On the Brink Public Wi-Fi Conflict... Despite 'Legal Controversy,' Why Did Seoul City Ultimately Proceed?

Seoul City to Launch 'Kkachion' Pilot Service from Next Month 1
Ministry of Science and ICT, Warning Strong Response, Considering Criminal Charges

[Asia Economy Reporter Seol Gina] As Seoul City plans to start a free public Wi-Fi pilot service next month amid ongoing legal controversies, the Ministry of Science and ICT, which oversees telecommunications-related affairs, is taking a tough stance, even considering 'criminal prosecution.' The conflict between local and central governments over public Wi-Fi is reaching a critical point.

So far, the Ministry of Science and ICT has demanded that Seoul City proceed with the public Wi-Fi project using the three methods permitted under current law, arguing that the self-owned network method Seoul is promoting violates regulations. On the other hand, Seoul City insists that the narrow interpretation of the law must be overcome.

On the 26th, Seoul City announced that starting from the 1st of next month, it will sequentially launch the 'Kkachion' public Wi-Fi pilot service in five autonomous districts: Seongdong-gu and Guro-gu first, followed by Eunpyeong-gu, Gangseo-gu, and Dobong-gu by mid-month. The city plans to build a total of 5,954 km of its own ultra-high-speed public self-owned communication network across Seoul by 2022. The new 'Wi-Fi 6,' which is four times faster than existing public Wi-Fi, will be introduced.

Despite Legal Controversy, Seoul Proceeds... Ministry of Science and ICT Feels Betrayed, "Will Take Legal Action"

The problem is that Seoul City's project is being pushed forward despite being embroiled in legal controversy under current law. The law currently prohibits local governments from managing telecommunications businesses or directly building and operating communication networks. This corresponds to the prohibition of national or local government backbone telecommunications business under Article 7 and restrictions on the use of self-owned networks for purposes other than intended under Article 65 of the Telecommunications Business Act.

Moreover, both sides had recently been in the process of discussing and seeking solutions to the legality issues of the project through a working-level consultative body. The announcement of the pilot service without consultation felt like a betrayal to the Ministry of Science and ICT. A ministry official stated, "This matter was not agreed upon with the central government."

The Ministry of Science and ICT has taken a hardline stance, saying it will take legal action as soon as Seoul City implements the service. Possible measures include orders to suspend use under current law, fines up to 1 billion KRW, or penalties up to 50 million KRW, and criminal prosecution of responsible personnel. A ministry official said, "Despite being aware of the illegality repeatedly pointed out and discussed, Seoul City is proceeding, so we will respond legally up to criminal prosecution. However, we will continue discussions with Seoul City at the consultative body level."

Reviewing Current Law: 'Separation of Roles Between Government and Private Operators'... Concerns Over Redundant Investment of Resources

The Ministry of Science and ICT does not oppose Seoul City's intention to promote free Wi-Fi service projects to guarantee citizens' basic communication rights. They welcome the goal of enhancing national communication welfare but insist that the project be pursued through methods permitted by current law.

Why does current law prohibit local governments from engaging in telecommunications business? In the past, the central government’s Ministry of Communications supplied telecommunications services, but since the transition to a private supply and competition system, from 1991, it has restricted national or local government officials from directly providing backbone telecommunications services. This is interpreted as a measure to prevent adverse effects if the central or local governments interfere in competition among private companies. The Ministry of Science and ICT emphasized, "The purpose of the relevant laws, which separate the roles of government and private operators and restrict direct services by local governments and the government, must be respected to provide efficient and stable telecommunications services."

Currently, the legal methods for building public Wi-Fi include: ▲ projects where the government and local governments provide funding, and telecommunications companies build, operate, and maintain the network; ▲ establishing local public enterprises or special purpose corporations (SPCs), or public Wi-Fi services provided by Seoul City’s affiliated organizations; ▲ local governments leasing self-owned networks to telecommunications companies, which then offer Wi-Fi services to the local governments with discounted line fees.

Accordingly, Seoul City can either ▲ provide funding only and let telecommunications companies build and operate the network, utilizing existing networks, or ▲ provide services through SPCs or affiliated organizations. Building a self-owned network and leasing it to related companies, which then offer discounted line fees, is also a method Seoul City can pursue within current law.

However, the self-owned network method currently promoted by Seoul City raises concerns among many experts not only for legal violations but also regarding periodic upgrades of telecommunications services, security management, and rapid response to technological advancements. Considering that a significant level of network infrastructure is already established in Seoul, there are also concerns about redundant investment of resources from a national perspective.

Jeong Hee-yong, a member of the People Power Party, pointed out at a recent National Assembly Science, ICT, Broadcasting and Communications Committee audit, "There are opinions that Seoul City's public Wi-Fi project may violate the Telecommunications Business Act legally, that building individual communication networks by local governments causes national redundant resource waste economically, and that it could cause confusion in systematic backbone network management policy-wise."

Seoul City Claims Legality... "Ministry of Science and ICT Also Agrees on Purpose and Necessity," but Temperature Gap Exists

On the other hand, Seoul City maintains that the public Wi-Fi project is legal. They argue it falls under the exception specified in the Telecommunications Business Act for "cases necessary for public interest or that do not interfere with telecommunications operators' business management as prescribed by Presidential Decree."

Lee Won-mok, Seoul City’s Smart City Policy Officer, said at a related briefing the day before, "Although there are differences in legal interpretation with the Ministry of Science and ICT, discussions are ongoing," showing a temperature gap with the central government. Seoul City holds that the Kkachion service is a "policy to bridge the digital divide," mandated as an obligation of the state and local governments, and is aligned with the Digital New Deal, so the central government also agrees on its purpose and necessity. Previously, Seoul City requested legislative amendments from the National Assembly and the Ministry of Science and ICT.

The Seoul City District Mayors’ Council urged, "Expanding public services for citizens is a fundamental duty of local governments, and Seoul City's public Wi-Fi project reflects the overwhelming demand of over ten million Seoul citizens," calling on the Ministry of Science and ICT to "move beyond narrow legal interpretations."

However, there are also criticisms that pushing forward with the pilot service claiming legality while requesting legal amendments is contradictory in itself.