Choi Ki-young "LG Phone Withdrawal, Will Monitor Market Situation... Cautious Approach Needed for Mid-to-Low-End Device Quota System"

[Asia Economy Reporter Seulgina Jo] On the 17th, Choi Ki-young, Minister of Science and ICT, addressed rumors about LG Electronics withdrawing from the smartphone business, stating, "Nothing has been officially confirmed, but we will closely monitor market trends and prepare countermeasures for how things will proceed."

Minister Choi made these remarks during a plenary session of the National Assembly's Science, ICT, Broadcasting and Communications Committee (Science Committee) in response to independent lawmaker Yang Jeong-suk's concerns that LG's potential exit from the smartphone market could deepen Samsung Electronics' monopoly and lead to higher device prices domestically. The domestic smartphone market, often called a graveyard for foreign phones, is currently dominated by three companies?Samsung Electronics, Apple, and LG Electronics?holding a combined 97% market share.

Regarding the criticism that this monopolistic distribution structure is further driving up device prices, Minister Choi acknowledged, "There is some truth to that," explaining, "Since sales are largely made through mobile carrier dealerships, that contributes to the issue. Therefore, we are making efforts to promote unlocked (self-supplied) phones. Improvements will follow."

In response, Lawmaker Yang emphasized, "The appeal of new devices is no longer as strong as before, and technological development and innovative product launches have slowed. There is a need to expand the unlocked phone system further. By encouraging various businesses to enter the market, we can induce price competition in the domestic smartphone market and promote a major transformation in the distribution structure so that customers can purchase cheaper devices."

Minister Choi agreed, saying, "I concur. We will review measures to further activate the unlocked phone market. If the unlocked system is revitalized, many overseas phones will enter the market, and I believe many low-priced phones will become available."

However, regarding the introduction of a quota system for mid- to low-priced devices, Minister Choi drew a line, stating, "Manufacturers have started selling mid- to low-priced devices. We need to observe the results more closely. The quota system should be considered carefully and addressed prudently."

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