SK Telecom hit with a fine, suspension over illegal rebates

Industry

SK Telecom hit with a fine, suspension over illegal rebates

The Korea Communications Commission (KCC) on Thursday afternoon slapped the nation’s largest mobile carrier, SK Telecom, with a 23.5 billion won ($21.2 million) fine and a seven-day suspension of operations for offering its customers illegal rebates in mid-January for the Samsung Galaxy Note 4 and iPhone 6 models. The precise operation suspension period has not yet been decided, as the mobile market is getting ready for the much-awaited Samsung Galaxy S6 to be released at the beginning of April.

The KCC opened an investigation into SK Telecom after it was accused of initiating illegal rebates in January.

The Korea Mobile Distributors Association issued a statement later in the afternoon saying it was concerned about the KCC’s decision, fearing the suspension on the market’s largest player may result in huge sales losses for small retailers affiliated with SK.