"400,000 KRW Phone Drops to Zero Overnight"... Telecom Companies Ignite Subscriber War

KT and LG Uplus Respond to SKT's Penalty Waiver
Intense Number Porting Battle Ahead of New Galaxy Launch and Dantong Act Repeal

Marketing phrases posted on June 6 at a KT store in Gangdong-gu, Seoul. The phrase reads, "SK penalty waiver confirmed. Free transfer to KT with the same number." Photo by Park Yujin

"It was 400,000 KRW until last week, but starting yesterday, it's now zero."

On the afternoon of the 6th, at a mobile phone store in Gangdong-gu, Seoul, known as a "hotspot," the Galaxy S25 Edge model was being offered for free to customers who ported their number to LG Uplus. Just last week, this device required a payment of 400,000 KRW, but over the weekend, it turned into a "free phone." However, this is on the condition that customers subscribe to a high-tier plan costing over 100,000 KRW per month and use additional services for several months.

After SK Telecom announced on July 4 that it would fully waive penalties for customers affected by its hacking incident, competition among telecom companies to attract customers has intensified. To prevent further customer churn, SKT is not charging penalties to departing customers and is offering unprecedented benefits such as a 50% discount on service fees and an additional 50GB of data. In response, rival companies have launched countermeasures, resulting in an overheated competitive landscape.

At the entrances of KT and LG Uplus stores, signs read, "Switch to KT for free with your current phone" and "Penalty waiver confirmed for SKT number porting customers." At SKT directly managed stores, banners stating "700,000 KRW support when switching carriers" have been put up as part of efforts to regain market share. According to the mobile telecommunications industry, on July 5?the day after the penalty waiver announcement?SKT's subscriber base decreased by 3,865, while KT and LG Uplus saw net increases of 1,886 and 1,979 subscribers, respectively.

As demand for number porting has surged, subsidies have also soared. At a KT store visited by this reporter, a staff member said, "Since the SKT penalty waiver announcement, we can now offer even greater discounts," and immediately proposed, "If you purchase a Galaxy S25 or Galaxy S25 Edge and switch your carrier to KT, we can add 300,000 KRW to the official subsidy of 500,000 KRW."

On the 6th, the glass window of an SKT directly managed store in Gangdong-gu, Seoul, displayed a sign reading "700,000 KRW support when switching carriers." Photo by Park Yujin

The fierce competition to attract subscribers is expected to continue for the foreseeable future. This is because pre-orders for the next-generation foldable phones, the Galaxy Z Fold7 and Flip7, will open on July 15, signaling the start of intense competition in the smartphone market for the second half of the year. Telecom companies are now faced with the dual challenge of clearing out existing Galaxy S25 series inventory before the new releases and competing to secure early adopters of the new foldable phones.

The abolition of the Handset Distribution Structure Improvement Act (known as the "Dantong Act") on July 22 is also expected to further fuel this competition. Until now, this law served as a "brake" to prevent telecom companies from engaging in excessive subsidy competition. However, with the repeal of the Dantong Act, regulations on subsidy competition will be lifted, making it highly likely that the battle to attract subscribers will become even more intense. An industry insider commented, "With the overlap of demand from customers leaving SKT, those waiting to upgrade to foldable phones, and the repeal of the Dantong Act, marketing competition among the three companies is becoming even more overheated."