Thinking of getting a new phone in Korea? There’s been a big change you should know about.
As of July 22, 2025, Korea scrapped its phone subsidy law—aka “단통법 (Dantongbeop).” That means phone prices, discounts, and contracts might look very different now.
Some deals might seem great, even offering “free phones.” But be careful—there could be strings attached.
This guide will break it all down: what changed, what to check before signing, and how to avoid costly mistakes.
Korea’s Unique Phone Subsidy System—Why It’s So Different
If you’re new to Korea, you might be surprised by how phones are sold here. In many countries, you buy a phone outright or pay in installments, then choose a mobile plan separately. But in Korea, phone purchases are often tightly linked to carrier contracts—and that’s where things get tricky.
Until recently, phone prices were controlled by law. Carriers offered a fixed discount (called “official subsidies”), and stores could add just a little more on top. It meant fewer flashy deals—but also less confusion.
Another unique point: so-called “free phones” (zero upfront cost) have been popular in Korea. But they often came with hidden conditions—like expensive monthly plans, long contracts, or extra services you didn’t ask for. If you didn’t read the fine print, that free phone could cost you more in the long run.
Understanding this system is key to making smart decisions in Korea’s mobile market.
What Changed in July 2025? The End of “Dantongbeop”
Korea is set to officially repeal the “Dantongbeop” law on July 22, 2025, ending a phone subsidy system that’s been in place since 2014. This law was meant to stop unfair price competition between stores and to lower phone bills. But over time, it became unpopular. Many customers felt their choices were too limited, and real discounts became rare.
With the repeal, big changes arrived:
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No more official subsidies: Carriers no longer have to publish fixed discount amounts.
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Store-level freedom: Each store (even within the same carrier) can now offer different deals.
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Mixed benefits allowed: You may be able to combine the 25% monthly rate discount (called “selective discount”) with extra cash-back or price cuts from stores.
This all sounds like good news—but it also means more responsibility on you, the buyer. Prices and conditions will now vary more than ever. Without clear rules, some stores might hide tricky conditions or charge hidden fees.
So before you jump on that “free phone” offer, take a moment to understand what’s really included—and what strings might be attached.
5 Things Every Foreigner Should Double-Check Before Signing
Phone stores in Korea can feel overwhelming, especially if you’re not fluent in Korean. But don’t worry—here are five essential things to check before signing any phone contract, especially after the 2025 law change:
1. Who’s giving the discount?
Is the discount from the carrier or just the store? Store-only discounts may come with extra rules or fewer protections.
2. How is the discount applied?
Is the price lower upfront, or will you get a discount on your monthly bill? Some “cheap” phones look cheap only because you're tied to an expensive plan.
3. What’s the required plan?
Many deals require you to use a high-tier plan for a minimum period. If you switch early, you may lose the discount or pay a penalty.
4. Are you being forced into extras?
Some stores require you to sign up for unnecessary services, like video apps or insurance. Ask if they’re optional, and if there are penalties for canceling them.
5. Is this a bundle?
Be careful if the deal includes internet, TV, or other services. These bundles often come with their own contracts and penalties.
💡Tip: Always ask for a printed breakdown of the contract. Don't rely on verbal explanations. If possible, bring a Korean-speaking friend or use a translation app.
Contracts in Korea can be long and detailed. But reading the fine print is your best defense. Taking 10 minutes to double-check can save you months of regret.
Carrier Contract or SIM-Free? What Works Better for Expats
In Korea, you can either get a phone through a carrier contract (with monthly payments and discounts) or buy a SIM-free/unlocked device and pair it with a prepaid or MVNO plan.
Which is better? It depends on your needs and how long you plan to stay.
Choose a carrier contract if:
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You plan to stay in Korea for at least two years
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You want the latest phone but prefer not to pay the full price upfront.
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You’re okay with a fixed plan and long-term commitment.
Choose SIM-free + MVNO if:
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You want flexibility and low monthly fees.
