As a global leader in the development of 5G technology, South Korea has built the most mature 5G application ecosystem in the world since it took the lead in realizing 5G commercialization in 2019. As of 2024, South Korea’s 5G user penetration rate will exceed 50%, and network coverage will reach 98% of the country’s population, continuing to maintain its leading position among OECD countries. Through systematic industrial planning and continuous technological innovation, South Korea has successfully integrated 5G technology into various vertical industries, spawning a large number of innovative application scenarios with exemplary significance.

This report aims to provide in-depth market insights and practical guidance for technology entrepreneurs, corporate decision-makers and industry investors who plan to enter or have entered the Asia-Pacific market. By comprehensively analyzing the innovative application cases of Korean 5G technology in smart cities, industrial Internet, medical and health, culture and entertainment and other fields, it helps readers grasp market opportunities, avoid potential risks, and formulate effective market entry strategies. Especially for entrepreneurial teams focusing on 5G vertical industry applications, this report provides detailed market data, typical case analysis and practical suggestions, which can be used as an important reference for formulating business strategies.

Based on in-depth research on the development of South Korea’s 5G industry, this report puts forward the following core points: First, South Korea’s 5G applications have entered the stage of large-scale development, and various industries are accelerating digital transformation. It is expected that more than 100 trillion won of market space will be released in the next three years. . Secondly, driven by both policy support and market demand, South Korea’s 5G applications have shown the development characteristics of “technological innovation + scenario innovation”, providing entrepreneurs with a broad space for innovation. Third, entering the Korean 5G market requires adopting a differentiated strategy and gradually establishing competitive advantages through breakthroughs in subdivisions and localized operations.

The main findings of the report include: South Korea’s 5G applications have formed a complete industrial ecosystem, from infrastructure to application services; vertical industry applications are transitioning from demonstration projects to large-scale replication, and business models are becoming increasingly mature; local companies and international partners are actively Carry out innovative cooperation to provide entrepreneurs with diversified market opportunities; the Korean government continues to improve 5G industry support policies, optimize the business environment, and lower market entry barriers. These findings provide important decision-making reference for entrepreneurs entering the Korean market.

On the basis of analyzing South Korea’s 5G application scenarios, the report will also delve into key issues such as specific application cases in different industries, business model innovation, and market access strategies, providing readers with comprehensive and practical market insights. Through a systematic analysis framework and rich practical cases, we help entrepreneurs better grasp the development opportunities of the Korean 5G market and achieve rapid business growth.

In addition, the report pays special attention to the innovation opportunities brought by the deep integration of South Korea’s 5G technology and traditional industries, as well as the new application scenarios that have emerged in the context of accelerated digital transformation in the post-epidemic era. These analyzes will help readers better understand market development trends and plan for future opportunities in advance. Through detailed data analysis and field research, the report provides entrepreneurs with the latest and most practical market information to help companies succeed in the Korean 5G market.

Overview of South Korea’s 5G technology infrastructure

Network coverage and user scale

South Korea’s 5G network deployment began in April 2019. After five years of continuous construction, it has formed a world-leading network infrastructure system. As of the first quarter of 2024, South Korea’s three major operators SK Telecom, KT and LG U+ have deployed more than 230,000 5G base stations, achieving deep coverage in major cities and industrial parks across the country. In core urban areas such as Seoul and Busan, 5G networks have achieved coordinated coverage of millimeter wave and Sub-6GHz dual frequency bands, providing strong support for high-bandwidth applications.

In terms of user scale, the number of 5G users in South Korea has exceeded 35 million, and the user penetration rate has reached 52%, ranking among the top in the world. Among them, SK Telecom holds the largest market share with approximately 16 million users, while KT and LG U+ have approximately 12 million and 7 million users respectively. It is worth noting that the number of enterprise private network users is growing rapidly, and more than 1,000 5G private network projects have been deployed, mainly in vertical industries such as manufacturing, medical care, and ports.

