In addition to a financial penalty for offering illegal subsidies, SK Telecom (SKT), South Korea’s largest cellco by subscribers, will be barred from signing up new subscribers for a seven day period, according to the Korea Observer.
As reported by CommsUpdate earlier this week, it was revealed that the Korea Communications Commission (KCC) was close to finalising details of a financial penalty for breaching the Mobile Distribution Act; the cellco had been accused of offering illegal kickbacks with a view to attracting customers and clearing handset stock ahead of the launch of the Samsung S6.
Having concluded that the cellco had paid an average of KRW228,000 (USD206) in excess of the legal subsidy limit – KRW300,000 – in January 2015, the KCC has confirmed that, in addition to a KRW23.5 billion fine, SKT will face a seven day business suspension. However, it has said it has yet to decide when this will start, due to the possible repercussions on consumers, as Samsung is due to a launch its new Galaxy handset next month.
Unsurprisingly unhappy with the development, SKT said in response: ‘Considering the overall market condition, the government’s exclusive investigation [on SKT] is extremely regrettable.’
