[Reporter’s Notebook] Outcry on the Ground: “Why Announce the Abolition of the Dantongbeop?”

Government's Announcement on Abolishing Dantongbeop Remains a Declaration
No Details on Implementation Plans or Policy Effects
Raises Suspicions of Populist Policy Ahead of General Election

The government's proposal to abolish the 'Dantongbeop (Act on the Improvement of Distribution Structure of Mobile Communication Devices)' as the fifth topic in the public livelihood forum attracted significant public attention. The plan to remove the cap on additional subsidies when purchasing a mobile phone opens the possibility of receiving greater device discounts amid rising communication costs.

Perhaps the high expectations led to greater disappointment. When the lid was lifted, there was nothing beyond the declarative phrase of pursuing the abolition of Dantongbeop. Setting aside President Yoon Seok-yeol's sudden absence from the livelihood forum scheduled for the morning of the 22nd, the briefing held by related ministries that afternoon was utterly lackluster.

Questions arose during the briefing about when the policy would be implemented and how much mobile phone purchase costs would be reduced solely by abolishing Dantongbeop, as the government explained. However, none of the officials present could provide any concrete answers. There was no thorough analysis of the rise in device prices over the past decade, the intensified saturation of the telecommunications market, or the resulting strategic changes by telecom companies. Instead, only figures showing increased operating profits of telecom companies were presented. The simplistic logic was that since telecom companies have earned enough, they would increase subsidies.

There was no specific implementation plan either. The government stated that the 'Selective Discount (25% discount on monthly plans),' which is based on Dantongbeop, would be transferred to the Telecommunications Business Act and maintained. However, since the discount system is calculated to correspond to the subsidy amount, abolishing Dantongbeop would undermine the basis for calculating the 25% discount rate. For the Telecommunications Business Act to be amended and effectively operate in the market, a sophisticated policy design is necessary. Regarding how consumer discount benefits would be maintained, the only response was that it is "under review."

There also seemed to be little consideration of the side effects of abolishing Dantongbeop. Issues such as information-disadvantaged groups like the elderly not receiving benefits and the market becoming chaotic could recur. Vice Chairman Lee Sang-in of the Korea Communications Commission merely stated, "We will strengthen market monitoring and strictly enforce laws against unfair practices," which was a meaningless remark.

On-site, questions even arose asking, "What is the occasion for announcing this at this point?" Since there is no visible consideration or concrete plan for the policy, it only raised suspicions that it is a populist policy ahead of the general election. The immature policy is only causing the market to be swayed.