Network quality assessment shows that South Korea’s 5G network performance continues to optimize. The average download speed in major urban areas reaches more than 600Mbps, and some hotspot areas can reach 1.5Gbps. The network delay is stable in the range of 10-20 milliseconds, and the reliability exceeds 99.999%. According to the network quality report released by the Ministry of Science, Technology, Information and Communications of South Korea, user satisfaction remains above 85%, especially in high-bandwidth scenarios such as video streaming and cloud gaming.

Industrial support system

The Korean government has established a complete policy support framework for the development of the 5G industry. The “Korean New Deal 2.0” plan lists 5G infrastructure construction as a core project and plans to invest 25 trillion won by 2025 to promote network upgrades and application innovation. At the same time, a 5G industry development fund with a scale of 2 trillion won has been established to provide enterprises with research and development support and commercialization subsidies. In terms of spectrum policy, the allocation of 3.5GHz and 28GHz frequency bands has been completed, and it is planned to release more millimeter wave spectrum resources by the end of 2024.

In terms of industrial chain layout, South Korea has formed a complete 5G industrial system. In the field of equipment manufacturing, Samsung Electronics, as the world’s leading 5G equipment supplier, has strong competitiveness in base stations, terminals, chips and other aspects. At the application level, a number of innovative companies focusing on vertical industry solutions have been cultivated, such as Bespin Global, Naver Cloud, etc. Industrial clusters are mainly distributed in innovation parks such as Seoul Digital Media City and Banqiao Smart City, forming a good industrial ecology.

In terms of technological innovation capabilities, South Korea continues to maintain high-intensity R&D investment. The number of 5G-related patent applications in 2023 will exceed 15,000, and it has a large number of standard essential patents in core technology fields. Leading companies such as Samsung and LG work closely with university research institutions to achieve breakthroughs in cutting-edge fields such as 6G pre-research, network intelligence, and ultra-reliable low-latency communications. At the same time, through the collaborative innovation mechanism of industry, academia and research, we will accelerate the transformation of technological achievements and promote industrial upgrading.

Moreover, South Korea is actively promoting the evolution of 5G networks to 5G-Advanced. Major operators have launched network upgrade pilots and plan to achieve commercial use in 2025. The new generation network will achieve qualitative improvements in ultra-reliable and low-latency communications, massive IoT connections, and network intelligence, providing stronger network support for future industrial digital transformation.

The perfection of the industrial support system directly affects the depth and breadth of 5G application innovation. South Korea continues to optimize the industrial development environment through multi-dimensional measures such as policy guidance, financial support, and talent training. Especially in terms of basic work such as standard formulation, testing and certification, and safety assurance, a systematic support mechanism has been established to provide a strong guarantee for industrial innovation.

South Korea’s 5G infrastructure construction will enter a stage of refined development, focusing on improving network performance and coverage quality, while accelerating the evolution to 5G-Advanced. The industrial support system will be further improved, especially by providing more policy support in promoting innovation of small and medium-sized enterprises and deepening international cooperation, so as to create good conditions for the sustainable development of the industry.

Application analysis of key industries

Smart City

South Korea’s smart city construction uses 5G networks as the core infrastructure to achieve intelligent upgrades in urban management. In the field of smart transportation, Seoul uses 5G+AI technology to build a real-time traffic flow analysis system. By deploying more than 5,000 high-definition cameras and various sensors, it realizes intelligent adjustment of traffic signals and reduces traffic congestion time by 28% on average. Busan Port has deployed a 5G autonomous bus system to achieve L4 autonomous driving operations on fixed routes.

In terms of public safety, the 5G emergency response system jointly developed by the Korea Fire Service and SK Telecom has realized real-time positioning of firefighting vehicles and on-site high-definition video backhaul, shortening rescue response time by an average of 4.5 minutes. At the same time, an intelligent security system connected through the 5G network is put into use in the central area of ​​Seoul, integrating facial recognition, abnormal behavior detection and other functions, effectively improving the level of security management in public areas.

