In the wave of global digital transformation, South Korea has become a benchmark country for global 5G development with its leading information and communication infrastructure and innovation-driven capabilities. As the first country in the world to realize 5G commercialization, South Korea continues to lead the industry in terms of network construction speed, user penetration rate, and application scenario innovation. As of the third quarter of 2024, South Korea’s 5G user penetration rate has exceeded 50%, ranking first in the world. Its innovative practices in vertical fields such as intelligent manufacturing, Yuanverse, and Internet of Vehicles have provided valuable experience for the development of the global 5G industry.
Driven by the dual drive of industrial transformation and technological innovation, South Korea’s 5G industry has formed a complete industrial ecosystem, showing an all-round development trend from network equipment and terminal research and development to application service innovation. Especially in the post-epidemic era, 5G technology is playing an increasingly important role in promoting the transformation of South Korea’s digital economy and improving industrial competitiveness.
This article will provide an in-depth analysis of the current development status of South Korea’s 5G industry, comprehensively interpret its latest progress in technological innovation, market applications, industrial ecology, etc., provide decision-making reference for companies planning to enter the Korean market, and also provide useful reference for the development of 5G in other markets. . Through systematic data analysis and case interpretation, we help companies seize development opportunities in the Korean 5G market and formulate precise market strategies.
This in-depth industry report brings together the latest data and insights from the Korea Communications Regulatory Commission, major telecom operators and leading research institutions, aiming to present readers with a comprehensive, objective and forward-looking panoramic view of South Korea’s 5G industry development.
Overview of 5G development in South Korea
South Korea has always maintained a leading position in the global 5G development process, and has built a complete 5G industry system through systematic planning and continuous innovation. Since 2018, South Korea has taken the lead in launching the strategic layout of the 5G industry, laying a solid foundation for subsequent rapid development.
In terms of development history and milestones, South Korea has demonstrated extraordinary strategic vision and execution capabilities. In June 2018, South Korea took the lead in the world to complete the 5G spectrum auction, allocating a total of 2680MHz bandwidth resources in the 3.5GHz and 28GHz frequency bands. The three major operators, SK Telecom, KT and LG U+, have formed a market pattern of healthy competition through reasonable spectrum allocation. On April 3, 2019, South Korea achieved a historic breakthrough in the world’s first 5G commercial deployment, and achieved 5G network coverage in major cities across the country by the end of that year.
After five years of continuous development, as of 2024, South Korea’s 5G industry has made remarkable achievements. The number of 5G users nationwide has exceeded 35 million, and the user penetration rate has reached 52%, far ahead in the world. In densely populated areas, 5G network coverage is close to 100%, and the average download speed exceeds 1.5Gbps, providing users with a high-quality network experience. 5G-related industries have formed a complete industrial chain, with annual revenue exceeding US$75 billion, driving the upgrading and transformation of the entire ICT industry.
In terms of policy environment, the Korean government has played a strong guiding and supporting role. The “Korea 5G+ Strategy” clearly sets the ambitious goal of becoming a global 5G innovation leader by 2026, focusing on cutting-edge technology research and development and innovative application scenarios. In early 2024, the government followed the industrial development trend and included emerging fields such as the Metaverse and artificial intelligence into its strategic territory, further expanding the innovation boundaries of 5G applications.
The government’s support policies are reflected at many levels. In terms of regulatory framework, South Korea has established a flexible and efficient management system, set up special committees to coordinate industrial development, simplified administrative approval processes, and created a good environment for corporate innovation. In terms of industrial support, the government has established an industrial development fund with a total scale of 5 trillion won to promote industrial development in an all-round way through tax incentives, R&D support, talent training and other methods. In 2024, the government will add an additional 2 trillion won in special funds to launch the “5G + digital transformation” plan to help the upgrading and transformation of traditional industries.
The “industry-oriented + market-driven” two-wheel drive model adopted by the Korean government not only plays the strategic guiding role of the government, but also fully mobilizes the innovative vitality of market entities. Through positive interaction between the government and the market, South Korea has successfully built a world-leading 5G industrial ecosystem. It is expected that in the next few years, South Korea will continue to deepen its 5G strategic layout, focus on promoting the evolution of 5G-Advanced technology, accelerate application innovation in vertical industries, and further expand the global influence of South Korea’s 5G industry through international cooperation and standard output.
