[2023 National Audit] Telecom 3 Subsidiaries Hold 48% of Altteul Phone Market... "Purpose Undermined"

On the 11th, Kim Byung-wook, a member of the People Power Party, revealed that the subsidiaries of the three major mobile carriers hold nearly half of the market share in South Korea's budget phone market. He stated that the original purpose of introducing budget phones?to reduce household communication expenses and improve the structure of the telecommunications market?has been undermined.

According to data submitted by the Ministry of Science and ICT to Representative Kim, as of the end of July, the market share of budget phone mobile lines held by subsidiaries of the three major carriers reached 48%.

Kim Byung-wook, Member of the People Power Party
Photo by Kim Byung-wook, Office of the Member of the People Power Party

The subsidiaries operating budget phone businesses currently include SK Telink, a subsidiary of SK Telecom; KT M Mobile and KT Skylife, subsidiaries of KT; LG HelloVision, a subsidiary of LG Uplus; and Medialog.

As of July this year, the total number of pure mobile phone line subscribers to budget phones, excluding Internet of Things (IoT) line subscribers, is 8.23 million. Among them, 3.93 million (48%) are subscribed through the three major carriers.

There are currently 57 companies providing budget phone services. Among them, five companies account for 48% of all subscribers, leading Representative Kim to point out that the three major carriers are monopolizing even the budget phone market.

Representative Kim said, “The budget phone system was introduced to promote competition in the oligopolistic telecommunications market, but contrary to its purpose, the three major carriers are dominating even the budget phone market,” adding, “The government should strengthen institutional support measures so that businesses from other industries such as finance, distribution, and construction can enter and settle in the budget phone market.”