“Aren’t We Just Door-to-Door Sales?”… Existing Customers of KT and LG Uplus Express Discontent Over 700,000 Won Cash Support for Number Portability

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KT and LG U+ Go All-In on Attracting SK Telecom Subscribers

As SK Telecom's termination penalty is waived until the 14th, KT and LG U+ are engaging in an all-out effort to poach SK Telecom customers.

With the launch of new Samsung smartphones and the upcoming abolition of the Device Protection Act on the 22nd, the mobile telecommunications market in July is exhibiting a reckless competitive landscape.

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There is ongoing criticism that no additional benefits are provided to 'already captured' customers, while benefits are exclusively directed toward 'new' customers.

'Existing Customers' Left Out Despite Subsidy Explosion

Outside KT and LG U+ stores, pickets overtly emphasizing "SK Telecom Termination Penalty Waiver" are lined up.

"Receive 700,000 KRW cash if you keep using your current device."

"Receive 700,000 KRW cash if you keep using your current device."

Such provocative phrases are seen as attempts to lure SK Telecom customers away.

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In online communities, price tags suggesting the Galaxy S25 can be purchased for around 200,000 KRW when switching carriers are being shared. A representative from a sales outlet stated, "The Galaxy S25 Ultra is around 350,000 KRW, while the basic S25 model is about 250,000 KRW." This means that a product with a retail price of 1,350,000 KRW could come with subsidies exceeding 1,000,000 KRW.

However, such 'subsidy explosions' only apply to new subscribers or customers switching numbers.

Existing KT and LG U+ customers are expressing dissatisfaction, saying, "We're paying the same amount, what's our situation?" and "Does it mean you don't need to feed the fish you've already caught?"

One KT customer remarked, "You’re offering 700,000 KRW in cash? If you just give 600,000 KRW, people will come. Can you at least reduce our next month’s bill by 100,000 KRW?" generating supportive responses.

KT and LG U+ 'Reverse Utilize' SKT's Customer Protection Measures

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Last month, SK Telecom announced the waiver of termination penalties as an apology for a security incident.

While this was a measure intended to restore customer trust, it has been pointed out that KT and LG U+ are taking this opportunity to excessively use subsidies as bait to attract subscribers, leading to heated competition in the telecommunications market.

The Korea Communications Commission is convening the three major mobile carriers to inspect deceptive and exaggerated advertising practices as well as illegal subsidies.

A KCC official stated, "Ahead of the abolition of the Device Protection Act, we will strengthen supervision to prevent consumer harm from reckless subsidy competition."

Criticism is arising regarding how the 'termination penalty waiver' measure, intended for customer protection, is being exploited by competitors as an excessive marketing strategy, undermining market order.

Voices are growing that establishing a sound competitive order in the telecommunications market is more important than simply poaching subscribers.

Image source: ytn, supplementary material for better understanding of the article / News1

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