Choi Ki-young: "No Intention to Enforce Complete Self-Sufficiency System... It May Harm Corporate Autonomy"

[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Jo] On the 17th, Choi Ki-young, Minister of Science and ICT, stated that he has "no immediate plans to enforce" the 'Complete Device Subsidy System' which restricts smartphone sales to only non-carrier stores outside of mobile carrier shops.

At the plenary meeting of the National Assembly's Science, ICT, Broadcasting and Communications Committee (Science Committee) on the same day, Minister Choi responded to a question from Hwang Bo-seung-hee, a member of the People Power Party, regarding the introduction of the Complete Device Subsidy System by saying, "The Complete Device Subsidy System could undermine corporate autonomy and there are issues related to dealerships, so it is a matter that requires consideration of various factors."

Representative Hwang also acknowledged the potential shock to distribution networks such as sales and dealerships, stating, "The opposition from the distribution association will be strong." However, he urged the government to first focus on reducing the burden of mobile phone devices on the public and then improve the system.

On the same day, Minister Choi also mentioned the 'Separate Disclosure System,' which was proposed but failed to be introduced during the enactment of the Device Distribution Structure Improvement Act (Device Act) in the past, saying, "It has been a matter of consideration for many years." The Separate Disclosure System refers to separately disclosing the device subsidies provided by mobile carriers and the support funds from manufacturers. Representative Hwang added, "I understand that mobile carriers and LG Electronics supported it, but Samsung Electronics opposed it due to overseas competitiveness and other reasons," and requested, "Please actively review it."

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