Telecom Operators Must Notify Users of Optimal Plans; Stricter Penalties for Illegal Activations

Government Expects Reduction in Household Telecom Expenses

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Going forward, telecommunications companies will be required to periodically notify users of the most suitable mobile plans based on their data usage patterns and other behaviors. The aim is to help households reduce their telecommunications expenses by enabling users to select plans that best fit their needs.

On March 24, the Ministry of Science and ICT announced that the Cabinet had approved amendments to the Telecommunications Business Act containing these provisions. The revised Act, passed at the Cabinet meeting on this day, consolidates 12 legislative bills proposed by both ruling and opposition party lawmakers.

According to the amendment, telecommunications service providers must analyze users' data usage patterns and periodically notify them of the optimal mobile plans, thereby supporting users in making reasonable choices regarding their plans.

To prevent crimes such as voice phishing, the obligations and penalties for managing agencies and retail stores related to fraudulent mobile phone activations will be significantly strengthened. If a telecommunications company neglects to manage, supervise, or monitor its agencies or retailers, resulting in a large number of contracts being made using fraudulent methods such as using another person's identity, this can now be grounds for revocation of registration or suspension of business operations.

Additionally, telecommunications service providers will be required to inform users about the illegality of so-called "ghost phones" (phones registered under false identities) and the risk of their criminal misuse during the identity verification process. They will also be mandated to operate user protection manuals to respond to security breaches and, in urgent cases requiring user protection, the authorities will have the legal basis to order necessary measures to relevant service providers.

Choi Woo-hyuk, policy chief of the Information Security and Network Policy Bureau, stated, "This amendment will serve as an important foundation for citizens to more easily choose the most reasonable plans that match their personal communication consumption patterns. We will implement the optimal plan notification system without delay to reduce household telecom expenses, while also making every effort to eradicate crimes involving ghost phones and to protect the public from cyber threats."

The revised Telecommunications Business Act, approved at the Cabinet meeting on this day, will take effect six months after its promulgation. The Ministry of Science and ICT plans to closely communicate with related industries, experts, and consumer groups to swiftly prepare the necessary subordinate regulations.

This content was produced with the assistance of AI translation services.