Korea slaps mobile operators with record fine for offering illegal subsidies

Korea Communications Commission has decided to fine the country’s three mobile operators KRW 50.6 billion won (approximately USD 47.3 million) for offering illegal subsidies to attract new subscribers, The Korea Herald reports. This total fine is the largest since October 2014 when the government implemented a cap on subsidies that operators could offer to attract new subscribers. This limit was eliminated in September 2017. SK Telecom, the biggest mobile carrier by the number of mobile subscribers, has been fined KRW 21.3 billion, while KT will have to pay KRW 12.5 billion.

LG Uplus has been fined KRW 16.7 billion. Samsung Electronics’ sales unit that runs 300 Samsung Digital Plaza shops across the country was also fined KRW 7.5 million. Other 171 retailers that distribute mobile devices were issued a total of KRW 10.9 million in fines.

KCC found that mobile operators and retailers offered unfair amounts of subsidies during the period between January and August 2017, that is before the limit was eliminated. According to the Commission, mobile operators and retailers offered subsidies that exceeded the KRW 330,000 upper cap stipulated in the subsidy law.