or set conditions requiring the agent to recommend to a user any specific supplementary service, rate system, etc. which are unreasonably discriminative, in violation of Article 9 (3);
4. A person who unjustly directs, coerces, demands, induces, etc., any agent, sales store, or other mobile communications business operator, with respect to the distribution of a particular universal subscriber identity module of mobile communications terminal devices, in violation of Article 9 (5).
(3) A person who violates Article 12 (5) shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won.
Article 21(Joint penal provisions) #
Where a representative of a corporation, or an agent, employee or other servant of a corporation or individual commits a violation that falls under any violation referred to in Article 20, with respect to the duties of the corporation or individual, not only shall such offender be punished accordingly, but the corporation or individual also shall be punished by a fine prescribed in the relevant provisions; provided, this shall not apply where such corporation or individual has not neglected to take due care and supervision concerning the relevant duties in order to prevent such violation.
Article 22(Administrative fines) #
(1) A person who refuses, interferes with, or evades an inspection conducted under Article 13 (2) shall be punished by an administrative fine not exceeding 50 million won.
(2) A person who fails to prepare a standard form agreement for agreements with agents and report it to the Minister of Science and ICT, in violation of Article 9 (4), shall be punished by an administrative fine not exceeding 15 million won. <Amended on Jul. 26, 2017>
(3) Any of the following agents, sales stores, or executive officers (referring to registered directors, including directors and representative director, outside directors, auditors, and executive officers) of mobile communications business operators shall be punished by an administrative fine not exceeding 10 million won; provided, if any of the following persons is a large distributor, he or she shall be punished by an administrative fine not exceeding 50 million won:
1. A person who pays a discriminative subsidy in violation of Article 3 (1);
2. A person who pays a subsidy differently from the details publicly announced, in violation of Article 4 (4);
3. A person who additionally pays a subsidy to a user exceeding 15/100 of the amount of subsidy publicly announced, in violation of Article 4 (5);
4. A person who fails to post the details publicly announced by a mobile communications business operator and the additional amount of subsidy referred to in Article 4 (5) in its place of business, etc. so that they can be readily visible to users, in violation of Article 4 (6).
(4) Any of the following persons shall be punished by an administrative fine not exceeding 10 million won; provided, if any of the following persons is a large distributor, he or she shall be punished by an administrative fine not exceeding 50 million won: <Amended on Jan. 23, 2024>
1. A person who fails to publicly announce the requirements for payment of subsidy and the details thereof, in violation of Article 4 (3);
2. A person who concludes an individual contract, the terms and conditions of which are to reject or exclude from the subscription for or the use or termination of services, or to restrict the exercise of such rights as a condition for payment of a subsidy, in violation of Article 5 (1);
3. A person who fails to notify and claim the purchase cost of a mobile communications terminal device, making clear distinction to avoid confusion with the mobile communications service charges, in violation of Article 7 (1);