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Photo courtesy of the Korea Chamber of Commerce and Industry |
[Alpha Biz= Kim Jisun] The business community in South Korea is urging the government to reform several regulations, including those restricting extended warranty services for mobile phones, mandating prior approval for cinema advertising, and limiting notification methods for shareholder meetings.
Currently, insurance regulations prevent telecommunications companies from offering extended warranty services for mobile phones beyond the standard two-year manufacturer warranty. This restriction comes despite the average smartphone replacement cycle in Korea now approaching three years. In contrast, automakers and home appliance manufacturers, as well as retailers, can independently provide extended warranty services. Telecom operators argue that allowing paid warranty extensions after the two-year manufacturer coverage ends would better align with consumer needs.
In the cinema industry, stakeholders are calling for the relaxation of rules that require all theater advertisements to undergo prior rating approval by the Korea Media Rating Board. Identical advertisements shown on TV or in subways are subject only to self-regulation. Industry representatives argue that shifting cinema advertising to a self-regulation model would enhance market autonomy, foster creativity, and help revitalize the shrinking cinema advertising market.
The business sector is also pushing to modernize rules governing shareholder meeting notices. Under the current Commercial Act, notices must be sent in writing, even though most corporate communications are now delivered digitally. Companies note that over 100 million shareholder meeting documents are sent by post each year, at a cost of KRW 12 billion (USD 9 million).
They are proposing legal amendments to allow electronic notices by default, with shareholder contact information — such as email addresses or mobile numbers — recorded in shareholder registers, thereby expanding shareholders’ choice of notification methods.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
