Value-Added Telecommunications Business Registration in Korea
Value-added telecom business registration in Korea: who must report to MSIT, special-type registration, facilities-based registration and foreign company rules.
Short answer
Value-added telecommunications business registration in Korea is, for most online services, a report filed with the Ministry of Science and ICT (MSIT) under the Telecommunications Business Act, and internet-based operators with capital of KRW 100 million or less are treated as having reported. File-sharing (webhard and P2P) and bulk text-message sending services are a special type that requires registration, and facilities-based services such as phone or internet access require registration by a corporation, with certificates issued within 30 days of application. The Act places no nationality restriction on the value-added report, while facilities-based operators with their own line facilities face foreign ownership limits.
Telecom business filing at a glance
- Who needs it
- Companies offering telecom-based services in Korea: value-added services such as app marketplaces and online video platforms, special-type value-added services such as webhard, P2P file sharing and bulk SMS sending, and facilities-based services such as phone and internet access
- Requirements
- Value-added: report (treated as filed for internet services with capital of KRW 100 million or less). Special type: registration with technical-measure plans, staff and facilities, and financial soundness. Facilities-based: registration by a corporation with financial and technical capacity and a user protection plan
- Process
- Classify the service → check whether the deemed report applies → prepare the report or registration application → file with MSIT (Central Radio Management Office) → respond to supplement requests → receive the report certificate or registration certificate
- Documents
- Value-added: report form, network diagram (if requested for a new type of service), statement of personal information protection measures (if personal data is handled). Facilities-based: application, business plan, articles of incorporation, shareholder register, terms of service and user protection plan, equipment list and network diagram
- Timeline
- Facilities-based and special-type registration certificates are issued within 30 days of application; supplement requests set a period of up to 10 days; the business must start within 1 year of the report or registration
Foreign companies: four points to check
- The Telecommunications Business Act places no nationality restriction on the value-added telecommunications report. How the filing is structured — overseas parent, Korean subsidiary or branch — is decided case by case.
- A domestic agent is required only for value-added operators with no address or office in Korea that meet both thresholds: an average of 1 million or more daily users in Korea and at least 1% of total domestic traffic over the last 3 months of the previous year. If you have a Korean subsidiary or a Korean company you control, the agent must be chosen from them.
- For facilities-based services that install their own line facilities, a foreign government or foreign corporation cannot register directly, and foreign governments and foreigners together may hold no more than 49% of the shares. A company whose largest shareholder is foreign and holds 15% or more is treated as foreign.
- Personal data laws, including the Personal Information Protection Act, apply their own domestic-agent tests, which YouSun Administrative Agency reviews separately from the telecom filing.
Which filing applies to your service
Value-added telecommunications report
Any telecom service other than facilities-based service is a value-added service — app marketplaces and online video services are expressly included. File a report with MSIT; internet-based operators with capital of KRW 100 million or less are treated as having reported but must file within 1 month once capital exceeds that amount.
Special-type value-added registration
Webhard and P2P services that fall under the Copyright Act's special online service providers, and services that send text messages through a carrier's network, must register instead. Registration requires technical-measure plans, staff and physical facilities, financial soundness, a business plan and a user protection plan, and compliance is checked at least once a year.
Facilities-based registration
Phone, internet access and line-leasing services require registration by a corporation with financial and technical capacity and a user protection plan. A company that only uses basic telecom incidentally to provide its own product, such as an IoT device sending data without voice calls, files a facilities-based report instead.
Duties for large services
Value-added operators that reach both thresholds — an average of 1 million or more daily users in Korea and at least 1% of domestic traffic — must take service-stability and user-request measures, submit an annual report, and appoint a domestic agent if they have no address or office in Korea.
Common situations
Pick the question closest to your case: each one gives the conclusion first, then what changes it, the documents involved and the expected timeline.
We are an overseas app company with Korean users but no Korean entity — do we need to file a value-added telecom report?
