Gov’t to abolish handset subsidy ban, mandated holiday closures for large supermarkets

Jan 23, 2024, 09:13 am

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Government Policy Coordination Minister Bang Ki-sun claps his hands after the presentation of Lee Jung-won, second deputy chief of the Office for Government Policy Coordination during a government-public debate, the fifth in a series of sessions, held at the Korea Creative Content Agency in Seoul on January 22, 2024./ Source: Yonhap News

By AsiaToday reporter Hong Sun-mi

The South Korean government on Monday announced its plans to abolish the controversial Mobile Device Distribution Improvement Act, which currently bans mobile carriers from providing excessive discounts or illegal subsidies to customers, as part of efforts to lower the financial burden on consumers for communications service.

The government will also abolish regulations forcing large supermarkets to close on holidays, and allow small-sized bookstores to offer greater discounts on their books.

The Office for Government Policy Coordination made the announcement during a government-public debate, the fifth in a series of sessions, led by Government Policy Coordination Minister Bang Ki-seon.

“If regulations go against the fair market and fail to increase the welfare of the people, it is necessary to scrap them,” Bang said, stressing the urgent need to improve mobile phone subsidies, book prices that limit book discounts, and mandatory closures of large stores on public holidays.

The Mobile Device Distribution Improvement Act, enacted in 2014, bans mobile carriers from providing excessive discounts or illegal subsidies, aiming to bring transparency to a market. However, the law has sparked controversies by restricting competition among mobile carriers for providing subsidies, depriving customers of opportunities to purchase handsets at lower prices.

The government has also decided to scrap the mandatory shutdown obliging large supermarkets to close their businesses on the second and fourth Sunday of every month, in order to resolve consumer inconveniences.

Under the relaxed regulations, large supermarkets can designate their closure days on weekdays and will be allowed to operate online shopping regardless of their business hours.

The government will also push forward measures to allow small bookstores to offer more significant discounts on their books, currently limited at 15 percent.

However, all three measures require law revisions and need approval at the National Assembly.

Meanwhile, President Yoon Suk-yeol, who had previously led all four sessions, did not attend Monday’s debate due to health issues.

Still, he has instructed the government to come up with ways to lower the price of cellular phones as soon as possible, according to presidential office.

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