South Korea said on Monday it had fined the country's telecom service providers, including fixed-line monopoly KT Corp and mobile firm SK Telecom Co, a total of 5.3 billion won for unfair marketing. The information ministry, concerned that a fight for customers is disrupting its telecoms market, has fined operators and barred them from signing up new customers for what it considers unfair marketing.
The ministry said in a statement that mobile operators were charging clients for services they did not use, while Internet service providers had offered selected customers a price cut to lure them away from rivals.
The ministry fined KT Corp, which controls 94 percent of local fixed-line calls and half of broadband Internet services, 2.6 billion won ($2.6 million). It fined smaller rivals hanarotelecom inc. and Dacom Corp 630 million won and 90 million won respectively.
SK Telecom, the country's mobile operator, was fined 1.4 billion won, second-ranked KTF Co Ltd 360 million won and the smallest, LG Telecom Co Ltd, 230 million won.
Competition in the country's telecoms industry intensified after South Korea introduced number portability, which allows subscribers to keep their phone number when changing service provider.
The news came after the close of share trading in Seoul. Shares in KT closed down 0.5 percent at 41,200 won and SK Telecom dropped 0.3 percent to 181,000 won.
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