Are you wondering which is more advantageous: signing an optional contract or receiving a public subsidy when purchasing a mobile phone such as an iPhone or Galaxy? We have prepared this to help you easily understand the optional contract discount system.
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Optional contract discount system
This is a system created by the Mobile Communications Terminal Device Distribution Structure Improvement Act (aka Dantong Act), and telecommunication companies are required to implement it.
To explain the optional contract, I will briefly tell you how to purchase a mobile phone.
To purchase a mobile phone, you can either ① purchase it directly from the manufacturer (homepage, shopping mall, etc.) or ② fill out documents and purchase it at a retailer (direct store, agency, sacred place, etc.).
The first is called self-sufficiency, and the second is called device change.
The advantage of self-sufficiency is that I can choose my carrier. You can save on communication fees (rate plans) by moving to a budget phone or by selecting an optional contract with the three communication companies (SK, KT, LG).
Although Kibyun requires a 24-month contract, it has the advantage of being able to purchase it more cheaply because a subsidy (public subsidy) for the device is provided when purchasing a mobile phone.
Summary◎Optional contract: Plan discount◎Public subsidy: Terminal subsidy
It is difficult to compare which of the two is better because it depends on the type of mobile phone, the time of release, and the size of the deposit, but I believe that most people who find this article have purchased it on a self-sufficient basis or received public subsidies and completed the 24-month installment plan.
Welcome. I will reduce your monthly communication bills.
Galaxy S23 lowest price?
If you plan to use your current cell phone for at least one year, this contract is absolutely optional.
Optional contracts are only available for SK, KT, and LG. Since it can be applied in conjunction with the family discount, you can receive a discount of up to 55%.
I try to get as much explanation about the system as possible. I will quickly let you know which choice is best for me.
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What is an optional contract?
The optional contract is a system that allows you to receive a 25% discount on the basic telecommunication fee instead of the publicly announced subsidy. You can choose between 1 year (12 months) or 2 years (24 months) for the contract period.
Optional contract vs. public subsidy
The public subsidy is a promise to maintain both the carrier and mobile phone for two years. Therefore, even if you cancel within the contract period (you can change the rate plan) or use a different mobile phone because it is lost or damaged, you must maintain the remaining installments and period. If either of the two is not observed, a penalty will be incurred.
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On the other hand, an optional contract is a promise to use that carrier for one year (or two years). Since it is not a promise to use the mobile phone, it does not matter whether you change the rate plan or replace the mobile phone (self-supplied, used, etc.) as long as you keep the period.
As long as you keep the new contract period, you can receive a 25% discount on your monthly plan.
However, if you receive a public subsidy from the same telecommunication company and change the device within the contract period, it may be postponed depending on the period, but a penalty may be incurred. Be sure to find out this part in advance.
If you decide to make an optional contract, choose 12 months instead of 24 months. It is unconditional.
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joining condition
Optional contracts are only available for SK, KT and LG. Budget phones were not introduced because there is no obligation to select a contract.
If no subsidy (public subsidy) was received at the time of contract (including contract renewal)
Purchase without contract: air system, self-sufficiency, overseas purchase, air system, etc.
When the contract period (24 months) ends after purchase
If you received a subsidy at the time of activation but canceled it and paid a penalty
Any mobile phone with no or no installments left can sign up.
Check if you are registered
You can check it on the app or website of each telecommunication company. As one of the short service laws created by the government, the optional contract is mandatory, so a text message is sent just before the end of the 24-month contract. Please check the text message sent from your telecommunication company again. You can also find out when you can start doing it.
SK: SKT homepage, mobile T WORLD
KT: KT homepage, My KT app
LG: LG U+ homepage, LG U+ mobile app
Go here>>▶ SK Telecom optional contract discount system ▶ KT Telecom subsidy information ▶ LG U+ rate discount
If you check the payment fee page on My Page, you can check the number of rounds and contract end date. You can apply for an optional contract as soon as the contract ends.
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Are you curious as to why I said that if you make an optional contract above, it must be for one year?
For those who buy self-sufficiently or used every time, it doesn’t matter if you comfortably buy it for two years. However, those who purchase from a dealership or store may need to replace it while the optional contract period remains. You can postpone it, but it would be unfair if a penalty was incurred. Whether it is 1 year or 2 years, there is no problem as the text message is sent before the end of the optional contract, but 1 year is better to reduce risk.
The optional contract discount system that allows you to save 25% each month is not automatically extended. At the end of one or two years, the original rate returns. Therefore, you must reapply in person via phone, mobile app, or website. Do not forget it.
Source: https://star8353.tistory.com/entry/selection-agreement-25-discount-system│SK-KT-LG [Knowledge warehouse: Tistory]