Short answer If your service is a value-added telecom service provided to users in Korea, the report applies, and the Act places no nationality restriction on who files it.
- If you have a Korean subsidiary that operates the service The subsidiary files the report and its corporate registry is checked by the ministry.
- If the overseas company operates the service directly Decide with us how the overseas company files and which home-country documents are needed.
- If your service reaches 1 million daily users in Korea and 1% of domestic traffic Appoint a domestic agent in writing as well.
- Documents
- Value-added telecom report form, statement of personal information protection measures if personal data is handled, network diagram if requested
- Timeline
- Supplement requests set a period of up to 10 days; in practice, the report is completed within a few weeks once documents are ready
Our startup has small capital — do we still have to file a value-added telecom report?
Short answer If you provide the service over the internet with capital of KRW 100 million or less, you are treated as having reported; once capital goes above that, you must file within 1 month.
- If capital is KRW 100 million or less and the service is internet-based No separate report is needed for now.
- If capital rises above KRW 100 million File the report within 1 month of the increase.
- If the service is a special type (webhard, P2P or bulk SMS) Registration is required regardless of capital.
- Documents
- Value-added telecom report form, statement of personal information protection measures
- Timeline
- Report within 1 month after capital exceeds the threshold
Is our online platform a value-added telecommunications service at all?
Short answer Under the Act, every telecom service other than facilities-based service — carrying voice, data or video unchanged, or leasing lines — is a value-added service.
- If you provide content, software or a platform to users over a network It is generally a value-added service and the report applies.
- If you carry users' traffic unchanged or lease network lines That is facilities-based service, which needs registration.
- If you only sell goods online Check the separate mail-order sales report instead.
- Documents
- Service description for classification
- Timeline
- Classification before launch
We are launching an app marketplace or a video streaming (OTT) service in Korea — what do we file?
Short answer Both app marketplaces and online video services are value-added services under the Act, so they file a value-added telecom report with MSIT.
- If you run an online video service MSIT passes the report to the Ministry of Culture, Sports and Tourism and the Korea Media and Communications Commission within 3 months.
- If you run an app marketplace The Act also imposes specific duties on app market operators, which should be reviewed before launch.
- If you reach both large-service thresholds Service-stability measures, an annual report and, without a Korean office, a domestic agent apply.
- Documents
- Value-added telecom report form, statement of personal information protection measures
- Timeline
- Business must start within 1 year of the report
We send bulk SMS (A2P messages) to Korean phone numbers — is a report enough?
Short answer No. Sending text messages through a carrier's network is a special-type value-added service that requires registration with MSIT.
- If you connect a messaging system to carriers directly or through another provider Registration with a technical plan to prevent caller-number spoofing, staff and facilities, and financial soundness applies, plus a transmission qualification certificate where required.
- If a registration was cancelled within the last 3 years You cannot register again until 3 years have passed.
- Documents
- Special-type registration application, articles of incorporation (corporations), documents proving the registration requirements, business plan, user protection plan
- Timeline
- Registration certificate within 30 days of application; compliance checked at least once a year
We run a webhard or P2P file-sharing service for Korean users — what applies?
Short answer Webhard and P2P services that are special online service providers under the Copyright Act must register as a special-type value-added business, not just report.
- If you are a special online service provider under the Copyright Act Register with a plan for the technical measures required under the Act and the Copyright Act, staff and facilities, and financial soundness.
- If your service is general cloud storage without file sharing between users Check classification first; it may be an ordinary value-added service.
- Documents
- Special-type registration application, technical-measure plan, documents on staff, facilities and finances, business plan
- Timeline
- Registration certificate within 30 days of application
We want to provide internet access or IoT connectivity in Korea — what registration do we need?
Short answer Providing phone, internet access or line-leasing services is facilities-based business, which only a corporation can register with MSIT.
- If your product only uses connectivity incidentally (for example, an IoT device sending data with no voice calls) File a facilities-based report instead of registration.
