Mobile Distribution Association: "KB Live M disrupts market with excessive gifts and dumping"

"Financial Services Commission Must Cancel Service Authorization" Claim

[Asia Economy Reporter Cha Min-young] The Korea Mobile Distribution Association (KMDA) claimed on the 6th that KB Kookmin Bank's MVNO operator KB Live M is causing market confusion through unfair business practices.

In a statement on the same day, KMDA urged, "KB Live M, leveraging the strong capital power of a major financial company, continues to provide excessive gifts and engage in dumping-level price sales, which is a serious disruption to the telecommunications market threatening the survival rights of small merchants and small MVNO operators."

According to KMDA, KB Live M partnered with Coupang last October to offer excessive gifts worth up to 220,000 KRW at the launch of the iPhone 13, for which it received administrative guidance from the Korea Communications Commission (KCC).

KMDA pointed out that in February this year, KB Live M violated KCC guidelines prohibiting carrier-linked sales of unlocked devices by selling the Galaxy S22 as an unlocked device.

Recently, KB Live M sold the 'Youth Hope LTE 11GB+' plan (minimum 20,000 KRW per month), which was priced below the wholesale cost that must be paid to mobile carriers.

KMDA stated, "KB Live M received an extension approval for the financial regulatory sandbox in April last year, promoting the development of innovative financial-telecommunication convergence services, but has failed to demonstrate any innovative services while severely disrupting the telecommunications market," and demanded, "The Financial Services Commission should revoke the re-approval of innovative financial services for KB Live M."

Regarding the Ministry of Science and ICT and the KCC, KMDA added, "Regulations banning the sale of dumping products must be established to prevent recurrence of such unfair practices, and MVNO market guidelines for fair competition should be immediately implemented."