In the second half of 2021, various legislations were enacted to revitalize the broadcasting and communications industry and ease regulations on the industry.

The Framework Act on Promotion of Data Industry and the Promotion of Use (the “Framework Act”) was enacted as a foundational law to govern the production and exchange of private data. 

With respect to location information, an amendment to the Act on the Protection, Use, etc. of Location Information (the “Location Information Act”) was promulgated to alleviate the regulatory requirement and strengthen the protection of business operators by requiring location information businesses to obtain a license (in lieu of registering as a location information business). 

With respect to the game industry, an amendment to the Juvenile Protection Act that abolishes the mandatory shutdown system for the first time in 10 years since the Act’s enactment in 2011 has passed the plenary session of the National Assembly.

1.   Key Contents of the Framework Act

The Framework Act was enacted to establish a systematic foundation for the government’s establishment of policies to foster industries related to data generation and use.  This act will take effect from April 20, 2022.  The key provisions of the Framework Act are as follows:
 

• The government may designate and operate zones where anyone can analyze and utilize data safely (the “Data Safe Zone”), provide unpublished data, analysis systems, and tools to support the use of the Data Safe Zone, and request the government, local governments, public institutions, private corporations, etc. to provide data (Article 11).

• The government may also establish and announce techniques and systems for evaluating the value of private data and designate an institution specializing in data valuation (Article 13), build and operate a data distribution system to facilitate the distribution and transaction of data (Article 18), and designate a data quality certification institution to certify the quality of data at the request of data service providers (Article 20).  Data transaction business operators and data analysis service providers shall report to the Minister of Science and ICT, and the government may provide necessary support to the reporting business operators (Article 16).

• A data service provider as prescribed by the Presidential Decree shall not demand for execution of unfair contract or take advantage of its status, and the Minister of Science and ICT may request the head of a relevant agency to take necessary measures in the event of such conduct (Article 17).  In addition, any act of infringing on the economic interests of data producers by unfairly using data assets is prohibited, and relevant matters are to be governed by the Unfair Competition Prevention and Trade Secret Protection Act (the “UCPA”) (Article 12).

• The National Data Policy Committee is established under the Prime Minister to deliberate on matters related to the promotion of data production, transaction, and utilization (Article 6), and the Data Dispute Mediation Committee is established to mediate disputes over data production, transaction, and utilization (Article 34).

Meanwhile, in line with the legislative and institutional protection of data assets with economic value, the proposed amendment to the UCPA that explicitly stipulates unfair use of data as a type of unfair competition practice has passed and will take effect on the same day as the Framework Act.

2.   Key Details of the Proposed Amendment to the Location Information Act

In order to clarify the scope of data that is subject to location information regulation, the Amended Location Information Act introduced the concept of “measurement (of location)” in its definition provisions (Article 2, Subparagraph 1).  In addition, in response to the need to ease the entry barrier in the location information business, the amended Location Information Act has changed the licensing system for personal location information businesses to a registration system by meeting certain requirements (Article 5).  Further, regulations have been revised to enhance the protection of location information, including adding the purpose of retention and retention period to the matters for which consent is obtained from the subjects of personal location information, requiring disclosure of personal location information processing policies (Articles 18, 19 and 21(2)), and adding the government’s right to impose corrective measures or supplementing the grounds for imposing administrative fines (Articles 36(2) and 14).  The Amended Location Information Act will take effect on April 20, 2022. 

3.   Proposed Amendment to the Juvenile Protection Act for Abolition of Mandatory Shutdown System

On November 11, 2021, the National Assembly passed an amendment to the Juvenile Protection Act, which abolishes the so-called “shutdown system,” which uniformly prohibits teenagers under the age of 16 from playing online games from 12 a.m. to 6 a.m.  Accordingly, direct regulations on the use of games by juveniles will be consolidated into the so-called “selective shutdown system” (or Article 12(3) of the Game Industry Promotion Act), a system that restricts the method of use or the time of use of games at the request of juveniles themselves or their parents.  The amended Juvenile Protection Act will take effect on January 1, 2022.
 

The enactment of the Framework Act is significant in that it provides a system for facilitating the economic and social production, trade, and distribution of private data, supporting the active use of such data, and implementing data-based projects.  Companies engaged with the data industry need to closely observe various government policies established under the Framework Act and create strategies to more effectively utilize data produced and retained by companies.  In addition, companies providing location information related services must be prepared to comply with the enhanced obligations of business operators under the Amended Location Information Act.

On August 25, 2021, the Ministry of Culture, Sports and Tourism announced its plan to strengthen the operation of the selective shutdown system starting in 2022 in order to prevent any side effects resulting from the abolition of the shutdown system.  Therefore, it is necessary to pay close attention to any noteworthy developments in the future.