Korean 5G subscribers shift from unlimited to tiered data plans

(Lee Seung-hwan)

The number of unlimited 5G data plan subscribers in Korea is declining as carriers introduce tiered data plans and consumers opt for options that match their actual data usage.

According to wireless traffic statistics released by the Ministry of Science and ICT on Monday, the share of subscribers to unlimited 5G plans stood at 28.8 percent at the end of June 2024, a steady decline from 30.5 percent at the end of March.

In December 2019, the first year of 5G commercialization, unlimited plans accounted for 72.3 percent of users. However, the share has continued to decline, hitting 30 percent at the end of 2022 and is now in the 20 percent range.

Conversely, standard 5G plans with fixed data offerings have gained traction. Starting at 27.7 percent in the early years of 5G, their share topped 70 percent in the fifth year of commercialization to hit 71.2 percent at the end of June 2024.

This trend is attributed to telecom companies restructuring their pricing models in response to government policies aimed at reducing telecom expenses by offering more flexible data plans. KT Corp. introduced mid-tier 5G plans, such as a 4GB plan for 37,000 won ($27.84), earlier in 2024 while SK telecom Co. and LG Uplus Corp. launched plans in the 30,000 won range.

This shift has also impacted the share of total 5G traffic from unlimited plans. Unlimited plans accounted for 87.6 percent of all 5G traffic in December 2019, but this dropped to 51.2 percent by the end of June 2023. The decline in traffic share is attributed to the growing use of standard plans rather than a reduction in unlimited plan traffic. The plans made up 79 percent of total traffic at the end of 2020, dropping to 71 percent in 2021 and 54 percent by the close of 2022.