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"One Million Won Brick" iPhone 13 Controversy... Ministry of Science and ICT Summons Telecom Companies and Apple

Ministry of Science and ICT Assigns Issue to Telecommunications Usage System Division
Discussion with LG Uplus, Three Major Telecoms, and Apple
Broadcasting Commission: "Will Take Proactive Measures to Protect Users"

Apple Korea and LG Uplus Clash Over Responsibility
"Active Government Response Needed" Voices
Manufacturer Criticized for Avoiding User Protection; Legislative Review Underway

"One Million Won Brick" iPhone 13 Controversy... Ministry of Science and ICT Summons Telecom Companies and Apple

[Asia Economy reporters Minyoung Cha and Eunmo Koo] As the unexplained iPhone 13 reception failure issue has persisted for weeks, the Ministry of Science and ICT has belatedly assigned a dedicated division to investigate the matter. This move comes amid growing criticism that related government agencies have maintained a passive stance over the responsibility dispute between the manufacturer Apple and the carrier LG Uplus.


Ministry of Science and ICT’s Delayed Response Amid Criticism of 'Passive Observation'

According to industry sources on the 9th, the Ministry of Science and ICT assigned the issue of iPhone 13 reception failures to the Telecommunications Usage System Division the previous day. They plan to promptly convene officials from the three major mobile carriers, including LG Uplus, and Apple Korea to assess the situation and seek solutions. Since the first complaint was received on November 24, about 13 related complaints have been filed with the ministry as of December 7.


Some users of the iPhone 13 series have experienced issues since November where incoming calls do not ring, and the caller is shown as missed or receives a message stating "unable to answer the call." There have also been problems with sending and receiving text messages. Many affected users are LG Uplus customers, and MVNO (Mobile Virtual Network Operator) customers such as Livem (Liv Mobile), which uses LG Uplus’s network, have reported similar issues. SK Telecom and KT stated that "no customer complaints (VOC) related to this issue have been received." The membership of the "iPhone Reception Failure Victims Group" open chat room has also grown to around 500 members.


Both the carrier and manufacturer have formed separate teams to investigate but have yet to provide a definitive answer. Apple and LG Uplus employees have been collecting log records from affected customers to identify the cause but have not found a specific reason. On November 12, Apple urgently released iOS 15.1.1, an update to iOS 15.1, to improve call drop issues on the iPhone 13, but the problem persists.


Minister Lim Hyesook: "We Will Actively Respond to Prevent User Harm"
"One Million Won Brick" iPhone 13 Controversy... Ministry of Science and ICT Summons Telecom Companies and Apple

The delay in identifying the fundamental cause and unclear responsibility led to confusion among the relevant authorities. A representative from the Korea Communications Commission (KCC) explained, "The KCC is a post-regulatory agency and can only conduct investigations if there is evidence of violations under the Telecommunications Business Act. However, from the perspective of user protection, we are proactively discussing and maintaining close communication with Apple Korea and carriers."


The Ministry of Science and ICT, which had not even assigned a dedicated department initially, has expressed its intention to investigate the matter. Minister Lim Hyesook of the Ministry of Science and ICT told reporters the previous day, "First, it is a priority to understand the extent of user harm. Then, an accurate identification of any technical problems or defects in the iPhone must be made." She added, "We will actively respond to prevent any possible harm to users based on the damage status and cause analysis."


Experts have offered mixed opinions on the necessity of intervention by the responsible ministry. Attorney Jinwook Kim of the law firm Juwon said, "The responsible ministries have stepped back because they were fighting over regulatory authority, which led to this problem. The Korea Communications Commission, which holds responsibility, should take a more active role in recommending solutions to carriers and Apple." Professor Inkyu Lee from the Department of Electrical and Electronic Engineering at Korea University commented, "It is important to clarify which side caused the problem first, but it will take a lot of time to assess the situation. Until victims file a class-action lawsuit, government action may be difficult. Damages caused by missed calls are also hard to measure."


However, claims that LG Uplus’s use of Huawei equipment caused the problem lack evidence. Professor Lee said, "It is unlikely that LG Uplus’s use of Huawei equipment is the cause of this issue. Since telecommunications equipment follows international standards, performance rarely changes based on the manufacturer."


Criticism of Manufacturer’s Avoidance of User Protection

Apple has also faced criticism for treating Korean consumers as 'easy targets' by not issuing a separate statement or compensation plan despite recognizing the severity of the problem. Apple, which released an official statement belatedly the previous day, said, "We strive to provide the best experience for our customers and are looking into the issue affecting some LG Uplus customers." LG Uplus has operated a dedicated response center for iPhone 13 reception failures since the 3rd and is providing affected iPhone 13 users with a free loan of the 'iPhone 12 Pro 512GB' after verification. The loaner smartphones are funded solely by LG Uplus.


There have been calls to fill the legal gap caused by manufacturers avoiding user protection responsibilities. A representative from the office of Kim Youngsik, a member of the People Power Party, said, "It is necessary to consider legal measures to address this. We could consider proposing an amendment to the Telecommunications Business Act to define device manufacturers and impose user protection responsibilities on them."


The iPhone 13 series was released domestically on October 1. The retail price varies by model and specifications: the iPhone 13 mini starts at 950,000 KRW, the iPhone 13 at 1,090,000 KRW, the iPhone 13 Pro at 1,350,000 KRW, and the iPhone 13 Pro Max at 1,490,000 KRW.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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