"South Korea's Telecom Fees Are Relatively Affordable... Objective International Comparison Needed"

"Understanding the Level of Our Country's Communication Fees" Forum
"Average Device Cost 1.15 Million Won... Should Be Separated from Communication Fees"

A study has found that South Korea's mobile communication fees are not expensive compared to major countries worldwide. It emphasized the need to objectively investigate South Korea's communication plans, quality, and usage status, and to establish policies based on these findings.

On the 11th, a forum titled "Understanding the Level of Communication Fees in Our Country: Current Status and Suggestions" was held at the National Assembly Members' Office Building.

Professor Kim Yongjae of the Department of Business Administration at Hankuk University of Foreign Studies is presenting at the discussion forum "Understanding the Level of Telecommunications Charges in Our Country: Current Status and Suggestions" on the 11th.
[Photo by Oh Suyeon]

Professor Kim Yong-jae of the Business Administration Department at Hankuk University of Foreign Studies presented on "2023 International Comparison Results of Communication Fees and Implications." Professor Kim compared communication fees in 10 countries with communication environments similar to South Korea, including Germany, the United States, Sweden, Spain, the United Kingdom, Japan, Canada, France, and Australia.

Professor Kim stated, "When comparing 5G communication fees, the communication fees relative to the average daily wage for average users (30GB) and the bottom 25% users (10GB) are at an average level, and for heavy users (81GB/unlimited), the fees are cheaper than average." He added, "When combining LTE and 5G, the communication fees relative to the average daily wage for average users (18GB) and bottom 25% users (5GB) are higher than average, while for heavy users (62GB/unlimited), the fees are cheaper than average." Considering bundled discounts, South Korea's communication fees are even more affordable. Many users in South Korea subscribe to bundled discount plans combining mobile communication, high-speed internet, and paid broadcasting. When combining one mobile line with high-speed internet (100M) and paid broadcasting, the proportion of communication fees relative to the average daily wage is 34.6%, significantly below the average of 51.4%.

Professor Kim noted, "Although there are areas for improvement, it is difficult to say that South Korea's communication fees are excessively high." He added, "Overall, the fee levels are around the average among the compared countries, but fees for low-volume mobile users are slightly higher than the major countries' averages." He further stated, "To fundamentally resolve issues, additional discussions related to devices are necessary. When conducting monthly fee surveys targeting users, the results show at least 10,000 KRW higher than the Average Revenue Per User (ARPU) announced by communication companies. This is due to the misperception of device fees as communication fees."

Professor Shin Min-su of Hanyang University's Business Administration Department presented on "Policy Suggestions for Desirable International Fee Comparisons." Professor Shin criticized international comparisons by the OECD, Japan's Ministry of Internal Affairs and Communications, Finland's Rewheel Consulting, and the UK's Cable company for not reflecting individual market characteristics and being biased. He suggested the need for ▲developing methodologies reflecting each country's communication environment ▲ensuring consistency and universal validity of comparison targets ▲comparing user-oriented fee levels ▲establishing international data governance for accuracy ▲creating systems allowing rational interpretation ▲securing objectivity through stakeholder participation. He said, "It is necessary to conduct regular surveys with the participation of all stakeholders. Methods like those announced by Japan's Ministry of Internal Affairs and Communications should be considered. Desirable fee policies reflecting mobile fee and quality characteristics and usage status must be established."

In the subsequent comprehensive discussion, Professor Kim Do-hoon of Kyung Hee University's Business Administration Department said, "The perception that Korean household communication costs are high is due to the inclusion of device prices." He added, "For fair comparisons and policy promotion regarding communication fees, it is appropriate to separate devices and communication services." Jung Ji-yeon, Secretary-General of the Korea Consumer Federation, also agreed on the need to separate communication fees and device prices. He said, "Separating devices and communication can solve issues related to incomplete sales during subscription processes and enable reasonable choices for fair fees and services." He added, "As of May last year, a survey of 162 5G devices showed an average price of 1,155,421 KRW. Domestic consumers find it difficult to secure options across various price ranges and manufacturers in a market dominated by high-priced Samsung and Apple devices. It is necessary to alleviate consumer burdens through competition in the device market."

Yoon Sang-pil, Director of External Cooperation at KTOA, said, "For communication fee comparisons, it is necessary to comprehensively consider not only the apparent fee levels but also usage conditions and service quality." He added, "To resolve controversies, it is necessary to form a consultative body involving public and private stakeholders to regularly conduct verified international fee comparisons."

Kim Kyung-man, Director of Communication Policy at the Ministry of Science and ICT, said, "The government will strive to ensure discussions are based on objective data and facts." He added, "We will consider measures such as introducing a certification system for used phones to revitalize the mid-to-low price device market."

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