These systematic development layout and policy support not only ensure South Korea’s leading position in the global 5G competition, but also provide valuable experience for the 5G development of other countries. For companies planning to enter the Korean market, an in-depth understanding of this development process and policy environment will help them better grasp market opportunities and formulate precise market strategies.
Network construction and technological innovation
South Korea has always been at the forefront of the world in 5G network construction and technological innovation. Through continuous infrastructure investment and technological breakthroughs, it has built one of the most advanced 5G network systems in the world.
In terms of infrastructure deployment, as of the third quarter of 2024, South Korea’s three major operators have completed the construction of more than 250,000 5G base stations, including approximately 180,000 3.5GHz mid-band base stations and more than 70,000 28GHz millimeter wave base stations. Network coverage has achieved in-depth coverage in 84 major cities across the country, with a population coverage rate of 93%. Especially in core metropolitan areas such as Seoul and Busan, the 5G network has achieved seamless coverage, with an outdoor signal compliance rate of more than 99%. Indoor coverage is also effectively guaranteed through nearly 100,000 indoor subsystems.
In terms of network quality, South Korea’s 5G network performs excellently. According to the latest evaluation data from the Korea Communications Commission, the average download speed of 5G networks across the country has reached 1.5Gbps, with peak speeds exceeding 2.7Gbps in some areas, and network latency stable within 10ms. In terms of user experience, the experience index of large-bandwidth applications such as video streaming and cloud gaming has always remained at the leading level in the industry.
In the field of technological innovation, Korean companies have demonstrated strong R&D capabilities. As the world’s leading 5G equipment supplier, Samsung Electronics has made important breakthroughs in core technologies such as millimeter wave technology, massive MIMO, and network virtualization. As of 2024, Korean companies have applied for more than 15,000 international patents in the 5G field, of which standard essential patents account for 23%, ranking second in the world. In international standards organizations such as 3GPP, Korean companies have submitted more than 8,000 5G technology proposals, making important contributions to the formulation of global 5G standards.
South Korea has formed a complete industrial chain in core hardware fields such as 5G chipsets, radio frequency devices, and antenna systems. Local companies represented by Samsung Electronics have successfully developed a new generation of 5G baseband chips and radio frequency solutions, significantly reducing their dependence on foreign technology. In terms of network intelligence, Korean operators took the lead in launching an AI-based network optimization system to realize intelligent scheduling of network resources and automatic fault repair.
Facing the future, South Korea has begun planning the evolution path of 5G-Advanced and 6G networks. According to the latest plan released by the Ministry of Science, Technology, Information and Communications of South Korea, South Korea will take the lead in launching 5G-Advanced commercial deployment in 2025, focusing on improving network performance and energy efficiency ratio. The three major operators have started relevant network upgrade trials in 2024, and are expected to deploy more than 5,000 5G-Advanced base stations in key cities such as Seoul in the first phase.
In terms of 6G technology research and development, the Korean government has joined forces with industry, academia and research to launch the “6G Pilot Project” and plans to invest 1.5 trillion won in core technology research by 2025. Preliminary results have been achieved in cutting-edge fields such as terahertz communications, artificial intelligence network architecture, and high-precision positioning. The technology roadmap formulated by South Korea shows that it plans to complete the formulation of 6G technical standards in 2028 and achieve commercial use in 2030. The goal is to continue to maintain its global leadership in the field of next-generation mobile communications.
It should be noted that South Korea’s network construction is developing in a smarter and greener direction. The three major operators generally use AI technology to optimize network energy consumption and promote green base stations powered by renewable energy. At the same time, network slicing technology is used to provide customized services for different vertical industries and promote the in-depth exploration of the value of 5G networks. This innovation-oriented network construction model not only ensures South Korea’s dominant position in the global 5G competition, but also provides other countries with valuable development experience.
Market Development and Commercialization
After five years of development, the Korean 5G market has formed a mature business ecosystem and diversified profit models. The user base continues to expand, business models continue to innovate, and healthy competition among operators promotes the rapid development of the entire market.
In terms of user development, the Korean 5G market is showing rapid growth. As of September 2024, the total number of 5G users nationwide has reached 35 million, and the user penetration rate has exceeded 52%, continuing to lead the world. Although the user growth rate has slowed down compared with the early stage, it still maintains a stable increase of approximately 450,000-500,000 per month. In terms of user structure, individual consumers account for about 85% and corporate customers account for 15%. Among them, corporate users in manufacturing, medical, education and other industries have the most significant growth.
