The total mobile services revenue in South Korea is set to increase at a compound annual growth rate (CAGR) of 4.4% from $22.7 billion in 2021 to $28.1 billion in 2026, driven by the robust growth in M2M/IoT subscriptions and rising adoption of 5G services, forecasts GlobalData, a leading data and analytics company.

GlobalData’s South Korea Mobile Broadband Forecast (Q1-2022) reveals that M2M/IoT subscriptions are set to increase at a CAGR of 17.5% between 2021 and 2026, adding fillip to the overall post-paid service revenues through the forecast period.

While the mobile voice service revenues in the country continue to decline, mobile data service revenue is set to grow at a CAGR of 7.5% between 2021 and 2026, mainly due to the robust growth in the higher-ARPU 5G subscriptions.

Harika Damidi, Telecom Research Analyst at GlobalData, comments: “Though 4G services currently account for the largest share in the overall mobile subscriptions in the country, 5G services will emerge as the leading mobile technology segment in 2024 and go on to account for around 75% of the total subscriptions in 2026. This growth will be driven by the growing demand for high-speed mobile internet services, and the initiatives of operators and the government to boost 5G infrastructure in South Korea.”

SK Telecom led the mobile services market in South Korea in terms of mobile subscriptions in 2021, followed by KT. GlobalData forecasts SK Telecom to retain its leading position through 2026, primarily driven by its strong focus on the M2M/IoT segment and 5G network expansions.