SK Telecom slapped with fine, suspension

The Korea Communications Commission, the state telecommunications regulator, slapped South Korea’s largest wireless carrier SK Telecom with a fine of 23.5 billion won ($21.3 million) and a seven-day business suspension for triggering overheated competition in the domestic mobile network market by giving out excessive subsidies to allure subscribers.

The decision came after the KCC started a series of investigations into allegations in January that SKT had been doling out rebates to customers.

KT, a runner-up in the mobile network market, had also filed a complaint against SKT regarding the subsidies.

The punitive measures on the largest Korean wireless carrier, however, will not go into effect immediately, considering the sluggish wireless network market, according to the KCC.

The KCC said it would later decide when SKT should suspend its businesses.

Some market watchers leveled criticism at the state watchdog for being lenient with the dominant mobile carrier, whose market share recently dropped below the 50-percent threshold for the first time.

The business suspension could affect the sales of Samsung Electronics’ Galaxy S6 and S6 Edge smartphones through the largest mobile carrier.

The smartphones are scheduled to hit the shelves from April 10 in the domestic market.

(wone0102@heraldcorp.com)