Broadcasting Commission imposes 390 million KRW fine on KT Powertel
[Asia Economy Reporter Koo Chae-eun] The Korea Communications Commission (KCC) has imposed a fine of 390 million won on KT Powertel for violating the Telecommunications Business Act.
According to the KCC on the 7th, KT Powertel and its agency MGT proposed and contracted a service with a monthly usage fee of 30,000 won, although the actual fee was 22,000 won, when signing a contract with the Ministry of Health and Welfare for the ‘Emergency Medical Wireless Communication Network’ project. This not only involved overcharging users but also constituted unfair discrimination against users and violations of procedures stipulated in the terms of use, thereby harming users' interests and falsely notifying important matters of the usage contract.
The KCC investigation confirmed that KT Powertel violated procedures in the terms of use, such as the preparation of subscription application forms and identity verification, and unfairly discriminated against users by applying different discount rates depending on the business operator, thereby harming users' interests. In addition, telecommunications service providers like KT Powertel must provide telecommunication services according to the terms of use reported to the Minister of Science and ICT. However, KT Powertel provided services different from the reported terms of use, thus violating the terms of use as well.
Han Sang-hyuk, Chairman of the KCC, stated, “We will expand market monitoring of unfair practices in the corporate telecommunications service market in the future to protect the rights and interests of users and companies and to create a fair competition environment.”
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Meanwhile, regarding MBN’s illegal activities at the time of establishing the comprehensive programming channel, the KCC resolved a corrective order to implement the plan to reorganize the outside directors by April next year after reviewing violations of reauthorization conditions on the same day. Previously, MBN announced plans to reorganize with personnel possessing broadcasting expertise and management independence, but at the shareholders' meeting in March, it appointed an outside director with no broadcasting-related experience, violating the reauthorization conditions.
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