iPhone 12 Mini for 100,000 Won?.. Korea Communications Commission to "Strengthen Monitoring"

CSAT, Christmas, Year-End Peak
iPhone 12 Sold for 100,000 Won Range at Some Distribution Channels
Broadcasting Commission "Strengthening Market Monitoring"

[Asia Economy Reporter Koo Chae-eun] Amid the peak season of the College Scholastic Ability Test (CSAT) and the Christmas holiday, signs of illegal subsidies being provided for the iPhone 12 mini have been detected, prompting the Korea Communications Commission (KCC) to strengthen market monitoring. However, it is currently viewed as isolated incidents limited to certain distribution channels, and the KCC plans to inspect the market at the level of administrative guidance.

On the 9th, a KCC official stated, "We are aware of overheating trends related to the iPhone 12 mini," adding, "We will monitor the market situation and, if necessary, provide administrative guidance or encourage market stabilization through business operators." The KCC currently believes that the market situation does not warrant a full-scale inspection or fact-finding investigation. The phenomenon appears centered on specific models and certain distribution channels and has not yet spread across the entire market. The official added, "If market confusion is not resolved through administrative guidance and spreads nationwide, we will proceed with inspections or fact-finding investigations."

The illegal subsidy distribution in mobile telecommunications distribution channels, which had been quiet for some time, is now concentrated on the iPhone 12 mini during the year-end peak seasons such as the CSAT and Christmas. This is because the relatively affordable mini model among the iPhone 12 series is gaining popularity. The retail prices of the iPhone 12 mini are ▲ 64GB model at 946,000 KRW ▲ 128GB at 1,012,000 KRW ▲ 256GB at 1,155,000 KRW. When receiving the maximum official subsidy and additional support from distribution channels (15% of the official subsidy), the actual purchase price for the 64GB model drops to the 460,000 KRW range.

On top of this, some sellers are adding illegal subsidies to lower the price of the iPhone 12 mini to the 100,000 KRW range. Some online communities have posts stating, "I purchased the iPhone 12 mini 64GB for 106,000 KRW on the condition of using an 89,000 KRW 5G plan for six months and paying the balance in cash."

According to the Device Distribution Act, retailers may provide customers with additional subsidies up to 15% of the official subsidy set by the carrier. Providing subsidies exceeding this amount is illegal. In July, the KCC imposed fines totaling 51.2 billion KRW (SKT 22.3 billion KRW, KT 15.4 billion KRW, LG U+ 13.5 billion KRW) on the three major mobile carriers for violating the Device Distribution Act by providing illegal 5G subsidies.

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