In terms of tariff strategy, Korean operators adopt a differentiated pricing model. The monthly fee for the basic package ranges from 45,000 won to 85,000 won, which is graded according to data traffic, network quality assurance level and value-added service types. It is worth noting that in 2024, various operators will launch customized tariff plans for specific scenarios, such as low-latency packages for cloud games, exclusive packages for telemedicine, etc., to further segment market demand.
In the operator competition landscape, SK Telecom, KT and LG U+ have formed a relatively stable market share distribution. With its leading network quality and innovative services, SK Telecom occupies about 45% of the market share and has obvious advantages among high-end user groups. The company focuses on emerging fields such as the Metaverse and AI, and integrates digital content services through the “T Universe” platform to build differentiated competitive advantages.
KT relies on its traditional advantages in the enterprise market to vigorously develop industry solutions, with its market share stable at around 30%. The “5G Enterprise Suite” solution launched by the company has been widely used in smart manufacturing, smart medical and other fields, and has become an important driving force for revenue growth. In 2024, KT also launched the “Digital Platform 2.0” strategy to deepen its B2B market layout.
Although LG U+ has a relatively small market share of about 25%, it is active in innovative business areas. The company was the first to launch a 5G AR/VR content platform, creating unique appeal among young user groups. At the same time, through strategic cooperation with global content providers, we continue to enrich the 5G application ecosystem and form differentiated competitive advantages.
In terms of business model innovation, Korean operators are undergoing a transformation from traditional communication services to digital service integrators. Data in 2024 shows that among 5G-related business revenue, the proportion of revenue from basic communication services has dropped to 65%, while the proportion of revenue from new businesses such as digital content and industry solutions has increased to 35%. Especially in terms of vertical industry applications, through the combination model of “network + platform + application”, operators have successfully developed multiple emerging markets with a scale of tens of billions.
Profit models are also constantly innovating. In addition to traditional traffic charges, operators have begun to explore diversified revenue sources such as network capability monetization, platform sharing, and solution subscriptions. For example, SK Telecom provides customized network services to enterprise customers through network slicing technology to achieve differentiated pricing of network capabilities; KT has established a stable source of income through subscription services of “5G+AI” solutions.
It is worth noting that Korean operators have shown significant foresight in business innovation. Taking the Metaverse business as an example, the three major operators have all launched the Metaverse platform based on 5G networks to cultivate new business growth points through innovative scenarios such as virtual commercial blocks and digital art exhibitions. In the enterprise market, operators are also actively exploring the integration model of “5G private network + cloud services” to provide one-stop solutions for the digital transformation of the manufacturing industry.
Overall, South Korea’s 5G market has entered a mature development stage, and operators are promoting the steady expansion of the market through differentiated competition and continuous innovation. With the continuous emergence of new technologies and new applications, it is expected that the market will show a more diversified development trend in the future, providing useful reference for the commercial development of global 5G.
Application Scenarios and Industrial Ecology
After years of development, South Korea’s 5G industry has formed diversified application scenarios and a complete industrial ecosystem. Through deep integration of vertical industries and collaborative innovation of the industry chain, a world-leading 5G innovative development model has been built.
In terms of vertical industry applications, smart manufacturing is the most representative implementation scenario. Taking Hyundai Motor’s Ulsan factory as an example, by deploying a 5G private network and digital twin system, real-time monitoring and predictive maintenance of production equipment have been achieved, and production efficiency has increased by more than 35%. The “5G+AI” smart manufacturing solution promoted by Samsung Electronics at the Pyeongtaek Semiconductor Factory has increased the yield rate to more than 99.9% and saved annual costs of more than 120 billion won. As of 2024, South Korea has built more than 200 5G smart factories, driving the digital transformation and upgrading of the manufacturing industry.
The field of immersive media is developing rapidly, and Korean operators have joined hands with content providers to create a rich AR/VR application ecosystem. The “Jump Studio” platform launched by SK Telecom brings together more than 5,000 AR/VR contents, with monthly active users exceeding 8 million. During the 2024 Beijing Winter Olympics, South Korea implemented 8K+VR panoramic live broadcast based on 5G network, and the viewing experience received global praise. Especially in cultural and entertainment fields such as K-POP concerts and e-sports events, 5G+XR applications have become standard, driving the revenue of related industries to exceed 2 trillion won.
