"'Illegal if bought cheap' Need to repeal the Mobile Device Distribution Improvement Act... Support funds for stores should also be disclosed"

[Asia Economy Reporter Koo Chae-eun] Kim Young-sik, a member of the People Power Party, has proposed a bill to abolish the Device Distribution Act. The purpose is to eliminate the Device Distribution Act, which makes it "illegal to buy cheaply, legal to buy expensively," and to allow all telecom companies and agencies to compete fully on price so that consumers can purchase phones at lower prices.

On the 2nd, Kim Young-sik held a press conference at the National Assembly Communication Office and announced the proposal to abolish the Device Distribution Act, which has been in effect for six years. The main points are to abolish the Device Distribution Act, transfer only the positive functions such as consumer protection provisions and competition activation to the Telecommunications Business Act, and expand the obligation to disclose subsidies.

Currently, only mobile carriers disclose subsidies, but the amendment expands the obligation to disclose subsidies to mobile carrier agencies and retail stores. About 20,000 agencies and retail stores will also be required to disclose subsidies on a weekly basis. Kim said, "Through this, we aim to transform the imperfectly competitive market into a perfectly competitive market."

Kim Young-sik questioned, "Have our people been buying phones at non-discriminatory prices during the six years since the Device Distribution Act was implemented?" He pointed out, "Last weekend, Chairman Han Sang-hyuk of the Korea Communications Commission tried to crack down on illegal subsidies, but illegal stores are still mocking the crackdown."

Kim said, "Over the past six years, phone prices have risen, subsidies have decreased, and the burden on the people has only increased. Illegal subsidies, which are paid discriminately, have not been caught, but only the subsidies returned to the people have been caught. Just before the Device Distribution Act was implemented, the marketing expenses of the three mobile carriers, which approached 9 trillion won, decreased to about 7 trillion won. Ultimately, government intervention has caused greater market failure and only enriched the operators."

Kim said, "We must transform the imperfectly competitive market into a perfectly competitive market by abolishing the Device Distribution Act," and added, "We will change it so that consumers no longer pay high prices to purchase mobile phones." Regarding the separate disclosure system promoted by the ruling party and government, he argued, "While subsidies can be controlled, the cost of purchasing mobile phones will increase." Kim mentioned, "Abolishing the Device Distribution Act is the path the people want, and I believe that introducing a free market competition system can provide greater benefits to the people."

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