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ENFORCEMENT DECREE OF THE BROADCASTING ACT

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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 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. Article 1-2 (Definitions of Terms)

The terms used in this Decree shall be defined as follows:

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; - 2 -

3. The term "terrestrial mobile multimedia broadcasting business op- erator" 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 oper- ator" 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 busi- ness registered or obtains approval for his business in accordance with Article 9 (5) of the Act to run the program provider airing radio broad- casts (hereinafter referred to as the "radio program provider");

8. The term "data program provider" means anyone who has his busi- ness 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 broadcast- ing 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 - 3 -

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 Multime- dia Broadcasting Business Operators)

A terrestrial wireless station, that is opened without a studio in order to supplement broadcasts aired by a satellite mobile multimedia broad- casting 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. 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:

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 founda- tion; hereafter the same shall apply in this Article) and any of its officers that the principal makes equity investment in or con- tributions 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 - 4 -

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 manage- ment, 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 ex- ercise controlling influence on major management affairs of a corporation or decision-making of an individual by the regulations of the Broadcasting and Communications Commission:

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, au- ditor, partner with unlimited liability or other person whose position is in fact equivalent to the former's positions.

(4) "Exercise of de facto influence over major management matters" referred to in paragraph (1) means a case falling under any of the following sub- paragraphs: 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 or- dinary scope, offers the guarantee of debts for the relevant corpora- tion 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. CHAPTER 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. (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 - 6 -

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 sub- paragraphs:

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 broad- casting 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- - 7 -

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:

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 multi- media 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 Commis- sion, 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 terres- trial 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 - 8 -

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 busi- ness operator; and

6. If a specific satellite broadcasting business operator runs not less than 2 satellite broadcasting businesses of other satellite broadcast- ing 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.

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 - 9 -

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 broadcast- ing 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. Article 7 (Authorization of CATV Broadcasting Business to CATV Relay - 10 -

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:

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. (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.

Article 7-2 Deleted. 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 program- ming plans and the business plans:

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;

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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.

(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.

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:

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 chan- nels 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.

(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- - 12 -

graph of Article 10 (1) of the Act, and notify the applicant of the rele- vant results within sixty days.

(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 applica- tion for authorization to the Broadcasting and Communications Commission, along with the documents referred to in the following subparagraphs:

1. Documents stating the matters on the applicant;

2. Contract for use of wireless facilities or of specific channels of a wire- less 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.

(3) Provisions of Article 7 (3) shall apply mutatis mutandis to the au- thorization of a business of satellite broadcasting using an artificial sat- ellite 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 busi- ness under Article 9 (10) of the Act shall submit a written application for registration stating the matters referred to in the following sub- paragraphs, to the Broadcasting and Communications Commission, along with the business plans and the plans for installation of facilities:

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 - 13 -

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.

(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 Com- munications Commission. (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 Busi- ness Operator)

(1) A community radio broadcasting business operator shall provide broadcasting services at least six hours a day and broadcast programs - 14 -

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 - 15 -

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 De- cree" in Article 15 (1) 7 of the Act means a modification falling under any of the following subparagraphs:

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 busi- ness 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:

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 - 16 -

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 busi- ness 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 decision- making 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.

(4) Deleted. (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 subpara- graph of paragraph (1). (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.

[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 - 17 -

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 Com- munications Commission not later than six months prior to the expiration of the valid term of the license.

(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.

(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. (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).

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. (2) The Broadcasting and Communications Commission shall, where mak- ing 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 busi- ness, or transmission network business. (3) Deleted. Articles 18 and 19 Deleted. CHAPTER COMMITTEES, ETC. OF BROADCASTING

AND COMMUNICATIONS COMMISSION

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Article 20 Deleted. 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 Com- mittee may recommend a correction thereof to the provider of the relevant information. 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 com- mercials falling under any of the following subparagraphs:

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 activ- ities organized or sponsored by a CATV broadcasting business oper- ator, 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 Con- ciliation Committee)

(1) The Broadcasting Dispute Conciliation Committee established under - 19 -

the Broadcasting and Communications Commission under Article 35-3 (1) of the Act shall deliberate on the following matters:

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 op- erators: 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 broadcast- ing business.

(2) The Broadcasting Dispute Conciliation Committee referred to in par- agraph (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 Commit- tee shall be appointed by the Chairperson of the Broadcasting and Communications Commission from among the members of the Broadcasting Dispute Conciliation Committee.

(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:

1. Persons whose term of service as judge, public prosecutor or attorney- at-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 Con- ciliation Committee shall be two years, and he may be recommissioned - 20 -

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 Com- mittee 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.

(7) Matters necessary for the operation of the Broadcasting Dispute Conciliation Committee and the conciliation procedures, etc. shall be pro- vided by the regulations of the Broadcasting and Communications Commission. [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 Broad- casting Culture Promotion Association Act. (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.

- 21 -

(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 ac- counts 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.

(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:

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. (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. (7) The provisions of paragraphs (4) through (6) shall apply mutatis mu- tandis 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". (8) Other necessary matters for the procedures for collection of the Fund shall be prescribed by the regulations of the Broadcasting and Communica- - 22 -

tions Commission.

Article 23 (Entrustment of Fund Collection)

(1) The Broadcasting and Communications Commission shall, under the provisions of Article 37 (6) of the Act, entrust the Korean Broadcasting Advertising Corporation under the Korean Broadcasting Advertising Corporation Act (hereinafter referred to as the "Korean Broadcasting Advertising Corporation") with the collection of the Fund under Article 37 (2) of the Act.

(2) The Korean Broadcasting Advertising Corporation shall report to the Broadcasting and Communications Commission the particulars of the Fund collected during the preceding month not later than the tenth day of each month. Article 23-2 (Collection of Surcharge, etc.)

(1) The surcharge imposed on the amount in arrears to the Fund pro- vided for in Article 37 (7) of the Act shall be an amount equivalent to 3/100 of the amount in arrears.

(2) When anyone who is liable to make his payment to the Fund fails to make such payment by the payment deadline, the Broadcasting and Communications Commission shall serve a written notice explicitly indicating the matters falling under each of the following subparagraphs to him in order to press him to pay the amount in arrears within 15 days from the date on which the payment deadline lapses:

1. The amount in arrears to be paid to the Fund and the surcharge;

2. The payment deadline (the deadline shall be not less than 10 days from the date on which the written notice is served); and

3. The purport that if he fails to make the payment within the deadline, the amount in arrears shall be forcibly collected from him. [This Article Newly Inserted by Presidential Decree No. 18548, Sep. 17, 2004] Article 24 (Entrustment of Fund Management)

(1) The Broadcasting and Communications Commission shall, under the provisions of Article 40 of the Act, entrust the Korea Broadcasting Advertising Corporation with the duties of the distribution and the account- ing management of the Fund, from among the management duties of the Fund. (2) The Korea Broadcasting Advertising Corporation shall report, each quarter, the current status of the distribution and the accounting man- agement of the Fund to the Broadcasting and Communications Commission. - 23 -

Article 25 Deleted. CHAPTER -2 REGIONAL BROADCAST

DEVELOPMENT

COMMITTEE

Article 25-2 (Scope of Regional Broadcasts)

Regional broadcasts as referred to in Article 42-3 (6) of the Act shall be terrestrial broadcasts having any of the areas in the following sub- paragraphs as their broadcasting zones:

1. Part of a special metropolitan city and areas other than the special metropolitan city; and

2. Areas other than the special metropolitan city. [This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 25-3 (Operation, etc. of the Regional Broadcasts Development Committee)

(1) The Chairperson of the Broadcasting and Communications Commission may announce an organization which he accepts as an organization capable of representing regional broadcasts pursuant to Article 40-3 (3) of the Act (hereinafter referred to as a "regional broadcast representative organ- ization"). (2) The regional broadcasts representing organization may recommend candidates for the members of the Regional Broadcasts Development Committee to the Chairperson of the Broadcasting and Communications Commission, and the Chairperson of the Broadcasting Communications Commission shall appoint three candidates from among the candidates recommended by the regional broadcasts representing organization as members of the Regional Broadcasts Development Committee.

(3) In cases where the Chairperson of the Regional Broadcasts Development Committee is unable to carry out his duties due to inevitable reasons, a person from among the members of the Regional Broadcasts Development Committee who concurrently take the office of a committee member of the Broadcasting and Communications Commission shall act for the Chairperson, and in cases where both the Chairperson of the Regional Broadcasts Development Committee and the person who concurrently takes the office of a member of the Broadcasting and Communications Commission are unable to carry out the duties, the members of the Regional Broadcasts Development Committee in order of seniority shall act for the Chairperson. - 24 -

(4) The Regional Broadcasts Development Committee may prepare and publish a white book of the activities of the Regional Broadcasts Development Committee for the establishment of a support plan for the development of regional broadcasts and assessments of its achievements. (5) Matters necessary for the organization, operation, etc. of the Regional Broadcasts Development Committee other than matters mentioned in the provisions of paragraphs (1) through (4) shall be prescribed by the regulations of the Broadcasting and Communications Commission.

[This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] CHAPTER KOREA BROADCASTING

SYSTEM

Article 26 (Registration of Incorporation)

(1) Registration of the incorporation of the Korea Broadcasting System (hereinafter referred to as the "System") under Article 43 (8) of the Act shall be done within two weeks from the date when the first payment of capital occurs.

(2) Matters as referred to in the following subparagraphs shall be reg- istered in the registration of incorporation under paragraph (1):

1. Objectives;

2. Title;

3. Location of the principal office;

4. Capital;

5. Method of investment and its amount paid in;

6. Method of public notice;

7. Name and address of the president; and

8. Names and resident registration numbers of the chairperson of the board of directors, directors and auditor.

(3) Where a regional broadcasting station is established simultaneously with the incorporation of the System, the matters referred to in each subparagraph of Article 3 of the Act on the Special Cases concerning the Matters to be Filed in the Register of Corporation, etc., shall be regis- tered at the location of the relevant regional broadcasting station within three weeks after the registration of incorporation under paragraph (1) is made.

Article 27 (Registration of Establishment of Regional Broadcasting Station) - 25 -

(1) When the System establishes a regional broadcasting station after the incorporation of the System, it shall register according to the clas- sification of the following subparagraphs:

1. Name and location of the newly established regional broadcasting station within two weeks, at the location of the principal office;

2. Matters referred to in each subparagraph of Article 3 of the Act on the Special Cases concerning the Matters to be Filed in the Register of Corporation, etc. within three weeks at the location of the newly established broadcasting station; and

3. Name and location of the regional broadcasting station within three weeks, at the location of the already established regional broad- casting stations.

(2) When another regional broadcasting station is established within an area under the jurisdiction of the office of registry having jurisdiction over the location of its principal office or a regional broadcasting station, only the name and location of the relevant regional broadcasting station shall be registered.

