South Korean users that switch mobile carriers will be able to receive up to 500,000 won ($374) in support starting as early as March 2024.

This is due to the government allowing telecom operators to provide subsidies for the costs incurred when users switch numbers to reduce the burden on communication expenses.

According to the information technology (IT) industry on Tuesday, the Korea Communications Commission (KCC) announced legislative amendments to the enforcement decree of the law on improving the distributing structure of mobile communication devices.

This includes the establishment of criteria for providing subsidies when changing numbers during a mobile carrier switch.

According to the notification in the legislative proposal, criteria for providing subsidies when changing mobile carriers were established and mobile carriers can now provide up to 500,000 won in subsidies for penalty fees as well as SIM card issuance costs.

KCC convened a general meeting in February 2024 and announced that it would revise parts of the enforcement decree of the Mobile Device Distribution Improvement Law. During the meeting, the organization decided to create an exception clause in Article 3, which regulates the types of discriminatory payments for public subsidies, allowing for differentiated support subsidies. It also established criteria for providing subsidies, allowing mobile carriers to provide subsidies of up to 500,000 won.

The move is intended to create conditions that can activate marketing competition between operators, even before the abolition of the Mobile Device Distribution Improvement Law, which requires the approval of the National Assembly.

KCC has also revised the frequency of changing information related to public subsidies, which mobile carriers can change on Tuesdays and Fridays, to once a day.

“We aim to activate subsidy competition and improve user benefits,” it said.

Following KT Corp.’s example, SK telecom Co. and LG Uplus Corp. are expected to introduce 5G plans in the 30,000 won range later in March 2024.

Samsung Electronics Co. is also expected to release low-cost smartphones in the 300,000 won to 400,000 won range, including the Galaxy A15, in the first half of the year.

By Lee Dong-in and Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]