[Edaily Reporter Kim Hyun-ah ] As cases continue to arise in multi-unit buildings—such as officetels and apartment complexes—where building management entities enter into contracts with specific telecommunications companies and effectively force residents to use those services, a bill to regulate this practice is being proposed.

Rep. Lee Ju-hee, a member of the National Assembly’s Science, Technology, Information, Broadcasting, and Communications Committee, announced on the 20th that she had introduced a bill to amend the Telecommunications Business Act, which would prohibit building management entities from restricting residents’ freedom to choose telecommunications services.

According to data submitted to Rep. Lee’s office by the Committee on Broadcasting, Media, and Communications, as of May of this year, multi-line contracts for multi-unit buildings with the three major telecommunications companies totaled 2,584,508 lines. By provider, KTCorporation(030200)had the highest number at 1,552,966 lines (60.1%), followed by SK Broadband with 712,093 lines (27.5%) and LG Uplus(032640) with 319,449 lines (12.4%).

A multi-line contract is a system in which a building management entity enters into a bulk contract with a telecommunications carrier to provide communication services, such as internet, to residents. However, in some buildings, there have been cases where users’ right to choose has been infringed upon—such as by forcing the use of a specific carrier or blocking the installation of equipment from other carriers.

In fact, an on-site inspection by the Korea Communications Commission revealed a case at an officetel in Paju, Gyeonggi Province, where the building management entity forced residents to use only a specific provider’s internet service even though infrastructure from other providers had already been installed. At another officetel in Geumcheon-gu, Seoul, a complaint was filed after residents requested to review the contract following an internet rate increase under a multi-line contract, but the management entity refused their request.

In addition, there have been ongoing cases where management offices enter into contracts with specific telecom providers without residents’ consent, lump telecommunications fees into maintenance fees regardless of actual usage, and refuse to install equipment required for individual telecom services.

Among the 44 related complaints received in the first half of this year, “forcing the use of a specific telecommunications provider” was the most common, accounting for 20 cases (45.6%). This was followed by 13 cases (29.5%) of refusal to install telecommunications equipment and 6 cases (13.6%) of lump-sum inclusion of telecommunications fees in management fees regardless of usage.

The government amended the Telecommunications Business Act in 2024 to prohibit telecommunications providers from restricting residents’ right to choose, and established detailed standards last year. However, critics have pointed out that since building management entities often take the lead in actual contract signing and the operation of telecommunications facilities, it is difficult to directly sanction these entities under current law alone.

The amendment establishes a new legal obligation prohibiting building management entities from restricting residents’ choice of telecommunications services and explicitly grants the Korea Communications Commission (KCC) the authority to conduct inspections and request the submission of documents. It allows for the imposition of administrative fines of up to 10 million won for violations and includes provisions enabling the KCC to delegate inspection duties to relevant agencies. Additionally, the amendment strengthens management accountability by treating illegal acts committed by agents or retailers as acts of the telecommunications carrier itself.

Rep. Lee Ju-hee stated, “While actual users—building residents—face restrictions on their right to choose telecommunications services, the structure in which building management entities dominate contract negotiations and reap economic benefits continues to persist.” She added, “Through this amendment, we will prevent building management entities from infringing on users’ right to choose and enable inspections and sanctions for violations, thereby providing stronger protection for users’ rights and interests.”