Gov`t to induce lower rates for smartphone fees

To curb rising inflation, the government will review its approval of prices for mobile telecommunication services, which it considers an oligopolistic market, while inducing mobile phone service providers to lower rates on smartphones.

In addition, the amount of imported pork and powdered milk subject to the tariff quota system will be expanded to help lower food prices and ease inflationary pressure.

At a meeting with senior economic policymakers, Vice Strategy and Finance Minister Yim Jong-ryong said that despite steady falls in mobile telecommunications fees, the prices are higher for new smartphone services.

He added that the government will facilitate resale services providers’ entry into the market and review the way it approves prices charged by market-dominant service providers.

Yim also said his ministry will have the Korea Broadcasting Commission form a task force on telecom rates to analyze how Korean service providers set prices for their services, if the pricing practices are appropriate, and how the providers make profits and structure their businesses to induce them to lower prices.

The government also plans to expand the number of imported goods subject to the tariff quota system to help stabilize prices.

“We will expand the amount of imported pork and powdered milk subject to the tariff quota system to remove market anxiety caused by recent price instability,” he said, noting that the plan aims to bring in the maximum amount of imports possible to help the market reach a supply-demand balance.

The ministry will also raise the number of goods subject to the tariff quota system.

witness@donga.com