![As of the end of 2022, 5G subscription market shares were SK Telecom (47.7%), KT (30.1%), LG Uplus (21.6%), and budget carriers (0.56%). (Image courtesy of Yonhap News TV)](http://koreabizwire.com/wp/wp-content/uploads/2024/06/Telecom-companies.jpg)
As of the end of 2022, 5G subscription market shares were SK Telecom (47.7%), KT (30.1%), LG Uplus (21.6%), and budget carriers (0.56%). (Image courtesy of Yonhap News TV)
SEOUL, Jun. 4 (Korea Bizwire) – As the growth of budget mobile carriers persists in South Korea, SK Telecom, the nation’s largest mobile operator, has continued to lose overall market share. However, a new report shows the company still commands a significant portion of 5G subscriptions.
According to a report evaluating the competitiveness of South Korea’s telecommunications market released on June 4 by the Korea Information Society Development Institute (KISDI), SK Telecom’s share of total mobile subscriptions dropped from 41.8% in 2019 to 39.8% in 2022, falling to 39.1% as of June 2023.
As of last June, KT held a 22% share of the market, followed by 20.9% for LG Uplus and 18% for budget carriers known as mobile virtual network operators (MVNOs).
The market share of budget carriers increased by 2.4 percentage points from 2019 to 2022, matching the combined decrease for SK Telecom and KT over the same period at 1.2 percentage points each.
While SK Telecom’s overall mobile subscription share has dipped, the company’s 5G subscriber base has grown, maintaining a share in the upper 40 percent range.
As of the end of 2022, 5G subscription market shares were SK Telecom (47.7%), KT (30.1%), LG Uplus (21.6%), and budget carriers (0.56%). Compared to the previous year, SK Telecom and budget carriers increased by 0.5 and 0.3 percentage points, respectively, while KT and LG Uplus decreased by 0.4 and 0.5 percentage points.
In an evaluation of South Korea’s mobile market structure, the KISDI noted that “key indicators such as the market share of the top carrier and the gap between the top two companies are higher than the OECD average, indicating a relatively concentrated market structure and insufficient competition.”
The level of competition in the high-speed internet market was also assessed as weakening.
The high-speed internet subscription market at the end of 2022 was dominated by KT Group with a 42.3 percent share. SK Group followed with 28.5 percent, LG Group held 24.5 percent, and other providers made up the remaining 4.7 percent.
The institute explained, “The top carrier’s retail revenue share is solidifying in the upper 40 percent range, and new entry and expansion have become difficult,” describing the high-speed internet market as “on the boundary between a market with active competition and one without.”
Kevin Lee (kevinlee@koreabizwire.com)