<기사제목>Chairman of the Korea Communications Commission Discusses Mobile Service Fee Reduction Plans with CEOs of the Three Major Telecom Operators

First Meeting After Inauguration... Meeting Scheduled for the 22nd

Kim Hong-il, Chairman of the Korea Communications Commission, will meet with the representatives of the three major mobile carriers to discuss ways to reduce household communication expenses.

Kim Hong-il, Chairman of the Korea Communications Commission. Photo by Kang Jin-hyung aymsdream@

According to the Korea Communications Commission and the telecommunications industry, Chairman Kim will hold his first meeting since taking office on the 22nd with Yoo Sang-young, President of SK Telecom, Kim Young-seop, CEO of KT, and Hwang Hyun-sik, President of LG Uplus.

Chairman Kim and the representatives of the three mobile carriers are expected to brainstorm on how to effectively lower communication costs following the revision of the Enforcement Decree of the Act on the Improvement of Distribution Structure of Mobile Communication Terminals (known as the DanTong Act).

Executives from device manufacturers such as Samsung Electronics and Apple Korea are also reportedly coordinating their attendance.

The Korea Communications Commission has expressed its intention to reduce the burden on consumers purchasing devices by announcing a policy to liberalize subsidy competition through the complete abolition of the DanTong Act.

However, since abolishing the DanTong Act requires approval from the National Assembly and will take time, the Enforcement Decree was partially revised to create conditions that can activate marketing competition among carriers even before the law is repealed.

The recently approved revised Enforcement Decree at the Cabinet meeting allows subsidies to be provided according to standards set and announced by the Korea Communications Commission, considering the costs borne by users when changing mobile carriers and the expected profits of the operators.

Previously, the Korea Communications Commission also issued an administrative notice to establish subsidy payment standards (announcement) under the revised Enforcement Decree of the DanTong Act, allowing mobile phone carrier switching subsidies of up to 500,000 won.