Since October 1st, the Mobile Device Distribution Improvement Act(MDDIA) took effect. The aim of the MDDIA is to make the distribution of cellphones and the subsidy payment process more transparent. Therefore, subsidies cannot be designated for specific customers, but anybody who buys a cellphone can fairly receive a subsidy. Before the enforcement of the law, the amount of a subsidy was different in each region, so the price of cellphones was widely different even if a customer bought the same model. Also, cellphone shops gave more subsidies to customers who use their phones at high rates than customers who use them at low rates, so low-rate customers couldn’t expect to receive subsidies. To resolve this issue, the government settled the price of subsidies by using rates. Moreover, mobile carriers should notify about store prices, subsidies and selling prices of cellphones weekly to help customers.
  However, the reactions of citizens are negative now. Lee Yu-mi, the director general of the civic organization Consumer Watch, said, “The MDDIA increases the cellphone prices and decreases the welfare of customers. When mobile carriers don’t know about other carriers’ subsidies, they give more subsidies to attract the customers.” The MDDIA connects the price fixing of mobile carriers. Actually, the subsidies decreased. Before the enforcement of the law, the average subsidies were 420,000 won, but after the enforcement, it changed to about 100,000 won. Notifying about subsidy amounts and not allowing revision for 7 days equalized the subsidies of mobile carriers. Finally, the competition between mobile carriers has lessened and only the customer’s damage has increased.
  Customers have shown a variety of movements against the enforcement of the law. First, customers’ attention of overseas cellphones, which have low prices and high quality, are increasing. Second, secondhand cellphones that are slightly used are very popular among customers. According to statistics of the online shopping site, Ppomppu, the registration of the secondhand cellphone has increased by approximately 24.4% more than before the enforcement of the law. In this regard, a Ppomppu official said, “I think the secondhand and overseas cellphones grew in popularity due to the increased prices and this phenomenon will continuously last.”
  The Radio Wave Act will be revised to offer new criteria in December. After the enforcement of this, customers who purchase overseas electric appliances from abroad will have to certify their appliances. Therefore, customers should pay an extra charge such as an electrical certification price or a fee. It seems like the Korean government enforces the law to disturb customers who purchase cheap items from abroad and not from the expensive domestic market. The government should find loopholes in the existing law and should look at the law from the customers’ point of view.

By Oh Ah-ra
ar34@cbnu.ac.kr