"1 Million Won Monthly Payment" Jeon Gwanghoon MVNO Not a False Advertisement, Says KFTC

PSPD Discloses KFTC's Response: "Clearly Contradictory"
KFTC Says, "Difficult to Consider as False or Exaggerated"

The Korea Fair Trade Commission (KFTC) has stated that it is "difficult to consider" an advertisement by an MVNO promising "a monthly pension of 1 million won if 10 million people sign up" as a false or exaggerated advertisement. The company in question is First Mobile, commonly known as "Jeon Gwanghoon MVNO."

On April 15, in front of the Civil Petition Office at the Government Complex Gwacheon in Gwacheon-si, Gyeonggi-do, participants including Yang Changyoung, head of the People's Livelihood Hope Headquarters at the People's Solidarity for Participatory Democracy (right), shouted slogans at a press conference urging the Korea Communications Commission to report Jeon Gwanghoon’s illegal business and cancel his business registration. Photo by Yonhap News

On May 13, the People's Solidarity for Participatory Democracy (PSPD) disclosed the contents of the KFTC's document and strongly condemned the commission, saying, "We strongly denounce the KFTC for abandoning its duty to protect the public."

According to the PSPD, the KFTC stated, "Advertisements that can be judged as false or exaggerated are limited to those whose truth or falsehood can be objectively proven or verified," adding, "In the case of First Mobile, since the condition of 10 million subscribers has not been met, it is difficult to determine the objective truth or falsehood of the conditional statement."

The KFTC also added, "Even if the advertisement were to be recognized as false or exaggerated, it is difficult to acknowledge consumer deception, given that the condition of 10 million subscribers and the monetary aspect are clearly unachievable."

In response to the KFTC's answer, the PSPD argued, "The KFTC's response is clearly contradictory," insisting, "Since the condition itself is unrealistic, the advertisement should be considered false from the outset."

Promotion of 'First Mobile' at the anti-impeachment rally for former President Yoon Seokyeol last February. Photo by Yonhap News

Previously, the PSPD reported First Mobile's operator, The PNL, to the Korea Communications Commission (KCC) on April 15 for violating Article 50 of the Telecommunications Business Act, citing advertisements that promised a monthly pension of 1 million won if 10 million subscribers were reached. The KCC stated that the matter was outside its jurisdiction, and the case was transferred to the KFTC.

Regarding the KFTC's response instead of the KCC, which was the original agency to which the PSPD had reported the case, the PSPD once again urged, "The KCC should stop shifting responsibility to other ministries and provide a clear and accountable response as the regulatory authority for prohibited acts under the Telecommunications Business Act."