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You already own a phone that works in Korea.
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You’re here short-term or don’t want to deal with contracts.
For many expats, especially students or working holiday visa holders, buying an unlocked phone and using an MVNO SIM is the simplest and cheapest option. But if you’re staying long-term and want a premium phone, a contract might save you money upfront—as long as you read the fine print.
Are “Free Phones” Really Back? What You Need to Know
With the law change, you’ll likely see “₩0 phones” advertised again—especially in busier neighborhoods or on flyers near subway stations.
But remember: “free” rarely means truly free.
Most of these deals come with conditions like:
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Expensive monthly plans you must stick with for 2–3 years.
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Required add-on services (insurance, video apps, etc.).
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Penalties for early cancellation or plan downgrades.
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Sometimes even extra lines or bundled products (like internet or IPTV).
Some stores may not explain these clearly unless you ask directly. So if a deal sounds too good to be true, ask:
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“How long do I need to stay on this plan?”
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“Are there cancellation fees?”
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“What services are included, and are they optional?”
It’s okay to walk away and compare offers at other stores. There’s no rush—and no such thing as a truly free phone without conditions.
How to Actually Open a Phone Plan in Korea (for Foreigners)
If you’re a foreigner living in Korea, you’ll need a few key documents to sign up for a mobile plan:
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Alien Registration Card (ARC) – required for most postpaid contracts.
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Proof of address – sometimes needed (e.g., lease, bank letter).
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Passport – for ID verification.
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Korean bank account or debit card – for monthly payments.
Some carriers won’t allow installment payments for foreign customers, especially without credit history. In that case, you may need to pay for the device in full upfront or choose a prepaid SIM plan instead.
Also, if you’re in Korea short-term (tourist, business trip, language course), you can consider:
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Prepaid SIMs from convenience stores or airports.
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eSIM activation via official carrier websites or select MVNOs.
⚠️ Not all MVNOs accept foreign customers, and English support can be limited. Stick to larger names like KT M Mobile, U+알뜰모바일, or SK 7 Mobile for smoother experience.
Opening a plan in Korea isn’t impossible—but knowing what to prepare can save you time, stress, and repeat visits.
5 Smart Tips to Save Money When Buying a Phone in Korea (2025 Update)
1. Compare at least 2–3 stores.
Even within the same carrier, each shop can offer different deals. Ask for quotes and compare carefully.
2. Check if you can stack benefits.
Some stores let you combine the 25% monthly discount with extra store cash-back. Always ask if this is possible.
3. Don’t get trapped by high-tier plans.
Ask if lower plans are available. A “₩0 phone” tied to a ₩90,000/month plan might cost you more overall.
4. Read the fine print on extras.
Refuse auto-added services unless you really want them. Some stores add video apps, cloud storage, or insurance by default.
5. Don’t ignore manufacturer deals.
Samsung and Apple often run their own promotions. Check their Korean websites—you might find better bundles or trade-in options.
💡 Final tip: Think total cost, not just upfront price. What matters is how much you’ll pay over the full contract period.
FAQ: Foreigners’ Most Common Questions About Korean Phone Plans
Q1. Can I get a phone plan without an ARC?
Most postpaid plans require an ARC. Without it, try prepaid SIMs or eSIM options.
Q2. Can I bring my phone from home?
Yes, if it’s unlocked and supports Korean LTE/5G bands. But confirm compatibility with a local SIM before activating.
Q3. What if I leave Korea before my contract ends?
You may need to pay a penalty or the rest of your device balance. Always ask about early cancellation terms.
Q4. Are MVNOs foreigner-friendly?
Some are, but not all. Stick to larger brands and ask if they support ARC or passport-only signups.
Korea’s mobile market can be confusing—even for locals. With the recent law change, there’s more freedom, but also more risk.
Take your time, ask the right questions, and choose what fits your lifestyle—not just the flashy deals.
