As per MRFR analysis, the South Korea 5G Service Market Size was estimated at 1.46 (USD Billion) in 2023.The South Korea 5G Service Market is expected to grow from 1.83(USD Billion) in 2024 to 9.17 (USD Billion) by 2035. The South Korea 5G Service Market CAGR (growth rate) is expected to be around 15.756% during the forecast period (2025 - 2035).
Key South Korea 5G Service Market Trends Highlighted
The market for 5G services in South Korea is expanding significantly due to ongoing technological developments and large expenditures made by telecom firms. The rollout of 5G networks is being actively encouraged by the South Korean government, which views it as crucial to the country's digital economy and ability to compete globally.
Furthermore, 5G technology is being used by sectors including gaming, healthcare, and smart cities, underscoring its significance as an innovation-enabling technology. In light of this, companies have the chance to create new services and applications that fully utilize 5G capabilities, especially in fields like augmented reality, the Internet of Things (IoT), and driverless cars.
Public-private collaborations have also increased recently in South Korea with the goal of improving 5G infrastructure and making sure that coverage is growing effectively. To introduce cutting-edge use cases that serve both consumers and enterprises, telecom operators are collaborating closely with tech firms.
Furthermore, there is a noticeable trend toward combining 5G technology with AI and machine learning as digital transformation quickens, which will improve service personalization and data consumption efficiency. Consumer demand is moving toward seamless connectivity and fast internet as more people become aware of the advantages of 5G.
Being a pioneer in technology, South Korea is uniquely positioned to investigate the innovative possibilities presented by 5G. South Korea will continue to lead the world in 5G thanks to the emphasis on creative solutions and improved user experiences, which is opening the door for the market to adopt new trends.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea 5G Service Market Drivers
Rising Demand for High-Speed Internet Services
The South Korea 5G Service Market is experiencing a significant demand for high-speed internet services, driven by the proliferation of mobile devices and increasing data consumption. According to the Ministry of Science and ICT in South Korea, total mobile data traffic increased by 43% between 2020 and 2022.
This surge in demand is largely attributed to the rising number of mobile subscribers, which has surpassed 60 million in South Korea, representing about 90% penetration of the population.
Furthermore, established telecom operators like SK Telecom and KT Corporation are heavily investing in the expansion of 5G infrastructure to meet consumer expectations for faster data speeds and lower latency. SK Telecom recently reported its plans to enhance its network capacity to support up to 20 million subscribers by 2025, which amplifies the market’s growth potential.
Government Support and Infrastructure Development
The South Korean government is actively promoting the development of 5G networks as part of its broader digital transformation strategy. Under the Korean New Deal initiative, the government allocated significant funding aimed at fostering advanced technologies, including 5G deployment. In 2020, approximately USD 1.9 billion was invested in the development of 5G infrastructure.
This proactive stance by the government has encouraged key players in the South Korea 5G Service Market, such as LG Uplus, to fast-track their 5G rollout plans. LG Uplus aims to cover 90% of the population by 2025, highlighting the commitment to enhance connectivity and drive further adoption of 5G services across various sectors.
Expansion of Industry Applications and Use Cases
As 5G technology advances, the potential for innovative industry applications that leverage enhanced mobile broadband, ultra-reliable low-latency communication, and massive machine-type communications is burgeoning. The South Korea 5G Service Market is witnessing the emergence of new use cases ranging from smart cities to autonomous vehicles and telemedicine.
According to the Korea Academy of Science and Technology, the implementation of smart city projects in South Korea, such as Songdo, is projected to yield an economic impact of USD 25 billion by 2025. Companies like Hyundai Motor and Samsung are pivotal in exploring these opportunities, thus propelling the overall growth of the 5G market in South Korea.
5G Service Market Service Type Insights
The South Korea 5G Service Market is characterized by a diverse range of Service Type segments that are pivotal for its growth and development. Among these, Professional Services and Managed Services are key contributors that dramatically bolster the overall capabilities of the 5G infrastructure.
Professional Services include a wide array of consultative offerings such as integration, maintenance, and optimization designed to enhance the client’s operational efficiency. This segment is essential as it guides businesses through the complexities of implementing new technologies, ensuring that they maximize their investment in 5G.
With South Korea being a technological hub, the demand for specialized expertise in the Professional Services segment remains robust as industries look for ways to leverage 5G technology in various applications, from smart cities to autonomous vehicles.
On the other hand, Managed Services form an integral part of the 5G ecosystem, providing end-to-end management of network operations, thus allowing companies to focus on their core competencies. This segment is expected to gain traction due to the increasing need for organizations to maintain agility and efficiency without the burden of managing all aspects of their 5G infrastructure.