Article 28 (Registration of Relocation)

(1) When the principal office of the System is relocated to an area under the jurisdiction of another office of registry, the new location and the date of relocation shall be registered within two weeks at the former location, and the matters referred to in each subparagraph of Article 26 (2) shall be registered within three weeks at the new location. (2) When a regional broadcasting station is relocated to an area under the jurisdiction of another office of registry, the new location and the date of relocation of the relevant regional broadcasting station shall be registered within two weeks at the location of the principal office and the former location of the relevant broadcasting station, and the matters referred to in each subparagraph of Article 3 of the Act on the Special Cases concerning the Matters to be Filed in the Register of Corporation, etc. shall be registered within three weeks at the new location. (3) When the principal office and a regional broadcasting office is relo- cated within the area under the jurisdiction of the same office of registry, the new location and the date of relocation shall be registered. Article 29 (Modified Registration)

Where there exist any modifications in the matters referred to in each subparagraph of Article 26 (2), the System shall register the relevant - 26 -

modified matters within two weeks at the location of the principal office, and where there exist any modifications in the matters referred to in each subparagraph of Article 3 of the Act on the Special Cases concerning the Matters to be Filed in the Register of Corporation, etc., it shall register the relevant modified matters within three weeks at the location of the regional broadcasting stations.

[This Article Wholly Amended by Presidential Decree No. 17156, Mar. 20, 2001] Article 30 (Documents Attached to Application for Registration) A written application for each registration under Articles 26 through 29 shall be accompanied with the documents of the following subparagraphs:

1. Articles of incorporation and the documents attesting the amount of investment and the qualifications of officers, in the registration of incorporation under Article 26;

2. Documents attesting the establishment of a regional broadcasting station, in the registration of the establishment of a regional broad- casting station under Article 27;

3. Documents attesting the relocation of the principal office or a regional broadcasting station, in the registration of relocation under Article 28; and

4. Documents attesting the relevant modified matters, in the modified registration under Article 29.

Article 31 (Reckoning of Registration Period)

When there exist any matters for which approval or authorization of the Broadcasting and Communications Commission is to be obtained as to the matters for registration under the provisions of this Decree, the registration period under Articles 26 through 29 shall be reckoned from the date when the certificate of approval or authorization arrives.

Article 32 (Matters to be Stated in Articles of Incorporation) "Matters prescribed by the Presidential Decree" in Article 45 (1) 13 of the Act are matters referred to in the following subparagraphs:

1. Matters concerning the management and disposition of assets; and

2. Matters concerning the capital. Article 33 (Evaluation of Management and its Public Announcement) (1) The board of directors of the System shall, under the provisions of Article 49 (1) 6 of the Act, conduct each year an evaluation of management which includes the matters of the following subparagraphs:

1. Evaluation of the propriety in setting up the management objectives;

2. Evaluation of the efficiency in executing the budget; - 27 -

3. Evaluation of the business management system, such as personnel and organization, etc.;

4. Evaluation of the management results, such as financial status;

5. Evaluation of the research and development projects;

6. Evaluation of the investments in facilities; and

7. Other matters required for the development of the System and the improvement of management.

(2) The board of directors shall compose and operate a management evaluation team in order to conduct the evaluation of management under paragraph (1).

(3) When the management evaluation team has conducted an evaluation of management, it shall report the results thereof to the board of directors, and the board of directors shall publicly announce them within five months after the end of each fiscal year by a method falling under any of the following subparagraphs:

1. A broadcast through the System's own broadcasts and posting on the Internet homepage of the System; or

2. A provision of the reports to other broadcasting business operators and the daily newspapers.

(4) When the board of directors deems that there are matters requiring improvement as a results of an evaluation of management, it may request the president to take measures for improvement or correction. Article 34 (Development of Broadcasting Technologies) The System shall invest an amount of not less than a specific ratio as determined by the board of directors from among the budget of each year in the research and development of broadcasting technologies, in order to facilitate the projects of survey, research and development related to the broadcasting under Article 54 (1) 10 of the Act. Article 35 (Budget and Settlement of Accounts)

With respect to the budget and the settlement of accounts of the System, the increase, decrease and changes of assets shall be booked according to the details of occurrences, in order to clarify the business performance and the financial status, and with respect to the revenues from the television broadcast receiving fees (hereinafter referred to as the "receiving fees") shall be accounted according to the details of collections. Article 36 (Revenue Sources)

"Revenues prescribed by the Presidential Decree" in Article 56 of the Act are revenues falling under any of the following subparagraphs:

1. Revenues from commercials; - 28 -

2. Profits from the sale of broadcast programs;

3. Government subsidies under Article 54 (2) or 61 of the Act;

4. Revenues from sponsors;

5. Revenues through new media such as a satellite broadcasting, etc.;

6. Revenues accruing from being entrusted with the signal transmission operations;

7. Debentures or loans;

8. Amount carried forward from the preceding year; and

9. Other revenues incidental to the broadcasting business. Article 37 (Subsidies, etc.)

Where the State grants any subsidies for part of the expenses, extends a loan from the treasury funds, or accepts the System's debentures under Articles 54 (2) and 61 of the Act, the provisions of the related Acts and subordinate statutes, such as the State Finance Act, the Act on the Special Accounts for Treasury Loans, the Act on the Budgeting and Management of Subsidies, shall govern. Article 38 (Registration of TV Sets)

(1) Each person who possesses a television receiver set (hereinafter referred to as a "TV set") shall, under the main sentence of Article 64 of the Act, apply for a registration of the TV set within thirty days from the date when he takes the relevant TV set, to the System, to the manufacturer, distributor, importer-distributor of the TV set to whom the duties of registering TV set and of collecting the receiving fees are delegated by the System under Article 67 (2) of the Act, or to a person designated by the System (hereinafter referred to as "distributors, etc."). (2) Upon receipt of an application for registration of a TV set under para- graph (1), the System or the distributors, etc. shall enter the necessary matters in the TV set registry.

(3) The System or a person designated by the System under Article 67 (2) of the Act to whom the duties of registration and collection are delegated (hereinafter referred to as a "designated person") may recommend a registration to the possessor of a TV set which is not registered under paragraph (1).

Article 39 (TV Sets Exempted from Registration)

TV sets which are exempted from registration under the proviso of Article 64 of the Act shall be as follows: - 29 -

1. Black and white TV sets;

2. TV sets manufactured by TV set manufacturer, and not shipped out of the warehouse;

3. TV sets kept or displayed by the TV set distributors or importer- distributors for business purposes;

4. TV sets in storage under the Customs Act; 5.TV sets kept by persons operating a secondhand shop for business purposes;

6. TV sets in possession of the foreigners belonging to foreign organi- zations or foreign troops in Korea or of their families;

7. TV sets installed on the military or combat police compounds;

8. TV sets installed for viewing by the inmates of correctional insti- tutions or of juvenile reformatories;

9. TV sets installed in the offices of broadcasting business operators and CATV relay broadcasting business operators;

10. TV sets installed for educational purposes in the classrooms or audio- visual classrooms of the schools under Article 2 of the Elementary and Secondary Education Act and Article 2 of the Higher Education Act;

11. TV sets installed for the infants at nursery facilities established under the Infant Care Act;

12. TV sets installed at the free facilities from among the social welfare facilities under the Social Welfare Services Act for the inmates and users of the relative facilities;

13. TV sets installed by the State or local governments for official or pub- licity and educational uses, and not for the purpose of general viewing;

14. TV sets displayed at exhibitions supervised by the State or local governments;

15. TV sets in possession of foreigners exempted from taxes and public imposts similar to them under the treaties or the Acts and subordinate statutes, or their families;

16. TV sets installed on cars, ships or airplanes; 16-2. Personal portable TV sets carried to view while on the move;

17. Other TV sets than the first set in cases where a household is in possession of more than two TV sets in the same exclusively residential household;

18. TV sets installed for leprosy patients in a leper colony; 19.TV sets in areas where electricity offered by an electricity service supplier under the Electric Utility Act is not supplied;

20. TV sets installed in senior citizens' clubs, etc. for their welfare; - 30 -

21. TV sets designated by the Minister of Public Administration and Security in consultation with the Broadcasting and Communications Commis- sion, from among the TV sets subscribing for the antenna facilities for official viewing which are installed and operated for the purpose of national security; and

22. Other TV sets designated by the Broadcasting and Communications Commission.

Article 40 (Report on Modification of Registration) (1) A person who has registered a TV set under Article 38 (hereinafter referred to as "TV set registrant") shall, in cases where he modifies the registered matters of TV sets, such as a change of places where the TV set is installed and of the number of sets in possession, report such modified matters within two weeks to the System or the designated persons. (2) The System or the designated persons may, in cases where a TV set registrant has failed to report under paragraph (1), verify the relevant fact and enter it on the TV set registry.

(3) A TV set registrant's duty to pay the receiving fee shall not be ex- tinguished by a delay or failure in reporting the modified matters under paragraph (1): Provided, That this shall not apply when the registration of a TV set is cancelled under Article 41 (3).

Article 41 (Cancellation of Registration)

(1) A TV set registrant shall, in cases where the relevant registered TV set falls under any of the following subparagraphs, apply for a cancellation of registration of the TV set within two weeks to the System or the designated persons:

1. Where the TV set is transferred;

2. Where viewing becomes impossible due to aging or damage; or

3. Where continued possession of a TV sets is impossible due to a loss or other causes.

(2) A person shall, upon receipt of an application for cancellation under paragraph (1), verify the relevant fact, and cancel a registration of TV sets.

(3) The System or the designated persons may, with respect to a TV set whose registrant's whereabouts are not obvious, cancel the relevant registration after its verification.

Article 42 (Collection of Receiving Fees)

(1) Receiving fees shall be collected according to the standards referred to in the following subparagraphs:

1. With respect to the TV sets installed in an exclusively residential - 31 -

household, a receiving fee for only one TV set per household shall be collected;

2. In cases other than as referred to in subparagraph 1, a receiving fee shall be collected according to the number of TV sets possessed;

3. A receiving fee shall not be collected for the month to which belongs the date of the first TV set is possessed;

4. A receiving fee shall not be collected for the month to which belongs the date of cancellation of registration under Article 41 (2); and

5. A receiving fee shall not be collected for the month to which belongs the date of rescinding the causes for an exemption from receiving fees under each subparagraph of Article 44 (1), or for the month to which belongs the date of exempting from receiving fees under Article 44 (3). (2) Receiving fees shall be calculated on a monthly basis, and shall be collected on a monthly basis as one payment period: Provided, That it may be collected on a bimonthly basis as one payment period in cases where deemed necessary for the efficient collection of receiving fees. Article 43 (Notice to Pay Receiving Fees)

(1) The System or the designated person shall, in cases where intending to collect the receiving fees, forward a notice to pay receiving fees clarifying the matters referred to in the following subparagraphs, so as to have it arrive at the TV set registrant not later than seven days prior to the payment period: Provided, That this shall not apply when the collection is made by a visit:

1. Amount of payment;

2. Month subject to the collection;

3. Payment term;

4. Place of the payment; and

5. Any additional charges for a delinquency in payment of receiving fee under Article 47.

(2) In cases where a designated person collects a receiving fee, he may do so in combination with the notifying activities related to the peculiar services of the designated person.