In terms of environmental monitoring and energy management, the “Smart Environment Cloud Platform” launched by the Ministry of Environment of South Korea relies on 5G networks and has deployed more than 20,000 air quality monitoring points to achieve accurate tracking and early warning of pollution sources. In the field of smart grids, Korea Electric Power Company (KEPCO) has connected 500,000 smart meters through a 5G private network to realize real-time adjustment of electricity load and increase energy saving efficiency by 15%.

Typical case analysis: The Seoul Digital Twin Project (S-Map) was fully upgraded in 2023, combining 5G network and 3D modeling technology to build a high-precision digital twin platform covering 605 square kilometers of Seoul. The platform can monitor urban operating status in real time, support disaster simulation, urban planning and other applications, and has been successfully used in more than 20 urban management scenarios, such as water accumulation early warning, traffic optimization, etc.

Industrial Internet

South Korea’s Industrial Internet focuses on the digital transformation of the manufacturing industry and has created a number of exemplary 5G smart factories. In the field of smart manufacturing, Samsung Electronics’ Suwon factory connects more than 1,000 industrial robots through a 5G private network to achieve flexible scheduling of production lines and increase product yield by 12%. LG Electronics’ Changwon factory adopts a 5G+ edge computing solution to reduce the production data processing delay to less than 5 milliseconds and achieve real-time control of the precision manufacturing process.

In terms of industrial control and remote operation, the 5G remote control system developed by Doosan Heavy Industries has successfully realized remote operation of construction machinery with an operation delay of less than 20 milliseconds. It has been applied in more than 100 engineering projects. POSCO uses 5G networks to realize remote monitoring and operation of high-temperature hazardous areas, significantly improving work safety.

In the field of predictive maintenance, South Korea’s SK Hynix Semiconductor Factory has deployed an equipment health management system based on 5G networks. Through real-time data collection and AI analysis, it can predict equipment failures in advance and reduce unplanned downtime by 80%.

Typical case analysis: Hyundai Motor’s Asan factory smart project is South Korea’s largest 5G industrial Internet application case. The factory deployed a 5G private network provided by KT, connecting more than 1,500 robots and 6,000 IoT devices. Through digital twin technology to realize visual management of the production process, and the introduction of AI quality inspection systems to improve product quality, annual production capacity has been increased by 15%, and production efficiency has been increased by 23%. The project was certified as a “Lighthouse Factory” by the World Economic Forum.

Medical health

South Korea’s medical industry is the first to apply 5G technology to telemedicine services. Since 2023, with the support of the new medical bill, remote diagnosis and treatment services have rapidly become popular. The “5G remote consultation platform” developed by KT has connected more than 200 medical institutions, serving more than 50,000 patients per month. The platform supports 4K high-definition video consultation, real-time vital signs monitoring and other functions, and is particularly effective in chronic disease management.

In terms of smart hospital construction, 15 large hospitals in South Korea have completed the deployment of 5G private networks. Korea University Ansan Hospital has fully connected medical equipment in the hospital and developed applications such as intelligent navigation and intelligent logistics, which has shortened patients’ waiting time for medical treatment by an average of 35%. Jiangnan Shifu Hospital uses 5G+AI technology to conduct intelligent triage, with an accuracy rate of 92%.

In the field of medical image transmission, the 5G medical imaging cloud platform jointly developed by the Korean Society of Radiology and LG U+ supports real-time transmission and collaborative diagnosis of PB-level medical imaging data and has been put into use in more than 50 hospitals. The system can complete CT image transmission within 3 seconds, greatly improving the efficiency of remote consultation.

Typical case analysis: The 5G private network project of Seoul National University Hospital is the most comprehensive smart medical demonstration case in South Korea. The 5G private network built by the hospital and SK Telecom covers the entire hospital area and connects more than 3,000 medical devices. It has realized innovative applications such as remote control of surgical robots, AI-assisted diagnosis, and smart pharmacy management. Especially during the COVID-19 epidemic, the 5G remote ICU system successfully managed critically ill patients and reduced the risk of infection among medical staff. This experience has been extended to more than 20 hospitals across the country.

