KCC to alter subsidy limits with introduction of flexible cap

10 Jul 2014

South Korea’s telecom regulator has reportedly agreed to change the ceiling for mobile handset subsidies with a view to preventing overheated competition, Yonhap News reports. The Korea Communications Commission (KCC) is understood to be planning to alter the cap on subsidies from the current fixed level of KRW270,000 (USD266), with it instead brining in a flexible cap of between KRW240,000 and KRW350,000; the regulator will hold a meeting every six months to adjust the subsidy amount allowed, taking market conditions at the time into consideration.

With KCC chief Choi Sung-joon cited as saying that the new policy should help in protecting the market from any irregularities, he also noted: ‘There has been criticism that the fixed guideline in the ceiling failed to address various market situations.’ The commission is expected to finalise the plan in September this year.

South Korea, Korea Communications Commission (KCC),


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