LG Uplus Loses Lawsuit Over Exaggerated 5G Speed Claims

LG Uplus has been ordered to pay a 2.8 billion won fine after losing a lawsuit against the Korea Fair Trade Commission (KFTC). The company had challenged the penalty, which was imposed for allegedly exaggerating the speed of its 5G mobile service in advertisements.

The Seoul High Court's administrative division ruled against LG Uplus, affirming the KFTC's decision. The court found that the company's claims, suggesting its 5G service was up to 20 times faster than LTE, were misleading and constituted deceptive advertising.

This legal defeat follows the KFTC's broader action in May 2023, where it levied a total of 33.6 billion won in fines against South Korea's three major mobile carriers for similar advertising violations. LG Uplus received the largest individual penalty within that collective fine.

The court's judgment reinforces the KFTC's authority in regulating advertising practices and ensuring fair competition within the telecommunications sector. The ruling implies that companies must provide accurate and substantiated claims regarding service performance to avoid regulatory penalties.