The Korea Communications Commission (KCC) has penalized SK Telecom for offering illegal handset subsidies to attract new customers, Yonhap news agency reports. SK Telecom has received a 7-day suspension and a KRW 23.5 billion (approximately USD 21.3 million) fine, the telecom watchdog said. The KCC said the operator paid an average KRW 228,000 in excess of legal ceiling for subsidies throughout January. In some cases, the illegal incentives reached KRW 500,000 for iPhone 6 subscribers, the Commission added.
The current law sets the legal limit at KRW 300,000 and requires shops to display the factory price, the sales price and the amount of available subsidies. However, the watchdog has not yet decided when the suspension starts, mainly because of the possible impact on consumers as Samsung is due to launch its Galaxy S6 smartphones next month.
