Seoul, South Korea—The mobile telecommunications market in South Korea is undergoing a transition period, with notable shifts in the distribution of market share among major players.
As of November 2022, the Ministry of Science and ICT reported that SK Telecom's market share had fallen below 40% for the first time, with a figure of 39.9% and 30,692,923 subscribers.
KT held 22.9% of the market with 17,569,058 subscribers, while LG Uplus accounted for 20.8% with 15,956,201 subscribers.
Mobile virtual network operators (MVNOs) have experienced a notable increase in market share, reaching 16.4% with 12,638,794 subscribers.
This represents the inaugural instance in which MVNOs have exceeded 10 million subscribers in South Korea.
The expansion of the MVNO sector can be attributed to several factors, including an increase in consumers purchasing smartphones independently and seeking more affordable plans.
The categorization of Internet of Things (IoT) connections as MVNO subscriptions has also contributed to their growth; 5.43 million of the total MVNO connections are IoT-related.
Major telecommunications companies have shifted their focus towards artificial intelligence, cloud computing, and enterprise business, which may affect competition for traditional mobile customers.
In the 5G market, traditional telecommunications companies continue to maintain a dominant position, with 27,407,226 subscribers, while MVNOs have 144,148 subscribers, representing a mere 0.5% of the 5G market.
Nevertheless, some MVNOs are beginning to expand their 5G offerings.
Even with the expansion of MVNOs, the three dominant telecommunications companies are anticipated to retain their leading positions in the market.
Nevertheless, their market shares may face challenges as MVNOs expand their services.
