The Korea Communications Commission (KCC) fined SK Telecom, KT and LG Uplus a combined KRW 58.4 billion for providing illegal handset subsidies, The Korea Times reports. The KCC says it “found the three violated regulations on subsidies". The KCC investigation showed that the operators’ subsidies averaged 621,000 won per subscriber. KCC limits the amount of subsidies to KRW 270,000.
SK Telecom received the largest fine of KRW 37.1 billion, followed by KT (KRW 10.7 billion) and LG Uplus (KRW 10.5 billion). "As SK Telecom and LG Uplus were found to have provided more illegal subsidies than KT, the KCC ordered the two to pay higher fines," said a KCC spokesman.
SK Telecom will be banned from signing up new clients for a week, that is until 2 September, while subscriptions at LG Uplus are suspended until 11 September. KT is not covered by the ban.
"We have no option but to see a decline of the number of our customers during the suspension period. Although our business will be stopped for a week, that doesn't mean we cut the amount of spending on marketing activities," said an official at SK Telecom. A Uplus official said the operator will launch an updated marketing plan to minimize the effects of business suspension for the third quarter.
