Another Telecom Populism? '20,000 Won Support for All Citizens'.. Telecom Companies 'Bewildered'

Nationwide 20,000 Won Reduction in Communication Fees Proposed
Telecom Companies to Advance Discounts, Followed by Financial Support
Criticism of Telecom Populism Continues

[Asia Economy Reporter Koo Chae-eun] The ruling party and government have decided to provide a monthly communication subsidy of 20,000 KRW per person to all citizens aged 13 and above nationwide, causing telecom companies to become tense.

While the most likely method is for the government to reimburse telecom companies when they reduce fees, telecom companies are reportedly bewildered as they must immediately absorb the cost of reducing communication fees for the population aged 13 and above (approximately 46.5 million people), amounting to about 930 billion KRW, from their own revenues.

On the 9th, Choi In-ho, senior spokesperson for the Democratic Party of Korea, conveyed this information during a briefing after a meeting between President Moon and the Democratic Party leadership held at the Blue House in the morning. At this meeting, Representative Lee said, “Although the amount is not large, providing communication fee support in the 4th supplementary budget to citizens exhausted by the novel coronavirus disease (COVID-19) could offer some consolation.” Accordingly, the government will review the issue of communication fee support for all citizens aged 13 and above and make a final decision at the emergency economic meeting scheduled for the 10th.

Providing support to those aged 13 and above effectively means support for the entire population. According to the resident registration population statistics as of August, those aged 13 and above (46.4 million) account for 89.5% of the total population. Although the support amount has not been finalized, it is estimated to be around 930 billion KRW.

A telecom company official stated, “Nothing has been decided yet, so detailed plans need to be established,” adding, “We are monitoring the discussions and concretization process at the emergency economic meeting.” Another telecom company official said, “Since support for those aged 13 and above is practically nationwide, even if funding is secured later, telecom companies will face significant short-term losses,” and added, “We are watching closely to see what procedures and methods of support will be implemented.”

Another insider expressed concerns, saying, “There is strong resistance to wasting taxpayers’ money, so it is not impossible that some of the costs will be passed on to telecom companies. Given the ongoing discussions about a universal tariff plan, there are many points of concern.”

There are also many voices doubting that communication fee support will have a significant effect on revitalizing domestic consumption or aiding those affected by COVID-19. One netizen pointed out, “Although 20,000 KRW may seem small to individuals, when accumulated, it greatly increases the national debt, so the risks outweigh the benefits.” Another netizen commented, “It feels like squandering money the country doesn’t have,” and added, “I don’t understand how this policy came about when citizens did not even demand communication fee subsidies.”

This content was produced with the assistance of AI translation services.