By Kim Yoo-chul
The Korea Communications Commission (KCC) has fined the nation’s three mobile phone carriers a combined 5.3 billion won ($4.8 million) for offering illegal handset subsidies despite previous warnings and penalties.
The decision came a day after President Park Geun-hye strongly called for revising subsidy policies.
``The KCC decided to penalize the carriers after we found they broke the Telecommunications Law by continuing to offer handset subsidies even during imposed suspension periods,’’ said Jeong Jong-ki, director of the KCC’s consumer policy bureau, in a briefing to reporters, Thursday.
Market leader, SK Telecom, was slapped with the biggest fine of 3.14 billion won, followed by KT with 1.61 billion won and the smallest LG Uplus with 560 million won.
The regulator conducted on-site investigations and market research on illegal activities by the carriers from Dec. 25 last year to Jan. 7.
The latest measure came three months after the KCC imposed a combined 11.9 billion won in fines on the three, in addition to business suspensions ranging from 20 to 24 days, in December.
The smallest player LG Uplus was first suspended for 24 days from Jan. 7 to Jan. 30, while top player SK Telecom resumed operations on Feb. 22 after a 22-day suspension. KT resumed business operations earlier in the day, ending its 20-day ban.
However, the KCC decided not to ban the carriers from recruiting new customers this time.
``We earlier thought to impose additional business suspensions on them. But this time, we will let the carriers do their business. Rather, the KCC will implement more delicate measures,’’ said Jeong.
In December, the carriers were banned from signing up new subscribers from Jan. 13 for offering illegal handset subsidies on Apple’s iPhone 5 and Samsung’s Galaxy line of devices.
SK Telecom said it will accept the KCC decision. ``We have no objection about the KCC decision. We feel a responsibility for offering illegal handset subsidies,’’ the company said in a statement.
SK Telecom claimed it did not ignite the ``subsidy war’’ and blamed KT and LG Uplus for the continuance of the excessive subsidies.
``KT and Uplus competed for the runner-up position in the race for Long-Term Evolution (LTE) mobile technology. We tried hard to defend our bottom line,’’ its statement said.
KT said it also respects the decision by the regulator, while Uplus reiterated it will try hard to stabilize the local telecom market. ``We will accept the KCC decision,’’ it said in a separate statement.