Culture and entertainment

South Korea’s cultural and entertainment industry has made full use of the advantages of 5G technology to create a series of innovative content and services. In the field of VR/AR content production, CJ ENM cooperated with KT to establish the largest virtual production studio in Asia, using 5G network transmission to render images in real time, and successfully produced many virtual film and television works such as “Kingdom: Ashin”. In 2023, the scale of South Korea’s virtual content industry will exceed 2 trillion won, with an annual growth rate of 35%.

In terms of immersive experience venue construction, Lotte World and LG U+ launched “Future Park”, an AR amusement facility that supports real-time interaction between multiple people through the 5G network, and receives an average of more than 5,000 visitors per day. The SKT 5G Experience Center in Gangnam District showcases cutting-edge technology applications such as holographic projection and tactile interconnection, becoming a new cultural landmark in Seoul.

In the field of e-sports and gaming, South Korea has developed the world’s first 5G cloud gaming platform. Netmarble’s cloud gaming service in cooperation with SK Telecom has attracted more than 2 million users. The game delay is controlled within 10 milliseconds, and the user experience is comparable to local operation.

Typical case analysis: SK Telecom’s “ifland” metaverse platform is the most successful 5G entertainment application in South Korea. The platform has more than 3 million monthly active users, supports up to 130 people to interact online at the same time, and has successfully held more than 1,000 events including virtual concerts and art exhibitions. The platform has specially developed technologies such as real-time facial expression capture and spatial audio to greatly enhance user immersion. The platform has reached cooperation with operators in more than 20 countries around the world.

Retail business

South Korea’s retail industry has achieved comprehensive digital transformation with the help of 5G technology. In terms of smart store solutions, New World Department Store and KT jointly developed a smart retail system that connects in-store digital labels, smart shelves and other equipment through 5G networks to achieve real-time updates of product information and intelligent inventory management, improving operational efficiency by 40%.

Unmanned retail technology is widely used. GS25 convenience stores have deployed more than 100 5G smart stores in Seoul, using computer vision and RFID technology to achieve automatic settlement, increasing average daily customer flow by 25%. Easyhome’s Korean flagship store uses a 5G+AR shopping guide system to allow customers to virtually place furniture through AR glasses.

In terms of new retail marketing innovation, Korean retailers generally adopt omni-channel marketing solutions supported by 5G. The real-time live shopping platform developed by SSG.COM achieves 4K ultra-clear live broadcast and instant interaction through 5G network, with an average conversion rate of 15%, significantly higher than traditional e-commerce.

Typical case analysis: Lotte Department Store Myeongdong Store smart mall project is the most complete 5G retail application case in South Korea. The mall has deployed a 5G private network provided by SK Telecom to support innovative applications such as smart shopping guides, virtual fittings, and robot delivery. Using digital twin technology to achieve accurate analysis and dynamic management of shopping mall passenger flow, annual turnover increased by 18%. This model has been promoted in 15 large shopping malls under the Lotte Group.

Education and training

The Korean education industry is actively exploring the 5G+ education innovation model. In terms of distance education platform construction, the “K-MOOC 2.0” platform jointly built by the Ministry of Education of South Korea and three major operators supports 8K ultra-clear course live broadcasts and multi-person real-time interaction, with more than 5 million registered users. The platform has specially developed a virtual laboratory function based on 5G network, allowing students to conduct physics and chemistry experiments remotely.

Blended learning solutions are very popular. The hybrid teaching system developed by Seoul National University using 5G+AR technology supports simultaneous interaction between online and offline students, and teaching satisfaction has increased by 32%. Yonsei University School of Medicine uses 5G holographic projection technology for anatomy teaching, which greatly improves the teaching effect.

In the field of vocational skills training, HRD Korea has established 10 5G vocational training centers to carry out high-risk job training through VR simulation training systems, and has trained more than 50,000 students. Samsung Electronics’ 5G smart training center uses digital twin technology to allow employees to conduct equipment operation training in a virtual environment.

