South Korea’s mobile virtual network operator (MVNO) market has recorded a decline in subscriber numbers. (Image courtesy of Yonhap)
SEOUL, Feb. 19 (Korea Bizwire) — For the first time in 39 months, South Korea’s mobile virtual network operator (MVNO) market has recorded a decline in subscriber numbers, signaling increased competition from major telecom providers.
According to wireless communication service statistics released by the Ministry of Science and ICT on February 18, the number of MVNO subscriptions fell to 9.49 million in December 2024, a decrease of 33,151 lines (0.3%) compared to the previous month. This marks the first contraction in MVNO subscriptions since October 2021.
Industry analysts attribute this downturn to weakened promotional offers from MVNO providers after negotiations for wholesale network fees with major telecom carriers stalled in the latter half of 2024. As a result, customer incentives such as discounted plans diminished, reducing the appeal of MVNO services.
Additionally, the country’s three major telecom providers—SK Telecom, KT, and LG Uplus—have aggressively expanded their offerings, introducing competitively priced 5G plans in the 20,000–30,000 KRW range. This strategy has successfully recaptured market share previously lost to MVNOs.
The shift in consumer migration patterns further reflects this trend. In January 2024, approximately 120,000 users switched from major telecom providers to MVNOs, but this figure gradually declined, reaching just over 60,000 by June.
In response to the MVNO market slump, government regulators have announced plans to lower wholesale fees, allowing MVNOs to introduce competitive 5G data plans offering 20GB for around 10,000 KRW per month. Some MVNO providers are expected to roll out these new plans within the month, potentially reversing the recent decline in subscriptions.
Kevin Lee (kevinlee@koreabizwire.com)
