The method of calculating the penalty for the optional contract discount system is not that difficult, and if you cancel early within the contract period, this penalty will be incurred. The method of calculating the penalty, also called the discount refund, is the same for each carrier, including SKT, LG U+, and KT, but the subscription period varies.
Optional contract discount system penalty (discount refund)
Optional contract – Discount system – Penalty – Thumbnail
Optional contract discount system that allows you to receive a 25% discount on your mobile phone bill. Decide on a 12-month or 24-month contract period and receive a discount on your mobile phone bill. However, if you cancel early during this period, you will have to pay the optional contract discount system penalty (discount refund).
How to sign up for the optional contract discount system (25% discount on mobile phone charges)
If you sign up for the optional contract discount system, you can receive a 25% discount on your mobile phone bill. This is a good contract system. However, you must be careful because contracts always come with a penalty, and today you can sign up for this optional contract discount system.
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For detailed information on the optional contract discount system, please refer to the article above. Today, we will tell you how to calculate the penalty for the optional contract discount system. The method of calculating the penalty for selective contract discount system for each telecommunication company such as STK, LG U+, and KT is the same, but there is a difference in the subscription period.
How to calculate penalty for SKT optional contract discount system
If any reason occurs, such as cancellation before the expiration of the contract period, change to a non-eligible terminal or rate plan, termination of the discount system, or change of name without transfer of the contract, a penalty (discount refund) for the optional contract discount system will be charged.
* No penalty will be charged if the optional contract discount system is canceled due to unavoidable reasons such as death or immigration.
※ How to calculate penalty for optional contract discount system after March 5, 2018
Contract period usage period penalty (discount refund)
Cumulative discount for 1-year contract of 3 months or less x 100%
Cumulative discount over 4 months x {Number of remaining contract days / (Contract period – 90 days)}
2-year contract, cumulative discount for 6 months or less x 100%
Cumulative discount over 7 months x {Number of remaining contract days / (Contract period – 180 days)}
※ Example of how to calculate penalty for optional contract discount system
① Band data perfect (monthly fee 65,890 won), optional contract canceled after 22 months of use (2-year contract)
– KRW 362,395 (accumulated discount amount) x { 2 months (number of remaining contract days) / ( 24 months (contract period – 6 months (180 days))}
= 40,266 won (penalty)
② Band data perfect (monthly fee 65,890 won), optional contract canceled after 10 months of use (1-year contract)
– KRW 164,725 (accumulated discount amount) x { 2 months (number of remaining contract days) / (12 months (contract period) – 3 months (90 days)}
= 36,606 won (penalty)
* Separate value-added tax may apply.
LG U+ Selective Contract Discount System Penalty Information
Cancellation of subscription during the contract period, cancellation of other contract discount benefits early
Change to a plan that does not apply optional contract discounts
Change to a terminal that does not apply the optional contract discount system
If you do not inherit the optional contract after changing the name
If the optional contract discount system service cannot be maintained due to the above reasons, the optional contract discount system penalty (discount refund) will be charged.
* If the service is canceled within 14 days from the date of activation due to poor call quality, or if the customer dies, etc., no penalty will be incurred for the optional contract discount system.
※ How to calculate penalty for subscriber selection contract discount system after February 1, 2020
24 month contract 12 month contract
Cumulative discount for 1 to 6 months x 100% Cumulative discount for 1 to 3 months x 100%
Cumulative discount for 7 to 24 months x {Remaining contract period / (Contract period – 180 days)} Cumulative discount for 4 to 12 months x {Remaining contract period / (Contract period – 90 days)}
Since the method for calculating the penalty for the SKT optional contract discount system mentioned above is the same, we will omit the example.
KT Selective Contract Discount System Penalty Information
※ How to calculate subscriber selection contract penalty after September 1, 2018
Contract period Contract period of use Penalty calculation method
Cumulative discount for 6 months or less after 24-month contract x 100%
Cumulative discount over 7 months after contract x {Remaining contract period / (Contract period – 180 days)}
Cumulative discount for 3 months or less after 12-month contract x 100%
Cumulative discount over 4 months after contract x {Remaining contract period / (Contract period – 90 days)}
In this way, the method of calculating the penalty for selective contract discount system is the same for each telecommunication company such as SKT, LG U+, and KT, but the subscription period is different. For previous subscribers, there is a separate method for calculating the penalty for selective contract discount system.
Since most of them are thought to be later subscribers, today we only introduced the method for calculating the penalty for the future subscriber selective contract discount system. If you are a former subscriber, please visit the ‘Optional Contract Information’ page on each telecommunication company’s website and you will be introduced to the method for calculating the discount system for the previous subscriber selective contract.