South Korea IoT Telecom Services Market Research Report By Component (Connectivity Technology, Network Management Solution, Services), By Service Type (Device And Application Management, Business Consulting Services, IOT Billing And Subscription, Installation And Integration Services, M2M Billing Services), and By Application (Smart Buildings, Automation, Capillary Network Management, Vehicle Telematics, Energy And Utilities, Smart Healthcare, Others)- Forecast to 2035

South Korea IoT Telecom Services Market Overview

As per MRFR analysis, the South Korea IoT Telecom Services Market Size was estimated at 1.09 (USD Billion) in 2023.The South Korea IoT Telecom Services Market is expected to grow from 1.47(USD Billion) in 2024 to 4.55 (USD Billion) by 2035. The South Korea IoT Telecom Services Market CAGR (growth rate) is expected to be around 10.838% during the forecast period (2025 - 2035).

Key South Korea IoT Telecom Services Market Trends Highlighted

Government backing, growing connection demands, and 5G technological improvements are some of the major industry drivers propelling the South Korean IoT telecom services market's notable expansion. With a focus on building smart cities and expanding infrastructure to accommodate IoT applications, the South Korean government has been aggressively pushing a digital transformation agenda.

Telecom companies have been encouraged to engage in IoT as a result, expanding their service offerings to satisfy the increasing demand from customers. The potential for industrial IoT applications and smart home solutions are among the opportunities to be investigated in this industry.

South Korea is well-positioned to benefit from the need for cutting-edge IoT services, especially in industries like healthcare, agriculture, and transportation, thanks to its high rate of urbanization and tech-savvy populace.

Recent trends show that IoT devices are becoming more and more commonplace in daily life, helped along by a thriving ecosystem of both domestic and foreign startups and well-established companies. As companies and consumers place a higher priority on data protection in the increasingly linked world, the emphasis on strengthening cybersecurity measures is particularly noteworthy.

Additionally, telecom providers and tech companies are increasingly working together to create synergies that improve service delivery and innovation. Sustainability practices are also becoming more popular as the market develops, encouraging green IoT solutions that complement South Korea's pledge to lessen carbon emissions.In general, South Korea is positioned as a competitive landscape for IoT telecom services in the upcoming years due to a combination of government efforts, technology improvements, and changing consumer expectations.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South Korea IoT Telecom Services Market Drivers

Rapid Adoption of 5G Technology

The South Korea IoT Telecom Services Market is experiencing significant growth due to the rapid adoption of 5G technology. South Korea has been a leader in 5G deployment, with over 90% of the population gaining access to 5G networks, as reported by the Ministry of Science and ICT.

The enhanced bandwidth and ultra-reliable low-latency communication capabilities of 5G support a wide range of IoT applications, enabling seamless connectivity for smart devices in various sectors including healthcare, transportation, and manufacturing.

As companies such as SK Telecom and KT Corporation invest heavily in expanding their 5G infrastructure, the South Korea IoT Telecom Services Market is projected to benefit immensely from the increased demand for high-speed, reliable connectivity for IoT devices. The growing emphasis on smart city initiatives within the country, which relies heavily on IoT technology, further solidifies this trend.

Government Support for IoT Innovation

The government of South Korea has been actively promoting policies to foster innovation in the IoT sector, significantly driving the growth of the South Korea IoT Telecom Services Market. Initiatives such as the 'Smart City Project,' which aims to develop smart urban infrastructures using IoT technologies, represent the government's commitment to integrating IoT solutions into everyday life.The South Korean government plans to invest billions in smart city development, creating a demand for advanced telecom services in the IoT space.

According to the Ministry of Land, Infrastructure, and Transport, the project is expected to provide services to approximately 1.5 million residents, demonstrating a substantial market for telecom services catering to IoT applications. This increased government funding not only attracts private investments but also stimulates market growth and enhances the overall ecosystem for the IoT Telecom Services Market.

Growing Demand for Smart Home Devices

The rising trend of smart home devices in South Korea is becoming a major growth driver for the South Korea IoT Telecom Services Market. A recent survey indicated that approximately 55% of South Korean households are expected to adopt some form of smart home technology by 2025.

Major companies, such as Samsung Electronics, have been at the forefront of this trend by launching products that leverage IoT capabilities, such as smart appliances and home automation systems. This increasing penetration of smart home technologies creates a corresponding demand for reliable telecom services, providing connectivity for these smart devices.

The success of these initiatives not only boosts the IoT Telecom Services Market but also emphasizes the necessity for strong telecommunications infrastructure to support enhanced connectivity and user experiences.

Surge in Industrial IoT Applications

The industrial sector in South Korea is rapidly embracing IoT solutions, contributing substantially to the growth of the South Korea IoT Telecom Services Market. As of late 2022, around 70% of manufacturers in South Korea have reported investments in IoT technologies to enhance operational efficiency and productivity.

