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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, Oct. 19 — South Korea’s three major mobile carriers — SK Telecom, KT, and LG Uplus — will streamline their overly complex mobile rate structures by introducing a unified pricing system, amid growing criticism that excessive plan segmentation has hindered consumer choice and transparency.
According to data submitted to Rep. Choi Soo-jin of the National Assembly’s Science, ICT, Broadcasting, and Communications Committee by the Ministry of Science and ICT (MSIT), the three carriers currently operate a combined 718 mobile rate plans, of which only 251 are actively available for new subscriptions.
When including dozens of budget mobile virtual network operators (MVNOs), the total number of available plans is estimated to reach several thousand, making it extremely difficult for consumers to compare and choose the most suitable option.
The MSIT is reportedly preparing to overhaul the system, with plans to introduce integrated rate plans that allow users to select pricing based on data volume or transmission speed, rather than on whether the network uses 5G or LTE technology.
The move follows mounting criticism that LTE plans were often more expensive than comparable 5G plans, despite offering lower speeds. During last year’s parliamentary audit, telecom companies were found to have stopped new LTE sign-ups for over half their plans while failing to inform existing customers, resulting in many missing potential savings.
Lawmakers have since called for simpler, more transparent pricing and greater consumer awareness.
Government officials are now in the final stages of consultation with the three carriers, with the launch of unified rate plans expected before the end of this year.
The reform aims to enhance pricing transparency, promote fair competition, and expand consumer choice in South Korea’s highly advanced but complex telecommunications market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
