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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] SEOUL, July 7, 2025 — The Korea Fair Trade Commission (KFTC) has finalized a total fine of 96.3 billion won (approximately USD 70 million) against South Korea’s three major telecom companies — SK Telecom, KT, and LG Uplus — for colluding to control market share in the mobile number portability (MNP) market.
According to industry sources, the KFTC issued a formal ruling at the end of June, slightly reducing the originally proposed fine of 114 billion won by about 15%. The revision was made after excluding sales data related to corporate contracts, promotional offers, and users who had ported out to budget carriers (MVNOs). The final penalties are as follows: SK Telecom with 38.8 billion won, KT with 29.9 billion won, and LG Uplus with 27.6 billion won.
The KFTC concluded that from November 2015 to September 2022, the three carriers coordinated incentives through the "Situation Room" operated by the Korea Association for ICT Promotion (KAIT) to maintain stable market shares and prevent customer churn.
The telecom companies have pushed back against the ruling, arguing that their actions were in line with regulatory expectations under the oversight of the Korea Communications Commission (KCC). At the time, the KCC enforced the Mobile Device Distribution Improvement Act ("Device Act"), penalizing excessive handset subsidies.
This situation has led to criticism over potential regulatory conflict between the KFTC and the KCC, with both agencies targeting similar behaviors from different legal standpoints. During a KFTC plenary meeting in February, former KCC official Noh-Ik Park testified that the KCC had oversight over the KAIT's Situation Room and was regularly briefed and involved in related decision-making processes.
The telecom companies are expected to consider legal options, including administrative litigation, in response to the fine.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