Article 44 (Exemption from Receiving Fees)

(1) TV sets falling under any of the following subparagraphs shall be exempted from receiving fees under the proviso to Article 64 of the Act: Provided, That it shall not apply to cases where the owner of a TV set, from among those falling to paragraph (1) 1, 2, 2-2 and 8 has installed it in a space for business purposes: Mar. 10, 2006: Presidential Decree No. 20672, Feb. 29, 2008>

1. TV sets in possession of the beneficiaries under the National Basic Living Security Act;

2. TV sets in possession of the patriots, soldiers or policemen wounded in action, soldiers or policemen wounded on duty, persons wounded in the April 19 Revolution, public officials wounded on duty and per- sons wounded with a special merit under Article 4 (1) 2, 4, 6, 10, 12 and 14 of the Act on the Honorable Treatment and Support of Per- sons, etc. of Distinguished Services to the State, from among those who are registered as persons of distinguished services to the State under the same Act;

2-2. TV sets possessed by persons injured in the Gwangju democratization uprising provided for in subparagraph 2 of Article 4 of the Act on the Honorable Treatment of Persons Distinguished Services to the Gwangju Democratization Movement from among the citizens of the Gwangju democratization merit who are registered under the same Act;

3. TV sets on which a pledge right is established while in the custody of another person;

4. TV sets confiscated or seized by the State agencies;

5. TV sets not in use for viewing due to a business suspension in ex- cess of one month, from among those which have been installed for business purposes;

5-2. Where a monthly volume of electric power consumed by the place of business is 0 kilowatt, TV sets installed at the relevant place of business (limited to the receiving fees for the month in which a monthly power consumed is 0 kilowatt);

6. TV sets in possession of persons residing in areas where it is impossible to view all or a part of TV broadcasts conducted by the System (herein- after referred to as "disturbed viewing areas"): Provided, That this shall not apply to cases where viewing is made impossible due to artificial causes, such as new construction of buildings or structures;

7. TV sets in possession of a household whose volume of electricity consumed for their exclusively residential household is less than fifty kilowatts per month (limited to the receiving fee for the month of less than fifty kilowatts, and excluding countryside houses);

8. TV sets in possession of the bereaved families of the martyrs and pa- triots who are registered under the Act on the Honorable Treatment and Support of Persons, etc. of Distinguished Services to the State;

9. TV sets in homes where visually or auditory handicapped persons - 33 -

who are registered with the Ministry of Health, Welfare and Family Affairs live; or

10. Other TV sets designated by the Broadcasting and Communications Commission.

(2) A person in possession of a TV set falling under any of the subparagraphs of paragraph (1) shall, in cases where he intends to have a receiving fee exempted, submit an application for exemption from receiving fees to the System or the designated person along with the data capable of attesting his eligibility for exemption from receiving fees: Provided, That a person in possession of a TV set falling under paragraph (1) 5-2, 6 and 7 may omit submitted data attesting his eligibility for exemption from receiving fees. (3) The System or a designated person shall, upon receipt of an appli- cation under paragraph (2), verify it and enter the applicant's eligibility for exemption from receiving fees on the TV set registry, and exempt the applicant from receiving fees from the month to which belongs the date of application for the exemption.

(4) The scope of the disturbed viewing areas under paragraph (1) 6 shall be determined by the System upon approval of the Broadcasting and Communications Commission.

Article 45 (Reduction of Receiving Fees)

Receiving fees shall be reduced in part for the TV sets falling under any of the following subparagraphs under the proviso to Article 64 of the Act: Provided, That the amount equivalent to one half of a receiving fee for one month shall be reduced from every sixth month's portion, with respect to the TV sets falling under subparagraph 1:

1. Relevant TV sets in cases where a person not delinquent in payment makes a lump sum payment of receiving fees for sixth months or more; or

2. TV sets designated by the Broadcasting and Communications Commis- sion for which a recognition that a reduction in receiving fees is necessary.

Article 46 (Disposition of Erroneous Payments)

The System or the designated person shall, in cases where a TV set registrant erroneously pays receiving fees or comes to fall under any of the following subparagraphs after making the payment, refund the relevant erroneous payment or the remainder thereof: Provided, That the amount of refund may be appropriated for receiving fees in cases where the TV - 34 -

set registrant does not seek such refund:

1. Cancellation of a registration of the TV set under Article 41;

2. Exemption from receiving fees under Article 44; or

3. Reduction of receiving fees under Article 45. Article 47 (Collection of Additional Charges and Punitive Surcharges, etc.) (1) Additional charges for delinquency in payment of receiving fees under Article 66 (1) of the Act shall be the amount equivalent to 5/100 of the amount of receiving fees in delinquency.

(2) The System or the designated person shall serve to a person, who fails to pay receiving fees within the payment period, a demand notice clarifying the matters referred to in the following subparagraphs within twenty days after the expiration of the payment period:

1. Amount of receiving fees in delinquency, and a surcharge;

2. Payment period (of more than ten days from the date of serving the demand notice);

3. Place for payment; and

4. Purport that there shall be a compulsory collection shall be made compulsorily when he fails to make the payment within the payment period.

(3) The System or a designated person shall, in cases where intending to collect a punitive surcharge under Article 66 (2) of the Act, serve a notice to pay punitive surcharges clarifying the matters referred to in the following subparagraphs:

1. Amount of punitive surcharges;

2. Ground for the imposition;

3. Payment period;

4. Place for payment; and

5. Purport that collection shall be made compulsorily when he fails to make the payment within the payment period.

(4) A notice to pay punitive surcharges under paragraph (3) shall be forwarded so as to arrive at a person in possession of a TV set not registered under the proviso to Article 64 of the Act by not later than ten days prior to the payment period.

(5) The System shall, if it intends to obtain approval of the Broadcasting and Communications Commission for the disposition of receiving fees, additional charges and punitive surcharges in arrears with payment under Article 66 (3) of the Act, apply for it with a clarification of the scope subject to delinquency in payment and the amount of payment in arrears. - 35 -

Article 48 (Payment of Commissions)

The System shall pay commissions to the distributors, etc. under Article 67 (3) of the Act within the limit of 15/100 of the amount of receiving fees collected by them.

Article 49 (Support for Educational Broadcasting from Receiving Fees) In order to support the expenses for conducting educational broadcasts under Article 68 of the Act, the System shall support the Educational Broadcasting System with an amount equivalent to 3/100 of its revenues from receiving fees each year, aside from the amount necessary to support a transmission of broadcasts conducted by the Educational Broadcasting System under Article 54 (1) 6 of the Act.

CHAPTER OPERATION, ETC. OF

BROADCASTING BUSINESSES

Article 50 (Programming, etc. of Broadcast Programs) (1) Each broadcasting business operator engaged in general programming shall ensure that the broadcast programs related to news reports, those related to culture and those related to entertainment are coordinated under the former part of Article 69 (3) of the Act, and the specific standards for such programming shall be as follows:

1. In cases of TV broadcast programs or radio broadcast programs, the broadcasting hours of those related to entertainment shall be not more than 50/100 of the total monthly broadcasting time of the relevant channel; and

2. In cases of data broadcast programs, those related to entertainment shall be not more than 60/100 of the total monthly broadcasting contents of the relevant channel.

(2) The term "news report broadcasts" in paragraph (1) means the broad- casts related to coverage and report, reviews, commentaries, etc. for cur- rent events with respect to overall domestic and foreign politics, economy, society, culture, etc., and "cultural broadcasts" means broadcasts to en- hance the culture and education of people, children and juveniles, and "entertainment broadcasts" means broadcasts to cultivate national senti- ments and diversify leisure life. (3) The prime time under the latter part of Article 69 (3) of the Act shall - 36 -

be as follows:

1. Weekdays: From 7 p.m. to 11 p.m.; and

2. Saturdays, Sundays and holidays: From 6 p.m. to 11 p.m. (4) Any broadcasting business operator engaged in specialized program- ming shall broadcast the programs in principal broadcast fields for which he has obtained a license or authorization or registered under Article 69 (4) of the Act, in accordance with the standards falling under any of the following subparagraphs:

1. In cases of a TV broadcasting channel or radio broadcasting channel, it is required to be programed at the rate falling within any of the following items:

(a) Terrestrial broadcasting business operator: not less than 60/100 of the total monthly broadcasting time of the said channel; (b) CATV broadcasting business operator or satellite broadcasting business operator: not less than 70/100 of the total monthly broadcasting time of the said channel; and

(c) Program provider: not less than 80/100 of the total monthly broadcasting time of the said channel; and

2. In cases of a data broadcasting channel, not more than 60/100 of the total monthly broadcasting content of the said channel shall be programed.

(5) Such programs as may be incidentally broadcasted by any broad- casting business operator engaged in specialized programming under Ar- ticle 69 (5) of the Act shall be limited to those related to culture or entertainment referred to in paragraph (2): Provided, That this shall not apply to the public channels referred to in Article 54 and the channels publicly announced by the Broadcasting and Communications Commission, such as the channels to provide information on the Republic of Korea to foreigners in Korea mainly in foreign languages including English.

(6) The rate of the programs of another broadcasting business opera- tor which a terrestrial broadcasting business operator may include in his programming under Article 69 (6) of the Act shall be the rate that falls under any of the following subparagraphs and is published by the Broadcasting and Communications Commission taking into account the business status of relevant terrestrial broadcasting business operators and the given condition of supply and demand of broadcast programs, etc.: - 37 -

1. The rate at which any terrestrial TV broadcasting business operator may broadcast the programs of another terrestrial TV broadcasting business operator: 50/100 through 85/100 of the total monthly broadcasting time of each channel;

2. The rate at which any terrestrial radio broadcasting business oper- ator may broadcast the programs of another terrestrial radio broad- casting business operator: 40/100 through 80/100 of the total monthly broadcasting time of each channel;

3. The rate at which any terrestrial mobile multimedia broadcasting business operator may broadcast the programs of another terrestrial broadcasting business operator: not less than 50/100 of the total monthly broadcasting time of each channel; and

4. The rate at which any terrestrial mobile multimedia broadcasting business operator may broadcast the programs of another program provider: not less than 50/100 of the total monthly broadcasting time of each channel.

(7) The specific standards for calculating broadcast programs referred to in paragraphs (1) 2 and (4) 2 shall be prescribed by the regulations of the Broadcasting and Communications Commission. Article 51 (Viewer Participation Programs)

(1) The System shall broadcast viewer participation programs produced directly by viewers for more than 100 minutes every month in the TV broadcasting channel that is used after obtaining permission therefor from the relevant terrestrial TV broadcasting business operator in accordance with Article 69 (7) of the Act. (2) The System shall set forth the programming criteria for viewer par- ticipation programs, and make a public notification thereof. (3) Matters necessary for the operation, support for production, and broadcasting rights of viewer participation programs shall be governed by the regulations of the Broadcasting and Communications Commission. Article 52 (Support for Viewing by Disabled Persons) In order to support the disabled for their viewing under Article 69 (8) of the Act, a broadcasting business operator shall endeavor to broadcast using finger languages, closed caption subtitles or screen commentaries, - 38 -

etc. with respect to the broadcast programs falling under any of the following subparagraphs:

1. Disaster broadcast programs under Article 75 of the Act;

2. Broadcast programs under any subparagraphs of Article 14 of the Enforcement Decree of the Welfare of Disabled Persons Act;

3. Broadcast programs under the regulations of the Broadcasting and Communications Commission, determined that the disabled need to view; and

4. Other broadcasts programmed for the purpose of welfare of the dis- abled.

Article 52-2 (Audience Participation Programs)

Any community radio broadcasting business operator shall, in accor- dance with Article 69 (9) of the Act, broadcast audience participation programs at the rate of not less than 20/100 of the total monthly broadcasting time.

