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KT reports LG Uplus to watchdog for ‘irregularities’

Jan. 8, 2013 - 19:42 By Korea Herald
KT Corp., the country’s top fixed line and No. 2 mobile carrier, on Tuesday reported rival LG Uplus Corp. to the communications watchdog for illegally luring subscribers.

“KT has submitted a report to the Korea Communications Commission requesting a strict measure on LG Uplus, which has been receiving subscribers through illegal means despite its business suspension stemming from excessive subsidy payments,” KT said in a press release.

Since Monday, LG Uplus has been under a 24-day business suspension from attracting new users as part of the KCC’s punitive measures to clamp down on excessive subsidies.

Last month, the watchdog fined the country’s three major mobile carriers ― SK Telecom Co., KT and LG Uplus ― a combined 11.89 billion won ($11.18 million) in addition to imposing business suspensions for offering discriminative subsidies to lure customers.

Top player SK Telecom was fined 6.89 billion won and given a 22-day suspension, while KT was slapped with a 2.85 billion won fine and a 20-day ban. Smallest player LG Uplus received 2.15 billion won in fines in addition to the longest business suspension.

The KCC said it found the three companies had discriminated against subscribers by paying subsidies over 270,000 won to certain users between July and December last year. (Yonhap News)