South Korean operators to invest $22 billion in 5G networks by 2022

South Korean mobile operators SK Telecom, KT and LG Uplus have agreed to invest a total of 25.7 trillion won ($22 billion) by 2022 to expand the country's 5G infrastructure, local media reported.

The operator announced the investment following a meeting with Science and ICT Minister Choi Ki-young at the Central Government Building in central Seoul.

The new investment will focus primarily on improving the quality of 5G in Seoul and six other major cities. The investment plan also stipulates the deployment of 5G network infrastructure in 2,000 multi-purpose facilities along Seoul Subway Lines 2 and 9 and major highways.

By 2021, the operator has pledged to expand 5G connectivity to 85 additional areas, including 4,000 multi-purpose facilities, metros and all railway stations, and 20 additional highways.

"The government and the private sector will work together to achieve a breakthrough in 5G network infrastructure to overcome the crisis," ICT Minister Choi reportedly said.

The minister said 5G will be the core base of South Korea's "Digital New Deal" because all advanced technologies such as AI need to make use of the network. The government plans to provide tax support in the form of tax credits and other tax cuts to telecom companies to expand the current 14.3% national 5G coverage to 70% by 2025.

The three operators reportedly asked the government for broader tax breaks to help them invest more in the country's 5G networks.

South Korea had nearly 6.9 million 5G subscribers at the end of May. The number of 5G subscribers currently accounts for about 10% of the country's 69.43 million mobile service lines.

South Korea launched the world’s first commercial 5G network on April 3, 2019, and the country’s three major operators — SK Telecom Co., KT Corp. and LG Uplus — have been actively promoting the new service to consumers.

The South Korean government recently said that local mobile operators have deployed more than 115,000 5G base stations across the country.

South Korean operators also hope to commercialize ultra-high-speed mmWave 5G networks this year, according to previous news reports.

The mmWave 5G service will initially be available for the business-to-business segment. The operator has not yet finalized its investment plans in the business-to-consumer space as the cost of building more infrastructure remains a major concern.

The launch of mmWave 5G networks for personal smart devices is likely to occur next year or in 2022 due to the high levels of capital expenditure required.

South Korean operators are also paving the way for offering 5G over standalone networks. LG Uplus recently said it has completed testing of core technologies that support voice services running on a standalone (SA) 5G network as the operator expects to launch 5G based on SA architecture later this year.

Rival operators SK Telecom and KT have also tested 5G SA networks and plan to launch the technology in the second half of this year, according to previous reports.