Institutionalizing Regional Channel Commerce to Open Sales Channels for Small Business Owners
Launch of Budget Phone Plans and Integrated LTE·5G Plans
Enactment of Digital Safety Act in the Second Half... Responding to Cyber Threats
The Ministry of Science and ICT (hereinafter referred to as MSIT) is pushing for an amendment to the Broadcasting Act this year to enable local small business owners to sell products through paid broadcasting and open new sales channels. The ministry also announced plans to ease household communication expenses again this year by introducing affordable budget phone plans and integrated LTE·5G plans.
On the 13th, MSIT reported its 2025 work plan, including these initiatives in the ICT sector, to Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance. Minister Yoo Sang-imm of MSIT stated, “We will mobilize all available resources to fully support the difficult livelihood of the people.”
In the ICT sector, the government will promote ▲ institutionalization of regional channel commerce broadcasting (paid broadcasting operators selling local small business products) ▲ launch of integrated LTE·5G plans ▲ preparation of measures to strengthen the competitiveness of budget phone services. Additionally, it promised ▲ to push for the enactment of the Digital Safety Act in the second half of the year ▲ to operate a real-time and continuous monitoring system to enhance cyber threat response policies ▲ and to promote private investment through improvements in the frequency allocation system.
Regional Channel Commerce Inside the Broadcasting Act... Active Promotion of Communication Fee Reduction
First, MSIT announced plans to actively operate the ‘Digital Service Livelihood Support Task Force’ (hereinafter Task Force), established last October. The Task Force supports resolving digital dysfunctions and helps small business owners develop sales channels through broadcasting and communication platforms. MSIT is pushing for the institutionalization of ‘regional channel commerce broadcasting’ through amendments to the Broadcasting Act and will collaborate with related ministries such as the Ministry of SMEs and Startups to strengthen small business owners’ AI and digital capabilities, develop sales channels, and provide financial support. The Task Force will also take follow-up measures against livelihood crimes, eradicating crimes such as voice phishing, smishing, and illegal private financing.
Minister Yoo Sang-im of the Ministry of Science and ICT (second from the left) is taking a commemorative photo with representatives at the Ministry of Science and ICT Minister-Telecom CEO meeting held on the 13th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. From the left, Yoo Sang-young, CEO of SK Telecom; Minister Yoo; Kim Young-seop, CEO of KT; Hwang Hyun-sik, CEO of LG Uplus. Photo by Jo Yong-jun
Regarding communication fees, MSIT will support consumers’ rational choice of plans by launching integrated LTE·5G plans. This aims to facilitate consumers’ comparison and selection of plans through a simplified fee structure. To prevent reduction in consumer choice and benefits, MSIT will strengthen its review before plan launches. Lee Do-gyu, MSIT’s Director of Communication Policy, said, “In the case of SKT, plans are reported and reviewed by the Terms of Service Review Advisory Committee. We plan to carefully check during the terms of service reporting to ensure that consumer benefits are not reduced.” Previously, the three mobile carriers (SKT, KT, LG Uplus) announced plans to stop or have stopped subscriptions to some LTE plans that are more expensive or offer less data than 5G plans.
MSIT also plans to announce measures to strengthen the competitiveness of budget phone services this month and support the launch of affordable budget phone plans by lowering wholesale fees (the fees budget phone operators pay to telecom companies for network leasing). Since the government’s participation in wholesale fee negotiations will end in March, it intends to do its best to reduce wholesale fees in this negotiation.
The government has regulated wholesale fees in advance by negotiating with telecom companies on behalf of budget phone operators with low bargaining power, but criticism has arisen that this has instead created many small operators lacking self-sustainability. Therefore, from March 30 next year, the system will shift to post-review.
Furthermore, based on the Digital Inclusion Act enacted last December, the government will fully implement digital inclusion policies this year, including preparing ‘Digital Inclusion Society 2.0’ in the first quarter and establishing a real-time three-party video call 119 emergency reporting system for the hearing- and speech-impaired.
Push for Enactment of Digital Safety Act in Second Half... Promote Investment by Improving Frequency Regulations
To enhance the digital disaster and cyber threat response system, the government will push for the enactment of the ‘Digital Safety Act’ in the second half of the year. The main goal is to integrate currently dispersed safety management regulations and clarify management responsibilities. This is an extension of the comprehensive, full-cycle disaster management system established by the government. Previously, following the 2021 KT communication outage and the 2022 Kakao blackout, the government laid the foundation for digital disaster management by amending the three digital safety laws, reducing communication outages by 33% compared to the previous year.
Additionally, this year, the government will invest 7.8 billion KRW to add the ‘Cyber Spider’ system, which uses AI to monitor and analyze cyber threats in real time. It will monitor about 4 million websites from approximately 700 major public and private institutions eight times a day to strengthen continuous response.
The government will also improve the system to promote private investment in the communication market. It plans to review the reassignment of 3G and 4G frequencies scheduled to expire next year and improve the frequency allocation system. Although there are voices suggesting the termination of 3G services due to low usage rates, the government’s position is to observe further. An MSIT official said, “The criterion for discontinuing frequency service is 1% subscriber rate, but currently it is slightly higher, so we are monitoring closely. When the appropriate time comes, the Radio Bureau and Communication Bureau within the ministry will consult and decide.”
To promote 5G investment, MSIT will also introduce a self-declaration system that shortens the investment procedure for mobile communication base stations to 45 days and improve quality evaluation.
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