SK Telecom is poised to reenter South Korea’s competitive mobile market with aggressive customer acquisition strategies following a 51-day business suspension. (Image courtesy of Yonhap)
SEOUL, June 26 (Korea Bizwire) — SK Telecom is poised to reenter South Korea’s competitive mobile market with aggressive customer acquisition strategies following a 51-day business suspension.
With Samsung’s Galaxy Z Fold 7 set for release next month and potential changes to the country’s subsidy regulations looming, industry watchers expect a full-fledged “subsidy war” among the nation’s top three telecom providers.
“We’re currently reworking our overall marketing plans ahead of several key events in July,” said Lim Bong-ho, head of SK Telecom’s MNO business, during a briefing on June 24. When asked about increased marketing expenditures, Lim noted that spending would depend heavily on the intensity of market competition.
In Seoul’s Techno Mart—known as a hub for mobile device deals—some retailers are already offering hefty incentives. One store advertised a free Galaxy S25 (256GB), normally priced at 1.15 million won, for customers who switch to SK Telecom and subscribe to a 109,000-won monthly plan for six months.
Buyers were also offered an additional 150,000 won in cash incentives, known colloquially as “chabi” (kickbacks).
However, such deals come with caveats. Customers are often asked to wait one to two weeks for activation, as subsidies are released only when SK Telecom authorizes device registrations. Retailers said the carrier is currently limiting new activations, prompting a backlog.
“Subsidies haven’t fully opened up yet,” said one store employee. “We expect things to pick up in July.”
While SK Telecom appears to be preparing for a marketing blitz, rivals KT and LG Uplus seem to be biding their time. According to sellers, the past two weeks saw a spike in subsidy activity, with some stores slashing up to 1 million won off device prices with no plan requirements. However, activity has since cooled.
Under Korea’s current Mobile Device Distribution Act, subsidies exceeding the official limit—comprising a base subsidy and an additional 15%—are illegal. Nonetheless, so-called “holy land” stores, famed for underground deals, continue to exploit loopholes. Practices like delaying activation without justification may also violate telecommunications laws.
SK Telecom previously denied engaging in such tactics after reports emerged of unauthorized pre-sale promotions by franchise stores. The company emphasized that these actions were not sanctioned by headquarters.
As regulatory reform and new devices converge next month, industry insiders say a new round of intense competition is all but inevitable.
Ashley Song (ashley@koreabizwire.com)