Typical case analysis: The virtual campus project between KT and Korea University is the most representative 5G education innovation case in South Korea. The project builds a digital twin environment covering the entire campus, supporting a variety of teaching scenarios such as virtual classrooms, online experiments, and remote defenses. Especially in terms of experimental teaching, remote operation of precision instruments is realized through the 5G network, which greatly improves the efficiency of teaching resource utilization. The system serves more than 20,000 students every month, and this model has been recommended by the Korean Ministry of Education as the standard for higher education informatization construction.

Through the analysis of the above six major fields, it can be seen that South Korea’s 5G applications have gradually moved from early demonstration projects to the stage of large-scale commercialization, forming a number of successful models that can be replicated and promoted. These applications not only improve industry efficiency, but also create new business models and growth opportunities, providing useful reference for the development of the global 5G industry.

Business opportunity analysis

South Korea’s 5G market is highly mature and continuously expanding. From the perspective of market segments, as of the third quarter of 2024, the number of 5G users in South Korea has reached 35 million, with a penetration rate of more than 50%, ranking among the top in the world. In terms of vertical industry applications, the smart manufacturing market has reached 2.8 trillion won, and the compound growth rate is expected to remain above 35% in the next three years; the investment scale in the smart city field has exceeded 4 trillion won, of which 5G-related projects account for about 40% %; the growth rate of emerging application markets such as medical and retail has exceeded 50%.

The market competition pattern presents the characteristics of “3+N”. The three major operators, SK Telecom, KT and LG U+, occupy core network resources and user base, and their market shares are relatively stable, at 45%, 30% and 25% respectively. At the application level of vertical industries, a competitive situation has been formed in which local technology giants such as Samsung and LG are the leaders, and professional solution providers are widely involved. It is worth noting that the Korean government has recently promoted the construction of 5G private networks, bringing strategic opportunities to new entrants.

An assessment of barriers to entry shows that technical standards and regulatory compliance are the top challenges. The Korea Telecommunications Standards Association (TTA) has formulated a strict 5G equipment certification system, and foreign-funded enterprises need to go through an average of 6-8 months of testing and certification process. At the same time, areas involving critical infrastructure, data security, etc. also need to pass additional review by the Ministry of Industry and the Ministry of Science and Technology. However, the “Digital New Deal 3.0” policy recently introduced by the South Korean government clearly supports the introduction of diversified market entities, creating a more favorable access environment for foreign-funded enterprises.

The 5G business model is undergoing a transformation from traditional traffic operation to value operation. In terms of charging models, Korean operators generally adopt a tiered pricing strategy of “basic network + value-added services”. Taking SK Telecom as an example, its 5G tariff system includes multiple levels such as basic packages, industry private network services, and application enablement platforms. It maximizes revenue through differentiated pricing. Especially in the enterprise market, a refined charging model based on service level agreement (SLA) has been formed.

The distribution of profit points shows diversified characteristics. In addition to traditional network access revenue, the proportion of revenue from new services such as platform enablement, solution integration, and data operations continues to increase. Taking KT as an example, platform and solution revenue accounts for 45% of its 5G enterprise market revenue, and its gross profit margin reaches 38%, which is significantly higher than basic network services. In vertical industry applications, solution integration services in areas such as smart manufacturing and telemedicine generally exceed 1 billion won in contract value for a single project, which has become an important profit growth point.

Innovation case studies show that successful business models often have the characteristics of “platform, ecology, and scenario”. For example, the “U+스마트팩토리” platform developed by LG U+ adopts the combination model of “platform + application + service” to provide manufacturing companies with one-stop services from device access to data analysis. The platform achieves profitability by collecting basic subscription fees, application usage fees and value-added service fees, and its revenue will exceed 100 billion won in 2023. Similarly, SK Telecom’s “5GX MEC” edge computing platform provides low-latency computing services to enterprise customers by cooperating with cloud service providers, forming a sustainable revenue model.

Cooperation opportunities in the Korean market are mainly concentrated at three levels. First of all, local partners are rich in resources, including system integrators, solution providers and industry consulting organizations. Especially in the field of vertical industry applications, cooperation with local companies with deep industry accumulation can quickly open up the market. For example, many foreign-funded companies have successfully entered the Korean industrial Internet market through cooperation with leading companies such as Hyundai Heavy Industries and Posco.