The Ministry of Trade, Industry, and Energy has recognized the Industrial Internet of Things (IIoT) as a critical element for transforming traditional manufacturing processes. Companies like Hyundai Heavy Industries and LG Chem are leading the charge in adopting IoT applications in production lines, which necessitates robust telecom services for connectivity and data communication.

This trend reflects the market's ongoing expansion as South Korea's manufacturing sector modernizes and integrates advanced technologies, showcasing the immense potential for IoT Telecom Services.

South Korea IoT Telecom Services Market Segment Insights

IoT Telecom Services Market Component Insights

The Component segment of the South Korea IoT Telecom Services Market encompasses vital aspects that are crucial for the growth and functionality of the IoT ecosystem within the region. This segmentation highlights three primary areas: Connectivity Technology, Network Management Solution, and Services, each playing a significant role in the operational efficiency of IoT devices and networks.Connectivity Technology serves as the backbone of the IoT infrastructure, facilitating seamless communication between devices and networks.

As South Korea continues to advance its telecommunications capabilities, the integration of various connectivity technologies such as LPWAN (Low Power Wide Area Network) and 5G networks is becoming pivotal in enhancing data transfer rates and reducing latency. This technological elevation supports the expansive adoption of IoT devices across industries like healthcare, smart cities, and manufacturing.

Meanwhile, Network Management Solutions are increasingly essential as they ensure the reliable and secure operation of IoT networks. With a growing number of devices connected, effective management of network traffic, security protocols, and device interoperability has become critical.

Adopting advanced network management solutions enables operators to monitor traffic in real-time, reduce downtime, and enhance service quality, which is particularly important in a country like South Korea, known for its rigorous standards in technology and customer expectations.

Services in this context encompass a range of offerings including installation, maintenance, and support that are vital for businesses employing IoT solutions. Provisioning these services not only assists in operationalizing IoT systems but also contributes to customer satisfaction and loyalty.

The emergence of smart cities in South Korea, with initiatives from the government to enhance urban environments through IoT applications, further underscores the importance of each of these components. As these components intertwine, they drive overall market growth and facilitate innovation in IoT applications across various sectors.The South Korean market is witnessing an evolution in its approach to IoT implementation, largely influenced by government policies promoting digitization and technological advancements.

With the objective of maintaining its competitive edge in the global tech landscape, the emphasis on refining connectivity solutions and efficient network management stands out in the broader narrative of the South Korea IoT Telecom Services Market evolution.

Enhanced services that ensure robust operation and management of IoT applications will continue to shape consumer experiences and business landscapes in South Korea. As such, the Component segment remains a fundamental pillar in the upward trajectory of the South Korea IoT Telecom Services Market, encapsulating the region's ambitious transformation into a digitally connected society.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

IoT Telecom Services Market Service Type Insights

The South Korea IoT Telecom Services Market is experiencing substantial growth, driven largely by advancements in technology and increasing demand for connected devices. Service Type segmentation includes areas such as Device and Application Management, which is crucial for ensuring the smooth operation and efficiency of IoT devices across various sectors.

Business Consulting Services play a significant role by helping organizations strategize and implement effective IoT solutions that align with their goals. IoT Billing and Subscription services demonstrate the market's shift towards flexible pricing models necessary for the consumption-based nature of IoT services.

Similarly, Installation and Integration Services are vital for seamless deployment and connectivity of IoT systems, helping businesses reduce downtime and improve operational efficiencies. Additionally, M2M Billing Services cater to the unique billing needs of machine-to-machine communication, addressing the complexities inherent in these transactions.

Collectively, these segments highlight the diverse and rapidly evolving landscape of the South Korea IoT Telecom Services Market, driven by continuous innovation and the need for tailored solutions in an increasingly connected world.

IoT Telecom Services Market Application Insights

The South Korea IoT Telecom Services Market has witnessed substantial development in its Application segment, reflecting the diverse capabilities and growing adoption of IoT technologies across industries. Within this framework, Smart Buildings are emerging as a key application, utilizing connected devices to enhance energy efficiency and occupant comfort, ultimately leading to sustainable urban development.

Automation plays a pivotal role as well, as businesses increasingly leverage IoT-enabled systems to streamline processes and improve operational efficiency. Furthermore, Capillary Network Management is significant in managing extensive networks across various sectors, ensuring efficient resource distribution and connectivity.

Vehicle Telematics has gained traction, particularly in the automotive sector, optimizing logistics and enhancing safety measures through real-time data transmission. The Energy and Utilities sector benefits from IoT solutions aimed at improving resource management and reducing operational costs.In healthcare, Smart Healthcare applications are transforming patient monitoring and data collection, enhancing service delivery and patient outcomes.

