South Korea’s mobile carriers said Thursday they will establish a joint surveillance team to eradicate the chronic problem of subsidies that have brought on a series of business suspensions and fines by the government.
The country’s three mobile carriers ― SK Telecom, KT Corp. and LG Uplus ― issued a joint statement at the Ministry of Science, ICT and Future Planning admitting they had distorted the market through their battle to attract new users.
The announcement came two weeks after the telecom minister urged the firms to act to root out the prolonged market practice of resorting to illegal subsidies to attract new clients.
Subsidies are the most widely used ploy to entice subscribers to change their mobile operator, and they are blamed for undermining fair competition and market transparency as local carriers compete with incentives far above the legal ceiling of 270,000 won ($251). (Yonhap)