In terms of smart city construction, demonstration cities represented by Busan have achieved remarkable results. By deploying more than 20,000 5G intelligent sensing terminals, a city digital twin platform is built to achieve intelligent management in transportation, energy, environmental protection and other fields. The “AI City Brain” system launched in 2024 will increase the efficiency of urban incident handling by 40%, and the annual energy saving and emission reduction will reach 15%. In Seoul, the smart bus system supported by 5G+AI technology has shortened the average commuting time by 12 minutes and has been widely praised by citizens.
The field of Internet of Vehicles is developing rapidly, and South Korea has built the world’s largest 5G-V2X test network. In the Gyeonggi-do autonomous driving test area, L4 autonomous driving demonstration operations based on 5G network were realized. The Internet of Vehicles platform jointly developed by Hyundai Motor and SK Telecom has been deployed on 300,000 connected cars, providing real-time navigation, remote control and other services. By the end of 2024, South Korea will complete 5G-V2X network coverage on major highways, laying the foundation for the commercial use of autonomous driving.
In terms of industrial chain collaboration, South Korea has formed a complete 5G industry system. As a core equipment manufacturer, Samsung Electronics has a market share of more than 20% in the global 5G base station equipment market and ranks among the top in terms of technical strength. In the terminal field, local brands such as Samsung and LG account for 80% of the Korean 5G mobile phone market, and are actively developing new terminals such as AR glasses and VR headsets. In the field of content services, Internet giants such as Naver and Kakao have invested heavily in the development of Metaverse content and built a rich application ecosystem.
Solution providers are growing rapidly, and as of 2024, South Korea has more than 500 technology companies focusing on 5G solutions. Among them, Bespin Global, which focuses on the industrial Internet, and Linewalks, which focuses on the smart medical field, have grown into leaders in the segmented fields. These companies work closely with operators to provide one-stop solutions for customers in vertical industries.
In terms of cultivating innovative ecology, South Korea has established a systematic support system. 15 5G innovation centers have been set up across the country to provide services such as technical verification, testing and certification. Industry-university-research cooperation has been further deepened. Universities such as Seoul National University and the Korea Institute of Science and Technology have jointly established 20 joint laboratories with enterprises to cultivate high-end technical talents. The entrepreneurial incubation system has been improved. The government and enterprises have established a 5G innovation fund with a total scale of 10 billion won, which has supported more than 200 innovative and entrepreneurial enterprises.
South Korea actively promotes the international development of the 5G innovation ecosystem. Through the “K-5G Innovation Partnership” plan, we will establish innovative cooperation mechanisms with Europe, the United States, Southeast Asia and other regions to promote Korean 5G solutions to the global market. In 2024, South Korea’s exports of 5G-related products and services will exceed US$15 billion, and its international influence will significantly increase.
As 5G technology continues to evolve and application scenarios continue to enrich, South Korea will further deepen vertical industry integration innovation, improve the industrial ecosystem, and consolidate its position as a global 5G innovation highland. This systematic innovative development model provides an important reference for the development of the global 5G industry.
International cooperation and overseas expansion
South Korea’s international cooperation and market expansion strategy in the 5G field is unique. Through multi-level technical cooperation and innovative market development models, it has achieved an important breakthrough in globalization.
In the field of international cooperation, South Korea has established in-depth strategic partnerships with major countries and companies around the world. The cooperation with the United States is the closest. Samsung Electronics and Qualcomm have launched comprehensive cooperation in 5G chip research and development to jointly develop the next generation of mobile communication technology. In 2024, the fourth-generation 5G modem jointly released by both parties will be widely recognized by the market. Cooperation with the EU focuses on the field of 6G pre-research. The Korea Electronics and Telecommunications Research Institute (ETRI), together with European companies such as Ericsson and Nokia, participate in the “Joint Research Plan for Next-Generation Communication Technology” in cutting-edge fields such as terahertz communications and intelligent network architecture. Make breakthrough progress.
