Gov't to scrap controversial handset subsidy ban to lower burden
A person walks pass a mobile phone retailer in Seoul, Jan. 22. Yonhap
The Korean government on Monday announced its plans to scrap the decadelong controversial ban on handset subsidies as part of efforts to lower the financial burden on consumers for communications service.
According to the Office for Government Policy Coordination, the government will abolish the Mobile Device Distribution Improvement Act, which currently prohibits mobile carriers from providing excessive discounts or illegal subsidies to customers.
"We believe it is time to alleviate the cost burden of purchasing mobile devices with the recent increase in smartphone prices," a government official said.
The ban, implemented in 2014, was designed to bring transparency to the market by curbing subsidies that exceeded legal limits and fostering competition among mobile carriers.
But the policy has been criticized for restricting healthy competition by preventing mobile carriers from offering legal subsidies, consequently limiting opportunities for customers to buy cell phones at lower prices. (Yonhap)