[At the Brink of the 단통법] 6 Years Since Implementation... National Assembly Also Says "No Reason to Exist"

[Asia Economy Reporter Seol Gina] As the "Device Distribution Structure Improvement Act (Device Distribution Act)" marks its 6th year since enforcement, it has been confirmed that the majority opinion in the National Assembly is that "there is no longer any reason for its existence." Amid controversies over the effectiveness of the Device Distribution Act, the possibility of its amendment or abolition has increased accordingly. There were also strong voices advocating for moving toward a "complete device subsidy separation system" that separates mobile communication services from device sales.

On the 5th, Asia Economy conducted a survey of 11 members of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee (STIBC) Subcommittee 2. All 7 respondents supported either amending or abolishing the Device Distribution Act. Specifically, among the 7, 5 advocated for amendment and 2 for abolition. They agreed that since the current Device Distribution Act lacks effectiveness, a new system is needed. The STIBC Subcommittee 2, the Information and Communications Broadcasting Bill Review Subcommittee, reviews ICT-related bills including the Device Distribution Act, and its decisions effectively represent the overall opinion of the STIBC.

When asked about the biggest problems of the Device Distribution Act (multiple responses allowed), all responding members cited "ongoing illegal subsidies and user discrimination controversies." Additionally, 3 members pointed out that it "hinders active service and fee competition among telecom operators." Cho Seung-rae, the ruling party's secretary of the STIBC and a member of the Democratic Party of Korea, criticized, "The primary goal of the Device Distribution Act is to protect user rights, but the current law is not functioning properly. Mobile phone prices have skyrocketed, and that burden is being passed directly to consumers."

Opinions were divided on the direction of improvement if the Device Distribution Act were to be amended. The ruling party favored a "separate disclosure system" that separately announces manufacturer subsidies and telecom operator subsidies, while the opposition party leaned toward the complete device subsidy separation system.

However, even the ruling party agreed that the complete device subsidy separation system is necessary in the mid to long term. Regarding the timing of its introduction, opinions were split between "immediate implementation" (2 members) and "providing a sufficient grace period or requiring consent from distribution channels" (3 members). Park Sung-joong, the opposition party's secretary and a member of the People Power Party, said, "A grace period of about one year is needed to minimize the impact on distribution channels." Cho said, "While an approach toward the complete device subsidy separation system is necessary, the timing of its introduction should be discussed considering market conditions and public opinion."

Members who did not respond to this survey acknowledged the need to amend the Device Distribution Act but were cautious about proposing alternatives. This reflects that the Device Distribution Act itself is a complex issue entangled with various interests.

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