The Korea Media and Telecommunications Commission has drawn up a policy guideline aimed at promoting fair competition in the mobile handset distribution market and preventing harm to consumers. As a follow-up to relocating the user-protection safeguards of the repealed so-called ‘Handset Distribution Act’ into the Telecommunications Business Act, the guideline centers on banning subsidy discrimination based on place of residence, age, or physical condition, and on requiring subsidy information to be disclosed transparently.
 [코리안투데이] 통신 규제의 패러다임 전환 지원금은 자유롭게 정보는 투명하게 © 장형임 기자 |
The Korea Media and Telecommunications Commission announced that it has established a policy to foster a sound distribution environment for mobile handsets and Universal Subscriber Identity Modules (USIM), based on Article 32-13(7) of the 「Telecommunications Business Act」 and Article 37-14 of its Enforcement Decree. The policy sets out its specific content, implementation framework, compliance monitoring, and improvement recommendations, and takes effect from the date of the Commission’s resolution.
Earlier, on July 22, 2025, the National Assembly repealed the 「Act on the Improvement of Mobile Handset Distribution Structure」 in order to promote competition in the handset market and prevent harm to users, and transferred the provisions needed for user protection to the 「Telecommunications Business Act」 (Articles 32-11 through 32-19, among others). In the process, the National Assembly clearly assigned the Commission the responsibility of managing the market, including establishing policies to foster a sound handset distribution environment.
The policy applies to all parties involved in distribution and contracts, including handset manufacturers; mobile carriers encompassing both mobile network operators (MNO) and mobile virtual network operators (MVNO); distribution outlets covering both agencies and retail stores; and related institutions and organizations.
 [코리안투데이] 통신 규제의 패러다임 전환 지원금은 자유롭게 정보는 투명하게 © 장형임 기자 |
At its core is the blocking of unfair subsidy discrimination. The Commission decided to focus its inspections not only on subsidy discrimination based on place of residence, age, or physical condition, but also on discrimination that significantly harms user interests on grounds such as the method of subscription, type of subscription, or rate plan, treating these as unfair discrimination. In particular, it explicitly designated as prohibited any act by a manufacturer or mobile carrier that instructs, coerces, demands, or induces a distribution outlet to pay discriminatory subsidies through the structure of incentive payments. The means of involvement covered here include not only standard agreements but also individual agreements, special provisions, sales policies, performance evaluations, and settlement methods, and beyond documents, all forms such as training materials, messenger communications, and verbal instructions fall under regulation.
However, an exception was provided so that paying preferential subsidies for a set period to residents of remote islands and rural areas, the elderly, and persons with disabilities, while reporting this to the Commission in advance, may not be regarded as unfair discrimination.
 [코리안투데이] 통신 규제의 패러다임 전환 지원금은 자유롭게 정보는 투명하게 © 장형임 기자 |
A manufacturer’s unfair refusal to supply handsets, acts that induce discriminatory recommendation of specific rate plans or supplementary services, the absence of a standard agreement between a mobile carrier and an agency, and unfair intervention in the USIM distribution process were also presented as major types of unfair practices.
 [코리안투데이] 통신 규제의 패러다임 전환 지원금은 자유롭게 정보는 투명하게 © 장형임 기자 |
User-protection safeguards are also strengthened. Mobile carriers and distribution outlets must use formal contracts and clearly state the subsidy and its payment conditions in a way that is easy for users to understand. The Commission will recommend that subsidy information, including the carrier’s common subsidy and the distribution channel’s additional subsidy, be posted in a standardized format, and it will monitor procedures for verifying the subscriber’s own intent, such as through ID scanners, as well as compliance with the prior-consent system. Measures for preventing and remedying harm — including encouraging user reports, analyzing damage cases, and training distribution outlet staff — will also be pursued.
As its implementation framework, a ‘Handset Distribution Environment Improvement Council’ involving experts, consumer groups, and stakeholders will be operated. As a rule, the council will hold general meetings semiannually and subcommittee meetings quarterly, and gender balance is to be considered when appointing experts. Based on the results of ongoing market monitoring, the Commission will recommend that manufacturers and mobile carriers improve their distribution practices where there are concerns about legal violations or user harm, and it will inspect and evaluate compliance.
 [코리안투데이] 통신 규제의 패러다임 전환 지원금은 자유롭게 정보는 투명하게 © 장형임 기자 |
This policy is significant in that it shifts the center of gravity of market management: while in principle opening up the subsidy competition that had until now been treated as a target of regulation and crackdown, it enables consumers to transparently confirm where and how much subsidy they receive. From the user’s perspective, the discrimination of paying more for the same handset depending on age or place of residence is expected to decline, and conditions will be created for users to clearly compare their actual cost burden through contracts and subsidy information.
The Commission decided to review the validity of this policy every three years, using January 1, 2027, as the baseline, and to take improvement measures accordingly. Inquiries may be directed to the Telecommunications Market Investigation Division of the Korea Media and Telecommunications Commission (02-2110-1533).
지역 홍보대사 신청 기자양성과정 신청 코리안투데이 지부장 신청 코리안투데이 인천강화코리안브랜드대상 신청 최고경영인대상 신청 소비자만족도대상 신청
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