Mobile subsidy law scrapped

[Anchor]

The so-called 'mobile subsidy law' that regulated the mobile communication market has been completely abolished after 11 years.

There were high expectations for how much mobile phone prices would drop.

On the first day of the subsidy law's repeal, reporter Kang Pu-reun investigated what changes occurred on the ground.

[Report]

A street densely populated with mobile phone stores.

Signboards announcing the repeal of the subsidy law have been set up.

How much have the prices of the latest mobile phone models dropped?

[A store employee/voice altered: "The common subsidy is 500,000 won, and with the additional distribution network subsidy of 300,000 won, it will be a total of 800,000 won off."]

The store next door offers an additional 100,000 won in subsidies.

[B store employee/voice altered: "The maximum is almost 900,000 won? The retail price is 1,480,000 won, but with the discount, it will be in the 500,000 won range."]

On the first day of the subsidy law's repeal, stores are competing to offer more subsidies to customers.

With the upper limit on additional support from the distribution network removed, there are predictions that 'free phones' and even 'negative phones' where customers receive money back will emerge.

[Lee Young-joo/mobile phone buyer: "I bought it much cheaper. The last one I bought was around 1,450,000 won. I paid 585,000 won, so it's pretty good."]

The reactions from mobile carriers are still lukewarm.

The common subsidy amounts announced by the three major mobile carriers on the first day are around 600,000 won for the latest 'Galaxy' model.

This is only a 100,000 won increase compared to before the repeal.

The reason is that over the past 10 years, device prices have soared and the monopoly system has solidified, making it difficult to have the same 'unlimited competition for subsidies' as before.

[C store employee/voice altered: "I don't have anything to say yet. There hasn't been any announcement. I think we need about 3 or 4 days."]

The Korea Communications Commission will begin on-site inspections regarding high-priced plans and the imposition of additional services starting tomorrow (July 23).

This is KBS News, Kang Pu-reun.