MSIT promulgated the revised telecommunication Business Act on June 10, 2022. The Act adds the definition of “online video services (OTT*),” which provide television and film content over the internet. It intends to nurture competitiveness of the digital media content industry by granting OTT providers legal status of ‘value-added communication services.’ With the new definition added in the Act, OTT providers will likely benefit from tax cuts for their OTT content investment. This Act also applies to the automobile industry, as vehicle manufacturers plan to provide OTT for their vehicles.
*OTT stands for “Over The Top” and refers to any streaming service that delivers content over the internet.