[This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 53 (Structure and Use of Channels)

(1) Terrestrial mobile multimedia broadcasting business operators, CATV broadcasting business operators and satellite broadcasting business operators shall, in accordance with Article 70 (1) of the Act, structure and use the channels by observing the matters in the following items by business operation under each subparagraph so as not to rely upon a specific broadcast field and to achieve an embodiment of diversity:

1. Terrestrial mobile multimedia broadcasting business operators: (a) Required to operate not less than two broadcasting channels from among TV broadcasting channels, radio broadcasting channels and data broadcasting channels; and

(b) Deleted;

2. CATV broadcasting business operators and general satellite broad- casting business operators:

(a) Required to operate not less than 70 channels in the number of entire operational TV channels;

(b) Required to include channels of program providers engaged in general programming with approval from the Broadcasting and Communi- cations Commission under the proviso of Article 9 (5) of the Act; - 39 -

(c) Required to include two or more channels of program providers engaged in specialized programming for news reports with approval from the Broadcasting and Communications Commission under the proviso to Article 9 (5) of the Act; and

(d) Deleted; and

3. Satellite mobile multimedia broadcasting business operators: (a) Required to include TV broadcasting channels, radio broadcasting channels and data broadcasting channels;

(b) Required to operate not less than 15 channels in the number of their entire operational channels;

(c) Required to operate not less than four channels in the number of their entire TV broadcasting channels and not to exceed 1/2 of the number of their entire operational channels;

(d) Required to include not less than one broadcasting channel of any program provider who performs the general programming or any other program provider who specializes in programming news reports;

(e) Deleted; and (f) Deleted. (2) "Case exceeding the scope prescribed by the Presidential Decree" in Article 70 (2) of the Act is a case falling under any of the following subparagraphs by the business operator:

1. If any terrestrial mobile multimedia broadcasting business operator who falls under any of the following items:

(a) If the total number of channels he uses for himself or rents to any specially related person is in excess of three channels (If any data broadcasting channel is included in the channels that he uses for himself or rents to any specially related person, four channels); and

(b) If the number of channels that he rents to any specific program provider is in excess of one channel (If any data broadcasting channels are included in the channels that he rents to any specific program provider, two channels); and

2. If any CATV broadcasting business operator or any satellite broad- casting business operator falls under any of the following items: (a) If the number of channels directly used by any CATV broadcasting business operator is in excess of three channels (excluding any local - 40 -

channel provided for in Article 70 (4) of the Act): Provided, That in the event that the number of entire operational channels is in excess of 100, this case shall be governed by the provisions of item (b);

(b) If the number of channels directly used by any satellite broadcast- ing business operator is in excess of 10/100 of the number of operational TV broadcasting channels and the number of opera- tional radio broadcasting channels (if the number of operational TV broadcasting channels exceed 20, 20/100 and if the number of operational TV broadcasting channels or the number of operational radio broadcasting channels is not more than ten channels, one channel) or is in excess of 30/100 of the operational data broadcasting channels (if the number of operational data broadcasting channels is not more than three channels, one channel);

(c) If the number of channels that he rents to any specially related person is in excess of 20/100 of the number of operational TV broadcasting channels (if the number of operational TV broad- casting channels is not more than five channels, one channel), is in excess of 50/100 of the operational radio broadcasting channels (20/100, in the case of any satellite mobile multimedia broadcast- ing business operator), or is in excess of 30/100 of the number of any operational data broadcasting channels (excluding a case where the number of operational data broadcasting channels is not more than three channels);

(d) If the number of channels that he rents to any specific program provider is in excess of 20/100 of the number of operational TV broadcasting channels (if the number of operational channels is not more than five channels, one channel), is in excess of 50/100 of the number of operational radio broadcasting channels, is in excess of 30/100 of the number of operational data broadcasting channels (excluding a case where the number of data broadcasting channels number of operational data broadcasting channels; (e) If the total number of TV broadcasting channels (excluding chan- nels engaged in specialized programming for education, religion or regions and those through which terrestrial broadcasts are re- transmitted) that he or any person specially related to him rents to a program provider who is a terrestrial broadcasting business operator exceeds 20/100 of the number of operational TV broad- - 41 -

casting channels (excluding a satellite mobile multimedia broad- casting business operator); and

[Term of validity: December 31, 2010]

(f) If the total number of TV broadcasting channels that he or any person specially related to him rents to a program provider who is a CATV broadcasting business operator exceeds 35/100 of the number of operational TV broadcasting channels (excluding a satellite broadcasting business operator): Provided, That the following program provider's channel shall be excluded from the calculation of the number of TV broadcasting channels: () Channels of any broadcasting provided in receipt of consider- ation on the basis of a channel under contracts with viewers; () Channels which are operated by one person and by which the same broadcasting service is provided through several channels at regular intervals;

() Channels through which broadcast programs are provided so that a viewer may view a specific program selected by him at a specific time selected by him; and

() Channels engaged in specialized programming for the provi- sion of information on commodities and the sale thereof. [Term of validity: December 31, 2010]

(3) In the event that any terrestrial mobile multimedia broadcasting business operator, any CATV broadcasting business operator or any sat- ellite broadcasting business operator intends to operate channels that are directly used in accordance with paragraph (2), he shall submit a written plan for operating of channels for direct use to the Broadcasting and Communications Commission. The same shall apply to a case where he intends to change such written plan. (4) Methods of calculating the number of operational channels under the provision of paragraphs (1) and (2) shall be prescribed by the regula- tions of the Broadcasting and Communications Commission, in consideration of the characteristics by broadcasting media.

Article 54 (Operation of Public Channels and Religious Channels) (1) The CATV broadcasting business operators and general satellite broadcasting business operators shall, under Article 70 (3) of the Act, install not less than 3 TV broadcasting channels for the public and not less than 3 TV broadcasting channels for religious missionary work (hereinafter referred to - 42 -

as "religious channels") which are recognized by the Broadcasting and Communications Commission. In such case, religious channels shall not install a religious channel only for a specific religion.

(2) CATV broadcasting business operators and general satellite broadcasting business operators shall not transmit in altered forms the contents which are broadcasted through a public channel or a religious channel, unless special reasons exist such as problems in the broadcasting technologies. Article 55 (Operation of Local Channels)

(1) Each CATV broadcasting business operator shall operate one TV broadcasting channel as a local channel in accordance with Article 70 (4) of the Act. (2) Each CATV broadcasting business operator shall, in cases where he intends to operate the local channels in accordance with paragraph (1), submit a plan for operating local channels to the Broadcasting and Communications Commission, and the Special Metropolitan City Mayor, Metropolitan City Mayor or Do governor, respectively. and operate local channels in accordance with such plan for operating local channels. The same shall apply to a case where he intends to change the plan for operating local channels.

(3) The scope of broadcast programs which may be transmitted through local channels shall be according to the following subparagraphs:

1. Broadcast programs produced by the viewers themselves and for which they request a broadcasting, under Article 70 (7) of the Act;

2. Broadcast programs of local living information within the CATV broad- casting zone under the criteria as prescribed by the regulations of the Broadcasting and Communications Commission;

3. Broadcast programs for publicizing the policies of local governments;

4. Broadcast program guides; and

5. Other broadcast programs recognized by the Broadcasting and Com- munications Commission or the heads of local governments as necessary for the development of local communities and for the convenience of local residents.

Article 56 (Limit on Channel Operations by CATV Relay Broadcasting Businesses)

(1) The scope of channels which may be operated for broadcasting by a CATV - 43 -

relay broadcasting business operator under Article 70 (6) of the Act shall not exceed

31. In such cases, the channels for recording sound or picture shall not exceed 1/5 of the total operating channels.

(2) Every CATV relay broadcasting business operator shall, when he operates channels in accordance with paragraph (1), limit its business to retransmitting the broadcasts falling under each of the following sub- paragraphs:

1. Terrestrial broadcasts;

2. Satellite broadcasts aired by the System and broadcasting business operators prescribed by the special Act;

3. Broadcasts that are aired through public channels; and

4. Broadcasts that are aired by State agencies, public-interest corpora- tions or non-profit corporations, which are published by the Broadcasting and Communications Commission, for purpose falling under each of the following items:

(a) Higher education or social education;

(b) Information pertaining to the Republic of Korea that is provided to foreigners residing in Korea; and

(c) Other public-interest purpose.

Article 56-2 (Selection and Operation of Public Channels) (1) Any CATV broadcasting business operator and any general satellite broadcasting business operator shall operate one or more channels (here- inafter referred to as the "public channel") that belong to broadcasting fields publicly announced by the Broadcasting and Communications Commission under the former part of Article 70 (8) of the Act: Provided, That this shall not apply when a public channel for each broadcasting field under paragraph (3) is not selected.

(2) Any person, who intends to be selected as a public channel operator for each field of broadcasting publicly announced by the Broadcasting and Communications Commission under Article 70 (8) of the Act, shall submit an application for such selection to the Broadcasting and Communications Commission by September 30 of each year.

(3) In the event that the Broadcasting and Communications Commission receives an application for selection of a public channel under paragraph (2), it shall review the following matters and decide on such selection in the next year and issue a selection as public channel to the applicant by November 20 of - 44 -

each year:

1. Conformity of the relevant channel with the applicable field of broadcasting;

2. Fairness, public nature and possibility of the relevant channel;

3. Appropriateness of the operation plan for the relevant channel;

4. Social responsibility consciousness and business capacity; and

5. Status of the handling of viewers' complaints and civil petitions. (4) The term of validity of selection of a public channel under para- graph (3) shall be one year.

