[2020 National Audit] Unaware of Selective Discount... 1.3 Trillion Won Lost in Discounts

Number of Devices Without Selected Contract: 12.19 Million
44% Have No Contract for Over 1 Year... Insufficient Guidance
Jojongsik "Ministry of Science Lacks Even Statistics on Non-Subscribers"

[Asia Economy Reporter Han Jinju] It has been revealed that the amount of discount not received due to failure to properly inform subscribers eligible for the Selective Contract benefit has reached 1.33 trillion KRW.

According to data submitted by Cho Jung-sik, a member of the National Assembly's Science, Technology, Information and Broadcasting Communications Committee from the Democratic Party of Korea, through the Ministry of Science and ICT and the three major telecom companies, the number of devices not enrolled in the Selective Contract was found to be 12,190,548 units. The amount that owners of devices not enrolled in the Selective Contract could receive annually if they subscribed to the Selective Contract discount is 1.3372 trillion KRW.

Among the 12.19 million devices not enrolled in the Selective Contract, 5.35 million units (43.8%) have been without a contract for more than one year. The expected discount amount for devices without a contract exceeding one year alone reaches 504.8 billion KRW. Even after deducting the 408.2 billion KRW telecommunications support fund approved in the 4th supplementary budget, about 100 billion KRW remains.

Status of Devices Not Subscribed to Selective Contract (Data Provided by Office of Assemblyman Jo Jeong-sik)

For subscribers whose contract-free period has exceeded one year, it is interpreted that telecom companies failed to properly inform them, resulting in subscribers not recognizing the Selective Contract discount. The Selective Contract discount system is a telecommunications discount agreement system that offers consumers a 25% discount on communication fees instead of providing device discounts. Even if a subscriber received a public subsidy, after 24 months they can enroll in the Selective Contract discount to receive a fee discount.

In particular, the Ministry of Science and ICT was pointed out for the same issue four years ago but still does not even secure detailed statistics on non-enrolled Selective Contract subscribers. Previously, during the 2016 institutional audit, the Board of Audit and Inspection pointed out to the Ministry of Future Creation and Science (now the Ministry of Science and ICT) that "guidance on the Selective Contract system is insufficient and measures to strengthen promotion of fee discount benefits should be prepared."

Assemblyman Cho Jung-sik said, "Since the audit by the Board of Audit and Inspection four years ago, the number of devices not enrolled in the Selective Contract has actually increased," adding, "The fact that the Ministry of Science and ICT cannot even grasp the current situation is a matter that deserves criticism as the main ministry responsible for reducing household communication expenses, and going forward, the Ministry of Science and ICT should strengthen guidance and promotion for non-enrolled Selective Contract subscribers."

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