Korea Media and Communications Commission

Home > What’s New > News & Notice

News & Notice

Browse latest news and updates from KMCC

게시판 보기
Title	GREATER COMPETITION AND INCREASED CONSUMER BENEFITS IN THE MOBILE COMMUNICATIONS MARKET
Date	2025-07-30	Read	20450
-The Mobile Device Distribution Improvement Act will be repealed as of July 22, and the obligation to disclose subsidy information will be lifted.- Starting July 22, the obligation of mobile carriers to disclose subsidy information will be removed, and the cap on additional subsidies provided by mobile phone distributors, such as authorized dealers and retailers, will also be lifted. Accordingly, it is expected that benefits for consumers will increase as competition between mobile carriers and distributors intensifies. The Korea Communications Commission (KCC, Chairperson Lee Jinsook) and the Ministry of Science and ICT (MSIT, Minister Bae Kyunghoon) announced that the Mobile Device Distribution Improvement Act (introduced in 2014) will be repealed as of the 22nd, and the amendment to the Telecommunications Business Act will be implemented. The major changes following the repeal of the Mobile Device Distribution Improvement Act?which aims to facilitate competition in the mobile distribution market and reduce household communications expenses?are as follows: First, mobile carriers will no longer be required to publicly disclose their subsidies, and the cap on additional subsidies provided by distributors, previously limited to 15% of the official subsidy amount, will be removed. Additionally, mobile carriers and distributors are now allowed to compete with each other in providing various forms of subsidies, as the strict rules prohibiting discrimination in subsidies by mobile plan and subscrption type?such as mobile number porting and new sign-up?are being lifted. Therefore, additional subsidies (exceeding 15% of the official subsidies) that used to be provided behind closed doors under the Act are now expected to be openly provided. Although the repeal of the Act removes the obligation to disclose subsidy information, mobile carriers have decided to continue offering accurate subsidy information for each plan and subscrption type to consumers through their websites, just as before. Consumers can check with retailers the total amount of subsidies for a device, including any additional subsidies they provide. Second, the discounts for users who do not receive device subsidies from mobile carriers will remain in place. Consumers can receive a 25% discount on their bills if they do not receive subsidies from telecom companies. Previously, consumers who opted for the discount benefit were not eligible to receive additional subsidies from retailers. However, they will now be able to enjoy more benefits, receiving both a mobile bill discount and additional subsidies from distributors. Third, although sales methods related to device subsidies have diversified, mobile distributors will need to clearly disclose the terms and conditions of receiving device subsidies in the contract. When signing mobile phone contracts, mobile carriers and distributors must state the following in the contract: ▲ Detailed information about the subsidy provider and payment method. ▲ Conditions for subscribing to mobile plans or additional services required to receive the subsidy. ▲ Requirements for bundling with high-speed internet. Failure to disclose these subsidy conditions constitutes a violation of the amended Telecommunications Business Act. After the repeal of the Mobile Device Distribution Improvement Act, mobile carriers and distributors must comply with the following rules newly added to the Telecommunications Business Act: ▲ Prohibition of subsidy discrimination based on consumers’ residential area, age, or physical ability. ▲ Prohibition of providing misleading information about the subsidies. ▲ Obligation for retailers to disclose that they received approval from mobile carriers to sell devices. ▲ Prohibition of a mobile carrier or manufacturer from demanding or forcing consumers to subscribe to or use a particular plan or service. Furthermore, mobile carriers and distributors must refrain from acts already prohibited under the Telecommunications Business Act, including unfair economic discrimination against users and failure to notify important details related to subsidies. Meanwhile, the government plans to implement follow-up measures, such as a comprehensive policy, to prevent market disruption and foster a sound distribution environment after the repeal of the Mobile Device Distribution Improvement Act. The KCC and the MSIT made a prior announcement and conducted a regulatory review by June to revise subordinate legislation, including the Enforcement Decree of the Telecommunications Business Act. After the approval by the KCC, the two government agency will promptly promulgate and implement the revised enforcement decree and other subordinate legislation. The KCC issued the following administrative guidance to mobile carriers on the 17th to prevent consumer harm ahead of the amendment to the Enforcement Decree: ▲ Prevention of incomplete sales ▲ Use of new contract templates to provide more information to consumers ▲ Prohibition of unfair discrimination against consumers ▲ Reinforcement of illegal or deceptive sales practices oversight within the distribution network. Additionally, the KCC aims to strengthen market monitoring by operating a dedicated task force (TF) with the participation of mobile carriers twice a week. The KCC plans to enhance on-site inspections and monitor violations by mobile carriers and distributors, such as restricting user subscrptions, failing to disclose important information, and inducing or forcing consumers to subscribe to high-priced plans or value-added services. Strict action will be taken against such violations. The KCC will establish a comprehensive policy by the end of this year that includes the following: ▲ Measures to prevent unfair practices, such as consumer discrimination or coercion and inducement to use specific services by mobile carriers and manufacturers. ▲ Measures to promote fair competition, such as providing more information to consumers. After the law comes into effect, illegal or deceptive sales practices and discrimination will be identified through market monitoring. Specific countermeasures will be reviewed by a consultative body composed of experts, mobile carriers, manufacturers, and relevant organizations. The KCC and the MSIT aim to actively respond to consumer harm caused by market disruptions or incomplete sales that may arise during the implementation of the Mobile Device Distribution Improvement Act. In particular, the two government agency will thoroughly examine market conditions to prevent potential side effects that may occur due to changes in the policy, such as the exclusion of vulnerable groups from subsidy benefits or unfair practices targeting MVNO users.
File	250717_GREATER COMPETITION AND INCREASED CONSUMER BENEFITS IN THE MOBILE COMMUNICATIONS MARKET.docx 250717 (관계부처 합동) 이동통신시장, 경쟁은 확대하고 이용자 혜택은 증진.hwpx