As a series of amendments are scheduled to come into force on July 4, 2023 to strengthen data center operators’ obligation to secure service stability in order to prevent disruptions caused by disasters in data centers, the Ministry of Science and ICT (the “MSIT”) announced the detailed provisions concerning the obligation.
Ever since a fire incident occurred at a major data center in Korea, a series of amendments – including amendments to the Framework Act on Broadcasting Communications Development (the “BCDA”), the “Act on Promotion of Information and Communications Network Utilization and Information Protection” (the “Network Act”), and the Telecommunications Business Act (the “TBA”) – were promulgated on January 3, 2023 with their enforcement scheduled for July 4, 2023.
On March 30, 2023, the MSIT announced the “Measures to Strengthen the Stability of Digital Services,” including the direction of the Enforcement Decrees that set forth the detailed provisions of the relevant amendments. On the same day, the MSIT pre-announced the Proposed Amendment to the Enforcement Decree of the BCDA and the Proposed Amendment to the Enforcement Decree of the Network Act.1 Thereafter, on April 5, 2023, the MSIT pre-announced the Proposed Amendment to the Enforcement Decree of the TBA.2 The Measures to Strengthen the Stability of Digital Services have garnered attention since they impose various obligations on data center operators, including the obligations to take protective measures for their facilities, prevent disasters and respond to incidents.
1. Strengthened Obligations Imposed on Data Center Operators
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Obligations under the Proposed Amendments to the Enforcement Decrees of the Network Act and the BCDA |
(i) The amended Network Act imposes more stringent obligations on data center operators (i.e., information and communications service providers, including Internet data center operators, meeting certain criteria in terms of the scale of information and communications facilities set forth in the Enforcement Decree; collectively referred to as “IDC Operators”), and likewise, (ii) the amended BCDA stipulates service providers (among IDC Operators under the Network Act) meeting certain criteria in terms of the scale of facilities, sales revenue, etc. set forth in the Enforcement Decree to fall into the scope of application of the amended BCDA and requires them to comply with various obligations to secure service stability, including establishing a master plan for the management of disasters related to broadcasting communications.
In light of the foregoing, affected companies should consider submitting their comments within the pre-announcement period of the Proposed Amendments to the Enforcement Decrees of the Network Act and the BCDA.
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Obligations Pertaining to the Measures to Strengthen the Stability of Digital Services |
In the Measures to Strengthen the Stability of Digital Services announced on March 30, 2023, the MSIT unveiled its plan to strengthen obligations regarding (i) reinforcing disaster prevention measures, (ii) securing structural stability, (iii) systematizing power management, (iv) duplexing of backup power, and (v) responding to fire hazards, and to implement amendments to detailed standards of the Guidelines for Protection of Internet Data Center Facilities (MSIT Notification).
2. Strengthened Obligations of Value-added Service Providers (“VSPs”)
(i) The amended Network Act also obligates service providers using leased data centers to fully cooperate with data center operators in implementing protective measures and imposes even more stringent obligations on service providers who exclusively operate/manage leased facilities, and likewise, (ii) the amended BCDA has added VSPs meeting certain criteria in terms of the number of users or traffic volume set forth in the Enforcement Decree thereof, to the scope of service providers who are subject various obligations to secure service stability, including establishing a master plan for the management of disasters related to broadcasting communications.
3. Proposed Legislation of Digital Service Safety Act (Tentative Name)
In announcing the Measures to Strengthen the Stability of Digital Services, the MSIT unveiled its plans to enact the Digital Service Safety Act (tentative name) to consolidate the current systems related to the stability of digital services, which had previously been set forth in a series of distinct laws, into a single law, and to establish a comprehensive disaster management system covering the digital base of networks, data centers and digital services.
The Measures to Strengthen the Stability of Digital Services not only impose greater obligations on data center operators and VSPs, but also herald the enactment of additional laws and regulations to further intensify their obligations.
Therefore, companies are advised to identify specifically which obligations they will have to comply with pursuant to the applicable laws and regulations and determine whether they will be subject to more stringent obligations for ensuring service stability in light of recent legislative developments.
1 Pre-announcement period: March 30, 2023 - May 9, 2023
2 Pre-announcement period: April 5, 2023 - May 16, 2023