(5) Except as provided for in paragraphs (1) through (4), matters necessary for the specific procedures, methods, etc. for the selection of public channels shall be provided by the regulations of the Broadcasting and Communications Commission. [This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 57 (Programming of Domestically Produced Broadcast Programs) (1) A broadcasting business operator shall, under Article 71 (1) of the Act, broadcast the domestically produced broadcast programs of at least the ratio publicly notified by the Broadcasting and Communications Commission, within the limit referred to in the following subparagraphs:

1. Terrestrial broadcasting business operators and terrestrial broad- casting program providers: not less than 60/100 but not more than 80/100 of the total quarterly broadcasting time of the relevant channel;

2. CATV broadcasting business operators and satellite broadcasting business operators: not less than 40/100 but not more than 70/100 of the total quarterly broadcasting time of the relevant channel; and

3. Program providers except for terrestrial broadcasting program pro- viders: not less than 20/100 but not more than 50/100 of the total quarterly broadcasting time of the relevant channel. (2) Every broadcasting business operator shall program domestically produced movies, animations and popular musics among movies, animations and popular music that is aired yearly in accordance with the main sentence of Article 71 (2) of the Act, not less than the ratio publicly notified by the Broadcasting and Communications Commission, within the limit referred to in the following subparagraphs: Provided, That in the case of a broadcasting business operator engaged in specialized programming pertaining to religion or education, the domestically produced movies or animations shall be programmed of at least the ratio publicly notified by the Broadcasting and - 45 -

broadcasting hours of movies or the total yearly broadcasting time of animations of the relevant channel:

1. Movies: not less than 20/100 but not more than 40/100 of the total movie broadcasting time of the relevant channel;

2. Animations: not less than 30/100 but not more than 50/100 of the total animation broadcasting time of the relevant channel; and

3. Popular musics: not less than 50/100 but not more than 80/100 of the total popular music broadcasting time of the relevant channel. (3) Every terrestrial broadcasting business operator shall newly program domestically produced animations to be aired for not more than 15/1000 of the total broadcasting hours of the relevant channel, in excess of the ratio published by the Broadcasting and Communications Commission among the entire yearly aired programs through the relevant TV broadcasting channel in accordance with the proviso to Article 71 (2) of the Act: Provided, That the terrestrial broadcasting business operator falling under any of the following subparagraphs shall newly program domestically produced animations to be aired for not less than 1/100 of broadcasting hours of the relevant channel among the entire yearly broadcasting programs that are aired through the relevant TV broadcasting channel for which he obtains a license to run the terrestrial TV broadcasting business:

1. The System;

2. The terrestrial broadcasting business operator in which the Broad- casting Culture Promotion Association, which is established under the Broadcasting Culture Promotion Association, is the largest equity investor; and

3. The terrestrial broadcasting business operator whose average yearly amount of sales during the immediately preceding three business years is not less than 300 billion won.

(4) A broadcasting business operator shall, under Article 71 (3) of the Act, program the movies, animations and popular musics produced in one country from among the movies, animations and popular music imported from foreign countries, not exceeding the ratio publicly notified by the Broadcasting and Communications Commission, within the limit of 60/100 of the total quarterly broadcasting hours of imported movies, animations and poplar music of the relevant channel. No. 20672, Feb. 29, 2008>

(5) The Broadcasting and Communications Commission shall consult with the Minister of Culture, Sports and Tourism, if it makes a public notification of the programming ratio under paragraphs (1) through (4). (6) Standards for classification into domestically-produced broadcast programs referred to in paragraph (1), domestically-produced movies, an- imations and popular musics referred to in paragraph (2) and imported movies, animations and popular music referred to in paragraph (3) shall be prescribed and published by the Broadcasting and Communications Commission in consideration of the planning, production types, the composition of planning and personnel and financial resources invested in the production, etc. Article 58 (Programming of Externally Produced Broadcasting Programs) (1) Every terrestrial broadcasting business operator and every terres- trial broadcasting program provider shall broadcast TV programs (exclud- ing movies; hereinafter referred to as "externally produced broadcasting programs") that are domestically produced by anyone who is not the rele- vant broadcasting business operator in accordance with Article 72 (1) of the Act in excess of the ratio that is published by the Broadcasting and Communications Commission within the limit of 40/100 of the total quarterly TV broadcasting hours of the relevant channel. (2) No terrestrial broadcasting business operator nor terrestrial broad- casting program provider shall program any externally produced broad- casting programs in accordance with paragraph (1), which are produced by any person specially related to any broadcasting business operator, in accordance with Article 72 (2) of the Act, in excess of the ratio publicly notified by the Broadcasting and Communications Commission within the limit of 30/100 of the total externally produced broadcast programs.

(3) A broadcasting business operator engaged in general programming shall, under Article 72 (3) of the Act, broadcast the externally produced broadcast programs of at least the ratio publicly notified by the Broadcasting and Communications Commission within the limit of 15/100 of the quarterly prime time TV broadcasting time of the relevant channel. (4) If the Broadcasting and Communications Commission makes a public notification - 47 -

of the programming ratio under paragraphs (1) through (3), it shall consult with the Minister of Culture, Sports and Tourism.

Article 59 (Commercials)

(1) At the time of a commercial of a broadcast program mainly viewed by children and a spot commercial before and after such broadcast pro- gram, any broadcasting business operator shall, in accordance with Article 73 (1) of the Act, continue to superimpose, on the left or right top of the screen, the caption "commercial" of a size not smaller than 1/64 of the screen which could be clearly distinguished from the screen. (2) The permissible scope, time, frequency or methods, etc. of commercials under Article 73 (2) of the Act (excluding non-profit, public commercials) shall comply with the standards in the following subparagraphs:

1. In cases of TV and radio broadcasting channels of terrestrial broadcasting business operators (excluding terrestrial mobile multimedia broad- casting business operators; hereafter the same shall apply in this sub- paragraph), community radio broadcasting business operators and ter- restrial broadcasting program providers (excluding terrestrial mobile multimedia program providers):

(a) Broadcasting program commercial time shall not exceed 10/100 of the time of a broadcast program (including the time for broadcasting program commercials);

(b) Commercial breaks shall not be permitted: Provided, That this shall not apply to the case where a transmission of the broadcast programs is made, such as athletic games, cultural or art events, etc. which have an intermittent pause or preparation time;

(c) Frequency of spot commercials shall be no more than four times per hour and four items per instance in the case of radio broadcasts, and no more than two times per hour and four items per instance in the case of TV broadcasts; the commercial time per instance shall be no more than one minute and 20 seconds in the case of radio broadcasts, and no more than one minute and 30 seconds in the case of TV broadcasts, but the total time for advertisements per hour shall be not exceed five minutes in the case of radio broadcasts;

(d) A commercial caption (announcement or explanation of the title - 48 -

of broadcasting business operator or the broadcast programs in the form of caption shall not be deemed as a commercial caption; hereinafter the same shall apply) shall be limited to the time when the title of broadcasting business operator is announced and broadcast programs are announced and explained, and its frequency shall be no more than 4 times per hour and no more than ten seconds per instance, and the size of the caption shall not exceed 1/4 of the screen: and

(e) The frequency of time signal commercials shall be no more than two instances per hour and the time of each instance shall not be more than ten seconds: Provided, That in the case of TV broadcasting channels of the terrestrial broadcasting business operators, the frequency shall be not more than two times per hour and ten times per day, and the time of each instance shall not be more than ten seconds;

2. In cases of TV broadcasting channels and radio broadcasting channels of CATV broadcasting business operators, satellite broadcasting busi- ness operators (excluding satellite mobile multimedia program pro- viders) and program providers (excluding terrestrial broadcasting pro- gram providers and satellite multimedia program providers): (a) The total time of commercials by channel, including the time for broadcast program commercials, commercial breaks, spot com- mercials, caption commercials and time signal commercials, shall not exceed the average of ten minutes per hour: Provided, That such total time shall not exceed 12 minutes per hour (15 minutes per hour, in the event that the total time of commercials does not exceed 15/100 of the broadcasting time of a program whose broadcasting time is not less than 120 minutes);

(b) The frequency of commercial breaks shall be not more than one time for a broadcast program of not less than 45, but less than 60 minutes (including the time for commercial breaks; hereinafter the same shall apply), two instances for a broadcast program of not less than 60 but less than 90 minutes, three instances for a broadcast program of not less than 90 but less than 120 minutes, four instances for a broadcast program of not less than 120, but less than 150 minutes, five instances for a broadcast program of not less than 150 but less than 180 minutes, and six instances for a broadcast program of not less than 180, and shall be not more than three items per instance; and the time for each commercial shall be not - 49 -

more than one minute: Provided, That this shall not apply to the case of transmitting the broadcast programs such as athletic games, cultural or art events, etc. which have an intermittent pause or preparation time;

(c) Frequency of spot advertisements shall be no more than two instances per hour, and five items per instance, and the time of each commercial shall not exceed 1 minute and 40 seconds: Provided, That in cases of satellite mobile multimedia broadcasting business operators and satellite mobile multimedia program providers, their total commer- cials shall be not more than four times each hour and not more than five commercials each instance, and the commercial time of each instance shall be not more than one minute and 40 seconds and the total time of spot commercials per hour shall not exceed three minutes and 20 seconds; and

(d) Any commercial caption shall be limited to the time when the title of any broadcasting business operator is announced or broadcasting programs are announced and the frequency of such commercial caption shall be not more than six instances per hour and not more than ten seconds per instance and the size of such commercial caption shall not exceed 1/4 of the screen area: Provided, That in cases of satellite mobile multimedia broadcasting business operators and satellite mobile multimedia program providers, the commercial caption shall be not more than ten instances per hour, and not more than ten seconds per instance and the size of such commercial caption shall not exceed 1/3 of the screen area;

3. In cases of TV broadcasting channels and radio broadcasting channels of terrestrial mobile multimedia broadcasting business operators, ter- restrial mobile multimedia program providers, satellite mobile multi- media broadcasting business operators and satellite mobile multimedia program providers:

(a) The total time of commercials by channel, including the time for broadcast program commercials, commercial breaks, spot commer- cials, caption commercials and time signal commercials, shall not exceed an average of ten minutes per hour: Provided, That such total time shall not exceed 12 minutes per hour (15 minutes per hour, in the event that the total time of commercials does not exceed 15/100 of the broadcasting time of a program whose broadcasting time is not less than 120 minutes);

(b) The frequency of commercial breaks shall be not more than one - 50 -

time for a broadcast program of not less than 45 to less than 60 minutes (including the time for commercial breaks; hereafter the same shall apply in this item), not more than two instances for a broadcast program of not less than 60 to less than 90 minutes, not more than three instances for a broadcast program of not less than 90 to less than 120 minutes, not more than four instances for a broadcast program of not less than 120 to less than 150 minutes, not more than five instances for a broadcast program of not less than 150 to less than 180 minutes, and not more than six instances for a broadcast program of not less than 180 minutes, and shall be not more than three items per instance; The time for each commer- cial shall be not more than one minute: Provided, That in cases of transmitting broadcast programs, such as athletic games, cultural or art events, etc. which have an intermittent pause or preparation hours, commercial breaks shall be permitted only limited to the intermittent breaks or preparation time, and in such cases, there is no limit in the frequency of commercial breaks, number of commer- cial items per instance, and time of commercials; (c) The frequency of spot advertisements shall be no more than two instances per hour, and five items per instance, and the time of each commercial shall not exceed one minute and 40 seconds on, condition that the total time of spot commercials per hour shall not exceed three minutes and 20 seconds; and

(d) Any commercial caption shall be limited to the time when the title of any broadcasting business operator is announced or broadcasting programs are announced and the frequency of such commercial caption shall be not more than 10 instances per hour and not more than 10 seconds each instance and the size of such commercial caption shall not exceed 1/3 of the screen area;

4. In cases of data broadcasting channels: (a) No commercial shall be aired through the opening screen (here- after referred to as the "opening screen" in this paragraph) that is used by every broadcasting business operator to announce data broadcasting channels in order to help viewers choose among them; (b) Any broadcasting commercial that is aired through the first screen (referring to the initial screen of any data broadcasting channel that is moved to following from such data broadcasting channel on the opening screen; hereafter referred to as the "first screen" in this paragraph) shall not include any image and any voice, and - 51 -

the size of the commercial shall not exceed 1/4 of the entire screen area (1/3, in cases of terrestrial mobile multimedia broadcasting business operators, satellite mobile multimedia broadcasting busi- ness operators, terrestrial mobile multimedia program providers and satellite mobile multimedia program providers); and (c) The broadcasting time of each data broadcasting commercial that includes images and voices appearing on the second screen (re- ferring to the screen that is moved through connection with the first screen) shall not exceed ten minutes; and

5. The provisions in items (a) through (c) of subparagraph 4 shall apply mutatis mutandis to any commercial of the data broadcasting, which is added to TV broadcasting programs of TV broadcasting channels. in such cases, the opening screen refers to the opening screen on which the relevant TV broadcasting program is first aired and the first screen refers to the early screen that is moved to following from the opening screen.

