South Korea mobile phone companies are out of touch with global trends

Posted on : 2009-07-30 12:39 KST Modified on : 2019-10-19 20:29 KST
Korea Consumer Agency report shows mobile phone fees in South Korea are the highest in the world
 July 29.
July 29.

Mobile phone fees in South Korea have soared to the highest in the world in the past five years. While mobile companies in other countries have steadily reduced fees in accordance with an increase in users, South Korean mobile companies have gone against the trend, with the exception of one instance in 2004 when the monthly basic rate was reduced to 1 thousand Won.

According a study on the “Comparison of mobile phone fees across countries” released by the Korea Consumer Agency (KCA) at a conference hosted by the Korea Fair Trade Commission on July 29, mobile phone fees in South Korea have not decreased since 2004. On fee per minute use, which South Korea had the lowest in 2004, South Korea has shown a steady climb towards having the highest fee in the world. The monthly cost per user of South Korean mobile companies has also increased during the same period of time, while that of foreign companies has decreased.

On the matter of going in the reverse direction of global trends, the KCA points out that the trend in South Korea is unusual in that a greater initial outlay of capital is needed from mobile phone companies and mobile phone users’ fees in the past reflected this, but rather than seeing a steady decrease in fees in the years afterwards, they have continued to rise. Lee Sang-sik, a researcher of KCA says, “Mobile phone fees in South Korea have been the highest in the world since 2006.” Lee adds, “Some effort should be made to reduce the fees.”

A consumer campaign regarding a reduction of mobile phone fees is anticipated in response to KCA’s findings.

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