South Korea’s three major telecom companies—SK Telecom, KT, and LG Uplus—have been found to generate up to 42 billion Korean won in annual “unclaimed revenue” from promotional gifts, such as mobile gift certificates, that customers failed to use within their validity periods. Unclaimed revenue refers to income accrued by businesses when customers do not redeem gifts. Critics argue that clearer guidance is needed to ensure consumers use these benefits before expiration.
According to data submitted to Representative Kim Janggyeom of the People Power Party, a member of the National Assembly’s Science, ICT, Broadcasting and Communications Committee, the average annual unused rate of mobile gift certificates issued by the three internet service providers (ISPs) was 5.6% in 2023, 5.2% in 2024, and 5.4% in 2025. Over the past three years, approximately 5.4% of distributed gift certificates remained unclaimed, effectively becoming the companies’ profit. Based on the scale of high-speed internet subscribers, typical three-year contract cycles, and average gift certificate values, the unclaimed amount in 2025 alone is estimated to range between 25 billion and 42 billion Korean won.
A key issue is that none of the telecom companies explicitly stated the validity period or post-expiration handling procedures in their internet subscription applications. Only LG Uplus provided separate notifications to customers before expiration. The longer gift certificates remain unused, the greater the profit for the businesses. Validity periods typically range from 60 days to one year, depending on the type.
Following Representative Kim’s inquiry, the three telecom companies agreed to improve their gift issuance and management processes. They plan to clearly inform customers about validity periods and usage conditions during the subscription application and mobile gift certificate issuance stages. Additionally, they will implement a system to notify customers separately before expiration, with plans to reissue or extend validity periods upon request.
“Notification before expiration, reissuance, or extension should be the minimum guaranteed measure,” Representative Kim stated. “We will continue to explore institutional improvements to ensure customers receive 100% of promised gifts.” He added, “A structure where businesses profit more when customers fail to use gifts must be urgently addressed.”
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