In a country like South Korea, where the government has implemented strong initiatives to promote 5G adoption across sectors, Managed Services present an opportunity for telecom companies to offer scalable solutions that adapt to rapidly changing market demands.By outsourcing network management, businesses can obtain continuous support and upgrades, contributing positively to their digital transformation efforts.
Both Professional and Managed Services are critical in catalyzing innovations and ensuring the seamless integration of 5G technology into the existing framework, thereby driving enhanced customer experiences and operational excellence in South Korea's competitive market landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Service Market Communication Type Insights
The Communication Type segment of the South Korea 5G Service Market plays a pivotal role in shaping the overall landscape of wireless communication, enhancing connectivity across various applications.Extreme Mobile Broadband stands out as a major driver for mobile consumers, enabling faster data speeds and improved user experiences which are essential for applications like video streaming and augmented reality.
Massive Machine-Type Communications caters to the burgeoning Internet of Things (IoT) ecosystem, supporting an extensive number of connected devices and enabling industries to automate operations efficiently.
Fixed Wireless Access is gaining traction as it provides high-speed internet access to underserved areas, facilitating internet adoption in rural regions and contributing to South Korea's commitment to bridging the digital divide. Additionally, the "Others" segment encompasses a variety of services that address niche applications, ensuring a comprehensive communication framework that meets diverse user needs.
Collectively, these segments underscore the dynamic evolution of the South Korea 5G Service Market, driven by technological advancements and increasing demand for seamless connectivity in both urban and rural settings.The government's proactive policies to encourage 5G infrastructure investment further bolster these developments, ensuring South Korea remains at the forefront of global telecommunications innovation.
5G Service Market Technology Insights
The South Korea 5G Service Market, underpinned by various technology segments, is rapidly evolving to cater to the increasing demand for high-speed connectivity and enhanced services. Significant contributors to this growth include technologies such as Wi-Fi, High-Speed Package Access, Radio Access Technologies, and System for Mobile.
Wi-Fi is vital as it allows seamless integration of devices within a locality, enhancing user experience. High-Speed Package Access plays a key role in facilitating high-throughput data access, further enriching mobile network capabilities.
Radio Access Technologies enhance the robustness and reach of 5G networks, catering to varying demands across urban and rural landscapes, while System for Mobile is critical in ensuring efficient network management and resource allocation.
Each of these technologies contributes uniquely to the infrastructure of the South Korea 5G Service Market, facilitating innovations and addressing user requirements effectively. The South Korean government's commitment to advancing its digital infrastructure amplifies the significance of these technologies, driving market growth and establishing the nation as a global leader in 5G services.As the adoption of smart devices and IoT applications continues to rise, the demand for these technologies is expected to strengthen, positioning South Korea at the forefront of technological advancements.
5G Service Market Vertical Insights
The Vertical segment of the South Korea 5G Service Market encompasses a wide range of applications, including Energy and Utilities, Automotive, and Healthcare, among others. This segmentation is essential as each area leverages 5G technology to improve efficiency and service delivery.
For instance, the Energy and Utilities sector utilizes 5G for smart grid implementations, enabling real-time monitoring and management of energy consumption, which aligns with South Korea's commitment to sustainable energy development. In the Automotive industry, 5G facilitates advancements in connected vehicles and autonomous driving, enhancing safety and navigation systems.
The Healthcare sector benefits significantly from 5G capabilities through telemedicine and remote monitoring, making healthcare services more accessible while increasing patient care quality. Other industries also explore innovative applications, driving overall market growth.
As South Korea continues to invest in 5G infrastructure, each of these verticals is poised to experience transformative change, further solidifying the country's position as a global leader in 5G applications and solutions. Overall, the South Korea 5G Service Market statistics reflect a dynamic landscape where technological advancements are shaping the future across multiple sectors.
South Korea 5G Service Market Key Players and Competitive Insights
The South Korea 5G Service Market is recognized as one of the most advanced and competitive globally, reflecting the nation's commitment to technological innovation and digital infrastructure. With a robust telecommunications framework and a rapidly increasing demand for high-speed connectivity, various players are striving for leadership in this dynamic sector.
Factors such as the proliferation of smart devices, the rise of the Internet of Things (IoT), and the demand for enhanced mobile broadband services are propelling the market to new heights. Competitive strategies among the key market players revolve around technological advancements, partnerships, and service expansion.
