The Korea Communications Commission announced on the 11th through a written meeting that it has decided to impose a total fine of 110.4 million KRW and corrective orders on 30 retailers violating the Device Distribution Act.
This investigation was conducted on 30 retailers nationwide through market monitoring in response to media and other reports pointing out that high illegal subsidies were being provided mainly at so-called 'Seongji' retailers. Seongji retailers refer to distributors in the mobile phone market that offer high illegal subsidies through online promotion and in-store visits.
The investigation confirmed that these retailers violated Article 4 of the Device Distribution Act (Restriction on Excessive Subsidy Payments) by providing illegal subsidies to users.
The Korea Communications Commission stated, “We will strengthen crackdowns through monitoring the mobile communication market, while striving to activate fair competition in the distribution network and enhance user welfare.”
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