The results of cross-border project cooperation are remarkable. SK Telecom and Deutsche Telekom have carried out in-depth cooperation in the field of industrial Internet. The “5G smart factory solution” jointly developed by both parties has been successfully deployed in Stuttgart, Germany, Incheon, South Korea and other places. The “5G Innovation Laboratory” jointly built by KT and Japan’s KDDI focuses on researching AR/VR content production and transmission technology to promote the integrated development of the cultural and creative industries of the two countries. In Singapore, LG U+ participated in the construction of Changi Airport’s 5G smart terminal, introducing South Korea’s advanced 5G application experience to the Southeast Asian market.
In terms of international standardization cooperation, Korean companies actively participate in the standard formulation work of international organizations such as 3GPP and ITU. As of 2024, South Korea ranks second in the world in the number of 5G-Advanced standard essential patent applications, with more than 8,000 technical proposals submitted. Especially in key areas such as millimeter wave technology and network slicing, Korean companies’ technical solutions have been widely adopted, significantly increasing their voice in the global 5G standard system.
In terms of overseas strategy, South Korea adopts a differentiated market layout strategy. In the field of equipment manufacturing, Samsung Electronics focuses on exploring high-end markets such as Europe, the United States, and Japan, and has established the world’s largest 5G equipment production base in India to strengthen its cost advantage. In 2024, Samsung’s market share in the United States will exceed 30%, becoming the second largest equipment supplier after Ericsson. At the same time, we continue to expand our market influence through strategic cooperation with leading global operators such as Verizon and Vodafone.
In terms of solution output, Korean companies innovate cooperation models. SK Telecom pioneered the “5G solution as a service” model, packaging and exporting mature vertical industry applications, and has achieved remarkable results in the Southeast Asian market. Taking Vietnam as an example, SK Telecom has cooperated with local operator Viettel to deploy smart city solutions in Hanoi, Ho Chi Minh City and other places, with a total contract value of more than US$300 million. KT has rapidly expanded in the Middle East market through the “technology licensing + local joint venture” model, and the 5G innovation center built in cooperation with Saudi Arabian Telecom has become a regional benchmark project.
Localization strategy is the key to the success of Korean companies going overseas. Samsung Electronics has set up R&D centers in various key markets to deeply connect with local needs and develop products and solutions that adapt to local characteristics. In India, Samsung has cooperated with local system integrators to launch economical 5G solutions for small and medium-sized enterprises, which has achieved good market response. LG U+ has established a Southeast Asia Innovation Center in Malaysia to cultivate local 5G talents and build a regional innovation ecosystem.
It is worth noting that Korean companies attach great importance to intellectual property protection and compliance operations when going overseas. By establishing a professional legal team and compliance system, international business risks are effectively avoided. At the same time, we actively participate in local public welfare projects, establish a responsible corporate image, and gain market recognition and policy support.
In 2024, South Korea’s exports of 5G-related products and services will reach US$18.5 billion, a year-on-year increase of 23%, a record high. Among them, equipment exports accounted for 45%, solution output accounted for 35%, and technical services accounted for 20%. This all-round international development model not only drives the continued growth of South Korea’s 5G industry, but also injects new vitality into the development of the global communications industry.
With the advancement of 6G technology research and development and the continued development of emerging markets, South Korea will further strengthen international cooperation, optimize its overseas strategy, and strive to continue to maintain its global leadership in the field of next-generation mobile communications. This development concept of open cooperation, mutual benefit and win-win plays an important role in promoting the healthy development of the global communications industry.
Development Trends and Opportunities
As 5G technology matures, South Korea’s communications industry is accelerating its evolution to next-generation technology, while continuing to deepen vertical industry applications, and the market development prospects are broad.
In terms of technological evolution, South Korea has clearly formulated a 6G technology research and development roadmap. It is expected to complete key technology verification in 2025, start commercial pilots in 2028, and achieve large-scale commercial use in 2030. Key breakthrough directions include cutting-edge technologies such as terahertz communications, smart metasurfaces, and holographic communications. Especially in terms of the deep integration of AI and communications, South Korea has proposed the concept of “AI-Native Network” and is committed to realizing the intelligence of the entire network life cycle. At the same time, 5G-Advanced technology continues to evolve, and it is expected to achieve an order of magnitude improvement in ultra-reliable low-latency communication (URLLC) performance by 2025.
