"Galaxy Note20 60,000 Won"... Korea Communications Commission Warns Against False Advertising

Sale with 48-Month Installments and Return Condition After 24 Months
25% Early Contract Discount Displayed Like Subsidy Violates Mobile Communication Sales Act

An online false and exaggerated advertisement case selling the Galaxy Note20 for around 60,000 won (Data provided by the Korea Communications Commission)

[Asia Economy Reporter Han Jinju] Illegal advertisements claiming to sell the Galaxy Note20 and Galaxy S20 for around 60,000 KRW are rampant.

On the 16th, the Korea Communications Commission warned users to be cautious as internet advertisements are widespread, claiming to sell the Galaxy Note20 and other recently released 5G premium phones for 65,000 KRW (based on the 8.9 plan).

In cases of false and exaggerated advertisements, the phone (with a retail price of 1.2 million KRW) is contracted on a 48-month installment plan, and after using it for 24 months, the phone is sold on the condition of returning the used phone. The ads misleadingly present the 24-month installment balance (600,000 KRW) and the 25% selective discount plan fee (540,000 KRW) as discounts on the phone price.

Users must maintain the phone installment payments for 48 months, keep an expensive plan, and pay for the used phone compensation program, so in reality, they are not purchasing the device for 65,000 KRW.

Such advertisements violate Articles 7 and 8 of the Device Distribution Act. They fall under the act of "explaining or advertising the fee discount applied during service contracts as subsidies, causing users to misunderstand the device purchase cost." Moreover, there is no indication that the seller has prior approval from the mobile carrier, requiring users to exercise extra caution. These actions by distributors may result in fines ranging from 6 million to 20 million KRW under the revised penalty regulations.

The Korea Communications Commission stated, "We have requested the three major mobile carriers to take strict action against the sellers on these sites, and if illegal activities continue, we plan to investigate and impose sanctions."

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