Democratic Party of Korea lawmaker Kim Nam-kuk [provided by the lawmaker's office]
Democratic Party of Korea lawmaker Kim Nam-kuk [provided by the lawmaker's office]

Democratic Party of Korea lawmaker Kim Nam-kuk, who represents Ansan in Gyeonggi Province, urged a sweeping overhaul of regulatory oversight at a National Assembly national audit of the Science, Technology, Information, Broadcasting and Communications Committee on Monday, citing a regulatory vacuum and consumer harm caused by so-called "yeokkeuppon" and other alliance-type mobile phone retail networks.

Data obtained by Kim showed that the number of retail outlets affiliated with major alliance-type sales networks — as tracked by telecommunications carriers — surged from 251 in 2024 to 757 this year, roughly tripling in two years.

An analysis by the Korea Communications Commission of five major alliance-type networks found that from 2024 through Oct. 6, prior-approval revocations — the equivalent of a loss of operating eligibility — numbered 255, while sanctions related to "mobile activations," in which a subscriber's line is opened at a store other than the one they visited, reached 93.

An on-site inspection by the Korea Communications Commission in August confirmed instances of illegal and improper practices in which stores whose prior approvals had been revoked continued processing activations through other agencies. An investigation is also underway into the use of unauthorized programs that bypass ID-card scanners.

"When the store that actually consulted and sold to a customer differs from the store recorded in the activation log, it can become unclear who bears responsibility in the event of a contract dispute over subsidy payments," Kim said. He also said that personal information and ID documents belonging to subscribers risk being compromised as they are passed between outlets.

Kim also raised concerns that some retailers in effect compel customers to sign up for premium rate plans and paid add-on services, and even impose their own penalty fees, restricting consumer choice and driving up telecommunications costs.

"These sales networks have already transformed into large alliance organizations connecting hundreds of stores, yet the government's oversight still centers on individual retail outlets," Kim said. "If a franchisor is substantively involved in customer recruitment and sales policy, it must also be held to a corresponding level of management responsibility."

Korea Communications Commission Chairman Kim Jong-cheol said in response that he "deeply feels the weight of responsibility" for the issues Kim raised, and pledged to "work more actively to expand sales accountability and to ensure violations are properly detected."


bigroot@heraldcorp.com