On the 9th, a ‘SKT Penalty Waiver’ posting is attached to a KT store in downtown Seoul./Courtesy of Jeong Du-yong

KT has confirmed that it is providing an additional sales incentive of 150,000 won to attract SK Telecom subscribers who received a penalty waiver.

On the 9th, according to ChosunBiz, Merchanters in the metropolitan area handling mobile and internet services from SK Telecom, KT, and LG Uplus recently announced that "if a SK Telecom subscriber switches their mobile or wireline services to KT, they will receive up to 150,000 won per transaction." The number portability policy has been in effect since the 1st and will be maintained until the 14th. It was shared that similar policies for wireline (internet and TV) services will continue until the 31st.

KT's strategy of providing preferential treatment for switching SK Telecom subscribers is also being implemented in rural areas. It is reported that mobile and wireline services will reward SK Telecom subscribers with an additional sales incentive of 70,000 won when they switch to KT in the Chungcheongnam-do and Chungcheongbuk-do mobile phone distribution networks.

Sales outlets utilize the sales incentives provided by the three mobile carriers as financing for illegal subsidies (rebates) offered to customers. The Mobile Device Distribution Improvement Act prohibits discriminatory practices towards customers based on subscription type and rate plans. An industry insider noted, "Providing benefits only to specific customers is subject to legal regulation," adding, "KT is taking extreme measures to recruit customers despite being aware of the illegality."

On the 4th, when ‘SK Telecom Penalty Waiver’ is announced, an advertisement is posted on the KT website. As controversy arises over excessive marketing, KT removes this advertisement./Courtesy of online capture

Meanwhile, KT's website featured an advertisement stating, "Switch to KT without SK Telecom cancellation penalties! Move your number safely now," which was deleted after sparking controversy.

A spokesperson from KT commented on the marketing strategy for "preferential treatment for switching SK Telecom subscribers," saying, "It occurred in the process of maximizing business opportunities at some distribution points," and added, "We confirmed the matter and took immediate action. We will manage it to prevent similar cases from occurring in the future."

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