South Korean operators face further suspensions, fines

South Korean operators face further suspensions, fines

14 MAR 2014

South Korea’s telecoms regulator – the Korea Communications Commission (KCC) –  has added to the pain already being felt by the country’s mobile operators.

KCC is slapping an additional ban on selling phones on two operators – SK Telecom and LG Uplus – of seven and 14 days, respectively, according to Yonhap News.

This further punishment follows 45-day business suspensions meted out earlier this month by the country’s Ministry of Science, ICT and Future Planning to SK Telecom, LG Uplus, as well as rival KT.

All three were found guilty of excessively subsidising the price of handsets.

KCC also hit the three operators with fines: SK Telecom received a fine of KRW16.6 billion ($15.5 million) while LG Uplus was hit for KRW8.2 billion and KT took a KRW5.5 billion blow.

As the country’s third-largest operator, LG Uplus argued it had been treated unfairly with the length of its suspension.

The timing of when the suspensions start will be decided after the government-imposed punishment finishes in May.

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Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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