Thursday, December 27, 2012

South Korea frowns on steep phone subsidies, bans new carrier customers for most of January

[![South Korea slaps down phone subsidies, bans carriers from signing new contracts through most of January](http://www.blogcdn.com/www.engadget.com/media/2012/12/android-and-iphone-in-south-korea.jpg) ](http://www.engadget.com/2012/12/27/south-korea-frowns-on-steep-phone-subsidies/)

South Korea is an ocean apart from North America in more ways than one. Where US and Canadian carriers virtually center their businesses around heavily subsidized phones, the [Korea Communications Commission](http://www.engadget.com/tag/KoreaCommunicationsCommission/) is discouraging the idea. The agency isn't just fining KT, LG U+ and SK Telecom for offering device discounts beyond 270,000 won ($252), it's banning those networks from taking new subscribers for as many as 24 days in January -- they'll have no choice but to serve their existing bases for most of the month. The providers are unsurprisingly miffed, although the punishment may be a win for customers who won't necessarily be as indebted to their carriers when they spring for a [Galaxy Note II](http://www.engadget.com/2012/10/08/samsung-galaxy-note-ii-review/) or [Optimus G](http://www.engadget.com/2012/10/19/lg-optimus-g-review-a-quad-core-powerhouse-with-nexus-aspiratio/).

Filed under: [Cellphones](http://www.engadget.com/category/cellphones/), [Mobile](http://www.engadget.com/category/mobile/)

**[Comments](http://www.engadget.com/2012/12/27/south-korea-frowns-on-steep-phone-subsidies/#comments)**

**Via:** [Unwired View](http://www.unwiredview.com/2012/12/27/south-korean-carriers-banned-from-gaining-new-customers-in-january-the-reason-device-subsidies/)

**Source:** [Telecompaper](http://www.telecompaper.com/news/korean-mobile-firms-fined-to-face-sales-ban--915968?ystfuv)

URL: http://www.engadget.com/2012/12/27/south-korea-frowns-on-steep-phone-subsidies/

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