(3) Each broadcasting business operators and electric signboard broad- casting business operators shall, under Article 73 (4) of the Act, program the non-profit public commercials in excess of the ratio as referred to in any of the following subparagraphs: Provided, That this shall not apply to any channel through which public content is mostly broadcasted and which is publicly announced by the Broadcasting and Communications Commission:

1. Broadcasting business operators: Ratio publicly notified by the Broadcasting and Communications Commission within the limit of 1/100 of the total monthly broadcasting time of each channel (in the case of data broadcasting channels, they refer to entire broadcasting pro- grams); and

2. Electronic sign board broadcasting business operators: Ratio determined under Article 31 (4) 3 of the Enforcement Decree of the Outdoor Advertisements, etc. Control Act.

(4) Non-profit public commercials which shall be programed by the broadcasting business operators and electric sign board broadcasting business operators under paragraph (3) shall be as follows:

1. Commercials produced by the State or local governments, or public or non-profit institutions for public service and broadcasted by the - 52 -

broadcasting business operators and electronic sign board broadcasting business operators for non-profit purposes; and

2. Commercials produced and programed by broadcasting business operators for public service.

(5) "Commercial marketing agency prescribed by Presidential Decree" in the main sentence of Article 73 (5) of the Act is a stock company established for the commercial marketing, and financed by the Korean Broadcasting Advertising Corporation.

(6) "Commercials prescribed by Presidential Decree" in the proviso to Article 73 (5) of the Act are commercial items referred to in the following subparagraphs:

1. Commercial items of the State or local governments;

2. Commercial items introducing a terrestrial broadcasting business operator's own events, or its business operations; and

3. Other commercial items publicly notified by the Minister of Culture, Sports and Tourism from among the commercial items aimed at public interests.

Article 60 (Announcement of Sponsors)

(1) Any broadcasting business operator in accordance with Article 74 (1) of the Act may announce his commercial sponsor in any TV broadcasting channel and any radio broadcasting channel only in cases falling under each of the following subparagraphs:

1. Sponsoring a campaign of public interest nature which is conducted by a broadcasting business operator;

2. Sponsoring an event for public interests, such as culture, art and sports, which is hosted, supervised or supported by a broadcasting business operator;

3. Sponsoring a production of broadcast programs by a person who produces broadcast programs (excluding a broadcasting business operator) and who is not in a special relation with a broadcasting business operator; 3-2. Sponsoring a production of a large scale planned program having a public interest nature by a person who produces broadcast programs; and

4. Providing prizes or gifts in the production process of broadcast programs, or of sponsoring a location, costume, vignette, information, etc. (2) No broadcasting business operator shall, notwithstanding the provisions of paragraph (1), make an announcement of sponsors in such cases falling - 53 -

under any of the following subparagraphs: Provided, That where public agencies established under the provisions of Acts, such as the Korean Racing Association under the Korean Racing Association Act, or public service corporations under Article 2 of the Act on the Establishment and Operation of Public-Service Corporations in the cases of subparagraph 2, sponsor the campaign of public interest nature under paragraph (1) 1, only the title of sponsor may appear in the announcement of sponsors:

1. Where the political parties and other organizations speaking for the political interests sponsor;

2. Where a person who manufactures, sells or provides the commodities or services for which a commercial is prohibited by Acts and subordinate statutes or the regulations of the Broadcasting and Communications Commission, sponsors; and

3. Where a person sponsors current events, news reports, commentaries, or programs for a discussion on current topics of the terrestrial broad- casting business operator (excluding the radio programs produced overseas covering a foreign country by a terrestrial broadcasting business operator having the Special Metropolitan City as its broadcast area, and programs produced overseas covering a foreign country by a terrestrial broadcasting business operator not having the Special Metropolitan City as its broadcast area).

Article 60-2 (Disaster Broadcast)

(1) When the Broadcasting and Communications Commission intends to request broadcasting of disasters under Article 75 (2) of the Act to the broadcasting business operator, it shall do so in writing: Provided, That in an emergency situation for preventing calamities or disasters, such methods as telephone, facsimile, telecommunication network, etc. are allowed. (2) When the Broadcasting and Communications Commission requests for broadcasting disasters under paragraph (1), it shall cleary express the matters of the followings subparagraphs:

1. Disaster situations;

2. Meteorological situations and the contents of special weather reports (limited to cases of calamities or disasters as results of natural phenomena);

3. Citizen action plans for each type of disasters; - 54 -

4. Other matters necessary to prevent or reduce damage. [This Article Newly Inserted by Presidential Decree No. 19390, Mar. 10, 2006] Article 60-3 (Prohibited Conducts)

(1) In accordance with Article 76-3 (1) of the Act, broadcasting business operators and owners of the right to relay broadcasting shall be prohibited from engaging in conducts falling under any of the following subparagraphs (hereinafter referred to as "acts to be prohibited") or from having other broadcasting business operator, owner of the right to relay broadcasting, etc. or a third party engage in such conducts:

1. Failing, as an owner of the right to relay broadcasting, to secure means of broadcasting to enable households in the rate of not less than the rate announced by the Broadcasting and Communications Commission within th scope of not less than 60/100 to not more than 75/100 of the total number of national households to view, taking into consideration the type, degree, etc. of national concern over large-scale sports games or other principal events (hereinafter referred to as "events, etc. of national interest");

2. Failing, notwithstanding having secured the right to relay broadcasting, to broadcast events, etc. of national concern real time without any justifiable reason through the means of broadcasting referred to in subparagraph 1;

3. Refusing or postponing the sale or purchase of the right to relay broadcasting without any justifiable reason; and

4. Failing to provide file pictures for coverage and news, commentaries, etc. of national concern without any justifiable reason. (2) The Broadcasting and Communications Commission may, if it deems necessary, determine and publish detailed standards for determining whether or not a case falls under prohibited conducts as prescribed in paragraph (1). [This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 60-4 (Corrective Measures)

(1) The Broadcasting and Communications Commission may order correc- tive measures in the following subparagraphs in accordance with Article 76-3 (2) of the Act, and concurrently impose them as necessary:

1. Suspension of prohibited conduct;

2. Submission of improvement plans; and

3. Other measures necessary for correction. - 55 -

(2) The Broadcasting and Communications Commission shall, in cases where it orders a corrective measure referred to in paragraph (1), consult with the Fair Trade Commission in advance when conduct subject to correc- tive measure falls under the provision of Article 60-3 (1) 1.

[This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 60-5 (Submission of Materials)

(1) The Broadcasting and Communications Commission may request broad- casting business operators, owners of the right to relay broadcasting, etc. to sumbit materials in the following subparagraphs in accordance with Article 76-3 (3) of the Act:

1. Contracts (including side letters and preparatory documents of contracts);

2. Sale-related documents;

3. Materials on the circumstances of operation concerning the guarantee of the right to relay broadcasting; and

4. Other documents relating to the contract of events, etc. of national interest.

(2) The Broadcasting and Communications Commission shall take due care to prevent the leakage of materials submitted pursuant to paragraph (1) to the public. [This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 60-6 (Criteria for Imposition of Penalty Surcharge) (1) The amount of penalty surcharges by the type of acts of violation pursuant to Article 76-3 (4) of the Act is as detailed in the attached Table 2-2.

(2) The Broadcasting and Communications Commission may add additional charges to or reduce the amount of penalty surcharges referred to in para- graph (1) within the scope of 1/2 of the amount of the penalty surcharges, taking into consideration the motive, details and frequency of the act of violation. In such cases, even when adding additional charges, the total amount of penalty surcharges shall not exceed the upper limit referred to in Article 76-3 (4) of the Act.

[This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 61 (Re-Transmissions)

(1) When any CATV broadcasting business operator and any CATV relay broadcasting business operator intend to obtain approval for simulta- neously re-transmitting terrestrial broadcasts supplied by any terrestrial - 56 -

broadcasting business operator who has obtained permission for his business outside the broadcasting area under Article 78 (4) of the Act or for simultaneously re-transmitting terrestrial broadcasts other than the terrestrial broadcasts that are simultaneously retransmitted by any satellite broadcasting business operator under Article 78 (1) and (2) of the Act, they shall file an application for approval to re-transmit broadcasts to another area and an application for approval to re-transmit terrestrial broadcasts, accompanied by documents falling under each of the following subparagraphs, with the Broadcasting and Communications Commission:

1. A copy of the re-transmission agreement; and

2. A plan for re-transmission. (2) Deleted. (3) The Broadcasting and Communications Commission shall, upon receiv- ing the applications for approval filed in accordance with paragraph (1), examine the matters falling under each of the following subparagraphs, determine whether to grant the approval sought and notify the applicants of the result of such examination within 60 days from the date on which the applications are filed:

1. A plan for promoting balanced development between the broadcasting media and making contributions to the development of the domestic broadcasting industry;

2. The guarantee of rights and interests of viewers;

3. Regional, social and cultural needs and validity;

4. Possibility of realizing the social responsibility, fairness and public interest;

5. The public benefit and diversity of broadcasting programs; and

6. Matters concerning the technical reliability required for re-transmissions. (4) Types of re-transmission provided for in Article 78 (6) of the Act shall be as follows:

1. Simultaneous re-transmission; the simultaneous re-transmission of broadcasts without changing the broadcast programming after receiving such broadcasts; and

2. Time-delayed re-transmission; the re-transmission of recorded sound or picture broadcasting programs without changing the broadcast programming, with a certain time difference after receiving the broadcasts.

(5) The Broadcasting and Communications Commission shall, if it intends - 57 -

to determine whether to grant approval for the re-transmission referred to in paragraph (1), consider opinions of interested persons.

(6) In the event that the Broadcasting and Communications Commission grants approval for any time-delayed re-transmission referred to in paragraph (4) 2, it shall not approve the re-transmission within 24 hours from the time when broadcasts are received.

