[2020 National Audit] Temperature Differences Among the Three Telecom Companies on the 'Handset Distribution Act Amendment'

[Asia Economy Reporter Koo Chae-eun] The three major telecom companies showed differing views on the incentive regulation, separate disclosure system, and subsidy liberalization proposed as alternatives to the Device Distribution Act.

At the National Assembly Science, Technology, Information and Broadcasting Committee's audit of the Korea Communications Commission held on the 8th, Kim Young-sik, a member of the People Power Party, questioned the amendment bill of the Device Distribution Act.

Yu Sang-young, Head of SK Telecom MNO Business, expressed support when asked about the incentive regulation. However, regarding the separate disclosure system, he said, "Every system has pros and cons. While the separate disclosure system makes the publicly announced subsidies transparent, there is a concern that incentives flowing through it could create discriminatory incentives and disrupt the market. We need to consider both advantages and disadvantages."

Kang Guk-hyun, Head of KT Customer Division, said, "I need specific details to respond, but for now, I support it," regarding the incentive regulation. Kang added, "The Device Distribution Act has its merits. It has resolved some past issues," and noted, "The introduction of a 25% discount on fees through government efforts is viewed positively." On the separate disclosure system, he stated, "It could create advantages for foreign manufacturers, so that aspect should also be considered."

Hwang Hyun-sik, CEO of LG Uplus, said, "If incentive regulation is to be created, it should be designed according to characteristics such as distribution channels and timing," and added, "The Device Distribution Act has had both merits and demerits. I hope changes will be made to preserve the merits." Regarding the separate disclosure system, he showed a reserved stance, saying, "The purpose is likely to reduce the burden of device prices, but specific accompanying matters need to be decided for this."

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