The field of technology licensing presents new opportunities. Korean companies have accumulated a lot of practical experience and patented technologies in 5G private networks, edge computing, network slicing and other fields, and have a strong willingness to export technology. According to statistics from the Korean Intellectual Property Office, the value of 5G-related patent licensing transactions in 2023 will exceed 2 trillion won, of which cross-border licensing will account for 35%. Especially in the field of vertical industry applications, industry solutions developed by Korean companies have high copy value.

The activity of the investment and M&A market continues to increase. In the past two years, there have been more than 50 mergers and acquisitions transactions in South Korea’s 5G industry chain, with the total transaction volume exceeding 3 trillion won. Among them, technology-based companies targeting subdivided fields are the main targets, such as start-ups focusing on 5G private network optimization, AR/VR content production companies, etc. It is worth noting that the Korean government is open to foreign mergers and acquisitions, especially in the field of promoting industrial upgrading, and also provides supporting support policies. For example, in the case of a European company acquiring a Korean 5G solution provider in 2023, it received support from the Industrial Innovation Fund.

To sum up , although the competition in the Korean 5G market is fierce, there are still a lot of considerable business opportunities. The key to successfully seizing these opportunities lies in accurately understanding market needs, choosing the right entry point, building effective partnerships, and establishing a sustainable business model. Especially in the context of the rapid development of vertical industry applications, integrating superior resources and creating differentiated competitiveness will become the key to success.

Risks and Challenges

The policy and regulatory environment of South Korea’s 5G market shows an increasingly strict trend. The revision of the “Communications Network Security Management Measures” issued by the Ministry of Science and Technology at the end of 2023 has significantly improved equipment access standards and data compliance requirements. Foreign-funded enterprises face more stringent cybersecurity reviews, especially projects involving critical information infrastructure, which often require joint review by multiple regulatory authorities, and the approval cycle may be extended to more than 12 months. In addition, the Korea Communications Commission (KCC) has continuously strengthened its supervision of 5G tariffs, spectrum usage, etc., increasing operating costs.

Market competition risks are mainly reflected at two levels. First of all, local Korean companies have formed a complete layout in the 5G industry chain, especially in key industries such as manufacturing and medical care. Local solution providers enjoy first-mover advantages and brand recognition. Secondly, global technology giants have increased their investment in the Korean market. For example, Microsoft, AWS, etc. have successively announced the construction of 5G innovation centers in South Korea in 2024, further intensifying market competition.

The risks of technology iteration cannot be ignored. South Korea has begun its 6G technology research and development layout and plans to complete the formulation of technical standards in 2025. This means that 5G technology investment faces the risk of accelerated depreciation, and companies need to be more cautious in technology route selection and investment pace. At the same time, South Korea is highly receptive to the application of new technologies, and companies must continue to invest in research and development to remain competitive.

Local adaptation is the primary challenge faced by foreign-funded enterprises. The Korean market has a unique business culture and consumption habits, and the localization of products and services often requires the investment of a large amount of resources. For example, user interface design, after-sales service system, etc. all need to conform to the usage habits of Korean users. In addition, it also takes a long time to establish effective government relations and industry relations networks.

Talent reserves face double pressure. On the one hand, the supply of 5G professional talents in South Korea exceeds the demand, especially compound talents with vertical industry application experience are scarce, and labor costs remain high. On the other hand, Korean companies generally adopt a lifetime employment system and have low talent mobility, which poses challenges to foreign-funded companies’ talent recruitment. According to statistics from the Korea Human Resource Management Association, the average recruitment cycle for 5G-related positions exceeds 6 months.

Cost control becomes more difficult. In addition to labor costs, network construction and operation and maintenance costs also continue to rise. Especially in terms of private network construction, the costs of equipment procurement, system integration, operation and maintenance services, etc. are generally higher than in other markets. At the same time, in order to meet the ever-increasing service quality requirements, enterprises need to continue to invest in network optimization and upgrades, which further increases operational pressure.

