Telecommunications fee reductions put a heavy burden on telecommunications companies, with the burden exceeding 1 trillion won by 2023 - South Korea

According to documents submitted by the Ministry of Science, ICT and Communications, Article 4 of the Telecommunications Business Act states that the telecommunications industry must not use electronic communications equipment or other electronic devices.
The law requires telecommunications carriers, including the three companies, to provide universal services such as fee reductions and to provide loss protection. However, the scale of loss protection has become very large, which has come to the fore as a problem.
The amount of compensation for losses to telecommunications companies from some general services such as public telephones is 60 billion won (about 6.625 billion yen) per year, and the amount of loss protection from fee reduction services, etc. is 1.26 trillion won.
The amount of the reduction in communication charges will reach 1.26 trillion won in 2023, up from 630 billion won in 2018.
In 2000, when the system was first introduced, only those who received basic living allowances, which were intended for people in financial difficulty, were eligible for the reduction in communication charges.
In 2015, the system was expanded to the next highest income bracket below a certain level, and in 2017, it was expanded to pension recipients. Reduction and exemption services have also been expanded from telephones used within the company to include high-speed internet, etc.
The number of people eligible for fee reductions in South Korea is 15.1% of the total, which is higher than the 2.2% in the U.S. Rep. Lee said, "Public budgets need to be allocated for policies targeting those who are struggling to make ends meet."