New Subscriptions Resume at Stores Starting on the 24th
440,000 Customers Left in May... Carriers Expected to Ramp Up Efforts to Win Them Back
Subsidy Competition Set to Intensify... Handset Distribution Law to Be Abolished and New Devices to Launch Soon
"Right now, this is the biggest discount we've had recently. Prices could change again tomorrow, so how about making your purchase today?"
On the afternoon of the 23rd, at an official SK Telecom direct agency store in Yeongdeungpo-gu, Seoul, there was a renewed sense of activity. For a while, new subscriptions and number portability had been suspended at SKT stores due to a shortage of USIM cards, but the atmosphere was lively again because SKT is resuming business through USIM starting on the 24th (today).
A view of an SK Telecom store in downtown Seoul on the 23rd, as the Ministry of Science and ICT announced that it will lift the suspension of new business operations imposed on SK Telecom due to a cyber intrusion incident starting from the 24th. Photo by Yonhap News
When asked about the price of the Samsung Galaxy S25 under a number portability contract, the staff mentioned a price in the 300,000 won range. Considering the original price, the combined support from official subsidies and various discounts amounted to 850,000 won. However, there was a condition that the customer must use a high-tier plan costing in the 100,000 won range for six months.
When asked if it was possible to sign up immediately, the store employee recommended subscribing via eSIM. As of that day, the restriction on new business operations at SK Telecom had not yet been lifted, so joining via USIM was not possible. However, sign-ups using eSIM, which does not require a physical card, had resumed since the 16th.
The Ministry of Science and ICT lifted its restriction on new business operations for SKT after 51 days, allowing the company to resume new subscriptions. As SKT is now able to accept new subscriptions and number porting, it is expected to increase subsidies in an effort to win back lost customers, drawing attention to the potential impact on the mobile telecommunications market. Furthermore, the fact that the so-called 'Handset Distribution Law' (the Act on Improvement of Distribution Structure of Mobile Communication Devices) will expire in a month is also expected to intensify competition for subscribers in the second half of the year.
Lim Bongho, head of SKT's MNO (Mobile Network Operator) Business Division, stated during a daily briefing on the morning of the 23rd, "We will work closely with our distribution network to ensure seamless service for new subscribers," adding, "We will also proceed with USIM replacements without any issues."
Having been forced to watch customers leave while new subscriptions were suspended, SKT is now expected to ramp up efforts to attract subscribers starting today. Regarding marketing expenditures following the resumption of new business, Lim said, "With the abolition of the Handset Distribution Law and the launch of new devices ahead, it is difficult to predict how the market will unfold," and "It is hard to say at this point how much marketing expenses will increase."
Some in the industry have analyzed that SKT's mobile subscriber market share may have fallen below 40% following the USIM hacking incident. According to the Korea Telecommunications Operators Association (KTOA), the number of number portability cases from SKT to other carriers last month, when new subscriptions were suspended, reached about 440,000. This is double the previous month's figure and four times higher than in March. As customers flocked to leave SKT, the total number of number portability cases in May surpassed 900,000 for the first time in about a decade.
There are also predictions that this level of competition in the mobile telecommunications market will continue throughout the second half of the year. Starting July 22, the Handset Distribution Law will sunset, officially removing the cap on subsidies. Some stores, known as 'Seongji' (a term for stores famous for high subsidies), have been quietly providing illegal subsidies to customers by sharing part of the sales incentives, but these subsidies will no longer be illegal. The upcoming launches of new devices such as the Galaxy Z Fold7 and Z Flip7 (late July) and the iPhone 17 series (late September) are also expected to fuel the subsidy competition. The release of new devices from major manufacturers is considered a prime season for the telecom industry.
An industry insider commented, "As competition among stores intensifies, when one carrier raises its sales incentives, the other two quickly match the same level," adding, "This kind of competition will continue going forward."
However, some predict that there will not be a large-scale 'subsidy spree' in the mobile market immediately after SKT resumes new business operations. This is because stores other than the official agencies that resumed business this time have continued to operate. Stores handling new SKT subscriptions have been offering subsidies and competing for subscribers even during the suspension period.
According to industry sources, since the resumption of SKT's new business was largely anticipated, sales incentives at major stores had already risen sharply starting from the weekend of the 21st. At some SKT stores, customers even receive a 'payback'?cash returned to them?when purchasing the Galaxy S25 under a number portability contract. The source said, "As of last weekend, sales incentives paid to stores had already reached their highest levels," adding, "All three major carriers likely have no room to further increase their incentives."
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