Exclusive: 'They promised a free phone, then went silent': Telecom contract disputes rise every year

In one case, a consumer identified only as "A" was promised by a seller that the remaining installment balance on a handset would be paid off and previously paid installments refunded during a device upgrade — but the seller later became unreachable and never followed through.

In another case, a consumer identified as "B" agreed to trade in an existing device in exchange for a new one at no cost, only to find that a store manager had signed the contract on the consumer's behalf without consent, resulting in installment charges being billed. The manager then promised to cover the payments but went silent.

The number of consumers filing telecom dispute mediation requests after being promised handset installment coverage or subsidies that were never delivered is on the rise. Disputes over contract changes and cancellations — not just initial purchases — are also increasing, prompting calls for stronger oversight of unfair sales practices in the mobile telecommunications market.

Data submitted Tuesday to the office of People Power Party lawmaker Park Jeong-ha of the National Assembly's Science, ICT, Broadcasting and Communications Committee by the Korea Communications Commission showed that 350 telecom dispute mediation requests related to mobile service contract signings were filed last year — a 180 percent increase over three years. By carrier, SK Telecom recorded the most at 142 cases, followed by LG Uplus with 112 and KT Corp with 96.

The Telecommunications Dispute Mediation Committee, established in 2019, handles disputes between telecommunications providers and users. The number of mediation requests related to service contract signings has set a new annual record every year since 2023.

The upward trend has continued this year, with 335 service contract dispute mediation requests filed through September — 123 from SK Telecom, 120 from LG Uplus and 92 from KT Corp. That figure already represents 95.7 percent of last year's full-year total, making it likely that 2026 will set yet another record.

Related complaints received by the Korea Communications Commission have also risen. Of the complaints filed through the government's online petition portal through September, 52 contained keywords related to "mobile phones," "sales" or "incomplete" contracts in their titles or summaries — already surpassing last year's full-year total of 49.

Overall contract-related disputes — including changes and cancellations, not just new signings — have also grown. SK Telecom saw dispute mediation requests rise from 301 last year to 314 through September this year. Over the same period, LG Uplus went from 188 to 278, and KT Corp from 156 to 308. All three carriers surpassed their full-year last-year totals within just nine months.

Resolving disputes takes an average of roughly two months. This year's average processing times by carrier were 49.0 days for SK Telecom, 81.9 days for LG Uplus and 68.6 days for KT Corp, with LG Uplus exceeding 80 days on average.

The surge in disputes over mobile phone sales and contracts has heightened concerns about unfair practices in the handset retail market. While the government repealed the Act on the Distribution and Consumer Protection of Mobile Devices to promote competition in the mobile market, critics say regulatory safeguards are still needed to protect consumers from misleading sales pitches and unfulfilled contract terms.

The government is reportedly planning measures that would require carriers to separately notify users when a mandatory rate plan maintenance period — such as a six-month requirement tied to certain plans — expires, with the aim of strengthening disclosure and protecting consumer choice.

"Contract disputes arising from mobile phone purchases are growing steadily, and I am concerned about the harm being done to consumers," Park said. "After the repeal of the handset distribution act, we must strengthen oversight to ensure that competition in the telecom market does not translate into unfair sales practices, and put in place measures to protect users."