Candidate Yusangim: "The Lifespan of the Mobile Distribution Act Has Ended... We Will Prepare Measures After Its Abolition"

8th National Assembly Science and ICT Committee Confirmation Hearing
"Stabilization Measures to Be Established Through Other Bills"

Yoo Sang-im, nominee for Minister of Science and ICT, stated on the 8th, "The Mobile Device Distribution Improvement Act (Dantongbeop) has reached the end of its lifespan," and announced plans to prepare measures to stabilize the market after the repeal of the act.

[Image source=Yonhap News]

At the confirmation hearing held by the National Assembly's Science, ICT, Broadcasting and Communications Committee, Yoo responded to a question from Park Chung-kwon, a member of the People Power Party, in this manner. Earlier, on June 6, Park proposed a bill to repeal the Mobile Device Distribution Improvement Act (Dantongbeop).

When Park asked, "Do you think the purpose and goals of the Dantongbeop have been achieved?" Yoo replied, "It has been quite helpful in stabilizing the market."

Park pointed out, "The reduction in smartphone subsidies has become an obstacle to lowering household communication expenses," noting that "the average monthly communication expense per household is 130,000 won." Yoo responded, "The Dantongbeop has reached the end of its lifespan," adding, "While it is true that budget phones have played a significant role, the level of price reduction is not sufficient compared to advanced countries. There is room for further reduction."

Park said, "If the Dantongbeop is repealed, the 25% discount rate under the Selective Contract System may decrease," and added, "If it decreases compared to before, it would not align with the purpose of reducing household communication expenses." In response, Yoo stated, "There will be many confusions that may arise from repealing the Dantongbeop," and "We need to prepare multifaceted measures to stabilize the market through other legislation."

Yoo also responded to a question from Lee Hun-gi of the Democratic Party regarding the Dantongbeop, saying, "Maintaining the Dantongbeop leaves no room to further reduce (household communication expenses). We are in the process of finding that room."