[wsj] South Korea's telecommunications regulator said Thursday it will limit the amount telecom companies spend on marketing, in a widely expected move aimed at cooling intense competition and boosting profits in one of the world's most saturated telecom markets.
The Korea Communications Commission, or KCC, said in a statement that the country's major mobile operators—including KT Corp., SK Telecom Co., LG Telecom Co. and SK Broadband—shouldn't spend more than 22% of their respective revenues from fixed-line and wireless businesses on marketing.
The regulator said it expects the move, which take effect from May, to help lower total marketing costs to around 7.03 trillion won ($6.14 billion) this year, sharply down from the 8.02 trillion won spent last year.
"Marketing costs have continued to increase in the past despite telecom firms promising to ease fierce marketing rivalry," KCC said in the statement.
South Korea to Cap Telecom' Marketing Costs
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