KT 30,000 Won Range 5G Plans.. "Expanding Choices" VS "No Real Benefit"

KT Opens First 5G Mid-Low Priced Plans
Up to 30,000 KRW with Selective Discount Applied

[Asia Economy Reporter Koo Chae-eun] KT has become the first among the three major telecom companies to launch a 5G plan starting at the lowest price of 30,000 KRW, intensifying concerns at SK Telecom and LG Uplus. On the surface, they argue that the data allowance is too small to be effective, but they are closely watching because KT’s differentiated pricing plan could lead the popularization of 5G.

According to industry sources on the 6th, KT launched two mid-range 5G plans: △5G Save △5G Simple. 5G Save is the first 5G plan priced in the 40,000 KRW range. It costs 45,000 KRW per month, but with a 25% discount for contract selection, customers only pay 33,750 KRW monthly. KT provides 5GB of data each month, and after the basic allowance is used up, data can be used at speeds up to 400kbps. Except for specific 5G plans for seniors and teenagers, 5G Save is the lowest-priced 5G plan. Compared to the lowest 5G price of 55,000 KRW among the three carriers including KT, it is 10,000 KRW cheaper.

Competitors do not attach much significance to KT’s attempt. They argue that since the data allowance is only 5GB, 5G services cannot be properly utilized. A competitor official said, "It is excluded from bundled product benefits, and the data usage is low, so it is effectively at the LTE plan level," adding, "Consumer benefits are not significant." KT responded by saying, "This is a measure to lead the popularization of 5G services and expand customers’ service choices."

In the market, there is also a view that SK Telecom and LG Uplus will seriously consider mid-range plans eventually. This is because when KT’s differentiated plan settled in the market, competitors have introduced similar plans. Last year, KT took the lead among the three telecom companies by launching a fully unlimited data plan first. Then SK Telecom and LG Uplus launched similar unlimited plans, sparking a competition among the three carriers. SK Telecom said, "We are reviewing the launch of mid-range plans by comprehensively considering customer value and consumer benefits." LG Uplus also responded, "We are considering various options from the perspective of expanding customer services."

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