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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] According to the telecom industry on Monday, SK Telecom, KT, and LG Uplus, the three major mobile carriers in South Korea, have accounted for the antitrust fines imposed by the Fair Trade Commission (FTC) in their 2024 financial statements, which have now been finalized.
The fines, which were imposed last month by the FTC for colluding on sales incentives, amounted to 42.6 billion KRW for SK Telecom, 33 billion KRW for KT, and 38.3 billion KRW for LG Uplus.
In its business report, KT stated, "Based on the FTC press release (March 12, 2025), fines of approximately 33 billion KRW and corrective orders to prohibit similar joint conduct are expected to be imposed." KT also reported a 57.8% year-on-year decline in its net income, which amounted to 417.1 billion KRW, due to the decrease in operating profit and the impact of the FTC fine.
LG Uplus also mentioned in its business report that the FTC held a full committee meeting regarding suspected violations of the Fair Trade Act related to illegal joint actions concerning the net increase and decrease of number portability subscribers among the three telecom carriers. Based on the press release, the company expects fines of approximately 38.3 billion KRW and corrective orders.
SK Telecom did not specify the exact amount of the fine but confirmed that an FTC investigation was conducted last year regarding collusion among telecom companies, and a full committee meeting was held in March 2025.
These fines are reflected as "Other Operating Expenses" in the telecom companies' financial statements, thus reducing their operating profits.
However, since all three telecom companies plan to take legal action, including administrative litigation, these amounts are likely to be treated as prepaid fines to the FTC, with the possibility of subsequent refund claims.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
