ICT minister presses mobile carriers, manufacturers on price

South Korea’s ICT minister on Friday pressed local handset manufacturers and mobile carriers to lower the prices of devices and subscriptions after a new law enacted to lower costs for consumers backfired.

In a hastily called early morning meeting, Choi Yang-hee, minister of science, ICT and future planning, said the point of the new law is to induce market players to compete in lowering the costs of communications and handset factory prices, while improving service quality.

“If the law is used only to benefit the companies and not the consumers, the government will have no choice but to take strong action for the public,” Choi said.

The Act on the Improvement of Retail System of Mobile Telecommunication Devices went into effect at the start of this month to bring transparency to the market, which has long been distorted by subsidies well over the legal limit offered by manufacturers and carriers competing for customers. (Yonhap)