[5G+ Strategy] "5G is the Key to the Success of the Korean New Deal" Nationwide Network Construction by Next Year, Expansion of Converged Services

'2021 5G+ Strategy Implementation Plan'

[Asia Economy Reporter Seulgina Jo] The government is designating this year as the inaugural year for the '5G Convergence Ecosystem Creation' and will actively build the ecosystem. By early next year, it plans to establish a nationwide 5G network to enhance the 5G quality experienced by the public, while also promoting 5G convergence services. Additionally, it will support overseas expansion to secure a leading position in the global 5G market. The policy aims to accelerate innovation across all industries based on 5G, a key pillar of the Digital New Deal and a data highway, ultimately achieving a national digital transformation.

The Ministry of Science and ICT held the 4th inter-ministerial public-private joint '5G+ Strategy Committee' meeting via video conference on the 26th to discuss the '2021 5G+ Strategy Promotion Plan.' The main points include ▲promoting early establishment of a nationwide 5G network ▲activating 5G convergence services ▲strengthening a virtuous cycle structure in equipment and device industries ▲leading the global ecosystem ▲and reinforcing a foundation for sustainable growth.

This plan draws attention amid fierce competition among countries investing in 5G, as 5G has become a core driver of economic and social innovation following the COVID-19 pandemic. The government judged that focusing policy capabilities is crucial to steadily advance the '5G Leader' strategy based on past achievements. This year, the goal is to build the 'world's best 5G ecosystem' by involving all supply and demand companies in networks, platforms, and content, which play a central role in discovering and spreading 5G convergence services.

Minister Choi Ki-young emphasized, “Above all, 5G is a national task that must succeed as a gauge for the success of the Korean New Deal,” adding, “To lead the global 5G convergence ecosystem market based on achievements since the world's first 5G commercialization (April 2019), collaboration among related ministries, public and private sectors, and large and small businesses is important.” Since 5G commercialization, the number of domestic 5G subscribers has surpassed 10 million (as of November 2020), and Korea ranks second in market share for 5G terminals and equipment (as of Q3 2020).

◆Early Nationwide Network Establishment by Next Year... Activation of Convergence Services

First, despite reaching 10 million subscribers, the government views 5G coverage as still limited and is accelerating the early establishment of a nationwide network. It plans to densely connect the entire country by building 5G in 85 major administrative districts, all subway and KTX stations, and about 4,000 major multi-use facilities this year. In rural and fishing villages where network construction has not been adequately completed, 5G accessibility will be enhanced through network sharing (roaming) among telecom companies. To this end, the government has also strengthened tax support as a strategy to attract private investment. The 5G investment tax credit rate, which was up to 2% (based on the metropolitan area), will be raised to 3% this year, and additional credits based on the average investment increase over the past three years will also be possible.

5G convergence services will also be activated. The '5G+ Innovation Project,' which supports technology development, demonstration, and dissemination focusing on core 5G+ service areas such as immersive content, autonomous vehicles, smart cities, smart factories, and digital healthcare, is representative. A budget of 165.5 billion KRW is planned for this year alone.

Specifically, the government will promote the 'XR Flagship Project' in key sectors such as construction, defense, and education, where the application effect of extended reality (XR) technology is significant. It will also invest 25 billion KRW in producing XR services related to daily life (50 projects), including augmented reality (AR) navigation services and AR sign language services for the hearing impaired. Efforts will be intensified for technology development (88.4 billion KRW) and legal system improvements for Level 4 autonomous driving commercialization. A 5G-based artificial intelligence (AI) emergency medical system (6 billion KRW) providing intelligent emergency medical services from patient occurrence to treatment will also be established.

Alongside this, the government will discover MEC pilot services (12 cases) that are easy to form initial markets, focusing on sectors with significant industrial ripple effects. It plans to develop '5G-down convergence service models' reflecting 5G characteristics such as ultra-low latency and ultra-high speed, which differentiate it from LTE. Ideas with high public perception will be identified and supported through growth stages including 'R&D → pilot projects → demonstration and dissemination → commercialization → global expansion.' For new service development such as 28 GHz-based B2B services and specialized networks, a '5G+ Technology Support Task Force' will be activated to assist businesses requiring technical support.

Furthermore, the government plans to allow demand companies other than telecom operators to build 5G specialized networks and revise the net neutrality system to encourage competition among various services.

◆Establishing a Virtuous Cycle in Equipment and Devices... Strengthening 5G Global Leadership

The government will support the development of 5G terminals for B2B with price competitiveness by facilitating 5G communication module development between large domestic companies and SMEs. It also plans to support commercialization of modem chipset development by SMEs, aiming for integration into B2B terminals.

5G materials, parts, and equipment competitiveness will also be enhanced. A budget of 52.5 billion KRW will be invested to secure domestic technological competitiveness for advancing 5G equipment such as small cells and repeaters. New R&D planning for beamforming to expand 28 GHz service coverage will also be conducted.

Additionally, by 2025, a total of 48 billion KRW will be spent to expand support infrastructure, including establishing a 'Digital Open Lab' to assist 5G convergence device development. An online open platform will also be promoted to support SMEs and startups in developing smart edge devices equipped with artificial intelligence semiconductors (NPUs).

Global leadership will also be strengthened. This is an effort to secure a leading position in the global 5G market. While increasing international joint research and standardization activities related to digital core technologies such as VR and AR, the government will seek corporate entry through localization by supporting 5G-based XR joint production projects. Preparation for securing global standards for 6G following 5G is also underway.

In addition, for sustainable growth, the government will secure up to 470 MHz of additional frequency bandwidth in mid-to-low bands, expanding frequencies available for 5G use by about 2.7 times. It will also secure radio resources necessary for 5G+ strategic industries such as drone frequencies. Furthermore, investment in the 5G Specialized Fund (104.4 billion KRW) will be actively initiated to revitalize the 5G startup ecosystem and accelerate professional workforce training. The government will also prepare for carbon neutrality through the development of energy-efficient technologies for 5G base stations (2021?2025, 9.5 billion KRW).