Other innovations within this segment continue to emerge, further driving the evolution and competitiveness of the South Korea IoT Telecom Services Market. Each application reflects the growing trend towards digitization and the interconnectedness of systems, paving the way for future advancements in various industries.

South Korea IoT Telecom Services Market Key Players and Competitive Insights

The South Korea IoT Telecom Services Market is characterized by rapid technological developments and a high level of competition among service providers. As one of the most advanced digital economies globally, South Korea has seen an explosive growth in Internet of Things (IoT) applications across various sectors, including smart homes, healthcare, transportation, and industrial automation.This market is influenced by significant advancements in network infrastructure, with companies continually investing in 5G technology and developing innovative IoT solutions.

The competitive landscape is marked by both global players and domestic companies vying for market share, leading to a dynamic environment where customer demand for connectivity, reliability, and innovative services drives the evolution of offerings within the sector.

In the South Korea IoT Telecom Services Market, LG Uplus has established itself as a formidable player with a comprehensive portfolio of services designed to meet the demands of IoT applications. The company has successfully leveraged its advanced 5G infrastructure to provide seamless connectivity and has made significant investments in developing intelligent IoT solutions tailored for various industries.LG Uplus has forged strategic partnerships to enhance its service delivery capabilities and expand its IoT ecosystem.

The strength of LG Uplus lies in its commitment to innovation and customer satisfaction, which is evidenced by its aggressive rollout of smart solutions aimed at improving efficiency and connectivity for both consumers and enterprises. The company's robust market presence is further enhanced by its focus on user-friendly applications and services, positioning it as a leader in driving IoT adoption in South Korea.

Key Companies in the South Korea IoT Telecom Services Market Include:

• LG Uplus
• SK Telecom
• KT Corporation
• Ericsson

South Korea IoT Telecom Services Market Developments

At Asia's Smart Factory & Automation World expo in Seoul in February 2023, LG Uplus demonstrated integrated smart factory IoT solutions, highlighting its position as the only mobile carrier providing 5G and AI-based industrial automation services.

Due to agreements with Hyundai and Kia for linked car services and remote metering via KEPCO, LG Uplus claimed a 39.2% year-over-year increase in IoT customers by August 2023, hitting over 7.1 million lines. Scalable metering, environmental sensing, and public IoT use cases were made possible by LG Uplus's July 2024 completion of NB-IoT deployment in 85 cities.

It also extended collaborations with KT to create common NB-IoT infrastructure frameworks. LG Uplus introduced its IoT@Home smart home service on LTE networks in October 2024, combining appliance controls, security sensors, energy monitoring, and home hubs into a single mobile app platform.

In March 2025, LG Uplus partnered with Google Cloud and Amazon Web Services to improve its "ixi-O" AI-powered call assistant with Gemini and Nova language models and jointly establish a Korean sovereign AI-cloud platform.

In the meantime, KT continued to grow its NB-IoT and AIoT enterprise solutions through the GiGA IoT Alliance, while SK Telecom co-founded the Global Telco AI Alliance and expedited its AI service roadmap with "A.dot." As a local joint venture between Ericsson and LG, Ericsson-LG supported carrier deployments, such as OpenRAN and advancements in 5G infrastructure.

South Korea IoT Telecom Services Market Segmentation Insights

IoT Telecom Services Market Component Outlook

• • Connectivity Technology
  • Network Management Solution
  • Services

IoT Telecom Services Market Service Type Outlook

• • Device And Application Management
  • Business Consulting Services
  • IOT Billing And Subscription
  • Installation And Integration Services
  • M2M Billing Services

IoT Telecom Services Market Application Outlook

• • Smart Buildings
  • Automation
  • Capillary Network Management
  • Vehicle Telematics
  • Energy And Utilities
  • Smart Healthcare
  • Others

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.09(USD Billion)
MARKET SIZE 2024	1.47(USD Billion)
MARKET SIZE 2035	4.55(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	10.838% (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, POSCO ICT, Bosch Korea, Samsung Electronics, SK Telecom, Intel, ZTE, Hyundai Telecom, Daum Kakao, Huawei, Cisco Systems, KT Corporation, Naver Corporation, Microsoft, Ericsson
SEGMENTS COVERED	Component, Service Type, Application
KEY MARKET OPPORTUNITIES	Smart city infrastructure development, Industrial IoT solutions expansion, Connected healthcare services growth, Agricultural IoT applications surge, Enhanced cybersecurity services demand
KEY MARKET DYNAMICS	5G network expansion, Rising smart device penetration, Government support for IoT initiatives, Increasing demand for data analytics, Enhanced security and privacy measures
COUNTRIES COVERED	South Korea