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Telecommunications in Korea

consortia associated with eleven foreign concerns such as GTE, Hutchison, Bodafone, Bell Atlantic, U.S. West, Southwestern Bell, Swedish Telecom, Qualcom, Pactel, Mannesmann, Nynex and BT. Since the selected consortium returned the license to the MOC because of political turmoil involving the selected licensee, the MOC will issue another request for proposal within this year. At the same time as the selection of the licensee for mobile telephone services, nine preliminary licenses for regional paging services were issued to nine consortia out of forty-one. Although foreign investment is allowed, no significant foreign service concerns were involved with the forty-one consortia except Millicom.As of February 1992, there exists 30 value added providers, 13 of which are joint venture companies. AT&T, IBM, EDS, and AMCOR from the United States maintain a minority interest in their joint ventures with Korean partners. Out of 30, only 4 Value Added Service Providers are registered to provide international value and services. These companies are Asiana Air, STM (joint venture between Goldstar and EDS), SDS (joint venture between Samsung and IBM), and Trans World Net (Joint venture with Global Communications).In contrast to the telecommunications services, foreign investment in manufacturing telecommunications equipment may be freely made without any restrictions on foreign equity ratio, etc. For example, Motorola has maintained a wholly-owned subsidiary for manufacturing equipment in Korea. Such investment, however, must pass through the Ministry of Finance (MOF) approval process under the Foreign Capital Inducement Law (FCIL) that is generally applicable.One issue related to the value added services is shared use of leased circuits. Currently, while the shared use of Network Service Providers' domestic leased circuits for data communications is permitted without any restriction on the relationship among the users, the shared use of V...

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