On May 7, 2020, the Korean National Assembly’s Science, ICT, Broadcasting, and Communications Committee passed a proposed amendment to the Telecommunications Business Act (the “TBA”) to impose a “domestic agent” requirement on multinational online service providers that conduct business in Korea from overseas. 
 

• The proposed amendment requires value-added telecommunications service providers (“VSPs,” which include nearly all online service providers) who do not have an address or a place of business in Korea to designate a domestic agent.  The domestic agent’s main role is to facilitate “user protection” and respond to requests for information from the Korea Communications Commission on behalf of its principal VSP.  Failure to designate a domestic agent may result in an administrative fine of up to KRW 20 million against the VSP.  

• To be subject to the new domestic agent requirement, the VSP must meet certain thresholds on the number of users and the amount of traffic it generates.  The detailed criteria will be set forth in the Presidential Decree to the TBA, which will be amended if the proposed TBA amendment is enacted. 

• As you may be aware, the Korean Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (the “Network Act”), the main privacy statute that applies to online service providers, contains a similar requirement—online service providers having no address or place of business in Korea but meeting certain thresholds must designate a domestic agent in Korea.  However, the role of a domestic agent under the proposed TBA amendment would be broader—to perform tasks to enhance user protection in general, not just those privacy-related.  Again, the detailed requirements and obligations of domestic agents will be set forth in the Presidential Decree and further clarified by administrative guidance to be issued by the relevant regulators.  

Currently, the propose amendment is under review by the National Assembly’s Legislation and Judiciary Committee.  It will then be presented to a plenary session for vote.