By Yoon Sung-won



Among all OECD member nations, consumers in Korea pay the highest prices for mobile handsets.



"Some domestic handset manufacturers charge the most both for basic and premium phones," said Rep. Moon Byeong-ho of the opposition New Politics Alliance for Democracy, citing a report from the Ministry of Science, ICT and Future Planning.



The ministry's report, based on data released in March by Gartner, a global market researcher, placed Korea above both Japan and the United States in terms of handset prices.



"Korea's handset prices were the highest among the OECD member nations in 2013," said Rep. Moon. "When one considers that national income per capita stood at $22,670 in 2012, ranking 25th in the world, it's a serious problem."



The report stated that handset makers in Korea priced their basic phones at $230.56 on average in 2013. Japan ranked second at $200.72, in contrast with the previous two years when handsets in Japan were the most expensive. The average price of a basic handset in Japan was $301.58 in 2011 and $268 in 2012.



Korea's premium phones were priced at $512.24, surpassing the U.S. average of $505.38 last year. The United States ranked third in this market segment, having held the top spot for the previous two years with $410.98 in 2011 and $492.99 in 2012.



The lawmaker urged the governments to require full disclosure regarding production costs, as well as the amount that companies provide in subsidies to lure consumers.



"The government should make handset makers and telecom companies come clean," Moon said.



Once subsidies are taken into account ― the incentives that manufacturers and carriers offer to promote their latest models ― these disparities widen. The factory price of Samsung Electronics' Galaxy Note 4 is $825.99 in the United States and 870,000 won ($810.81) in Korea, excluding the value added tax.



With those subsidies deducted, handset prices go down to $299 in the United States but only 760,000 won ($708.29) here because the two countries have different rules regarding maximum subsidies.



However, a source from the telecom industry said it was necessary to consider the different market environments before rushing to the conclusion that all Korean consumers are being overcharged ― for example, carriers offer other discounts in addition to handset subsidies.



"If they sign contracts agreeing to use a certain mobile carrier for a certain period, Korean consumers receive discounts on the monthly installments they pay for their handsets," the source said. "The recent data from the ministry also does not reflect differences in the market environments in different countries ― for example, the different sizes of their telecom markets."



Samsung Electronics and LG Electronics declined to make official statements on this issue.



Meanwhile, the People's Solidarity for Participatory Democracy said Sunday that it planned to file complaints related to overpricing against three major Korean handset makers and three mobile carriers. The manufacturers are Samsung, LG and Pantech and the carriers are SK Telecom, KT and LG Uplus.



