As consumers increasingly seek used phones to alleviate device costs, the government's 'safe transaction system' for used phones has seen low utilization rates.
According to data submitted by Rep. Han Jun-ho of the Democratic Party to the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee on October 19, a total of 886 certificates for used phone transactions were issued from the system's implementation on May 28 last year through the end of September this year.
As of the end of September this year, 570 certificates had been issued, surpassing last year's total of 316. However, considering that the Korea Information Society Development Institute (KISDI) estimated the volume of used phone transactions between individuals at approximately 2.24 million last year, the system's usage remains limited. The 316 certificates issued last year represent about 0.014% of the annual transaction volume.
The safe transaction system for used phones was introduced to reduce consumer harm that may arise during the buying and selling process. It operates on two main pillars: the 'certification system for safe transaction businesses' and the 'transaction verification service.'
The certification system allows the government to certify used phone businesses that meet certain criteria, such as proper personal data deletion procedures and providing price information based on quality levels. This aims to reduce information asymmetry in the used phone market, where it is difficult to verify whether a seller has adequately deleted personal information or for buyers to assess fair prices.
The transaction verification service is designed to prevent issues where a seller might falsely report a lost or stolen device for insurance purposes, leading to the device being blocked from use. This service allows buyers to request the unblocking of devices based on the transaction verification certificate.
Many users are still unaware of the system. A survey conducted by the Ministry of Science and ICT in the first half of this year, involving 1,014 general users through Gallup Korea, found that only 11.1% reported being 'well aware' of the safe transaction system for used phones. In contrast, 39.7% indicated they were 'completely unaware.'
In a separate survey of 342 used phone distributors, 31.9% stated they were 'completely unaware' of the system. This highlights the need to increase awareness of the system not only among consumers but also in the actual used phone transaction market.
The government allocated 1 billion won (approximately $850,000) for the operation of the safe transaction system for used phones in both last year and this year. The Ministry of Science and ICT is promoting the system through portal search advertisements, monitor ads in apartment elevators, subways, and post offices, as well as partnerships with used transaction platforms. There are calls to analyze the effectiveness of these promotional efforts across different media to facilitate actual usage expansion.
Rep. Han stated, "Used phones are a practical alternative to reduce the burden of device costs, and the safe transaction system is a meaningful initiative that helps the public buy and sell used phones with confidence. Since it has not been long since its implementation, now is a crucial time to establish the system in the field." He added, "We need to broaden partnerships with used transaction platforms and create conditions for more businesses to participate in the certification process to strengthen the system."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.