Korea: Government to Ease Internet Regulations to Prevent Reverse Discrimination against Local Firms

“The issue of reverse discrimination will continue arising in a variety of sectors, as well as the app market, as more and more foreign companies enter the Korean market,” said SK Planet, adding, “We need at least some balance between the regulations imposed on domestic and foreign companies.”

In November the Ministry of Science, ICT and Future Planning came up with plans for deregulation in the local Internet industry in conjunction with 11 government authorities concerned.

The purpose of the first Internet industry deregulation plan is to get rid of restrictions that cause reverse discrimination or shrinkage in industrial activities and address the flaws of the government’s current regulations such as the Real-name Internet System and the Recommendation for Internet Search Improvement. The Real-name Internet System, put in force back in April 2009, has resulted in a collapse of local video websites while anonymity-based YouTube increased its market share in Korea from 2% to 70% during the same period.

Under the circumstances, the ministry collected 51 official opinions in April this year from seven organizations in the industry, including the Korea Internet Corporation Association, the Korea Online Shopping Association, and the Korea Internet & Digital Entertainment Association, and then worked together with the 11 agencies to finalize the plan.

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