The Broadcasting and Communications Commission (BCC) has imposed a fine of 640 million won on KT for misleading users during the pre-order process of the Galaxy S25 and for restricting some subscriptions.
On May 8, during its seventh meeting of 2026 held at the Government Complex in Gwacheon, the BCC announced that it had decided to impose the fine along with a corrective order for violations of the Telecommunications Business Act by KT.
The BCC determined that KT infringed on user rights by providing misleading information about additional benefits and subscription conditions during the Galaxy S25 pre-order process. An investigation into the matter has been ongoing since February of last year.
The investigation revealed that while conducting a pre-order event for the Galaxy S25 on its official online store, KT.com, the company stated that "benefits could be provided unless otherwise indicated." However, it was found that some benefits were limited to the first 1,000 customers. KT explained that the omission was due to a simple mistake by an employee.
KT was also found to have unilaterally canceled contracts for 7,127 users who pre-ordered through the YouTube channel 'Orait Studio' and the Genie TV channel (6,192 from YouTube and 935 from Genie TV).
The BCC concluded that KT unjustly restricted subscriptions despite these users having completed the service agreement procedures, including identity verification and payment method input.
The BCC identified the following violations under the Telecommunications Business Act: misleading users about important matters such as the limit on the number of pre-orders and restricting subscriptions for users who completed the contract process.
The commission also issued a corrective order requiring KT to clearly disclose additional benefits and conditions during the pre-order process for users.
A KT representative stated, "There were some deficiencies in the notifications during the operation at that time, and we have improved the related procedures."
Kim Jong-cheol, chairman of the BCC, emphasized the need for thorough inspections of misleading or omitted information regarding important matters in mobile service subscriptions, stating, "We will continuously monitor the implementation of this measure to ensure that the public does not face any inconveniences."
Meanwhile, Shin Seung-han, the BCC's market research and review officer, explained during a briefing after the commission meeting that KT's violations occurred in February of last year, followed by a review and investigation process that continued until recently, leading to the final corrective action approved by the commission.
Regarding the background of KT's unilateral contract cancellations for users who pre-ordered through the YouTube channel Orait Studio and Genie TV, he stated, "KT claimed that they had planned to limit the benefits to the first 1,000 customers, and the omission was due to a simple mistake by staff. However, upon verifying the facts, it was found that the actual number of benefits provided exceeded 1,000."
He added, "The BCC confirmed a total of 7,127 cases of unilateral cancellations and made its judgment based on the final confirmed cancellation numbers."
* This article has been translated by AI.
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