Hong Ik-pyo "Mobile Phone Installment Interest Rate 5.9% for 10 Years... Need to Review Possible Collusion"

[Asia Economy Reporter Seulgina Jo] Hong Ik-pyo, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee (STIBC) from the Democratic Party of Korea, raised suspicions of collusion among mobile carriers regarding installment interest rates for mobile phones on the 18th.

On the same day at the STIBC plenary meeting, Rep. Hong stated, "When mobile carriers introduced installment interest rates for devices 10 years ago, the rate was 5.9%, and it is still 5.9% now." During this period, the Bank of Korea's base rate dropped from 3.25% to 0.5%, and market loan interest rates also significantly decreased. However, the installment interest rates for devices have remained unchanged.

Rep. Hong said, "The installment interest rate includes various costs such as guarantee insurance fees and funding costs, but SK Telecom, KT, and LG Uplus claim that the detailed calculation methods are trade secrets," adding, "Coincidentally, the rate is the same at 5.9%. Isn't this collusion?" He also demanded, "The Fair Trade Commission should review whether there has been collusive behavior and quickly lower the interest rates."

In response, Han Sang-hyuk, Chairman of the Korea Communications Commission, replied, "It appears to be problematic." He continued, "There may be measures that can be taken from the users' perspective," and said, "If there is a problem, it will be corrected."

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