SEOUL, KOREA - Korea’s three major telecom companies, which have engaged in illegal subsidy competition, faced a fine of up to 58.5 billion won.LG U+ and SK Telecom, who led the illegitimate competition in January and February 2014, will be prohibited from attracting new subscribers for one week each.
The Korea Communications Commission held a plenary session on August 21 in which it decided to impose a fine of 37.1 billion won on SK Telecom, 10.5 billion won on LG U+, and 10.7 billion won on KT. The regulator, however, decided not to suspend their sales operations.
Under this ruling, LG U+ will be banned from signing up new subscribers during the period from August 27 to September 2, while SK Telecom from August 30 to September 5.
In December 2013, the three telecom companies were imposed a combined fine of 106.4 billion won due to illegal subsidy competition and ordered to remedy their sales practices. The KCC suspended their operations for 45 days each during the March-May period as they didn’t carry out the orders.
