Telecom Store Owners Holding Picketers: "8 Years of the 단통법, Who Does This Policy Serve?"

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[Asia Economy Reporter Minyoung Cha] "Who is this policy for?"

The Korea Mobile Distribution Association (KMDA), a group of mobile carrier store owners, held a press conference on the morning of the 26th in front of the Government Complex Gwacheon, where the Korea Communications Commission (KCC) is located, to address issues with the "Act on the Improvement of Distribution Structure of Mobile Communication Devices" (commonly known as the 단통법, or Mobile Device Distribution Improvement Act) that has been in effect since 2014. They pointed out that over the eight years of repeated regulatory tightening by the KCC, only inequality among distribution channels has been caused, while household communication expenses have remained unchanged.

At the press conference in front of the Government Complex Gwacheon, KMDA stated, "The KCC, which should manage and supervise to prevent violations of the Mobile Device Distribution Improvement Act, has only repeated regulatory tightening," adding, "Despite the emergence of a distorted market known as the so-called 'Seongji' (holy ground), the KCC has continued the vicious cycle of tightening regulations."

They also demanded the abolition of the self-regulation system proposed by the three major mobile carriers to prevent false and exaggerated advertisements. According to KMDA, the three carriers have implemented a self-purification system to reduce excessive sales policies within the distribution network, but it is not being properly followed.

Rather, KMDA claimed that the three carriers conduct sales policies covertly to avoid KCC's fact-finding investigations, and that users experience discrimination among distribution channels due to such practices. KMDA explained, "The three carriers operate 'situation rooms' to evade penalty points or reduce sales during specific time periods, which causes discrimination against users," adding, "The current regulatory approach does not align with the legislative intent or purpose, resulting in side effects."

Furthermore, KMDA argued that mobile network operators (MNOs) are being discriminated against compared to self-supplied devices or MVNOs (Mobile Virtual Network Operators). KMDA stated, "While MVNOs claim they are not under the jurisdiction of regulatory agencies and thus are not controlled regarding any user discrimination, various unfair practices, or inconveniences, only MNOs are subjected to all kinds of regulations, making fair competition impossible," and urged, "Please establish a 'Regulatory Improvement Committee' in which KMDA can directly participate."

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