Market entry strategy suggestions

Market entry path

Industry selection should follow the principle of “key breakthroughs and echelon development”. It is recommended that mature vertical industries such as manufacturing and medical health be preferred. These areas have formed clear business models and relatively standardized industry standards. In terms of manufacturing, priority can be given to the 5G application needs of South Korea’s dominant industries such as automobiles and electronics; in the medical field, market segments such as telemedicine and smart hospitals can be focused on.

The regional layout strategy should adopt the “core circle + radiating expansion” model. As the first layout focus, the Seoul metropolitan area not only brings together major customer resources, but also has a complete supporting environment. This is followed by new industrial parks such as Suan and Busan, where government support is strong and there is a large demand for industrial upgrading. After establishing a foothold in the core area, we can expand to other areas through our partner network.

To control the pace of development, we need to pay attention to “steady, steady and step-by-step”. It is recommended to adopt a three-stage strategy: the first stage (1-2 years) focuses on establishing a market presence and can accumulate experience by participating in demonstration projects; the second stage (2-3 years) accelerates market expansion and focuses on developing benchmark customers; the third stage (3 years later) Achieve large-scale development and deploy innovative businesses at the same time.

Business model choice

The direct entry model is suitable for enterprises with strong technical strength and financial strength. This model can maintain a high degree of operational autonomy, but requires investing a lot of resources to establish a localized operating system. It is recommended to adopt an organizational structure of “headquarters + subsidiaries” to ensure decision-making efficiency while maintaining necessary localization characteristics.

The cooperative entry model is a realistic choice for most enterprises. You can consider establishing strategic alliances with local Korean companies to quickly open up the market through complementary advantages. For example, you can work with system integrators to develop industry solutions, or work with operators to provide private network services. This model can lower market entry barriers and accelerate business development.

The M&A entry mode is suitable for companies seeking rapid market breakthroughs. There are a large number of small and medium-sized enterprises in the Korean market with unique technologies or market segment advantages. Through precise mergers and acquisitions, they can quickly acquire technical capabilities and customer resources. It is recommended to give priority to targets with strong synergy effects with your own business and pay attention to cultural integration after mergers and acquisitions.

Risk prevention measures

Legal compliance protection requires the establishment of a comprehensive risk management system. It is recommended to set up a dedicated compliance team to closely track policy changes and ensure that business operations comply with regulatory requirements. Especially in sensitive areas such as data security and network security, strict internal control systems need to be established. At the same time, a long-term cooperative relationship should be established with professional legal advisors to provide legal support for important decisions.

Intellectual property protection requires an active defense strategy. First of all, we must make a good patent layout and apply for relevant patent protection in South Korea in a timely manner. The second step is to establish an intellectual property risk early warning mechanism and conduct regular patent risk inspections. For core technologies, it is recommended to adopt a layered protection strategy and strengthen protection through technical encryption, access control and other means.

It is recommended to promote localized operations from multiple dimensions. In terms of organizational structure, it is recommended to establish a local decision-making mechanism to improve operational efficiency; in terms of talent strategy, it is necessary to focus on cultivating local management teams and establishing a competitive incentive mechanism; in terms of brand building, it is necessary to pay attention to the integration with the cultural characteristics of the Korean market. Strengthen local identity. At the same time, we actively participate in industry activities and social welfare to enhance brand influence.

Development Prospects

South Korea’s 5G technology is accelerating its evolution to 6G. According to the “6G Technology Development Roadmap” released by the Ministry of Science, Technology, Information and Communications of South Korea, 6G is expected to be commercially available between 2028 and 2030. In terms of technical indicators, 6G networks will achieve terabit-level transmission rates, microsecond-level delays, and connection density a thousand times that of 5G. Korea Electronics and Communications Research Institute (ETRI) has made breakthroughs in key technologies such as terahertz communications and smart reflectors, and plans to complete core technology verification in 2025.

