Internet phone company 'Skype' ordered by MIC to stop receiving new memberships to its 'Skype Out' services due to violating domestic Korean e-communications business codes.

On June 23rd, South Korea's MIC(Ministry of information and communications) said the Skype has not met the e-business codes 19(special business license) and 59.2(international connection) for internet phone service(VoIP) and was ordered to stop offering new memberships immediately.

Skype offers unlimited free phone calls between PC to PC service 'Skype' and wire/wireless phone accessible 'Skype Out' and regular phone line service 'Skype In' as the main business products since last February.

The violations were with failing to register for special communications business(code 2) and starting the business(international phone services) without the approval from MIC's director. Especially requiring consumers to prepay for the services were in questions for the violations too.

To comply with the MIC's new order, Skype must submit its subsequent corrective actions to the MIC. In order for the Skype to continue with regular 'Skype out' operations, it must first register to meet the special business code 2 and obtain approvals from the director of MIC to operate international phone services.

Because of these new orders, Skype plans to sublease Wintel’s '070'(code class 1 license) number to continue the operations.

Auction Skype operations director Dong-Chul Bae said, "At this time, we are discussing the current situation with MIC to satisfy all their regulation codes.We will proceed with new memberships as soon as the all the regulations are in accord with the MIC."

An affiliate from MIC commented, "Domestic Skype subsidiaries auction now have registered with special code 2 and putting effort to meet all the regulations and subsequent penalties or fines should get waived."

This resulted because foreign firm started the business without checking with the domestic authorities beforehand.

Meanwhile, Skype had to postpone services to 'Skype In' early February due to the regulations. It's ready for regular service presently but the company announced it will begin the services from this July.