The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Sun, May 22, 2022 | 22:23
Mobile carriers, makers fined
Posted : 2012-03-16 20:04
Updated : 2012-03-16 20:04
Print Preview
Font Size Up
Font Size Down

Samsung’s Galaxy II
By Yoon Ja-young

What is the real price of a mobile phone? When a person goes to a shop, the salesperson usually shows an eye-popping price at first; then tries to set the customers at ease by adding that they can get subsidies from mobile carriers. It turns out, however, that people have no reason to thank them for the subsidy ― mobile carriers and handset manufacturers have been pumping up handset prices in the first place to fool consumers.

The Fair Trade Commission (FTC) levied 45.3 billion won in fines on mobile carriers and handset manufacturers, Thursday, for inflating handset prices.

SK Telecom, the country’s largest mobile carrier, was fined 20.2 billion won, followed by Samsung Electronics, which has a 70 percent share of the handset market here, with 14.3 billion won. Telecommunications companies KT and LG Uplus as well as manufacturers LG Electronics and Pantech were also fined.

According to the commission, the three mobile carriers raised the original price of mobile phones by 225,000 won, on average, between 2008 and 2010. They then pretended they were giving that much in subsidies to subscribers buying the phones. The manufacturers colluded with the mobile carriers, suggesting putting bigger price tags on their handsets as this would help their phones be recognized as premium products on the market.

Manufacturers also pumped up the supply price to carriers. The commission noted that one of the manufacturers was supplying its phone to the local market at a price 313,000 won higher than the export price. After upping the supply price, the manufacturers pretended as if they were giving the same amount as a discount on sales of the phones.

In another case, the manufacturer supplied the handset to the carrier at 639,000 won. The mobile carrier, however, set the price tag at 949,000 won. Consumers, who had no idea about the price fixing, were happy to get on average a 78,000 won subsidy from the carrier, but in fact they were being ripped off.

“As the handset manufacturers and mobile service providers colluded in retail channels, it was really difficult for consumers to understand how the price was set. They were creating an illusion by abusing consumers who trusted them,” the commission announced.

SK Telecom, however, said that the commission didn’t understand that subsidies were a normal means of marketing. “Consumers are fully aware that manufacturers and mobile carriers use subsidies as a means of competing to draw consumers. They are purchasing after making comparisons,” the carrier said in an announcement. It added that the Fair Trade Commission shouldn’t be regulating the telecommunications market as it is subject to rules set by the Korea Communications Commission.
 
  • Adoptee's journey tracing her mother, origin and heritage
  • What to expect from first lady in summit diplomacy
  • Can Indo-Pacific help Korea reduce reliance on Chinese market?
  • Korean steelmakers unlikely to benefit from Biden's visit
  • Blinken remains elusive figure for Yoon administration
  • Shocking treatment: Electricity in 19th-century medical treatment
  • Yoon, Biden agree to expand joint military exercises to deter North Korea
  • Korea postpones disposable cup deposit system for six months
  • 566 Days Later
  • Hyundai to build $5.54 bil. electric vehicle, battery plant in Georgia
  • Reality shows raise concerns by zooming in on private lives of people Reality shows raise concerns by zooming in on private lives of people
  • TvN drama 'Rose Mansion' criticized for animal abuse scene TvN drama 'Rose Mansion' criticized for animal abuse scene
  • Korean remakes, romance series to hit small screen in June Korean remakes, romance series to hit small screen in June
  • 2 artists of Korean descent question hegemonic frameworks of race, gender 2 artists of Korean descent question hegemonic frameworks of race, gender
  • Jung Hye-sung to lead new series 'New Normal Zine' Jung Hye-sung to lead new series 'New Normal Zine'
DARKROOM
  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

  • End of mask mandates

    End of mask mandates

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group