The market is characterized by the aggressive pursuit of network infrastructure enhancement and the launch of unique services catering to diverse customer needs, indicating a promising landscape for both consumers and businesses within South Korea.
LG Uplus stands as a critical player in the South Korean 5G Service Market, capitalizing on its strengths in technology deployment and customer service. The company has invested significantly in developing its 5G network infrastructure, aiming to provide widespread and reliable service coverage across urban and rural areas.LG Uplus differentiates itself through innovative service offerings, including advanced mobile and home broadband solutions. The company's strong market presence is attributed to its focus on customer engagement and satisfaction, which has led to a loyal consumer base.
Additionally, LG Uplus has forged strategic partnerships with various tech firms and content providers, enhancing its service portfolio and solidifying its competitive position in the market.Naver Corporation is another influential entity within the South Korea 5G Service Market, known for its strong digital ecosystem and strategic investments in technology. The company specializes in digital content and services, leveraging its 5G capabilities to enhance its offerings, such as cloud services, gaming, and augmented reality applications.
Naver's commitment to research and development enables it to stay ahead of industry trends and consumer demands, as it continuously evolves its product line to better serve the needs of South Korean customers.The company has expanded its market presence through collaborations and mergers, positioning itself as a key player that integrates high-speed connectivity with various digital services. By focusing on enhancing user experience and providing high-quality content, Naver Corporation showcases its strengths in the competitive landscape of the South Korean 5G Service Market.
Key Companies in the South Korea 5G Service Market Include:
South Korea 5G Service Market Developments
With a focus on ultra-low latency services for smart industries and driverless cars, SK Telecom added 92% of urban and suburban areas to its 5G Standalone (SA) network in March 2025. The operator also introduced next-generation 5G chipsets for consumer electronics in partnership with Samsung Electronics.
In order to enhance South Korea's digital economy, KT Corporation teamed up with LG Uplus and Naver Corporation to roll out 5G cloud gaming and AI-powered enterprise solutions by April 2025. In May 2025, Daum Kakao introduced interactive content and video streaming services geared for 5G, improving user experience on all mobile platforms.
Hyundai Motor Company and Samsung Electronics launched 5G-based smart factory initiatives in June 2025, combining automated production lines and connected automobiles. In the meantime, MBC and CJ ENM developed 5G broadcasting services by utilizing HD streaming for major events.
Global vendors and local operators continued to make large expenditures in 5G R&D, with an emphasis on smart city, autonomous driving, and enterprise applications, despite M1's limited presence. South Korea's standing as a global leader in 5G adoption and innovation is strengthened by these advancements.
South Korea 5G Service Market Segmentation Insights
5G Service Market Service Type Outlook
5G Service Market Communication Type Outlook
5G Service Market Technology Outlook
5G Service Market Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 1.46(USD Billion) |
| MARKET SIZE 2024 | 1.83(USD Billion) |
| MARKET SIZE 2035 | 9.17(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.756% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | LG Uplus, Naver Corporation, SK Telecom, Daum Kakao, Korea Mobile Telecom, Korea Telecom, MBC, KT Corporation, CJ ENM, Samsung Electronics, SK Hynix, LG Electronics, M1, Hyundai Motor Company |
| SEGMENTS COVERED | Service Type, Communication Type, Technology, Vertical |
| KEY MARKET OPPORTUNITIES | Smart cities development, Enhanced online gaming, Industrial IoT applications, Remote healthcare services, Autonomous vehicle connectivity |
| KEY MARKET DYNAMICS | increased demand for high-speed internet, expansion of IoT applications, government support and investment, competitive telecom pricing strategies, advancements in network infrastructure |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ):
The South Korea 5G Service Market is projected to be valued at 1.83 USD Billion in 2024.
By 2035, the South Korea 5G Service Market is expected to reach a value of 9.17 USD Billion.
The expected CAGR for the South Korea 5G Service Market from 2025 to 2035 is 15.756%.
Managed Services are projected to hold the highest value at 5.55 USD Billion by 2035.
Professional Services are valued at 0.73 USD Billion in the South Korea 5G Service Market for the year 2024.
Key players in the South Korea 5G Service Market include LG Uplus, SK Telecom, and KT Corporation.
The South Korea 5G Service Market may face challenges such as competition among key players and regulatory hurdles.
Growing demand for high-speed internet and enhanced connectivity are significant growth drivers for the South Korea 5G Service Market.
Regional trends in technology adoption and infrastructure development may significantly boost the growth of the South Korea 5G Service Market.
Major applications within the South Korea 5G Service Market include smart cities, autonomous vehicles, and advanced mobile communication services.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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