Korean National Assembly Amends the Telecommunications Business Act

On Aug. 31, 2021, the Korean National Assembly passed a bill amending the Telecommunications Business Act (the “Amendment”). The bill, once signed into law and promulgated by President Moon as expected imminently, will enter into effect immediately as provided for under the bill itself. The Amendment will likely prevent app markets from, among others, requiring the use of a specific payment processing system such as an app market’s own in-app payment (“IAP”) solution. The Amendment also imposes on app markets an obligation to protect users’ rights and interests. Lastly, the Amendment authorizes the Korea Communication Commission (“KCC”) and the Minister of Science and ICT to conduct a market status investigation into app market services offered by app market operators.

The bill is the product of the integration, and substantial revision, of six prior legislative proposals. In the revision process, two proposed provisions were omitted in response to concern raised by the Korea Fair Trade Commission that they would result in regulatory overlaps with the Korean antitrust statute. Under the omitted provisions, app markets were to be prohibited from imposing restrictions on the listing of apps on competing app stores and from engaging in other types of unfair discriminatory conduct.

By Yulchon, Korea, a Transatlantic Law International Affiliated Firm. 

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