South Korea Repeals 10-Year-Old 'Cellphone Subsidy Law'—New Era for Telecom Competition

South Korea has officially repealed the "Cellphone Subsidy Law" (DanTongBeop) after 10 years of implementation. The law, which had capped subsidies offered by telecom companies for mobile devices, was originally introduced to curb unfair competition and reduce disparities between consumers. On December 26, the National Assembly passed a bill to abolish the law, removing the restrictions on publicly disclosed subsidies and additional support payments.

When first introduced, the law aimed to address concerns over telecom companies offering excessive subsidies to certain customers, leading to unfair treatment. However, the law inadvertently resulted in a significant decrease in subsidies for all consumers, which led to calls for its repeal.

Although the law has been abolished, provisions to protect consumers will be transferred to the Telecommunications Business Act. These include rules preventing telecom companies from offering discriminatory subsidies based on factors such as location, age, or physical condition, as well as prohibiting the unfair promotion of specific plans or services.

Experts predict that the law’s repeal will stimulate competition among telecom providers, leading to better deals for consumers and possibly lower phone prices. As subsidy competition heats up, mobile device prices are expected to drop.

The new provisions will take effect six months after the bill is officially enacted.

Date: 2025-05-21

Reporter: 정은지