Moving Allows Internet and Paid Broadcasting Changes Without Cancellation Fees... Effective from April

[Asia Economy Reporter Eunmo Koo] Starting from April, if you have to change your internet service provider due to moving, the discount repayment fee that was previously required upon canceling the existing service will be fully waived. This applies when the new officetel, one-room, or knowledge industry center is a collective building with an exclusive internet service contract, preventing residents from maintaining their existing lines.

The Korea Communications Commission (KCC) announced on the 20th that it will push for amendments to related laws to protect users and create a fair competitive environment among providers regarding exclusive multi-line contracts in collective buildings.

Until now, when collective buildings such as officetels had exclusive contracts for internet and paid broadcasting services, residents could not transfer their previously used services from other providers, and even if they canceled, they had to repay 50% of the discounted amount.

According to the improvement plan, the discount repayment fee incurred when users move into a collective building will be fully waived. This repayment will be settled mutually between the existing provider and the exclusive provider. The waiver applies to contract period discount repayments, bundled discount repayments, and equipment rental discount repayments, but excludes penalties for affiliated services such as security and CCTV, and prize penalties. This plan is scheduled to be applied from April 1 after revising each provider’s terms of use, preparing work procedures, and conducting prior inspections by March.

Additionally, the KCC will revise the enforcement decree of the Telecommunications Business Act to fundamentally resolve the issue of restricting users’ choice of broadcasting and communication services in collective buildings by adding prohibited conduct types and clearly defining detailed contents.

Specifically, acts such as providers signing multi-line contracts with management entities and forcing residents to use only specific services, and restricting entry of other providers so that only certain providers can offer services, will be prohibited. However, accommodations such as hotels, resorts, motels, and gosiwon where users stay temporarily will be excluded from regulation.