"Phone Prices Increased After Dantong Law... Law Should Be Repealed"

Galaxy Note and iPhone Prices Soar 50%, Need to Repeal the Mobile Subsidy Law

[Asia Economy Reporter Koo Chae-eun] An analysis has emerged showing that flagship smartphone prices have actually surged since the implementation of the "Device Distribution Structure Improvement Act (Dantongbeop)." It is pointed out that the Dantongbeop should be abolished so that the public can purchase phones at reasonable prices.

On the 28th, Representative Kim Young-sik (People Power Party) announced that an analysis of major flagship smartphone purchase costs after the enforcement of Dantongbeop revealed that the purchase cost burden increased by more than 50%. Specifically, the Galaxy Note purchase cost rose by 564,200 KRW (56%), and the iPhone increased by 863,000 KRW (53.6%).

Rep. Kim said, "Even after the sunset of the Dantongbeop subsidy cap system, competition in the mobile phone distribution market has not revived," adding, "Over the past five years, flagship smartphones have become more high-performance, causing retail prices to surge, but subsidies have rather decreased, increasing the consumer burden."

In this regard, Rep. Kim proposed abolishing the current Dantongbeop and unifying relevant provisions that help enhance user benefits under the Telecommunications Business Act. He emphasized, "The opinion-gathering process involving experts and citizens for the current Dantongbeop abolition bill and Telecommunications Business Act amendment bill is in its final stages," and added, "We will strive to discuss the Dantongbeop abolition bill in the regular National Assembly session to reduce the public's smartphone purchase cost burden."