Second Vice Science Minister Kang Do-hyun speaks at a press briefing held at the government complex in central Seoul on June 14, 2024, on the government’s decision to revoke the license of mobile carrier Stage X. (Image courtesy of Yonhap)
SEOUL, Jul. 31 (Korea Bizwire) — The government said Wednesday it has revoked the license of Stage X as the country’s fourth mobile carrier due to the company’s failure to secure paid-in capital and meet other requirements.
Stage X, a consortium comprising mobile virtual network operator Stage Five and other partners, secured the 28 gigahertz spectrum band for the fifth-generation (5G) network in an auction hosted by the ministry earlier this year.
However, funding questions have persisted over the little-known company because a mobile carrier needs tens of millions of dollars to build a nationwide telecom network.
The Ministry of Science and ICT said in a press release that it has finalized the license cancellation process and has refunded the 43 billion won (US$31.1 million) paid for the frequency allocation to Stage X.
According to the ministry, Stage X has not raised the fully required paid-in capital of 205 billion won, and the composition of the company’s stockholders and the ownership structure between the shareholders were also different from what Stage X initially said.
Of the six main shareholders who own more than a 5 percent stake each in Stage X, only one shareholder paid some of the required capital, the ministry said.
Stage X has insisted that the decision is unfair and said it would take necessary legal and administrative steps. An official at the consortium said it was considering various options, including filing a lawsuit for damages, against the government.
(Yonhap)