- If you install your own line facilities and have foreign shareholders Foreign governments and foreigners together may hold no more than 49%, and a foreign corporation cannot register directly.
- If you resell or use another carrier's lines Check which category applies before filing.
- Documents
- Registration application, business plan, articles of incorporation, shareholder register, terms of service and user protection plan, equipment list and network diagram
- Timeline
- Registration certificate within 30 days of application, excluding external evaluation and frequency allocation time
Does a foreign value-added service provider need a domestic agent in Korea?
Short answer Only if it has no address or office in Korea and meets both thresholds: an average of 1 million or more daily users in Korea and at least 1% of total domestic traffic.
- If both thresholds are met Appoint a domestic agent in writing; if you have a Korean subsidiary or controlled Korean company, the agent must be chosen from them.
- If either threshold is not met The Telecommunications Business Act does not require a domestic agent, though other laws may.
- Documents
- Written appointment of the domestic agent
- Timeline
- Thresholds are measured on the last 3 months of the previous year
Our app uses users' location as well — is the telecom report enough?
Short answer No. A service that uses personal location information also needs a location-based service report with the Korea Media and Communications Commission, separate from the telecom report.
- If you use personal location information File the location-based service report as well.
- If you collect location information and supply it to other businesses That is a location information business requiring registration.
- Documents
- Telecom report documents plus location-based service report documents
- Timeline
- Two separate filings that can be prepared in parallel
We have been running our service in Korea without filing — what is the exposure?
Short answer Running a value-added service without the report, or a special-type or facilities-based service without registration, is a criminal offence, so file as soon as possible.
- If you should have filed a value-added report The penalty is up to 2 years' imprisonment or a fine of up to KRW 100 million.
- If you should have registered a special-type or facilities-based service The penalty is up to 3 years' imprisonment or a fine of up to KRW 150 million.
- Documents
- The report or registration documents for your service category
- Timeline
- File promptly; in practice, a few weeks for a value-added report
How We Handle It
Service classification
Determine whether the service is value-added, special-type value-added or facilities-based, and whether the deemed report applies.
Foreign company review
Check filing structure, domestic-agent thresholds and, for facilities-based services, foreign ownership limits.
Document preparation
Prepare the report or registration application with the network diagram, personal information protection statement, business plan or user protection plan as required.
Filing with MSIT
File with the Ministry of Science and ICT; value-added reports are handled by its Central Radio Management Office.
Supplements and certificate
Respond to any supplement request within the period set (up to 10 days) and receive the report certificate or registration certificate.
Frequently Asked Questions
Q. What is a value-added telecommunications business?
A. Under the Telecommunications Business Act, any telecom service other than facilities-based service is a value-added service, and app marketplaces and online video services are expressly included. Companies providing these services file a value-added telecommunications report with the Ministry of Science and ICT.
Q. Do small companies have to file?
A. Operators providing services over the internet with capital of KRW 100 million or less are treated as having reported. Once capital exceeds that amount, they must file within 1 month. Special-type services need registration regardless of capital.
Q. What is a special-type value-added service?
A. Webhard and P2P services that are special online service providers under the Copyright Act, and services that send text messages through a carrier's network. They require registration with technical-measure plans, staff and facilities, financial soundness, a business plan and a user protection plan; the certificate is issued within 30 days of application.
Q. Can a foreign company file?
A. The Act places no nationality restriction on the value-added report. A value-added operator with no address or office in Korea must appoint a domestic agent only if it averages 1 million or more daily users in Korea and at least 1% of domestic traffic. Facilities-based operators with their own line facilities are subject to a 49% foreign ownership limit, and a foreign corporation cannot register them directly.
Q. What happens if we operate without filing?
A. Operating a value-added service without the report can lead to up to 2 years' imprisonment or a fine of up to KRW 100 million; operating a special-type or facilities-based service without registration, up to 3 years or KRW 150 million.