Constitutional Court Upholds Law Restricting Subsidies on Mobile Devices

(image: KobizMedia/ Korea Bizwire)

SEOUL, May 26 (Korea Bizwire) — The Constitutional Court on Thursday upheld a law that restricts subsidies on the purchase of smartphones and other mobile devices.

The regulation, which sets the legal limit of subsidies at 330,000 won (US$295), was adopted to bring transparency and stability to the market long distorted by subsidies as telecom carriers vie for customers.

Eight plaintiffs filed a petition with the court three days after the law took effect on Oct. 1, 2014, saying it infringes upon consumers’ rights.

In a unanimous decision, the eight-member panel said the law actually prevents excessive competition in giving out subsidies and protects consumers by establishing a transparent distribution order.

Regardless of the ruling, the legal ceiling will be abolished from October as it was adopted from the beginning with a three-year limit.

The revocation could be moved forward that was one of President Moon Jae-in’s pledges. The National Assembly could pass a revised bill during its extra session next month, at the earliest.

(Yonhap)