The government announced on the 23rd that it has begun the process of amending subordinate regulations to improve the distribution structure of mobile communication devices, ahead of the repeal of the Mobile Device Distribution Improvement Act.
The Korea Communications Commission and the Ministry of Science and ICT disclosed the amendment to the Enforcement Decree of the Telecommunications Business Act on the same day. This is a follow-up measure related to the repeal of the Mobile Device Distribution Improvement Act, which will take effect on July 22, and the amendment of the Telecommunications Business Act.
According to the amendment, actions that provide different subsidies based on subscriber addresses, ages, or disabilities under the same subscription type, rate plan, and device conditions are prohibited to prevent unfair subsidy discrimination.
However, cases of preferential subsidies for digital underprivileged groups, such as the elderly and persons with disabilities, are not considered unfair discrimination. Events to provide additional subsidies targeting senior citizens on or around Parents' Day fall into this category.
Additionally, as a basis for establishing measures and operating councils of the Korea Communications Commission to create a sound environment for device distribution under the Telecommunications Business Act, the authorities specified the content to be included in these measures, as well as the composition and operation methods of the councils.
The measures include plans to prevent unfair practices, such as inducing subsidy discrimination by mobile carriers, and to enhance user access to device information and options to promote fair competition. The council will consist of around 15 members, including government officials, experts, mobile carriers, manufacturers, and related organizations.
Moreover, considering that subsidies will be abolished, the authorities have specified the necessary provisions in the mobile device contract to ensure users' right to choose devices and to clearly provide contract information such as subsidies.
Telecommunications companies, agencies, and retailers must specifically state the entity responsible for subsidy payments, the payment methods, and the conditions for using mobile service plans or additional services linked to subsidy payments in contracts with users.
Provisions regarding the certification criteria and procedures for a secure transaction certification system to promote the trading of used mobile devices, which were stipulated in the Mobile Device Distribution Act Enforcement Decree, will be transferred to the Telecommunications Business Act Enforcement Decree.
In addition, the standards for emergency suspension orders, procedures for filing objections, methods for telecommunications companies and manufacturers to submit data, and other necessary matters for law enforcement such as corrective actions, penalty surcharges, and fines will also be transferred to the Telecommunications Business Act Enforcement Decree.
This amendment to the enforcement decree will be finalized after gathering opinions through legislative notice from the 28th of this month to June 9, followed by consultations with relevant departments, regulatory reviews, and legal reviews.
Lee Jin-sook, chairwoman of the Korea Communications Commission, said, "We will push ahead with the amendment of the enforcement decree and subsequent measures without any setbacks, and we will closely monitor market conditions to ensure that users, especially digital underprivileged groups, do not suffer during this process."