MSIT policy aims to facilitate 3G, and eventually 4G, network retirement while using rollout-linked discounting to boost 5GSA coverage
The South Korean Government considered the future of AI and 6G connectivity in reallocating spectrum to mobile operators
On 10 December 2025, the South Korean Government, via the Ministry of Science and ICT (MSIT), published its policy plan for mobile spectrum reallocation. The plan details terms and conditions related to the reallocation of 370MHz of spectrum, for which operators’ licences are due to expire in June 2026. Beyond its usual aims of consumer protection and the efficient use of spectrum, the MSIT sought to encourage the continued deployment of standalone 5G (5GSA) services, especially in improving indoor coverage, to support preparations for the commercialisation of 6G and to continue the development of mobile connectivity capable of serving the country’s wider AI ambitions. The reallocation plan was developed in consultation with the Ministry of Trade and Industry, the Electronics and Telecommunications Research Institute (ETRI) and the Broadcasting and Media Communications Commission (BMCC), the newly formed sectoral regulator. The Government’s notice also briefly addresses future auctions, noting that demand for additional spectrum remains uncertain and any specific plans for further auctions to support 5G services will only be made when demand is more apparent.
Operators will be permitted to repurpose spectrum used for 3G and 4G services after one year
In forecasting the spectrum needs of the mobile industry moving forward, the MSIT considered the path to the development and launch of 6G services and the connectivity demands of AI. Given an expected commercial imperative to retire legacy 3G networks and eventually 4G networks, the MSIT considered how spectrum in the 1800MHz, 2.1GHz and 2.6GHz bands may be repurposed to support more advanced services. Unlike spectrum in other bands that was reallocated for a five-year term, licences for the 20MHz of spectrum held by mobile operators in the 1800MHz band and the 100MHz of spectrum in the 2.6GHz band were only extended for three years, until 2029, with a planned reevaluation in 2028. The reallocation terms also allow operators to repurpose spectrum holdings in the 2.1GHz and 2.6GHz bands for use in 4G, 5G or future 6G services after a minimum period of one year. The MSIT specified that any repurposing is subject to consumer protection conditions and must be justified by decreasing trends in subscribers and traffic volume. Operators will be permitted to apply for reallocation and related licence extension starting six months prior to the expiration of existing licences.
Discounts linked to indoor coverage targets
In setting the price of licence extensions, the MSIT considered the future devaluation of spectrum used for 4G and 5G non-standalone services as 5GSA coverage is extended throughout the country. The Government therefore discounted the base price of the spectrum available for reallocation by approximately 15%, marking the total cost down to KRW3.1tn (£1.57bn) from its original auction value of KRW3.6tn (£1.83bn). To incentivise investment in 5GSA development, the MSIT devised a discounting system for reallocation pricing based on indoor coverage targets. If all three operators – SK Telecom, KT and LG Uplus – commit to constructing at least 20,000 new mobile sites between December 2025 and December 2031, the Government will discount the total cost of the spectrum reallocation to KRW2.9tn (£1.47bn). If operators commit to building between 10,000 and 20,000 sites, the discounted price would be KRW3tn (£1.52bn). In describing the motivation for its discounting scheme, the MSIT predicted both an increased demand for better indoor coverage and improved uplink speeds due to AI adoption, and stated its goal to be “one of the top three AI powers” in the world.
