To Restrict Free Copies to 20 percent of those Printed

Newspaper directives will be revived commencing July 1. The Fair Trade Commission (FTC) announced yesterday that it finalized newspaper directives that include the regulation criteria of the unfair trade activities of the newspaper businesses. Newspaper directives would be revived two years after being scrapped in1999. Newspaper directives passed the regulation reform committee on April 13, and the FTC revised some of the contents through the consultation with the Newspaper Association (NC). The FCT plans to entrust the agreement on autonomy, which will be prepared by the NC, with regard to the unfair trade activities. Only when unfair trade activities are not corrected by the autonomy agreement of the NC, the FCT will apply the newspaper directives. The FCT plans to sign a MOU with the NA dictating the terms under which it would investigate complaints. The newspaper directives restrict free copies to 20% of those printed. It also prohibits the newspaper publishers and sellers from paying for the subscription fees, with an exception of gifts, directly or through the third party. It also prohibits the insertion of other publications into the newspaper and activities like excessive discount to entice subscribers. In addition newspaper companies can only supply free paper to a potential subscriber for seven days after which it must stop unless a contract is signed. "Market dominating" behavior by the monopolistic companies is also prohibited.

Choi Young-Hae moneychoi@donga.com