[Digital Today reporter Seul-gi Son] The Broadcasting and Media Communications Commission released a draft enforcement decree for the revised Information and Communications Network Act, which takes effect on July 7. The draft would impose self-regulation obligations on large platforms with 1 million or more daily active users (DAU). It also applies punitive damages to profit channels with 100,000 or more subscribers.

Young-gyu Shin (신영규), director-general of the Broadcasting and Communications User Policy Bureau at the commission, presented the draft on May 21 at a forum in Seoul's Yangcheon district on revising the enforcement decree for a systematic response to false and manipulated information.

The revised Information and Communications Network Act was proposed in October last year by Min-hee Choi (최민희), a Democratic Party lawmaker who chairs the National Assembly Science, ICT, Broadcasting and Communications Committee. It passed the National Assembly plenary session on Dec. 24 that year and was promulgated on Jan. 6 this year. The law defines the concept of false and manipulated information for the first time and introduces punitive damages and mandatory self-regulation for large platforms as regulatory tools.

Open markets, delivery apps and open chat rooms also subject to regulation

The draft enforcement decree sets the standard for large information and communications service providers at 1 million or more DAU over the prior three months as of the end of the previous year. The commission says this is stricter than the European Digital Services Act (DSA) threshold of 5 million monthly active users (MAU).

The scope includes social media, video-sharing platforms and search services, as well as services that mediate or broker transactions of goods and services. This would apply not only to Naver, YouTube and Instagram but also to open markets and delivery apps such as Coupang and Baedal Minjok that exceed 1 million DAU. Messengers such as KakaoTalk and Telegram would also be covered if they take the form of open chat rooms open to an unspecified number of participants.

Platforms covered would be required to receive and process reports of illegal or false and manipulated information, establish and implement self-governing operating policies, and publish a transparency report at least once every six months. They can sign agreements with fact-checking groups and must disclose the terms.

The forum revealed differences over the scope. Attorney Chang-jun Park (박창준) of Shin & Kim said there was a need to review whether to include businesses that mediate transactions of goods and services. He said it should also be considered that it is difficult to determine whether restaurant reviews are true. Shin said open markets were included in consideration of false and exaggerated advertising and information on illegal pharmaceuticals. He added that false advertising by Chinese businesses was also an issue and that the idea was to include them first and deliberate further.

YouTubers with 100,000 subscribers, damages up to 5 times

To be subject to punitive damages, a poster must meet two requirements at the same time. The poster must have posted at least 3 pieces of content over the prior three months and earned revenue through advertising or sponsorship. In addition, the poster must have 100,000 or more subscribers, including followers and members, or an average of 100,000 or more views based on the sum of monthly views over the prior three months.

If a court finds intent, purpose and infringement of protected legal interests, it may set damages at up to 5 times the amount of the loss.

Professor Yong-seok Hwang (황용석) of Konkuk University's Department of Media and Communication said a subscriber-count standard alone was insufficient. He said actual reach, repetition, the scale of revenue and the specificity of the protected legal interest harmed should be assessed qualitatively.

The commission plans to finalise the enforcement decree after the legislative notice period ends on May 27, followed by consultations with relevant ministries, review by the Ministry of Government Legislation and a Cabinet vote.