[This Article Wholly Amended by Presidential Decree No. 17819, Dec. 26, 2002] Article 61-2 (Re-Transmission by Community Radio Broadcasting Busi- ness Operator)

The hours during which a community radio broadcasting business oper- ator may re-transmit any broadcast program of any other community radio broadcasting business operator under Article 78 (7) of the Act shall be not more than 30/100 of the total monthly broadcasting time. [This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 61-3 (Approval, etc. of Domestic Re-transmission of Foreign Broadcasting Business Operators)

(1) Cases falling under any of the following subparagraphs pursuant to the latter part of Article 78-2 (1) of the Act shall not be considered re-transmission:

1. Cases of relay transmitting international events, cultural events or sports programs that a foreign business operator broadcasts by unit of broadcast program;

2. Cases of relay transmitting news reports that a foreign broadcast business operator broadcasts by the unit of broadcast program: Provided, That cases of exceeding one hour per day shall be excluded; and

3. Cases of relay transmitting broadcasts of a foreign broadcast business operator in a broadcast program in the form of file picture, quoting news reports, etc.

(2) The scope and criteria of broadcast business operators to re-transmit broadcasts of a foreign broadcast business operator pursuant to Article 78-2 (7) of the Act are as mentioned in the following subparagraphs:

1. The scope of re-transmission: (a) Terrestrial mobile multimedia broadcast business operator: Operating a channel for re-transmission of foreign broadcasts is prohibited; and

(b) CATV broadcasting business operator and satellite broadcasting business operator: Within 20/100 of each of TV broadcasting chan- nels, radio broadcasting channels and data broadcasting channels - 58 -

that they run; and

2. Criteria of re-transmission: (a) Re-transmission of not less than two foreign broadcasting channels in one channel shall not be permitted;

(b) Broadcasts of foreign broadcast business operators shall be re-trans- mitted without insertion of broadcasting advertisements, dubbing in Korean, change of broadcasting schedule, etc.; and (c) In cases where a foreign broadcast business operator goes beyond the scope approved pursuant to Article 78-2 (1) of the Act, inserting broadcasting advertisements, adding changes such as dubbing in Korean, etc., or broadcasts in infringement of the conditions of appro- val, such broadcast shall not be re-transmitted. In such cases, the broadcast of Korean titles shall not be considered as addition of change.

(3) In cases where a foreign broadcast business operator intends to obtain authorization for re-transmission pursuant to Article 78-2 (1) of the Act, he shall submit an application to the Broadcasting and Communications Commission, attaching thereto documents in the following subparagraphs:

1. History, details of principal business, and materials showing the grounds of incorporation;

2. Broadcasting fields and major contents of broadcast programming;

3. Plan on contribution for the domestic broadcasting industry such as exchanges and cooperation, etc.;

4. Technical matters concerning re-transmission paths, etc;

5. Matters concerning domestic branch office, domestic office or domestic agents (including documents enabling confirmation of the relations of rights and obligations); and

6. Documents stating user fees resulting from re-transmission (only for cases of receiving user fees).

(4) The Broadcasting and Communications Commission shall, when it has received an application for authorization as referred to in paragraph (3), examine the matters in the subparagraphs of Article 78-2 (2) of the Act comprehensively to determine whether or not to grant authorization and notify the applicant of the result thereof within 60 days from the date of receipt. (5) In cases where the Broadcasting and Communications Commission revokes the authorization granted pursuant to Article 78-2 (5) of the Act, it shall notify the relevant foreign broadcast business operator of such fact in writing, indicating the grounds for the revocation of authorization. - 59 -

(6) The Broadcasting and Communications Commission shall, in cases where it grants authorization pursuant to paragraph (4) or revokes author- ization pursuant to paragraph (5), publish such fact.

[This Article Newly Inserted by Presidential Decree No. 20649, Feb. 22, 2008] Article 62 (Completion Inspection, etc. of CATV Broadcasting Station Facilities)

(1) "Deadline as prescribed by Presidential Decree" in Article 79 (2) and (4) of the Act is a date when one year has elapsed since the date when the license or authorization is obtained or the registration is filed for a CATV broadcasting business, a CATV relay broadcasting business or a CATV music broadcasting business.

(2) A CATV broadcasting business operator, a CATV relay broadcasting business operator or a CATV music broadcasting business operator shall, in cases where he intends to undergo a completion inspection upon the installation of CATV broadcasting station facilities under Article 79 (2) of the Act, submit a written application to the Broadcasting and Com- munications Commission for completion inspection within seven days after the date when the installation construction or modified construction is completed. (3) The Broadcasting and Communications Commission shall, upon receipt of an application under paragraph (1), examine whether an installation of the CATV broadcasting station facilities is completed according to the facilities installation plans, and whether it conforms to technological standards under Article 79 (1) of the Act within sixty days, and deliver a certificate for the completion inspection to the successful applicants. (4) Deleted. (5) A CATV broadcasting business operator, a CATV relay broadcasting business operator or a CATV music broadcasting business operator may, in cases where he is unable to install the CATV broadcasting station facilities by the deadline under paragraph (1) due to unavoidable reasons under Article 79 (4) of the Act, apply to the Broadcasting and Communications Commission for an extension of the deadline within the limit of six months from the date when such reasons cease to exist.

(6) Matters necessary for the procedures and methods, etc. of the com- pletion inspection shall be determined by a public notice made by the Broadcasting and Communications Commission. Decree No. 20672, Feb. 29, 2008>

Article 63 (Verification of Conformity of Signal Transmission and Line Facilities)

Matters necessary for the verification, etc. of whether signal transmission and line facilities under Article 80 of the Act are in conformity with the technological standards shall be determined by a public notice made by the Broadcasting and Communications Commission.

CHAPTER PROTECTION OF RIGHTS

AND INTERESTS OF

VIEWERS

Article 64 (Organization and Operation of Viewers Committee) (1) The viewers committee under Article 87 of the Act shall be comprised of not less than 10 but not more than 15 members. (2) The viewers committee shall have one chairperson and one vice chair- person, and they shall be elected by mutual vote from among the members of the viewers committee.

(3) Meetings of the viewers committee shall be convened by the chairperson; a regular meeting shall be convened not less than once each month, and an extraordinary meeting shall be convened in cases where the chairperson deems it necessary, where not less than one third of registered members request it, or where a broadcasting business operator requests it. (4) The viewers committee shall pass resolutions with the attendance of a majority of registered members, and the approval of a majority of the attending members.

(5) The broadcasting business operator who established the viewers commit- tee shall, where any measures are required with regard to the results of a review by the viewers committee, report the plans for their settle- ment and the results thereof to the viewers committee within one month after the conclusion of the meeting, and report the monthly operational records of the viewers committee to the Broadcasting and Communications Commission by the 20th day of the following month. Article 65 (Disclosure of Information)

(1) A person who demands, under Article 90 (5) of the Act, a disclosure of information by a broadcasting business operator engaged in general programming or specialized programming of news reports (excluding the broadcasting business operators subject to the Official Information Dis- - 61 -

closure Act; hereafter referred to as a "general or news broadcasting business operator" in this Article) shall submit to the broadcasting busi- ness operator a written application for disclosure of information stating the matters referred to in the following subparagraphs:

1. Name, resident registration number and address of the applicant; and

2. Details of information under a demand for its disclosure, and purpose of its utilization.

(2) If an application for disclosure of information under paragraph (1) exists, the general or news broadcasting business operator shall decide upon wheth- er a disclosure is to be made within 10 days from the date of application, and notify the applicant of its results.

(3) If it is not possible to decide whether to disclose the information within the period specified in paragraph (2) due to unavoidable reasons, the general or news broadcasting business operator may extend the period for decision within the limit of ten days from the day following the expiry date of such period. in such cases, the general or news broadcasting business operator shall immediately notify in written the applicant of the fact and reasons of the extension.

(4) If the information on broadcasting business demanded by the applicant falls under information subject to non-disclosure under Article 9 (1) of the Official Information Disclosure Act, the general or news broadcasting business operator may not disclose it. (5) Procedures for and methods of disclosing information and other nec- essary matters shall be determined by the regulations of the Broadcasting and Communications Commission.

CHAPTER SUPPLEMENTARY PROVISIONS

Article 66 (Joint Use of Broadcasting Facilities, etc.) The Broadcasting and Communications Commission may, if it is deemed necessary for the efficient utilization of broadcasting facilities under Article 92 (3) of the Act, recommend to the broadcasting business operators, etc. that the broadcasting facilities, such as signal transmission facilities, etc. and the land and buildings, etc. appurtenant thereto are jointly constructed and used by them. Article 66-2 (Disciplinary Measures, etc.)

- 62 -

"If the deliberation rules have been violated repeatedly due to the same reason" in Article 100 (3) 3 of the Act means any case where the same item of the deliberation rules is violated at least three times within one year after the date on which disciplinary measures under Article 100 (1) 1 through 3 of the Act are taken.

[This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 67 (Fees)

(1) Fees that shall be paid under Article 102 of the Act shall be in accordance with the attached Table 3.

(2) Fees under paragraph (1) shall be paid by revenue stamps or postal transfers: Provided, That the Broadcasting and Communications Commission may allow the persons concerned to pay such fees by means of electronic currency, electronic settlement, etc. using information and communications networks.

Article 68 (Delegation and Entrustment of Authority) (1) The Broadcasting and Communications Commission shall delegate the authority related to the matters referred to in the following subparagraphs to the Director General of Central Radio Management Office under Article 103 (1) of the Act:

1. Deleted; 1-2. Matters related to the registration of a signal transmission network business under Article 9 (10) of the Act;

2. through 5. Deleted;

6. Matters related to the inspection of work completion and the inspec- tion for re-permission involving any CATV broadcasting business operator under the former part and the latter part of Article 79 (2) of the Act and Article 16 (4) of this Decree;

7. Matters related to a verification as to whether the signal transmis- sion and line facilities of a CATV broadcasting business operator, a signal transmission network business operator and a telecommu- nication business operator of fundamental communications are com- pliant with the technological standards under Article 80 of the Act; and

8. through 13. Deleted. (2) The Broadcasting and Communications Commission shall, in accor- dance with Article 103 (1) of the Act, entrust the authority related to the matters referred to in the following subparagraphs to the Korea Radio Promotion Agency under the Radio Waves Act. In such cases, the Korea - 63 -

Radio Promotion Agency shall, when it deals with entrusted affairs, report the results thereof to the Director General of Central Radio Management Office:

1. Matters related to the inspection of work completion and the inspec- tion for re-permission involving any CATV broadcasting business op- erator under the former part and the latter part of Article 79 (2) of the Act and Article 16 (4) of this Decree;

2. Matters related to the inspection of work completion involving any CATV music broadcasting business operator under the former part and the latter part of Article 79 (2) of the Act; and

3. Matters related to the verification as to whether the signal transmission and line facilities of a CATV relay broadcasting business operator and a CATV music broadcasting business operator are compliant with the technological standards under Article 80 of the Act. (3) If the Broadcasting and Communications Deliberation Committee intends to entrust its duties related to the prior deliberation on the commercial broadcast items to the private institutes or organizations under Article 103 (2) of the Act, it shall decide the institutes or organizations to be entrusted under a consultation with the Minister of Culture, Sports and Tourism, and make a public notification thereof. In such cases, the representative nature of the relevant institutes or organizations in the circles of broadcasting and advertisement industries and their ability as an entrusted party shall be taken into consideration.

