Telecom Companies Respond to COVID-19... Increase Investment by 50% and Provide 12.5 Billion KRW Support to Agencies

[Asia Economy Reporter Joselgina] The telecommunications industry has decided to provide 12.5 billion KRW in operating funds to frontline agencies to support small business owners and self-employed individuals struggling due to the impact of the novel coronavirus infection (COVID-19). The scale of investment in the first half of this year, including 5G, will also be increased by 50% compared to the original plan. The goal is to revitalize the weakened economy through this.

According to the Ministry of Science and ICT on the 5th, Minister Choi Ki-young held an emergency video conference in the afternoon with the heads of the three major telecommunications companies?Park Jung-ho, President of SK Telecom; Koo Hyun-mo, President of KT; and Ha Hyun-hoe, Vice Chairman of LG Uplus?to discuss these support measures.

First, the four telecommunications companies?SK Telecom, KT, LG Uplus, and SK Broadband?will expand their first-half investment scale from the originally planned 2.7 trillion KRW to over 4 trillion KRW. Typically, telecommunications companies concentrate their investments in the second half of the year due to the time required for project orders and contract signings after planning. However, from the perspective of economic revitalization, they plan to advance the investment schedule as much as possible.

The investments are expected to focus on places where 5G users frequently use their mobile phones, such as subways, railways, large stores like department stores, and multi-use facilities like universities.

In response to the economic damage concentrated on small-scale small business owners and self-employed individuals due to COVID-19-related closures, reductions in telecommunications fees for mobile phones and high-speed internet will also be promoted. Specific support targets and scales will be finalized as soon as possible in line with the timing when related ministries and local governments concretize damage assessments and support measures.

Additionally, the three major telecommunications companies announced that they will promote comprehensive support for small and medium-sized retail stores, which have seen a sharp decline in sales due to decreased mobile phone subscriptions, including operating fund support, extension of credit for device purchases (interest deferment), and downward adjustment of sales targets as part of win-win cooperation.

They will provide a total of 12.5 billion KRW in operating funds to agencies to alleviate cost burdens, and, considering each business's internal situation, will defer interest repayments on credit purchases of devices, which constitute the largest portion of device distribution network costs. In particular, for heavily affected areas such as Daegu and Gyeongbuk, sales targets will be lowered while maintaining incentive levels to help preserve operating profits.

Minister Choi Ki-young of the Ministry of Science and ICT emphasized, "At a time when difficulties in livelihoods and economic conditions are intensifying due to COVID-19, early expansion of telecommunications network investment and support measures for small business owners will greatly help recover the economy weakened by COVID-19 and enable small business owners and the self-employed to overcome the damage."

This content was produced with the assistance of AI translation services.