The typical price of mobile phones in South Korea is about 2.6 times higher than the global average, according to a politician who claimed local manufacturers are reluctant to release low cost models.
Citing data from Gartner, representative Byun Jae-il of the ruling Democratic Party said the average handset price in the country from 2015 to Q2 2017 was $514 compared with the global figure of $197,Yonhap News Agency reported.
Over the period, the typical price of Samsung’s handsets in its domestic market was $508 compared with $223 globally, while LG’s average was $361 compared with $176 globally.
Gartner figures also showed premium smartphones accounted for nearly 88 per cent of total handset sales in South Korea in Q4 2016 compared with 32 per cent in the global market, Yonhap reported.
The news agency also cited figures from consumer rights group Green Consumers Network, which in September announced 75.6 per cent of people in the country feel burdened by telecoms-related costs due in large part to the high price of handsets. The group reportedly drew the conclusion after quizzing 1,000 people in a survey.
Byun told Yonhap cutting the cost of subscriptions was not sufficient to reduce “the burden on households” and called on the government to expand the range of handsets available, and promote sales of lower cost devices.
A controversial handset subsidy limit was discontinued at the end of September after being in effect for three years. The Korea Communications Commission (KCC) said it would introduce other measures to stabilise the market once the subsidy cap is removed.
In August the government pushed through a campaign promise by President Moon Jae-in to cut telecoms expenses by increasing the discount mobile operators must offer customers who sign up for new one-year or two-year contracts.
The switch required the country’s three mobile operators – SK Telecom, KT and LG Uplus – to give new customers a 25 per cent discount on standard mobile rates, up from the previous 20 per cent.
