LG seeks legal action against SK Telecom

South Korean telco LG Telecom alleged today in a statement that its domestic rival SK Telecom has been providing ‘illegal’ handset subsidies of up to KRW330,000 to entice customers into switching mobile providers. The company said that it filed a court injunction yesterday to stop SK Telecom from providing the rebates, which were banned by the government in June 2000. The court action follows LG’s campaign of newspaper advertisements featuring direct pleas to SK Telecom to cease the practice of handing out subsidies.