Reforms to Stamp Out Abuses, Unfair Practices in Telecommunications Industry | Be Korea-savvy

Reforms to Stamp Out Abuses, Unfair Practices in Telecommunications Industry


At its 33rd full attendance meeting on September 20, the Korea Communications Commission's subject of discussion revolved around a regulatory package of reforms aimed at the telecommunications industry. (Image: Yonhap)

At its 33rd full attendance meeting on September 20, the Korea Communications Commission’s subject of discussion revolved around a regulatory package of reforms aimed at the telecommunications industry. (Image: Yonhap)

SEOUL, Sept. 20 (Korea Bizwire)At its 33rd full attendance meeting on September 20, the Korea Communications Commission’s subject of discussion revolved around a regulatory package of reforms aimed at the telecommunications industry. 

One of the inefficiencies targeted for reform is the existing system in which disputes between companies and customers can only be resolved via two means (for the customer): a lawsuit, or arbitration through the Korea Communications Commission (KCC). Both routes not only take a long time, but they are also tedious and complicated procedures to work through.

Instead, the discussed reforms will ensure that any problematic behavior exhibited by a company – such as demands for excessive payment and arbitrary service stoppage – can be quickly and efficiently addressed by consumers.

The reforms will also engender greater transparency in regards to product recalls caused by malfunctioning parts. If such a problem is discovered and a recall is deemed necessary, the telecommunications company will be legally required to inform customers on the rights and services guaranteed to them throughout the recall process. 

Instead, the discussed reforms will ensure that any problematic behavior exhibited by a company – such as demands for excessive payment and arbitrary service stoppage – can be quickly and efficiently addressed by consumers. (Image: Yonhap)

Instead, the discussed reforms will ensure that any problematic behavior exhibited by a company – such as demands for excessive payment and arbitrary service stoppage – can be quickly and efficiently addressed by consumers. (Image: Yonhap)

The proposed legislation is regarded as a response to criticisms of the report “Guidelines for Recalls of Mobile Communications Devices” that was released last December in a collaborative effort between the KCC and the Ministry of Science and ICT. Certain groups panned the report, remarking that the lack of legal ramifications rendered the guidelines insufficient. The latest reforms have buttressed last year’s guidelines and have also expanded the scope of the original document to encompass the entire telecommunications industry. 

The reforms will also ensure that wired telecommunications service providers (landline phones, TV) will no longer be able to exercise the right to refuse or restrict fair distribution of profits pertaining to digital content, an industrywide regulation already in place among wireless telecommunications and mobile communications service providers. 

To enforce these provisions, the KCC has proposed a financial penalty of up to 0.3 percent of a company’s daily standard revenue for those who refuse to acquiesce to the regulatory body’s investigatory powers.

The regulatory package of reforms will undergo deliberation by the Ministry of Government Legislation and additional governmental committees before being submitted for discussion at the National Assembly in March of next year.

After the meeting was adjourned, chairman Lee Hyo Sung expressed his anticipation that the discussed reforms will play a role in strengthening customer safety.

 

S.B.W. (sbw266@koreabizwire.com) 

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