Government Fines KT KRW2.8 Billion For "Unfair" Mobile Resale Practice"

SEOUL -(Dow Jones)- The South Korean government has fined KT Corp., South Korea's largest fixed-line operator, KRW2.8 billion ($1=KRW1,036) for "unfair" practices related to the resale of mobile phones.

KT sells wireless personal communication services, or PCS, and handsets in cooperation with its mobile affiliate KT Freetel Ltd.

The government also fined wireless operators SK Telecom Co., KT Freetel and LG Telecom Co. a combined KRW770 million for providing "unnecessary" wireless data services to customers and subsequently charging them for the service, the Korea Communications Commission, a government-run agency under the Ministry of Information and Communication said in a statement late Monday.

A KT spokesman said Tuesday that the fine is "excessive" given the company's efforts to improve its marketing practices.

A KTF spokeswoman said that it would abide by the commission's decision.

A spokesman at SK Telecom said Tuesday that the company had no immediate comment on the fine, while an LG Telecom spokesman said the company would abide by the commission's decision.

-By Yun-Hee Kim, Dow Jones Newswires; 822-732-2165; yun-hee.kim@dowjones.com

-Edited by Alan Soughley

(END) Dow Jones Newswires"

Posted to the site on 29th November 2005