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KCC mulling new requirement for operators to disclose full details of subsidies

5 Aug 2014

A new law which could require mobile network operators and handset manufacturers to disclose the incentives offered to customers in detail is reportedly being considered by the Korea Communications Commission (KCC). According to the Korea Times, the plan is being considered amid suggestions that larger mobile carriers have an advantage over smaller rivals due to their ability to offer better incentives such as heavily subsidised handsets. Commenting on the proposals, KCC chief Choi Sung-joon was cited as saying: ‘A rule that would require mobile carriers and handset makers to report subsidies separately is under discussion at the KCC … However, it should be a consumer-centric policy. I’ll focus on serving the interests of consumers and will try to ensure fair competition.’

Meanwhile, the executive also confirmed that the KCC will make an official announcement regarding a subsidy cap once it has reached a decision. While the current limit is set as KRW270,000 (USD260), last month it was revealed that the watchdog had agreed to change the ceiling for handset subsidies with a view to preventing overheated competition. In line with these plans a flexible cap policy will be followed, with a limit of between KRW240,000 and KRW350,000 set every six months by the KCC, which will take market considerations into account at the time of its setting.

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