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Mobile carrier fined for illegal practice

All Headlines 11:46 September 07, 2016

SEOUL, Sept. 7 (Yonhap) -- South Korea's communications watchdog on Wednesday said it has imposed a 1.82 billion-won (US$1.66 million) penalty on the country's third-largest mobile carrier LG Uplus Corp. for illegal business practice.

The Korea Communications Commission (KCC) said it also imposed a business suspension on LG Uplus for selling only corporate-use handsets to individuals, apparently in an aim to lure more subscribers away from its two bigger rivals -- SK Telecom and KT Corp.

The suspension will be in effect for 10 days but is only applied to its biz unit for corporate handset sales, the KCC said.

The KCC has been conducting an investigation into the firm over other allegations that the mobile carrier had handed subsidies to new customers in amounts exceeding the legal ceiling.

A relevant law, which took effect in 2015, bans mobile carriers from providing excessive discounts or illegal subsidies to customers.

The law is aimed at curbing mobile carriers' cutthroat marketing through excessive subsidies that had been cited as the main reason for rising cellphone prices and to bring transparency to the market long distorted by subsidies.

khj@yna.co.kr
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