This newsletter introduces an important change to the Enforcement Decree of the Telecommunications Business Act (“TBA”) that will impact primarily value-added telecom services (e.g., online service providers). These changes came into effect on March 28, 2025, following approval at a Cabinet-level meeting held on March 25, 2025.
Key amendments include:
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1. |
Notification Obligation for Suspension of Free Telecom Services: The requirement for service providers to notify users of service failures now extends to include free telecom services. |
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2. |
Notification Obligation for Suspension of Value-Added Telecom Services: The suspension time for value-added telecom services that requires a notification has been reduced from four hours to two hours. |
Under the TBA, telecom service providers must notify users of service suspension, including the standards and procedures for compensation for any damages incurred (Article 33(2) of the TBA). Non-compliance with such procedures can result in the issuance of a corrective order and/or issuance of an administrative fine of up to KRW 10 million (Articles 92(1)1 and 104(5)5 of the TBA). The details of the notification obligation are as follows:
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Obligation |
When |
Details of Notification |
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Obligation to Notify of Suspension |
Notification must be sent immediately upon service suspension of telecom services. |
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Obligation to Notify of Damages |
Notification must be sent within 30 days from when the telecom service is resumed or the issue is resolved. |
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Although certain exemptions from these notification obligations exist, the scope of these exemptions has been reduced to expand the obligations on telecom service providers (Article 37-13(1) of the Enforcement Decree of the TBA). The revised exemptions are highlighted below:
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Grounds for Exemption |
Obligation to Notify Suspension |
Obligation to Notify Damages |
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Pre-notified service suspensions for facility replacements or service improvements. |
Exempted |
Exempted |
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Suspension of value-added telecom services due to failure of line facilities from facilities-based telecom service providers (e.g., mobile carrier). |
Exempted |
Exempted |
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Value-added telecom services provided by entities with telecom revenue under KRW 10 billion or fewer than one million users daily. |
Exempted |
Exempted |
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Suspension of free services, where there are no monthly or recurring fees. |
Before amendment: Exempted After amendment: Required |
Exempted |
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Service suspensions lasting up to two hours due to high demand, facility issues, or equivalent events such as software abnormalities. |
Before amendment: Value-added telecom services, among other telecom services, shall be exempt from the duty to notify if the service is suspended for up to four hours. Post-Amendment: The exception for value-added telecom services has been removed, requiring notification if the service is suspended for more than two hours. Grounds related to software abnormalities have been added to the notification requirements |
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Cloud computing service suspensions. |
Exempted |
Required |
In addition, electronic notifications using social networking services have been added to the list of acceptable notification methods (Article 37-13(3) of the Enforcement Decree of the TBA). The notification methods now include:
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Before Amendment |
After Amendment |
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The Amendment expands notification obligations to “free telecom services” and “value-added telecom services.” Service providers should review whether there are any new notification obligations imposed under the amended regulations, if they provide relevant services.
Given that notifications must be sent “without delay” following a failure, it is critical for service providers to establish procedures and policies in advance for prompt incident response to remain compliant with legal requirements.
For free telecom services or value-added telecom services, notification duties may still be exempt if applicable conditions exist, such as when the revenue is under KRW 10 billion for the previous year. It is essential to individually evaluate whether a company’s sales, user base, or other factors qualify for such exemptions.
