"Phone Purchase Cost Decreases" Mobile Phone Additional Subsidy Limit Expanded from '15% to 30%'

Resolution of the Amendment to the 'Terminal Distribution Act' at the State Council Meeting

[Asia Economy Reporter Joselgina] The additional subsidies that retailers can provide to consumers when purchasing mobile phones will be increased from the current maximum of 15% to 30%.

The Korea Communications Commission announced on the morning of the 14th, during the Cabinet meeting, that it had approved the partial amendment bill of the "Act on the Improvement of Distribution Structure of Mobile Communication Terminals (Terminal Distribution Act)." The amendment aims to raise the limit on additional subsidies paid by retailers from the current 15% to 30% so that the public can tangibly feel the benefits.

Currently, retailers can only provide additional subsidies to users within 15% of the publicly announced subsidy. However, this limit does not meet user expectations, and some retailers, known as so-called 'holy sites,' have been illegally offering subsidies far exceeding this limit, prompting calls to update the related regulations to reflect reality.

The amendment bill is expected to be submitted to the National Assembly in December. If the law is amended, it is anticipated that competition in subsidies will be activated, many illegal subsidies will be legalized, and users' benefits will increase.

Chairman Han Sang-hyuk stated, “If telecom companies discriminate in providing incentives, differences may arise between retailers, so after the amendment, we will strongly guide administration to prevent discrimination in incentives and strictly enforce the law against some illegal and inconvenient practices.”

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