Korean Networks Fined for Offering Illegal Handset Subsidies
Published on: 27th Dec 2013
By: Ian Mansfield
South Korea's mobile networks have all been fined for breaching regulations banning excessive handset subsidies.
The Korea Communications Commission (KCC) imposed a combined fine of KRW 106.4 billion (USD100 million) on the three networks for offering the illegal subsidies.
SK Telecom was fined KRW 56 billion, Korea Telecom was fined KRW 29.7 billion and LG U+ was fined KRW 20.7 billion.
It's the largest fine issued by the regulator for this specific breach of the regulations, although this time the regulator did not impose a week long ban on signing up new customers as it has in the past.
The fines cover infringements that took place between May 17 and July 16 and between Aug. 22 and Oct. 31st 2013.
The networks were found to have offered handset subsidies ranging from KRW380,000 to KRW 430,000 -- far in excess of the KRW 270,000 that the regulator permits.