'Hogang' Mobile Phone Scams Persist... Korea Communications Commission's 'Self-Education' Campaign

'Malicious Phone Sales RP' Video Causing Chaos on YouTube
Consumers "I Was Also Scammed" Angrily React
Broadcasting Commission Launches 'Self-Education' Campaign
Despite Current Laws on Explanation, Notification, and Obligations
Many Illegal 'Tteotdabang'-Style Agencies Remain

[Asia Economy Reporter Cha Min-young] Last month, 27-year-old Kim Su-young (alias) visited a nearby mobile phone store after his smartphone screen was broken. He signed a contract after being told that the monthly payment would be cheaper, but he was furious to find out that the installment period for the device was 48 months, not 24 months. When he tried to cancel the contract immediately, the store owner turned hostile and refused to cancel the contract, responding with an arrogant attitude.

The comedian Kang Yu-mi's 'Malicious Phone Seller RP' video, produced in a skit format based on consumer mobile phone usage damage cases, recorded 1.17 million views within just three months after being uploaded in November. Consumers expressed outrage and empathy with comments like "I was scammed too" and "How to avoid fraudsters." The video received about 18,000 likes and nearly 6,000 comments.

As the behavior of some malicious mobile carrier agencies and store owners deceiving consumers during the phone sales process continues, the Korea Communications Commission (KCC) is conducting a consumer 'self-education' campaign.

On the 25th of last month, the KCC released a YouTube educational video titled "Mobile Phone Subscription Application" as part of the campaign "Mobile Communication Tips, Know This Before You Go!" The video highlights seven important points to check before signing a mobile phone subscription application, including the difference between official subsidies and discounts, recommended rate plan websites, ways to save on SIM card fees, and the meaning of contracts and discounts.

The KCC plans to produce and upload five more videos covering topics such as billing statements, caution about penalty fees, mobile phone scam sales tactics, discount benefits, and damage relief procedures. These will be released sequentially through YouTube and other platforms. This is expected to help resolve the information asymmetry problem between consumers lacking contract-related information and sales agents.

Although there are regulations under the current Telecommunications Business Act regarding explanation and notification obligations during mobile communication contracts, it is difficult to impose sanctions on each agency and store owner individually. Many distributors operate like "fly-by-night" businesses, luring customers with illegal subsidies and committing fraud on documents contrary to verbal explanations before fleeing.

According to the KCC, in addition to direct fraud such as advance payment device extortion, there is a growing variety of types and methods including failure to fulfill promises of illegal subsidy payments (paybacks), failure to honor promises after recruiting pre-order subscribers with free phone offers, and inducement to purchase devices on long-term installments. There have also been cases where sellers (ordinary people) who did not obtain prior consent forms recruited prospective subscribers through online open chats, cafes, and bands, collected device payments, and then embezzled the paid device fees.

Victims of mobile phone scams can report their damage to the Korea Information and Communication Promotion Association's "Mobile Phone Scam Damage Support Center." For victims who have suffered direct financial damage, legal relief procedures such as dispute mediation and litigation support are provided.

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