A bill to amend the Telecommunications Business Act, which limits the market share of the three major telecommunications companies (SK Telecom, KT, LG Uplus) subsidiaries and large company low-cost mobile (MVNO) affiliates to 60%, has been passed by the Information and Communication Broadcasting Law Review Subcommittee of the National Assembly's Science, Technology, Information, Broadcasting, and Communications Committee.
According to the National Assembly and the telecommunications industry on the 26th, this amendment was proposed by Democratic Party Representative Kim Hyun, and its main focus is to limit the market share of the three major telecommunications company subsidiaries and large company MVNO affiliates to 60%. It also includes the provision that the number of large company affiliates can be limited according to standards set by presidential decree.
While both parties agreed on the need to limit the market share of large company MVNO affiliates, they reportedly showed differing views on the subjects of regulation and the degree of limitation. The opposition argued that not only the subsidiaries of the three major telecommunications companies but also the market share of financial sector MVNO affiliates should be restricted, while the ruling party contended that only the market share of the subsidiaries of the three major telecommunications companies should be limited.
The proposed limit on market share also differed, with the opposition suggesting 60% and the ruling party proposing 50%. However, since the Fair Trade Commission and the industry have expressed concerns that prior legal regulations on market share could distort market function, additional discussions are expected in the future.
A proposal by People Power Party Representative Shin Seong-beom to reintroduce a prior regulatory system that verifies the wholesale prices of telecommunications companies has been put on hold. This amendment maintains the current prior regulatory system considering the negotiation power difference between the three major telecommunications companies and MVNOs, and includes provisions to limit the market share of telecommunications company MVNO subsidiaries to within 50% under presidential decree.