[2020 National Audit] 5G That Doesn't Work, Expensive Plans... "Incomplete Sales Must Be Improved"

Kim Young-sik "Acknowledges Inadequate 5G Guidance and Recognizes Incomplete Sales"
Woo Sang-ho "Calls for Ban on 5G 100% Service Claims Like in the US"

Minister Choi Ki-young of the Ministry of Science and ICT appeared at the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee on the 7th for a national audit of the Ministry of Science and ICT and took the oath as a witness. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Han Jinju] Concerns have been raised that the issue of charging expensive fees based on the assumption of 100% service availability despite the unstable quality of 5G communication services needs to be addressed.

At the National Assembly Science, Technology, Information and Broadcasting and Communications Committee’s audit on the 22nd, Kim Young-sik, a member of the People Power Party, pointed out, "It has been a year and a half since 5G was commercialized, but investments in 5G have not been made in small and medium-sized cities or rural fishing villages, and people are paying high fees without receiving the service."

Kim said, "There was a mediation proposal requiring payment of settlement money ranging from 50,000 to 350,000 won to all applicants as a result of voluntary dispute resolution, acknowledging insufficient explanation about 5G services, which means incomplete sales were recognized," adding, "The solution is the rapid construction of a nationwide 5G network, but the Ministry of Science and ICT should identify and inform the public about problems arising during that process."

Yang Jeong-sook, an independent lawmaker, also said, "The public subscribed to 5G plans because it was promoted that 5G would provide service at speeds 20 times faster upon commercialization," adding, "Citizens who paid expensive fees feel betrayed. The policy goals should be reset to improve 5G service quality and provide uniform quality to both companies and individuals."

Woo Sang-ho, a member of the Democratic Party of Korea, said, "In the United States, advertisements that lead consumers to believe 5G service is 100% available are prohibited," adding, "We do not have such regulations, and claims at sales points or agencies that 5G can be used 100% are false advertising," emphasizing the need to introduce related standards.

In response, Choi Ki-young, Minister of Science and ICT, said, "Currently, when subscribing to 5G service, guidance is provided on which areas are available, but we plan to strengthen this further."

There were also calls to quickly prepare a revision of the high-priced 5G plans, as the increase in 5G subscribers directly correlates with telecom companies’ revenue and operating profit growth.

Woo Sang-ho explained, "The Ministry of Science and ICT analyzed LG Uplus’s business report and found that the average revenue per user (ARPU) for 5G subscribers is 54,710 won," adding, "As the number of 5G subscribers increases, operating profit and revenue rise. All three telecom companies acknowledged that revenue increased in the first half of the year due to the growth in 5G subscribers."

Woo emphasized, "A revision of the expensive 5G plans that exploit consumers is absolutely necessary, and telecom companies said they are revising their plans," adding, "The government’s encouragement is needed to ensure this can be prepared promptly by early to mid-November."