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[Korea] Select Agreement Penalty

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Optional-contract penalty (25% discount approximation)

Enter values, then press Calculate.

How to use

  1. Enter the monthly plan fee. This is the base fee that the 25% optional-contract discount applies to.
  2. Choose a contract term of 12 months or 24 months.
  3. Enter months used and calculate.
  4. Check the monthly discount (25%), discounts received so far, remaining months, and estimated penalty.
  5. For MVNO (budget carrier) number porting or mid-contract cancellation, also read the carrier’s notice.

Key concepts: optional-contract 25% discount clawback

Korea’s optional contract (seontaek-yakjeong) is widely known as a 25% discount on the mobile plan instead of a handset subsidy. If you do not finish the term, a discount clawback proportional to discounts received is charged. This tool’s formula is monthly discount × remaining months × (remaining months ÷ contract months).

Monthly discount = monthly fee × 25%. Waivers when fewer than 180 days remain, for example on a same-carrier device change, often have extra conditions, so the number alone does not prove an exemption. Handset-subsidy clawback is on the handset subsidy penalty page.

Example

Monthly fee 69,000 KRW, 24 months, 10 months used → monthly discount 17,250 KRW. Remaining 14 months, penalty = 17,250 × 14 × (14/24) ≈ 141,000 KRW. Switching the term to 12 months with 10 months used changes remaining months and the factor, so the amount drops.

Related: Handset subsidy penalty · Percentage calculator

Frequently asked questions

What is the optional-contract penalty formula?

This page uses monthly discount × remaining months × (remaining months ÷ contract months). Carrier systems and rounding may differ.

Is the 25% based on a VAT-inclusive fee?

It is 25% of the monthly fee you enter. Match actual bill items (VAT, micropayments) to the statement.

Can I use a handset subsidy and an optional contract together?

Usually it is one or the other. If you took a handset discount, see the subsidy penalty page.

Do I pay a penalty if I port to an MVNO?

If number porting breaks the contract, a penalty is common. Check the noticed amount.

What if months used exceed the contract?

Remaining months are treated as 0 and the penalty is 0.

Is the fee saved?

No. Calculation runs only in the browser.

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Last reviewed: 2026-09-04