1. Background of the Initiative
With the abolition of the "Subsidy Regulation Act" (Dan-Tong Act), user rights protection matters were transferred to the Telecommunications Business Act (enacted on January 21, 2025, and enforced on July 22, 2025). As a result, the revision of the Enforcement Decree of the Telecommunications Business Act was proposed to establish specific provisions and necessary measures for implementing the transferred matters.
2. Main Contents
(1). Unfair Discriminatory Subsidy Types and Criteria (Article 37-13)
- Unfair discrimination is defined as providing different subsidies for the same subscription type, rate plan, and device. However, providing preferential treatment for digital underprivileged groups, such as residents of remote areas, the elderly, and people with disabilities, is considered an exception to unfair discrimination.
(2). Fair Distribution Environment Policy and Advisory Body (Articles 37-14, 37-15)
- The Korea Communications Commission (KCC) will establish policies to promote fair competition, protect users, and support self-regulation to create a healthy distribution environment.
- To develop and implement these policies, an advisory body of approximately 15 members, including telecom companies, manufacturers, associations, experts, and government officials, will be formed and operated.
(3). Contract Terms for Mobile Telecommunications Agreements (Article 37-16)
- When mobile carriers and distributors enter into agreements with users, the contract must specify terms related to the device, installment conditions, subsidy details (e.g., amount, entity, method), and usage conditions (e.g., rate plans, additional services).
(4). Used Mobile Device Safe Transaction Business Certification Criteria and Procedures (Articles 37-17 to 37-19)
- User protection requirements, such as privacy protection, must be established. Standards for certifying safe transaction businesses will include providing quality and price information, issuing performance certificates, etc.
- Businesses wishing to receive certification must submit an application and supporting documents to the Ministry of Science and ICT, which will issue a certification upon meeting the criteria.
(5). Data Submission Method for Telecom Companies and Manufacturers (Article 37-22)
- Telecom companies and manufacturers must submit monthly data, including device ex-factory prices and incentive sizes, within 45 days after the end of each month.
(6). Sanction Criteria for Corrective Orders, Fines, and Penalties (Articles 44 to 49, Article 66)
- The KCC will establish the basis for ordering telecom companies to submit corrective action plans and report on the results. The corrective action implementation period will be specified in Appendix 5.
- A new appendix (Appendix 5-3) will define the maximum fines and calculation standards for different types of violations, and the telecom companies' and manufacturers' average annual revenue for the past three business years will be used to calculate fines based on the violations.
- A new appendix (Appendix 12) will establish guidelines for imposing penalties related to mobile device distribution.
