"5G Not Working" 56 Complaints Filed... Up to 1.3 Million KRW Compensation

Increase in 5G Quality Complaints
KCC Receives 56 Telecommunication Dispute Reports
KT's '5G Incomplete Sales' 1.3 Million KRW Compensation May Set a Precedent
Telecom Industry Concerns Over Expansion of 5G Complaints and Subscriber Churn
'Exploitation by Black Consumers VS 5G Connectivity Issues as the Core Problem'

[Asia Economy Reporter Koo Chae-eun] It has been revealed that as many as 56 people have filed complaints with the Korea Communications Commission (KCC) on the grounds that "5G does not work and cannot be used." In particular, as it became known that KT compensated 1.3 million KRW for "incomplete sales of 5G phones," there are signs that more users will demand compensation for the "dead" 5G service.

As of the 28th, it was confirmed that 56 people have applied for telecommunication dispute mediation (complaints) with the KCC due to dissatisfaction with 5G quality. This figure is nearly five times higher compared to January (12 people). From February to May, an average of 11 people per month consistently filed complaints related to 5G quality. The complainants include subscribers of SK Telecom, KT, and LG Uplus, all of whom claim, "Although we subscribed to 5G, the service is frequently interrupted and cannot be used properly," and are demanding LTE switching without penalty fees, refunds, and compensation for damages.

Earlier this month, KT compensated a customer who demanded a refund and mental damage compensation, stating that "5G call quality is poor and causing stress," with 640,000 KRW for eight months of fees, 180,000 KRW for other usage charges, and 480,000 KRW for mental damage compensation (a total of 1.3 million KRW). The customer reportedly claimed, "I switched because of the advertisement that '5G is 20 times faster than LTE,' but the quality has worsened, which is unacceptable." The 1.3 million KRW compensation by KT is a very high amount compared to previous quality compensation amounts.

An industry insider said, "Considering that telecommunication dispute mediation is a preliminary step before civil litigation and involves a pre-mediation agreement process, the number of latent dispute mediations could be higher," and pointed out, "The news of KT's compensation may escalate into complaints about 5G services in general." A KCC official stated, "There can be growing pains during each telecommunication generation change, so we are carefully listening to both the telecom companies and subscribers and striving to mediate disputes."

Meanwhile, the three major carriers expect that nationwide 5G network construction will be possible only by 2022. As of March, the number of 5G subscribers was 5,881,177.