[2021 National Audit] Byeon Jae-il "Violations of the Mobile Distribution Act Are Annual Events... Surcharge Is 1.4% of Sales"

Assemblyman Byeon Jae-il Criticizes at National Audit Session

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] On the 5th, during the National Assembly Science, Technology, Information and Broadcasting Communications Committee's (STIBC) audit of the Korea Communications Commission (KCC), criticism was raised that the fines imposed on domestic mobile carriers for violating the Device Distribution Act are excessively low.

At the audit, Democratic Party lawmaker Byun Jae-il pointed out, "Violations of the Device Distribution Act by telecom companies have become an annual event," adding, "This has become an annual event because the profits gained outweigh the fines imposed when caught."

According to Rep. Byun, the fine in 2017 was 2.7% of the expected sales revenue, but it decreased to 1.4% in 2020. He remarked, "If the fine is only 1.4%, isn't it a business worth trying?"

He continued, "The KCC is the agency responsible for enforcing the law," and noted, "There is criticism to the extent that the industry and the KCC have a symbiotic relationship. If the gains exceed the losses when caught, such violations will never stop."

He further urged fundamental measures, saying, "It is unreasonable to say that the fines were reduced because of active 5G investments or good cooperation with the KCC. If there is no cooperation, penalties should be increased."

KCC Chairman Han Sang-hyuk responded, "Last year, penalties were reduced due to the COVID-19 situation," and added, "We will prepare and report on the current operational system and future comprehensive measures."

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