On-line Marketing |
Increasing number of foreign companies are using the internet as a marketing tool in the Korean market which has a well-built internet infrastructure, and require English documented guidelines and information on related laws for online marketing activities in Korea.
Due to various marketing access, the sources for e-mail address have become numerous and complex.
Stating the source of e-mail address on each advertisement seems unnecessary to not only foreign but also domestic companies, and as the sources themselves become varied and complex, it leaves doubt about the accuracy of the stated source on the advertisement.
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In particular, many foreign companies understood that the regulation would not apply if they have servers overseas, but despite there being no clarification on applicable subjects in the law, there are reports of companies being fined or encountering other disadvantages.
As seen in the scope of application, the existence of foreign servers is irrelevant to the imposition of fines, and criteria are stipulated in the Act on Regulation of Actions Disrupting Order.
Scope of application: In accordance with the Act on Regulation of Actions Disrupting Order, Article 4, entities that have engaged in the violative act within the territory of the Republic of Korea, and entities from the Republic of Korea that have committed the violative action outside the territory of the Republic of Korea.
Although Korea applies an "Opt-in (prior consent requirement) System" for mobile phone spams, for email spams, an "Opt-out (rejection post-reception) System" is maintained, in consideration of the extent of damage inflicted on recipients, market entry barriers for minority businesses, etc.
However, the source of the transmission must be revealed in order to resolve the anxiety that consumers may feel regarding leakage of personal information due to indiscriminate spam mails sent by numerous transmitters, and to prevent businesses' illegal collection of email addresses (revised in December 2002).
Also, as indication of such information is a requirement by Article 50-2 (prohibition of illicit collection of email addresses, etc.), the policy must be regarded as part of the measures taken by the Korean government based on its determination to protect personal information.
In the case of the EU, an Opt-in (prior consent requirement) system is applied for email spams, which leads to high market entry barriers. In comparison, Korea's requirement to indicate transmission sources cannot be regarded as excessive, market-barrier building regulation.
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