The (South) Korea Communications Commission (KCC) announced Tuesday that
it has fined the nation's three mobile service providers a combined 18 billion
won (US$19.4 million) for unfair business practices.
The KCC said the fine is based on an investigation in January into illegal
provisions of handset subsidies by SK Telecom Co., KTF Co. and LG Telecom Ltd.
The SK Telecom was fined 7.5 billion won (US$8.08 million) and smaller
operators KTF and LG Telecom were penalized 5.8 billion won (US$6.25 million)
and 4.7 billion won (US$5.06 million) respectively.
The KCC said that the competition in the local mobile communications sector
intensified in January as major telecom companies shelled out subsidies to lure
new subscribers from rivals.
Citing the overheating and distortion of the mobile market, the government
banned subsidies in March 2003, but allowed the mobile carriers to help some of
their long-term users purchase new handsets at cheaper prices last year.
South Korea, with a population near 49 million, has more than 40 million
mobile phone users.