Article 69 (Procedures for Imposition and Collection of Fine for Negli- gence)

(1) If a fine for negligence is levied under Article 108 (2) of the Act, a notice to pay it with a clarification in writing of the details of violation and the amount of fine for negligence, etc., after an investigation and verification of a relevant offence, shall be served on the person subject to a disposition of fine for negligence.

(2) If the Broadcasting and Communications Commission (hereinafter re- ferred to as the "person entitled to levy") intends to levy a fine for negligence under paragraph (1), it or he shall fix a period of not less than 10 days, and provide the person subject to such disposition with an opportunity to submit his opinion orally or in writing. In such cases, a failure to submit any opinions by the designated term shall be considered an absence of any opinion. (3) In determining the amount of a fine for negligence, the person entitled - 64 -

to levy shall take into account the motives and the consequences thereof, etc. of the relevant violation, and the standards for levying such fine for negligence are as shown in the attached Table 4.

(4) The collection procedures of fines for negligence shall be determined by the regulations of the Broadcasting and Communications Commission. Article 70 (Classification of Violations Subject to Penalty Surcharges and Amounts thereof)

(1) Amounts of penalty surcharges according to the classification of violations subject thereto under Article 109 (6) of the Act shall be as shown in the attached Table 5.

(2) The Broadcasting and Communications Commission may increase or reduce a penalty surcharge within the scope of 1/2 of the amount thereof under paragraph (1), considering the scale of business of the relevant broadcasting business operator, the level and frequency of violation involved, etc.: Provided, That in cases of such increase, the total amount of the penalty surcharge shall not exceed the ceiling amount thereof referred to in each corresponding Article.

[This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] Article 71 (Imposition and Payment of Penalty Surcharges) (1) The Broadcasting and Communications Commission shall, in the event that it or he intends to impose a penalty surcharge under Articles 19 (1) and 100 (3) of the Act, issue a written notice of the payment thereof specifying the classification of violation involved, the amount of penalty surcharge, etc. (2) Deleted. (3) Any person who has received the notice under paragraph (1) shall, within twenty days after receipt thereof, pay the penalty surcharge imposed on him to a receiving agency designated by the Broadcasting and Communications Commission: Provided, That when such payment cannot be made within that period due to force majeure or for any other unavoidable reason, it shall be made within seven days after such reason ceases to exist. (4) A receiving agency which receives a penalty surcharge under para- graph (3) shall issue a receipt to the payer.

(5) If a receiving agency receives a penalty surcharge under paragraph (3), it shall, without delay, notify the Broadcasting and Communications Commission. (6) Penalty surcharge shall not be paid in installments. - 65 -

[This Article Newly Inserted by Presidential Decree No. 20219, Aug. 7, 2007] ADDENDA

Article 1 (Enforcement Date)

This Decree shall enter into force on March 13, 2000: Provided, That the provisions of Article 57 (3) shall enter into force on January 1, 2002. Article 2 (Repeal of Other Acts and Subordinate Statutes) The Acts and subordinate statutes referred to in the following subpar- agraphs shall be repealed:

1. Enforcement Decree of the Broadcasting Act;

2. Enforcement Decree of the Composite Cable Broadcasting Act;

3. Enforcement Decree of the Korean Broadcasting System Act; and

4. Enforcement Decree of the Management of Cable Broadcasting Act. Article 3 (Transitional Measures concerning Parties Subject to CATV Relay Broadcasting) A CATV relay broadcasting business operator may, notwithstanding the provision of Article 2, obtain approval of the Korean Broadcasting Com- mission and make a relay transmission of a satellite broadcast conducted by broadcasting business operators of foreign countries, during the de- ferment period of authorization for the CATV relay broadcasting busi- ness under the attached Table of Article 7 (2) of Addenda of the Act, within the limit of 3 channels.

Article 4 (Transitional Measures concerning Scope of Persons Specially Related)

A person who, under Article 3 (1) at the time of enforcement of this De- cree, has come not to conform with Article 8 (2) through (8) of the Act and Article 4 of this Decree, shall make oneself conform with the same provisions not later than December 31, 2001.

Article 5 (Transitional Measures concerning Application for License, etc.) An application for a license, a renewed license or a modified permission under the previous provisions at the time when this Decree enters into force shall be considered an application under this Decree. Article 6 (Transitional Measures concerning Conversion of Public Ser- vice Funds into Broadcast Development Fund)

Definite scope of the public service funds that are considered as the Broad- cast Development Fund under Article 6 (1) of Addenda of the Act shall be determined by the Korean Broadcasting Commission in consultation with the Korean Broadcasting Advertising Corporation. Article 7 (Deferment Period for Collection of Fund from Satellite Broad- casting Business Operator)

Collection of the Broadcast Development Fund from a satellite broad- casting business - 66 -

operator under Article 10 of Addenda of the Act shall be deferred for three years from the date when the satellite broadcasting business is commenced. Article 8 (Transitional Measures concerning Criteria for Administrative Dispositions)

In the application of a fine for negligence and other administrative dis- positions against a violating conduct prior to the enforcement of this Act, the provisions of the previous Enforcement Decree of the Composite Ca- ble Broadcasting Act and the Enforcement Decree of the Management of Cable Broadcasting Act shall govern.

Article 9 Omitted.

Article 10 (Relation to Other Acts and Subordinate Statutes) If the previous Enforcement Decree of the Broadcasting Act, the Enforce- ment Decree of the Composite Cable Broadcasting Act, the Enforcement Decree of the Korean Broadcasting System Act, the Enforcement Decree of the Management of Cable Broadcasting Act or their provisions are cited by other Acts and subordinate statutes at the time when this Act enters into force, and where there are corresponding provisions in this Decree, this Decree or the corresponding provisions of this Decree shall be considered to have been cited in substitution for the previous pro- visions.

ADDENDA Article 1 (Enforcement Date)

- 67 -

This Decree shall enter into force on the date of its promulgation. Articles 2 through 7 Omitted.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.

(2) (Transitional Measures concerning Disposition of Fine for Negligence) Any person for whom procedures are in progress for taking a disposition to levy a fine for negligence on him at the time of enforcement of this De- cree and any disposition of a fine for negligence on any other person for his act uncovered prior to the enforcement of this Decree shall be governed by the previous provisions, notwithstanding the amended provisions of Ar- ticle 68 (1) 13.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDUM This Decree shall enter into force on the date of its promulgation, but is applicable retroactively to May 10, 2003.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Article 2 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on July 30, 2004. (Proviso Omitted.) Articles 2 through 4 Omitted.

- 68 -

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter force on the date of its promulgation: Provided, That the amended provisions of the proviso to Article 57 (3) shall enter into force on July 1, 2005.

Article 2 (Special Case for Restrictions on Management of Radio Pro- gram Providing Business by CATV Broadcasting Business Operator) If any specific CATV broadcasting business operator (including any spe- cially related person) manages his radio program providing business in excess of 1/5 of the total number of radio program providers at the time of enforcement of this Decree, he may continue to manage his radio pro- gram providing business that he manages at the time of enforcement of this Decree, notwithstanding the amended provisions of Article 4 (3) 1. Article 3 (Transitional Measures concerning Scope of Specially Related Person)

Anyone who does not conform to the amended provisions of Article 8 (2) through (8) of the Act and Article 4 of this Decree in accordance with the amended provisions of Article 3 (1) at the time of enforcement of this Decree shall conform with the amended provisions by June 30,

2006. Article 4 (Transitional Measures concerning Requirements for Having Offices by Program Providers)

Any program provider who does not conform to the amended provisions of Article 7-2 (1) 3 at the time of enforcement of this Decree shall bring him into in conformity with the same amended provisions within 6 months after the enforcement of this Decree.

Article 5 (Transitional Measures concerning Operation of Data Broad- casting Channels)

Every terrestrial mobile multimedia broadcasting business operator and every satellite mobile multimedia broadcasting business operator may not operate data broadcasting channels by December 31, 2006, not- withstanding the amended provisions of Article 53 (1) 1 (a) and 3 (a). Article 6 (Transitional Measures concerning Standards for Taking Dis- position to Impose and Collect Fine for Negligence) The standards for taking a disposition to impose and collect a fine for negligence on the act of violation committed prior to the enforcement of this Decree shall be governed by the previous provisions. Article 7 Omitted.

- 69 -

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Article 2 Omitted.

ADDENDA (1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.

(2) (Application Examples concerning Disclosure of Information) The amended provisions of Article 65 shall be applicable from the first appli- cation for the disclosure of information after the enforcement of this Decree. (3) (Transitional Measures concerning Collection of Regional Business Privilege Fees) The collection of a regional business privilege fee to be paid by a CATV broadcasting business operator under Article 2 of the Addenda of the partially amended Broadcasting Act, Act No. 7498, shall be governed by the previous provisions of Article 13.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 2007. Articles 2 through 6 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Article 2 (Term of Validity)

The amended provisions of Article 53 (2) 2 (e) and (f) shall remain in force until December 31, 2010.

Article 3 (Application Examples concerning Rate of Designing Audi- ence Participation Programs)

The amended provisions of Article 52-2 shall apply on or after Septem- ber 1, 2007.

Article 4 (Special Case for Selection and Operation of Public Channels) Notwithstanding the amended provisions of Article 56-2, public chan- nels in year 2007 shall be selected according to a schedule determined by the Korean Broadcasting Commission's regulations. Article 5 (Transitional Measures concerning Restrictions on Manage- ment of Program Providing Business by Terrestrial Broadcasting Busi- - 70 -

ness Operator)

At the time this Decree enters into force, any terrestrial broadcasting business operator who fails to meet the requirements under the amended provisions of Article 4 (3) 1 shall meet such requirements within six months after the date on which this Decree enters into force. Article 6 (Transitional Measures concerning Restrictions on Manage- ment of Radio Program Providing Business by Satellite Broadcasting Business Operator)

At the time this Decree enters into force, any specific satellite broad- casting business operator who carries on his business in excess of 1/5 of the number of all radio program providers shall carry on radio program providing business within the scope not exceeding the number of radio program providers managed by him at that time, notwithstanding the amended provisions of Article 4 (3) 2.

Article 7 (Transitional Measures concerning Scope of Incidental Pro- gramming by Broadcasting Business Operator Engaged in Specialized Programming)

At the time this Decree enters into force, any broadcasting business operator engaged in specialized programming shall meet the requirements under the amended provisions of Article 50 (5) within three months after the date on which this Decree enters into force.

Article 8 (Transitional Measures concerning Restrictions on Rental of Channels of CATV Broadcasting Business Operator or Satellite Broad- casting Business Operator)

At the time this Decree enters into force, any CATV broadcasting busi- ness operator or satellite broadcasting business operator who fails to meet the requirements under the amended provisions of Article 53 (2) 2 shall meet such requirements within six months after the date on which this Decree enters into force.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Articles 2 and 3 Omitted.

ADDENDUM This Decree shall enter into force on the date of its promulgation. ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. - 71 -

Articles 2 through 6 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Articles 2 Omitted.

ADDENDA Article 1 (Enforcement Date)

This Decree shall enter into force on February 4, 2009. (Proviso Omitted.) Articles 2 through 28 Omitted.


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