Location-based service business closure procedure legal guide

Law firm Veat received a request from Company A, which provides location-based service business, (hereinafter “the client”) to conduct legal procedures related to the termination of the location-based service business, either in whole or in part.

The client requested consultation regarding the procedures and preparation of necessary documents for termination of the location-based service business, including reporting to the Broadcasting and Communications Commission.

A location-based service business is a business that collects, uses, and provides location information of users to provide various services. It utilizes real-time or past location data collected from smartphones or GPS devices to provide customized information or services to users.

Due to the special nature of the location-based service business, termination must strictly comply with legal requirements and undergo careful procedures according to the Act on the Protection and Use of Location Information (hereinafter “the Location Information Act”).

Legal procedures for termination of a location-based service business

1) Reporting termination of the location-based service business to the Broadcasting and Communications Commission
Reporting termination to the Broadcasting and Communications Commission is a mandatory procedure according to the Act on the Protection and Use of Location Information (hereinafter “the Location Information Act”). It is a process of clearly notifying that the business will no longer collect, use, or provide location information. It is an important measure to prevent the risk of inappropriate use or abuse of location information even after the business ends.

2) Submission of documents to the Broadcasting and Communications Commission
Specific documents necessary for reporting termination of a location-based service business must be submitted to the Broadcasting and Communications Commission. These documents should include the reason for termination, the termination date of the business, and the method of handling the location information held. This is to verify that the business operator has fulfilled their legal obligations and to clarify the procedure for safely handling data related to location information, which is a necessary measure to prevent leakage or improper use of location information. The Broadcasting and Communications Commission will review the submitted documents to check whether the termination procedures have been carried out legally and may request supplementation if necessary.

3) Organizing internal company documents
When terminating the business, the company must also carefully review and organize internal regulations and documents, including the articles of incorporation, certificate of corporate status, and business registration, to complete legal and administrative procedures. Amending the articles of incorporation or reporting the closure of the business registration is essential to prevent potential administrative sanctions, such as fines.

The termination process for a location-based service business must be carried out in accordance with systematic legal procedures. Law firm Veat has advised the client on all legal procedures, including reporting termination of the client's location-based service business, submitting documents, and organizing internal documents, to minimize the client's legal risks and discuss ways to terminate the business smoothly.

Law firm Veat is a partner accompanying the business from the beginning to the end and is doing its best to support you. If you are planning to terminate a business such as a location-based service business, please receive assistance from Law firm Veat to complete the process safely.

Thank you.
Law firm Veat