Application innovation presents three major directions: “immersion, intelligence, and integration”. In terms of immersive experience, the combination of holographic communication and digital twin technology will bring revolutionary changes. Samsung Electronics has demonstrated a prototype of a 6G-based holographic conference system, which is expected to be commercialized in 2026. In terms of intelligence, network self-optimization and intelligent operation and maintenance based on artificial intelligence will become standard, which can significantly reduce network operation costs. In terms of convergence applications, the collaborative deployment of 5G and 6G will support more complex scenarios, such as intelligent transportation, metaverse, etc.

The trend of industrial integration is becoming increasingly obvious. The deep integration of communication technology and traditional industries is reshaping the industrial landscape. Taking the automotive industry as an example, Hyundai Motor Group is cooperating with SK Telecom to develop an autonomous driving system based on 5G/6G, and plans to achieve commercialization of L4 autonomous driving in 2025. In the field of intelligent manufacturing, the integrated application of 5G, industrial Internet, and artificial intelligence has become the key to improving industrial competitiveness.

Forecasts in key areas show that the Korean 5G market will enter a period of rapid development in the next three years. By 2027, the overall market size is expected to exceed 100 trillion won. Among them, vertical industry applications will become the biggest growth point, and the average annual growth rate is expected to remain above 40%. Specifically, the smart manufacturing market is expected to reach 15 trillion won, the smart medical market will exceed 8 trillion won, and the investment scale in smart cities and public services will exceed 20 trillion won.

Investment opportunities are mainly concentrated in three directions: first, the market potential of private network solutions is huge, especially the demand for lightweight solutions for small and medium-sized enterprises; second, the commercial application of enabling technologies such as edge computing and network slicing will bring There are new growth points; thirdly, there are great investment opportunities in innovative application services based on 5G, such as AR/VR content, smart Internet of Things platforms and other fields.

Based on market development trends, it is recommended that enterprises focus on the following aspects: first, lay out 6G technology research and development in advance, especially in the directions of millimeter wave communications and network intelligence; second, strengthen vertical industry development and create competitive advantages in subdivisions; third, It focuses on ecosystem construction and expands market influence through open cooperation. At the same time, it is recommended that enterprises pay close attention to policy guidance and seize new opportunities brought by the transformation of the digital economy.

Practical Guide

Preparatory work requires systematic planning. The first is the market research stage. It is recommended to invest 3-6 months for in-depth market analysis and customer demand research. Key points include: market segment size assessment, competitor analysis, potential customers and partners, etc. The second step is internal preparation, which requires setting up a localization team, improving management systems, and establishing a risk control system. It is particularly important to establish communication channels with relevant regulatory authorities in advance to understand specific regulatory requirements.

Qualification certification requirements involve multiple levels and need to be coordinated and promoted. In terms of technical certification, it needs to pass the equipment certification of the Korean Telecommunications Standards Association (TTA), which usually takes 6-8 months; if it involves special industry applications, it also needs to obtain the corresponding industry qualification certification. For example, applications in the medical field require approval from the Department of Food and Drug Safety (MFDS). In terms of enterprise qualifications, it is necessary to go through procedures such as communication service business license and foreign-invested enterprise registration. It is recommended to hire a professional certification consulting agency to assist in completing the certification process.

Controlling key time nodes is an important factor in project success. The following schedule is recommended:

• 0-3 months: Complete market research and preliminary business plan.
• 3-6 months: Start application for qualification certification and start team building at the same time.
• 6-9 months: Complete technical certification testing and establish a localized operation system.
• 9-12 months: Carry out pilot projects and establish an initial customer base.
• 12-18 months: Realize commercial operations and gradually expand market share.

In actual operation, special attention needs to be paid to the following key nodes:

March and September every year are important bidding seasons for the Korean communications industry.

The middle of the year (June-July) and the end of the year (December) are intensive periods for government project approvals

The fourth quarter of each year is the budget formulation period for the next year, and cooperation plans need to be communicated with customers in advance.

Important exhibitions and industry summits are usually held in spring (March-May) and autumn (September-November)

In addition, it is recommended to develop a detailed emergency plan to prepare for possible delays in advance. For example, delays in equipment certification and difficulties in talent recruitment may affect project progress. Through reasonable resource allocation and flexible adjustment mechanism, ensure that the project progresses as planned.