In the second half of 2022, the Ministry of Science and ICT (the “MSIT”) and the Personal Information and Protection Commission (the “PIPC”) proposed new regulatory measures in response to the growing influence of large platforms and online businesses over the market and users.

The MSIT has organized an expert forum to discuss how the Telecommunications Business Act (the “TBA”), currently focused on facilities-based telecommunications service providers (“FSPs”), should be overhauled in line with the changing network environment.  The MSIT is also reviewing a system of self-regulation that can address concerns in the dynamic platform industry.  In addition, the PIPC announced plans and guidelines to strengthen the rights of children and adolescents in order to protect their personal information.
 

1.   Launch of an Expert Forum to Overhaul the TBA

In July, 2022, the MSIT established a forum with experts in law, economics, business management, and consumers to overhaul the TBA.  Through the forum, the MSIT plans to run working groups for each issue.  After a public hearing, the MSIT will finalize the bill by the end of 2022.  Discussions will likely focus on two main pillars: (i) relaxation of regulations on FSPs [HYUN: Define FSP] and (ii) strengthening regulations on value-added service providers.  As this is the first attempt to overhaul the TBA since it was enacted 40 years ago, we expect that the MSIT will conduct an extensive review of topics ranging from regulatory amendment (including network use fees and network/platform stability) to new issues raised by companies.
 

2.   Establishment of a Legal Framework for Digital Self-Regulatory Organization

In July, 2022, the MSIT organized a platform policy council to be led by the Ministry of Economy and Finance.  Member ministries of this policy council include the Ministry of Employment and Labor, the Korea Fair Trade Commission (“KFTC”), the Korea Communications Commission (“KCC”), the PIPC, and the Ministry of SMEs and Startups.  The policy council is reportedly considering ways to establish a self-regulation system for platforms with a legal basis, as well as ways to pursue a uniform platform policy.

The MSIT thus organized a task force to establish a legal framework for the self-regulation of the digital platform industry.  The task force consists of major platform operators, advisors from academia, and experts.  It appears that the task force is discussing ways to support the amendment of the TBA for self-regulation and the establishment of self-regulatory guidelines for the private sector.  The task force has also engaged in consultation with the KCC for the amendment of the TBA, and the KFTC is expected to mainly focus on issues regarding the abuse of power in the platform industry.
 

3.   Announcement of Guidelines to Protect Personal Information of Children and Adolescents

On July 21, 2022, the PIPC announced the personal information protection guidelines, which include basic principles to protect the personal information of children and adolescents, along with18 checklist items for each of the five stages of processing personal information.  In particular, the guidelines provide specific recommendations and requirements by dividing personal information controllers into those who (i) process personal information of children under the age of 14 and (ii) process personal information of adolescents under the age of 18.  The PIPC announced that it would increase the age threshold for children and adolescents protected by law from the current age of 14 to the age of 18 or 19.  In addition, there have been discussions on the proposed legislation of the “right to be forgotten” for children and adolescents.
 

Authorities have engaged in extensive reviews and discussions on adjustments through legal amendments, self-regulation and guidelines.  Since many of these discussions and proposals have already received policy reviews, they are likely to bring about visible changes in the near future.  Companies are therefore advised to prepare for each policy’s potential impact on their business by closely monitoring their progress and related discussions.