South Korea fines mobile carriers RM116.48mil for exaggerating 5G speeds

SEOUL: South Korea’s antitrust regulator said it had imposed a total of 33.6bil won (RM116.48mil) in fines on three domestic mobile carriers for exaggerating their 5G network speeds.

The Korea Fair Trade Commission (KFTC) announced that SK Telecom Co Ltd, KT Corp, and LG Uplus Corp, the three major telecom operators in South Korea, have been fined for falsely advertising their 5G network speeds and claiming to be the fastest in the market.

The KFTC stated that the three companies made claims about achieving target 5G network speeds that were not possible in real-life environments. They also advertised that their 5G network speeds were faster than their competitors without providing any evidence to support these claims.

In a bid to support ongoing civil lawsuits filed by consumers, the KFTC presented the advertisements released by the three mobile carriers to a local court.

SK Telecom and KT Corp have declined to comment on the matter, while LG Uplus is currently reviewing the sanctions imposed by the regulator.

SK Telecom has been fined 16.8bil won (RM58.26mil), KT Corp has been fined 13.9bil won (RM48.20mil), and LG Uplus has been fined 2.8bil won (RM9.71mil) by the KFTC.

According to data from the Ministry of Science and ICT, South Korea had 30.76 million 5G network users in June, accounting for approximately 38% of the total 80.23 million mobile subscriptions in the country.

These fines come as a consequence of the KFTC’s efforts to ensure fair competition in the telecom sector and to protect consumer rights. By penalizing the major telecom operators for their false advertising, the regulator aims to maintain transparency and trust in the 5G network market.

The fines imposed on the three mobile carriers highlight the importance of accurate and honest marketing practices in a highly competitive industry.

As the demand for high-speed internet and advanced mobile technologies continues to grow, it becomes crucial for telecom operators to deliver on their claims and provide reliable services to consumers.

The KFTC’s actions serve as a reminder to all telecom operators to comply with advertising regulations and set realistic expectations for their customers.

By promoting fair competition and providing accurate information, the authorities hope to foster a healthy and thriving telecom industry in South Korea.

Source: The Star