Market size forecasts show that by 2027, the total scale of South Korea’s 5G-related industries will exceed 100 trillion won. Among them, investment in communication infrastructure has remained at an average annual level of 15 trillion won, the terminal equipment market has reached 30 trillion won, and the vertical industry application market has exceeded 55 trillion won. Especially in emerging fields such as the Industrial Internet and the Yuan Universe, the average annual growth rate is expected to remain above 25%.
In terms of application trends, industrial digital transformation will become the main driving force. It is expected that by 2026, more than 70% of large manufacturing companies in South Korea will deploy 5G private networks, driving the rapid growth of the smart manufacturing solutions market. Metaverse applications will extend from entertainment to industrial applications, and scenarios such as virtual office and digital twins will be implemented at an accelerated pace. In the field of Internet of Vehicles, as autonomous driving technology matures, it is expected that South Korea will achieve commercial use of L4 autonomous driving in key cities in 2025.
Analysis of investment opportunities shows that the most promising subdivisions in the next three years include: industrial Internet platforms and solutions, Metaverse content production and operations, Internet of Vehicles core technologies and applications, edge computing infrastructure, etc. These areas have high technical barriers and vast market space, with expected return on investment ranging from 25% to 40%.
In terms of risk-benefit assessment, several key factors need to be paid attention to: product update risks that may be brought about by accelerated technological iterations, profit margin decline risks caused by intensified market competition, and supply chain risks brought about by the restructuring of the global industrial chain. It is recommended that investors adopt a diversified investment strategy and rationally allocate projects at different stages of development.
In terms of cooperation model, it is recommended to adopt a “technology + capital” two-wheel drive model. It can participate in the development of South Korea’s 5G industry through equity investment, strategic cooperation, joint research and development and other methods. Especially in emerging application fields, we can consider forming joint ventures with leading Korean companies to achieve complementary advantages.
Enlightenment and Suggestions
South Korea’s 5G development experience provides important reference for the development of the global communications industry. Its success factors are mainly reflected in the following aspects: forward-looking planning and continuous support from the government, collaborative innovation in all links of the industrial chain, application-driven business model innovation, and an open and inclusive attitude towards international cooperation.
The main challenges faced during the development process include: high initial network construction costs, unclear business models, and difficulty in penetrating vertical industries. South Korea has effectively overcome these challenges through innovative financing models, cultivating application ecology, and establishing industry alliances. For example, we can reduce corporate financing costs by setting up industrial development funds, accelerate application implementation by building innovation centers, and promote resource integration by forming industrial alliances.
Typical cases include SK Telecom’s “5G Factory” project, which meets the digital needs of the manufacturing industry through “end-to-end” solutions and achieves business model innovation; KT’s “5G Medical Private Network” project breaks through industry entry barriers and creates a private network New service model; LG U+’s “5G content platform” strategy achieves differentiated competition through ecological construction. These cases demonstrate the diverse paths of industrial innovation.
In terms of market entry strategy, it is recommended to adopt a step-by-step approach. First, select segments with high technical requirements and large market space to enter, and build brand awareness through demonstration projects. At the same time, we focus on establishing long-term cooperative relationships with local companies to jointly develop markets. For manufacturing companies, it is recommended to give priority to setting up local R&D centers and production bases to deeply integrate into the Korean industrial system.
The choice of cooperation model needs to be tailored to local conditions. For large enterprises, it is recommended to adopt strategic cooperation or joint venture models to achieve complementary advantages; for small and medium-sized enterprises, technology licensing or OEM cooperation can be considered to lower the market entry threshold. Especially in emerging application fields, you can share the dividends of industrial development by participating in innovation alliances or industry funds.
Risk prevention measures mainly include: establishing a complete intellectual property protection system to avoid technical disputes; localizing the supply chain to reduce operational risks; strengthening compliance management and policy research to grasp policy orientation; establishing a flexible business adjustment mechanism to cope with Market changes. At the same time, it is recommended that enterprises actively participate in the formulation of Korean industrial standards to enhance their voice and influence.
Looking to the future, South Korea’s 5G industry will continue to maintain its leading position in the world and provide broad development space for international partners. Enterprises need to grasp technological evolution trends, deeply understand market demands, innovate business models, and achieve mutual benefit and win-win results through open cooperation. This development model based on innovation and cooperation will promote the sustainable and healthy development of the global communications industry.
