SEOUL, May 8 (AJP) - Telecom provider KT was fined 640 million won (about US$460,000) for failing to properly inform customers about available benefits and subscription-related terms when accepting pre-orders for Samsung's handsets in January last year, the Korea Media and Communications Commission said on Friday.
After a meeting at the government complex in Gwacheon in Gyeonggi Province, the communications watchdog decided to impose the fine along with corrective orders, citing damage to customers' rights and harm to their interests.
The punitive measures came more than a year after the commission launched its investigation in February last year. It found that KT had misled customers by telling them benefits were available to all when accepting pre-orders for Samsung's flagship Galaxy S25, although they were limited to the first 1,000 customers.
KT blamed the incident on a clerical error by staff. But the commission also found that KT had unilaterally canceled some 7,127 pre-orders placed through certain online platforms for some reason.
The commission ordered KT to clearly inform customers of all terms and conditions including pre-order details, and to make the process more transparent. "There were shortcomings in our pre-order process at the time, but all related procedures have since been improved," a KT staffer said.
"We will continue to closely monitor for any false or exaggerated ads and promotions to minimize inconvenience for customers using mobile services," the commission's chairman Kim Jong-cheol pledged.
After a meeting at the government complex in Gwacheon in Gyeonggi Province, the communications watchdog decided to impose the fine along with corrective orders, citing damage to customers' rights and harm to their interests.
The punitive measures came more than a year after the commission launched its investigation in February last year. It found that KT had misled customers by telling them benefits were available to all when accepting pre-orders for Samsung's flagship Galaxy S25, although they were limited to the first 1,000 customers.
KT blamed the incident on a clerical error by staff. But the commission also found that KT had unilaterally canceled some 7,127 pre-orders placed through certain online platforms for some reason.
The commission ordered KT to clearly inform customers of all terms and conditions including pre-order details, and to make the process more transparent. "There were shortcomings in our pre-order process at the time, but all related procedures have since been improved," a KT staffer said.
"We will continue to closely monitor for any false or exaggerated ads and promotions to minimize inconvenience for customers using mobile services," the commission's chairman Kim Jong-cheol pledged.
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