Mr. Youm Young Sig

March 31, 1986 Mr. Youm Young Sig 468 Adalla Street Palm Village, Makati Metro Manila Sir : This relates to your letter, dated August 21, 1985, requesting that a permit be issued in your favor to operate a branch office of Seoul Daily News in the Philippines. Anent thereto, Section 1 (g), Rule 1, Part 1 of the Rules and Regulations to Implement PD 1789, otherwise known as the Omnibus Investments Code provides, thus: llcd "Doing business shall be any act or combination of acts enumerated in Article 65 of the Code. In particular, 'doing business' includes: xxx xxx xxx 4. Opening Offices, whether called 'liaison' offices, agencies or branches, unless provided otherwise. xxx xxx xxx Any foreign corporation lawfully doing business in the Philippines shall be bound by all laws, rules and regulations applicable to domestic corporations of the same class, except such only as provided for the creation, formation, organization or dissolution of corporations or those which fix the relations, liabilities, responsibilities or duties of stockholders, members, or officers of corporations to each other or to the corporation. (Sec. 129, Corporation Code of the Philippines). Corollary thereto, Section 7 (1), Article XV of the Philippine Constitution provides in part as follows: "The ownership and management of mass media shall be limited to citizens of the Philippines or to corporations or associations wholly owned and managed by such citizens." The term "mass media" includes the gathering, transmission and distribution of news, information, messages, signals, and all forms of written, oral and visual communications and shall embrace the print medium, radio, television, films, movies, wire and radio communication services, advertising in all its phases, and their business management. (Chapter 1, Rules and Regulations For Mass Media in the Philippines). Pursuant to the opinion of the Minister of Justice, "as long as the Seoul Daily News is not for circulation/dissemination in the Philippines, the establishment of a branch office for its news correspondents would not fall within the purview of Section 7(1) of Article XV of the Constitution, which refers to the operation or control of media of communication designed to reach the masses in the Philippines." Otherwise, if the publication is intended for dissemination in the Philippines, even though to a limited community of Korean residents, the undertaking is subject to the constitutional limitation making mass media a completely nationalized activity. (Opinion No. 24, s. 1986, copy attached). It is, therefore, requested that this Commission be further enlightened on the activity of the proposed branch office of Seoul Daily News as may be embraced in the preceding paragraph. Please be advised accordingly. Very truly yours, (SGD.) MANUEL G. ABELLO Chairman