By Kim Yoo-chul
Staff reporter
Korean telecom and fair trade regulators are considering whether or not to take action to address complaints from iPhone users about what they say is Apple's poor after-sales service.
"We are closely monitoring consumer complaints about Apple. Independent investigations are already under way. We will take action if needed," a senior official at the Fair Trade Commission (FTC), said, Monday.
The Korea Communications Commission (KCC) is also looking to see if there are grounds for action against the U.S. consumer electronics company.
"We are aware of such complaints," a senior KCC official said.
Consumer complaints of iPhones are on the rise, according to the KCC. Over 700,000 have been sold since its debut in November.
The U.S.-based consumer electronics company has turned a deaf ear to such woes.
"Apple will not change our unique after-sales policies and related systems just for Korean consumers. iPhone users are misunderstanding our after-sales services," Steve Park, a representative of Apple’s South Korean office said.
Unless one buys an insurance policy, the user will have to purchase a "refurbished" phone when his or her iPhone is stolen or damaged.
The refurbished phone costs a "lofty" 300,000 won. Damaged iPhones are sent to China, meaning a protracted period of time for repairs.
Sometimes refurbished iPhones were "used" display models at shops.
The KCC official said the number of civil complaints has soared. Most of such complaints were related to Apple's after-sales service policies including those concerning refurbished phones.
"Personally, Apple should start paying attention to its flawed after-sales policies if it wants to keep its business," another KCC official said, asking not to be identified.
"More time will be needed for the regulator to reach a broad consensus before a decision is made to take action on Apple," he added.
In a separate study conducted by the Korea Consumer Agency (KCA), over 210 consumer complaints about iPhones were filed. Most of the dissatisfaction was about Apple's after-sales service policies rather than about the product itself, the KCA added.
The consumers who are unable to get their problems addressed promptly resort to private services to fix damaged iPhones because they can be cheaper and less time-consuming.
"We've received an average of 20 orders for iPhones repairs. There's no way that South Korean consumers should pay for refurbished ones just because of small glitches such as earphone jacks, batteries and flat-screens," said Kim Sang-sik, a technician at one of the private repair shops in the big electronics market in Yongsan.
Such iPhone problems have also been raised by the chief executive of Korea’s top mobile carrier ― SK Telecom.
SKT is a victim of iPhone’s success so its statement should be treated with a dose of skepticism but still some of its criticism carry a sense of urgency.
"The one clear reason why SK Telecom hesitated on introducing Apple's iPhones to South Korea is that we've failed a reach a broad consensus with Apple over updated after-sales policies," Jung Man-won, SK Telecom CEO told reporters in a business forum in downtown Seoul, last week.
The 3G-based iPhones have been selling via the nation’s second-biggest mobile carrier ― KT.
SK Telecom, which had dropped its earlier plan to introduce the device, hopes to sell the upcoming iPhones locally when the popularity of the U.S. gadgets rises.
"I have doubts over how long Apple will persist with its own, unique and unfriendly after-sales policies, here. Without applying updated measures, it would be difficult for Apple to sell more of its products. For Apple, South Korea is an important litmus-test to eventually penetrate into China," a senior executive at SK Telecom told the newspaper, adding he has already acknowledged ``relative moves’’ from regulators.
Apple Korea's Park was tight-lipped on these issues.
Despite the complaints, Apple has reportedly been lowering its 3G-based iPhone shipments to its exclusive local partner KT as the U.S. maker has been told to unveil a 4G iPhone on June 7th, at the earliest.
"When the new iPhones arrive, then more outdated 3G iPhones will be sold, which also means that Apple might suffer from more complaints from consumers. In a real sense, it will be cornered to apply updated measures to South Korea."
South Korea has long been regarded as a tomb for foreign handset makers as they have difficulties with promotions and after sales channels. Samsung Electronics and LG Electronics control over 80 percent of the domestic handset market, followed by Pantech, Motorola and Nokia.
In the smartphone segment, iPhones are on a healthy track. Samsung's OMNIA brand and some of LG's smartphones are constantly making efforts to challenge the iPhone.