"One Year of Commercialization, '5G Korea' Elevated Its Status... Accelerating the World's Best 5G Ecosystem"

[Asia Economy Reporter Seulgina Jo] Korea's 5G mobile communication, which holds the world's first title, marks its first anniversary of commercialization on the 3rd. Within 10 months of commercialization, domestic 5G subscribers surpassed 5 million, and 109,000 base stations were established nationwide. In the global market, the market share of domestic smartphone and network equipment companies has expanded, and 5G international cooperation continues, confirming Korea's leadership in the 5G market.

The government plans to accelerate the '5G+ Strategy' to create the world's best 5G ecosystem by expanding the budget for 5G support projects by 87% this year, the second year of commercialization.

The Ministry of Science and ICT announced on the 2nd, one day before the first anniversary of commercialization, that it will review the achievements of the past year since the world's first 5G commercialization and accelerate the 5G+ strategy to bring forward the '5G era where imagination becomes reality.' The ministry evaluates that from the first year of commercialization, goals were achieved early in network equipment and next-generation smartphone fields, and with the growth of small and medium-sized enterprises and successive overseas export contracts, the status of 5G Korea has been elevated.

Despite sluggish in-store subscriber growth due to the impact of the novel coronavirus disease (COVID-19) this year, 5G subscribers surpassed 5,366,699 as of the end of February, breaking the 5 million mark. Following surpassing 1 million in June last year and 3 million in September of the same year, surpassing 6 million is expected soon.

Regarding 5G base stations, approximately 109,000 stations have been established in 85 cities nationwide based on completion reports. This is about three times the 35,000 stations at the time of commercialization on April 3.

In the device and equipment sectors, domestic companies such as Samsung Electronics are evaluated to be leading the market with dual-screen, foldable smartphones, and 5G tablets after launching the world's first 5G smartphone. According to Counterpoint Research, Samsung Electronics holds a 43% market share in 5G smartphones, ranking first. The 5G equipment market is also changing the previously solid three-strong structure of Huawei, Ericsson, and Nokia. Last year, Samsung Electronics ranked third with a 23.33% share in 5G equipment, following Huawei and Ericsson.

With 5G commercialization, as telecom companies expand network investments, the sales and operating profits of small and medium-sized enterprises are also increasing. 5G base station equipment manufacturer Company A recorded sales growth of 247% compared to the previous year through steady 5G research and development (R&D) and cooperation with global companies such as Samsung Electronics and Nokia by developing Massive MIMO. Operating profit also turned positive. Manufacturer B of optical transceivers saw its sales and operating profits increase by 258% and 294%, respectively, compared to a year ago. 3D VR content startup Company C recorded sales of 5 billion KRW, a 178% increase, by entering overseas markets in cooperation with telecom companies due to 5G commercialization.

Overseas expansion and international cooperation by domestic companies have also increased. Communication technology cooperation and equipment and content exports continue with major companies such as Germany's Deutsche Telekom, Japan's KDDI, Canada's Videotron, the US's US Cellular, New Zealand's Spark, China's China Telecom, and Hong Kong Telecom.

As governments and telecom companies from various countries visit Korea to learn about the world's first 5G commercialization, forums such as the Asia-Pacific 5G CEO Meeting and the 5G Vertical Summit 2019 have been held to share Korea's 5G leadership with the world.

The Ministry of Science and ICT invested about 340 billion KRW in the first year of 5G commercialization to foster the industry and plans to invest 650 billion KRW this year, an 87% increase from the previous year.

In the next-generation smartphone field, domestic 5G device manufacturers are provided with internationally accredited certification testing services that allow them to obtain international certification without going abroad, shortening device development periods and reducing certification costs. Additionally, three graduate schools specializing in convergence security have been selected, focusing on the five core 5G+ service areas to accelerate the training of core convergence security talents. Regarding the cultivation of immersive content, known as the flower of 5G, support is provided for the production of leading projects in five fields, and acceleration is also underway in smart factories and autonomous vehicles.

To promote private 5G investment, a 5G network investment tax credit has been in effect for two years since last year, and from this year, the tax credit rate (in the metropolitan area) and the target (in non-metropolitan areas) will be expanded. Furthermore, a '5G+ Spectrum Plan' to approximately double 5G frequencies by 2026 has also been prepared.

The government will review the achievements of the world's first 5G commercialization over the past year and hold the 3rd 5G+ Strategy Committee on the 8th to check the 2020 implementation plan and accelerate performance creation of the 5G+ strategy. Previously, the government held a commercialization commemorative event named 'KOREAN 5G Tech-Concert' on April 8 last year with President Moon Jae-in attending and announced the '5G+ Strategy' to create the world's best 5G ecosystem. Since then, the '5G+ Strategy Committee,' consisting of related ministries, private industry, and experts, has been organized and operated to promote the nationwide implementation of the 5G+ strategy.

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