To revitalize the domestic economy weakened by COVID-19
First-half investment in 5G and other sectors expanded from 2.7 trillion won to 4 trillion won
to small business owners and self-employed individuals affected by COVID-19
Promotion of mobile phone and high-speed internet fee reductions


Minister of Science and ICT Choi Ki-young and the CEOs of the three major telecommunications companies, including SK Telecom President Park Jeong-ho, KT President Ku Hyeon-mo, and LGU+ Vice Chairman Ha Hyun-hoe, held an emergency meeting on the 5th to discuss measures to support economic recovery and the recovery of small business owners and self-employed individuals affected by COVID-19.

This meeting was conducted using a video conferencing system to minimize face-to-face contact.

The Ministry of Science and ICT and the three telecommunication companies have decided to expand investments in 5G and other areas in the first half of the year to revitalize the sluggish economy, reduce telecommunication fees for small business owners and self-employed individuals who have suffered concentrated damage, and provide operating funds and other support to retailers suffering from frozen consumer sentiment.

Since telecommunications companies establish investment plans, including the procurement of equipment and terminals, in the first half of the year and subsequently place orders and sign contracts, investments are typically concentrated in the second half.

In the first half of 2020, the investment scale of the four telecommunications companies (the three companies + SKB) was tentatively planned at approximately 2.7 trillion won; however, in order to stimulate the economy, the investment timing was brought forward as much as possible, with 5% more invested in the first half compared to the original planIt was decided to proceed with expanding investment to the level of 4 trillion won, a 0% increase. Accordingly, investment is expected to be concentrated in multi-use facilities where 5G users frequently use their mobile phones, such as subways, railways, large stores, and universities.

In addition, the Ministry of Science and ICT and the three telecommunication companies have decided to provide reductions in telecommunication fees, such as mobile phone and high-speed internet, for small business owners and self-employed individuals who have suffered concentrated economic damage, such as business closures due to visits by confirmed COVID-19 cases.

The specific targets and scale of support will be finalized as soon as possible, in accordance with the time when relevant ministries, agencies, and local governments identify the extent and current status of damage and formulate concrete support measures.

The three telecommunications companies announced that they are pursuing comprehensive support for small and medium-sized retailers whose sales have plummeted due to a decline in mobile phone subscriptions, including support for operating funds, extension of receivables on credit purchases of terminals (interest deferral), and downward adjustment of sales targets.

In addition to alleviating the cost burden by providing a total of 12.5 billion won in operating funds to agencies, etc., measures will be taken to defer interest payments on terminal purchases on credit, which account for the largest share of terminal distribution network costs, taking into account the internal situation of each business operator.

For areas with concentrated damage, such as Daegu and Gyeongbuk, sales targets will be lowered while incentive levels will be maintained to preserve operating profits, and support for disease prevention and hygiene supplies will continue to be provided to help resolve COVID-19.

Minister of Science and ICT Choi Ki-young stated, “The early expansion of telecommunications network investment and support measures for small business owners will help recover the economy weakened by COVID-19,” adding, “The Ministry of Science and ICT will cooperate with the three major telecommunications companies to overcome the COVID-19 crisis.”