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Investor Presentaiton

ONI Country Profile 355 38 as well At its inception, the ICEC was empowered to develop general principles or codes of telecommunications ethics, deliberate on and request the "correction" of informa- tion declared "harmful" by presidential decree, and operate centers reporting against unhealthy telecommunications activities. 36 The KCSC telecom subcommission contin- ues to make determinations on "requests for correction" with respect to ISPs and Internet content providers (ICPs).37 Thus the KCSC is empowered to make determina- tions on information "harmful" to youth under the Juvenile Protection Act, as recommend action against Web sites containing "illegal" content, including por- nography, information for cyber criminals, and gambling services, and Web sites that express support for communism or for the government of North Korea.39 The scope of its authority extends to ordering the blocking or closure of Web sites, the deletion of offending messages, and/or the suspension of users identified as posting improper writing. In addition to special advisory committees, the KCSC also mediates disputes over online defamation. The KCSC said it received 156,000 complaints in 2006 about Internet postings considered inaccurate, and 216,000 in 2007.41 With President Lee's full support, government ministries proposed a battery of legislation beginning in July 2008 that would create a framework for addressing defa- mation, "false rumors," and "malicious postings." In July 2008, the KCC introduced the Comprehensive Measures on Internet Information Protection, which instituted 50 changes to communications and Internet regulation. 42 In amendments to the Informa- tion Act, the South Korean government further expanded the already-significant regu- latory authority of the KCC by adding to online providers' liability for their users' acts. The KCSC was authorized to force providers to delete content or suspend publish- ing for a minimum of 30 days upon receiving a complaint of "fraudulent" or "slander- ous" postings, during which the commission would determine whether disputed articles should be removed permanently. 43 Internet portals that failed to block such postings would be subject to a fine of up to KRW 30 million (just over USD 26,500) or could be forced to shut down, 44 while portals or individuals involved in improperly manipulating Internet search results could be subject to imprisonment for up to one year and a fine of up to KRW 10 million (USD 8,800). 45 In cases of leaked personal information, the KCSC requires the portal to inform the victim of the privacy breach and report the matter to the KCC. Following an approach taken toward other emergent forms of harmful or illegal content, ICPs have increasingly taken on responsibility for policing slanderous content. Although they were already legally compelled to set up constant in-house monitoring functions, 46 Korea's two largest Internet portals also implemented their own measures to curb postings considered to violate privacy. For example, Naver created a simplified process for users to quickly block "groundless rumors or postings," and Daum required users to click on a different box if they want to read other users' comments. 47
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