alue Added Service Providers' domestic leased circuits for voice communications, international leased circuits for voice communications, and international leased circuits for data communications is permitted only within the group of entities which maintains a close business relationship. The scope of close business relationship includes affiliates with 30 percent equity interest and business partners which account for 20 percent of the total value of transactions. Users of Network Service Providers' services within the same close business relationship are free to attach exchange equipment. Currently only one end of a domestic leased circuit for data communications is currently allowed to be connected with the public Network Service Provider network.Requirements for Joint VentureLike any foreign investment in Korea, a foreign investor must obtain approval from or file a notification with the Ministry of Finance and the Foreign Capital Inducement Law. More specifically, foreign investment for those industrial sectors on the negative list or which are subject to local equity participation requirements need approval from the Ministry of Finance. For such approval, a foreign investor must submit a detailed business plan and a joint venture agreement. The business plan must state the marketing plan, the financial plan and other prescribed items. The joint venture agreement should provide the rights and obligations of each party to the joint venture.If the amount of investment is three million U.S. dollars or more, the joint venture agreement will be reviewed by the Korean Fair Trade Commission to determine whether it contains any unfair provisions according to the Anti-monopoly and Fair Trade Law. The following terms will be regarded as unfair trade practices: "the joint venture company is unreasonably required to purchase raw materials, parts, equipment, related goods, etc., from the foreign investor or its designee; the joint ventur...
