A PYMNTS Company

South Korea Fines SK Telecom, SK Broadband Over Unfair Practices

By  |  March 2, 2021

South Korea’s antitrust regulator, the Korea Fair Trade Commission (KFTC), has fined domestic mobile operator SK Telecom and its IPTV unit KRW 6.4 billion (US$5.7 million) for hindering market competition, Yonhap news agency reported. SK Telecom and SK Broadband will each have to pay a fine of KRW 3.19 billion.

SKT unfairly supported SK Broadband between 2016-2019 when its subsidiary sold the IPTV service program through the top carrier’s distribution channels, according to the KFTC.

SKT paid part of sales fees totaling about 19.9 billion won to retailers that SK Broadband should have shouldered.

The KFTC said the practice helped SK Broadband cement its status as the No. 2 player in the IPTV market.

The regulator plans to order them to correct the business practice and slap a fine of 3.19 billion won each on SKT and SK Broadband.

The watchdog stated it will closely monitor large business groups’ unfair support to their subsidiaries and take stern measures at any move to hurt market competition. 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.