"Remove Subsidy Caps and Introduce Floors," Kim Sang-hee, Deputy Speaker, Proposes Amendment to Mobile Subsidy Law

Kim Sang-hee, Member of the Democratic Party of Korea (Vice Speaker of the National Assembly)

[Asia Economy Reporter Eunmo Koo] Kim Sang-hee, Deputy Speaker of the National Assembly (Science, Technology, Information and Broadcasting Communications Committee, Bucheon B, Gyeonggi Province), on the 31st, took the lead in proposing a revision to the "Act on the Improvement of the Distribution Structure of Terminals (Dantong Act)" to legally designate and announce the minimum subsidy amount for terminals in order to eradicate illegal subsidy support, allowing unlimited free support for subsidies exceeding the minimum subsidy.

The main content of the amendment is that the Korea Communications Commission sets the standards and limits for the minimum amount, which is the lower limit for terminal purchase support, considering the average expected profit of subscribers, terminal sales status, and the competitive situation of the telecommunications market. Mobile carriers can freely compete in the market for support exceeding the lower limit.

The amendment also allows agencies and retailers to provide additional subsidies to users regardless of the subsidies announced by mobile carriers. The purpose is to make terminal distribution transparent and free, and to further expand consumer choice.

Deputy Speaker Kim's side expects that once the amendment is passed, the minimum subsidy will be legally guaranteed, and the currently overheated illegal subsidies will come under the system, promoting free subsidy competition among the three major mobile carriers.

Deputy Speaker Kim Sang-hee said, "This amendment was proposed to promote free subsidy competition while protecting consumers," and pointed out, "The Dantong Act, which standardizes subsidy payments to all consumers, does not fit the current telecommunications ecosystem where the illegal subsidy underground market is rampant, only increasing consumer damage due to lack of information on illegal subsidies."

She continued, "If measures to introduce a subsidy lower limit for terminals and allow unlimited excess subsidy payments are implemented, the current problems in the terminal market will be significantly improved and consumer benefits will be guaranteed," adding, "I hope the Dantong Act will be amended as soon as possible to activate transparent and free subsidy competition among the three major mobile carriers and thereby foster a consumer-friendly telecommunications market."

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