Support for Penalty Fees and SIM Card Issuance Costs
Consumers are expected to receive support funds of up to 500,000 won when switching their mobile carrier to another provider.
The Korea Communications Commission announced on the 5th that it has issued an administrative notice to establish payment standards for switching support funds in accordance with the revision of the Enforcement Decree of the Act on the Improvement of Distribution Structure of Mobile Communication Terminals (the "DanTong Act"), allowing mobile carriers to provide switching support funds of up to 500,000 won.
The notice contains the "Payment Standards for Number Portability Switching Support Funds When Changing Mobile Communication Operators." According to this, mobile carriers can provide switching support funds within 500,000 won to cover penalties, SIM card issuance fees, and other costs.
Earlier, the Korea Communications Commission announced at a recent plenary meeting that it would amend part of the Enforcement Decree of the DanTong Act to allow differentiated subsidy payments by creating exceptions to Article 3, which regulates discriminatory payment types of publicly announced subsidies.
Since the government's announced "abolition of the DanTong Act" requires approval by the National Assembly and will take time, the intention is to first revise the enforcement decree and related regulations to activate marketing competition among operators.
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