South Korea’s telecom operators are adapting their strategies to meet evolving consumer expectations and enterprise digital transformation goals.
@ SamFW
The country’s mobile services revenue is projected to grow at a compound annual growth rate (CAGR) of 2.5 percent, rising from $21.6 billion in 2024 to $24.5 billion by 2029, according to GlobalData. This growth is largely fueled by the expanding mobile data services segment and a strong uptick in M2M/IoT subscriptions.
Major mobile operators — SK Telecom, KT Corporation, and LG Uplus — continue to invest heavily in 5G infrastructure, edge computing, and artificial intelligence to boost network performance and enhance customer experiences.
SK Telecom, the market leader with over 30 million mobile subscribers as of early 2025, is investing in AI-powered services and advancing 6G research.
KT, with approximately 24 million subscribers, is expanding its footprint in AI and cloud services alongside its telecom business.
LG Uplus, serving nearly 19 million users, is focusing on enterprise solutions and digital service offerings.
All three are exploring new growth in IoT and M2M segments, aligning with rising demand for connected devices and automation across industries.
Consumer Focus
South Korean consumers are increasingly opting for data-centric mobile plans, driven by their growing use of online video, social media, and OTT communication platforms. This shift is reflected in the projected 4.9 percent CAGR decline in mobile voice service revenue from 2024 to 2029, due to falling voice ARPU and a preference for OTT-based communications.
In contrast, mobile data service revenue is set to increase at a 5.4 percent CAGR during the same period, supported by higher smartphone penetration and 5G adoption. Average monthly mobile data usage is expected to more than double — from 16.8GB in 2024 to 35.9GB by 2029 — as consumers engage more with bandwidth-intensive applications.
The rollout of 5G services is central to this growth. The South Korean government’s 5G+ Strategy is accelerating network expansion, aiming to achieve over 90 percent 5G coverage by 2026. The initiative includes investment incentives, regulatory reforms, and innovation testbeds to fast-track deployment of 5G-driven services, such as smart factories, autonomous vehicles, smart healthcare, and smart cities. By 2029, 5G is expected to account for 89 percent of all mobile subscriptions in the country.
Operator Strategies
South Korean telecom operators are reorienting their strategies to address both consumer needs and enterprise opportunities in the digital economy.
SK Telecom is set to maintain its leadership position through continued investment in 5G, AI, and IoT, offering a comprehensive suite of services tailored to diverse market segments.
KT is focusing on IoT-driven enterprise solutions, particularly in smart building management. Its offerings include energy management systems and sensor-based infrastructure monitoring for components such as boilers, motors, and water tanks.
Meanwhile, M2M/IoT subscriptions are expected to grow at a CAGR of 8.4 percent between 2024 and 2029. Telecom operators are introducing innovative use cases in fleet tracking, asset management, and telehealth, tapping into the expanding enterprise demand for automation and real-time insights.
With mobile data usage surging and enterprises embracing digitalization, South Korean telecom operators are evolving from traditional service providers into digital ecosystem enablers. Through sustained investments in 5G, IoT, and AI, operators are positioning themselves to capture new revenue streams while delivering future-ready solutions across consumer and business segments. As the market matures, their focus on innovation, customer experience, and enterprise transformation will be key to driving long-term growth.
Baburajan Kizhakedath