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Cell phone makers and telecom carriers fined 45.33B won for deceptive subsidy pricing

By  |  March 15, 2012

The Korean Fair Trade Commission has fined cell phone makers and telecom carriers for colluding to create a deceptive pricing policy that led to retail prices for 44 phone models being 225,000 won higher than factory prices. Between 2008 and 2010, the companies had advertised that they were offering discount deals through subsidy plans. However, the subsidy was worth substantially less than the difference in price. An FTC official stated that “it is very difficult for consumers to understand the pricing policy” in subsidy campaigns.

The fines amount to 45.33 billion won in total (approximately $39 million), with the following breakdown: SK Telecom (20.25 billion won), Samsung (14.28 billion won), KT (5.14 billion won), LG Uplus (2.98 billion won), LG (2.18 billion won) and Pantech (500 million won).

Full content: Korea Herald

 

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