In the telecom industry, criticism is mounting that used-phone return programs advertising that they will "compensate up to 50–70% of the list price if you return the newly activated iPhone 17 after two years" actually provide only around a maximum of 40%, amounting to misselling and false advertising. The maximum compensation of around 40% applies only if the device is undamaged, so the real payout is smaller.
An analysis by ChosunBiz on the 13th of the three carriers' iPhone 17 Pro Max used-phone return programs found that KT, which advertised up to 50% compensation, in reality offered at most 38%. SK Telecom and LG Uplus, which advertised up to 70% compensation, in reality capped out at 41.6% and 47.9%, respectively. The gap between the advertised figures and the actual compensation rates arises because these programs charge subscribers a monthly "usage fee" as an add-on service. Therefore, the amount excluding the monthly fee is the actual maximum compensation.
Specifically, SK Telecom is accepting enrollments in its "T Instant Compensation" used-phone program for the iPhone 17 through the 31st of this month. The notice says, "Enroll in the product and return the device in months 25–26 to switch devices, and receive compensation of up to 70% of the list price." However, the monthly fee for the iPhone 17 Pro Max in this program is 24,700 won. The actual maximum compensation is not 70% of the list price, but 70% of the list price minus the total monthly fees of 592,800 won the customer pays over 24 months. On that basis, the maximum compensation rate is 41.6% of the list price.
KT is accepting enrollments in its "Advance Compensation Program" for the iPhone 17 series through the 29th of next month. KT advertises, "A 50% discount off the list price is applied immediately on condition of return and device change after 24 months of use." But this does not take into account the 10,500 won paid monthly by iPhone 17 Pro Max customers enrolled in the program, totaling 252,000 won over 24 months. The actual maximum compensation rate is 38%.
LG Uplus advertises the used-phone return program "70% Compensation Pass," saying that through the end of the year, "if you buy an iPhone 17 Pro Max, use it for 24 months, and then return it, you can receive up to 70% of the purchase-time list price depending on the return timing." Taking into account the monthly fee of 19,250 won for the iPhone 17 Pro Max in this service—totaling 462,000 won over 24 months—the actual maximum compensation rate is 47.9%.
In some cases, the return compensation program discount is bundled with high-priced plans. For SK Telecom, customers who choose the 109,000-won 5GX Premium or higher plan receive a 50% discount on the monthly fee. For LG Uplus, customers who choose the 105,000-won 70% Compensation Pass 5G Premier Plus or higher plan receive a 20% (3,850 won) discount on the monthly fee for the used-phone compensation program. However, the plan discount benefits are provided only if the customer uses the high-priced plan for 24 months.
Carriers operate used-phone return programs to boost demand for profitable premium devices and plans at a time when, after the repeal of the Mobile Device Distribution Act, they lack the marketing capacity to pour in subsidies.
Kim Jang-kyom, a lawmaker with the National Assembly's Science. ICT. Broadcasting. and Communications Committee from the People Power Party, said, "Carriers failing to properly inform customers of the actual compensation rates they provide amounts to misselling and exaggerated advertising, deceiving consumers," adding, "Relevant authorities need to launch a fact-finding probe."
Attorney Jeon Sun-ae, managing partner at the law firm Law & Top, said, "Stating compensation rates based only on the list price rather than the actual rate excluding what the customer pays is sufficiently likely to be viewed as exaggerated advertising," and added, "In cases of carriers' misselling or false/exaggerated advertising, liability for damages and administrative sanctions may be imposed."