As the growth of South Korea's budget mobile market slows, excessive prize offerings and marketing by telecom affiliates and financial companies are seen as hindering the sector.
On October 1, Jo Kyung-tae, a lawmaker from the People Power Party, announced plans to assess government oversight of these issues during the upcoming National Assembly audit and to push for amendments to the Telecommunications Business Act to promote fair competition.
The growth of the budget mobile market has decelerated. As of the end of July 2026, there were 10,498,370 budget mobile lines, accounting for 18.2% of all mobile lines. However, the increase in the first half of 2026 was only about 170,000 lines, a mere 24% of the increase seen in the same period last year (710,000 lines).
Jo attributed this slowdown to the excessive financial investments and marketing strategies employed by telecom affiliates operating budget mobile brands.
According to market monitoring by the Broadcasting and Communications Commission, one telecom affiliate offering budget mobile services provides prizes of up to 542,750 won for low-cost long-term evolution (LTE) plans priced around 10,000 won.
While the government prohibits telecom affiliates from selling below wholesale prices, these companies are circumventing the rule through prize offerings.
The excessive marketing strategies by financial sector players will also be scrutinized. Jo pointed out that services like 'KB Livem' and 'Woori WON Mobile,' which offer benefits such as financial points and preferential interest rates, are undermining fair competition for smaller budget mobile operators.
Jo stated, "I plan to propose amendments to the Telecommunications Business Act to strengthen the criteria for major companies and telecom affiliates entering the budget mobile market and to investigate unfair practices by large budget mobile operators, which could lead to business suspensions or cancellations."
* This article has been translated by AI.
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