Two leading mobile carriers ― SK Telecom and KT Corp. ― are engaged in a price war as both introduced new monthly telecom service payment plans on Thursday, which they claim offer cheaper than existing smartphone service rates.

The monthly smartphone payment plans enable customers to choose the number of voice minutes and text messages, as well as their desired data usage amount, and pay accordingly, said the companies’ officials.

SKT will offer the new mobile service plan on Aug. 16, whereas KT will initiate the service later in October.

The announcements take place as KT Corp., the country’s second-largest wireless service provider, said it will cut its monthly telecom service rates by 1,000 won beginning in October, joining industrial leader SK Telecom’s wireless fee cut plan announced earlier in June.

The company also said it will provide 50 free text messages per month to its subscribers starting from November.

LG Uplus, in the meantime, said it is still looking into the telecom fee cut issue, however, it is soon expected to unveil a similar scheme.

SKT, the country’s top mobile carrier, had released its discount plan after experiencing increased pressure from the government and politician circles, which said the measures needed to be drafted to fight inflation.

SKT plans to cut its monthly basic service rate by 1,000 won and give 50 free text messages beginning in September.

By Cho Ji-hyun (sharon@heraldcorp.com)