South Korea 5G Network Infrastructure Market - Forecasts From 2025 To 2030

Description

The South Korea 5G Network Infrastructure Market is projected to expand at a CAGR of 8.58%, attaining USD 4.386 billion in 2030 from USD 2.906 billion in 2025.

South Korea 5G Network Infrastructure Market Key Highlights

• South Korea's commercial 5G launch in April 2019 positioned it as an early global pioneer, driving an aggressive initial infrastructure build-out across the 3.5 GHz mid-band spectrum.
• The national 5G subscriber base surpassed 33.85 million as of May 2024, representing over 65% of the total mobile market, directly fueling sustained demand for network capacity upgrades and densification components.
• Government regulatory action, including the revocation of 28 GHz (mmWave) licenses from KT and LG Uplus due to unmet deployment mandates, imposes a significant constraint on the high-band infrastructure segment while redirecting investment toward mid-band densification.
• The pivot from Non-Standalone (NSA) to Standalone (SA) architecture, evidenced by KT's nationwide SA network deployment, is a critical technology catalyst, increasing demand for 5G Core Network software and hardware to enable advanced use cases like network slicing and Ultra-Reliable Low-Latency Communication (URLLC).

The South Korean 5G network infrastructure market is defined by rapid consumer adoption and a highly prescriptive regulatory environment that compels continuous technological advancement and deployment. As the first nation to commercialize 5G services, the market has matured beyond initial blanket coverage into a strategic phase focused on densification, performance optimization, and the monetization of private enterprise use cases. Telecom operators (SK Telecom, KT, and LG Uplus) initially invested heavily, committing approximately KRW 25.7 trillion through 2022 to establish a nationwide mid-band footprint. The current imperative is a transition to a true Standalone 5G network core, which directly addresses the enterprise demand for services requiring superior reliability and ultralow latency, thereby driving a shift in capital expenditure from Radio Access Network (RAN) coverage expansion to Core Network modernization and edge infrastructure deployment.

South Korea 5G Network Infrastructure Market Analysis

Growth Drivers

• Government-Backed Incentives and Industrial Digitization: Government-backed incentives and the pursuit of advanced industrial digitization serve as the market's primary growth drivers. The Korean government's ‘Digital New Deal’ initiative, coupled with tax benefits for 5G investment, compels sustained capital expenditure by mobile network operators (MNOs), directly increasing the demand for RAN, transport, and 5G Core hardware. Furthermore, the push for Private 5G adoption in enterprise segments, facilitated by the allocation of dedicated spectrum in the 4.7 GHz and 28 GHz bands, generates a new, distinct stream of demand. This private network development requires specialized, localized infrastructure solutions, including Compact Macro and Compact Core components, which drive sales into the manufacturing, logistics, and public safety sectors, moving beyond traditional public carrier network procurement cycles.

Challenges and Opportunities

• Low mmWave Adoption and SA Transition: The primary constraint facing the market is the low adoption and subsequent regulatory failure of the 28 GHz (mmWave) band. The inability of MNOs to meet mandatory base station rollout requirements resulted in license revocation for key players, effectively limiting the demand for high-band RAN hardware necessary for ultra-high-capacity environments. This constraint, however, simultaneously creates a significant opportunity: the inevitable transition to 5G Standalone (SA) architecture. With KT already deploying a nationwide 5G SA network, this shift mandates investment in upgrading the 5G Core Network, enabling features like network slicing and URLLC. This SA transition becomes a vital catalyst for 5G core network components and software demand, positioning South Korea's infrastructure as a global benchmark for the foundational layer of future 6G development.

Raw Material and Pricing Analysis

The 5G infrastructure market, being hardware-centric, is subject to the price volatility and supply chain concentration risks of specialized semiconductor materials. The production of high-performance Radio Access Network (RAN) equipment, particularly Massive MIMO antennas and Power Amplifiers (PAs), relies heavily on compound semiconductors like Gallium Nitride (GaN) and Silicon Carbide (SiC). These materials offer superior power efficiency and thermal performance compared to traditional silicon, making them indispensable for high-frequency 5G applications. The concentrated global supply of these raw materials and the limited number of advanced fabrication facilities for their processing create inherent price rigidity and lead-time dependency. Any geopolitical or logistical disruptions impacting the supply of these foundational components directly elevate the unit cost of 5G base station equipment, subsequently influencing MNO capital expenditure strategies and the overall demand volume for network rollouts.

Supply Chain Analysis

The South Korean 5G infrastructure supply chain demonstrates a strategic reliance on global leaders for foundational components while leveraging strong domestic capabilities for final assembly and deployment. The critical dependency rests on offshore semiconductor foundries and specialized component manufacturers for high-end elements like Field Programmable Gate Arrays (FPGAs), 10Gbps Ethernet PHY Transceivers, and GaN-based RF Power Amplifiers. Production hubs in the Asia-Pacific region are crucial for these specialized parts. Logistical complexity arises from the mass densification requirement, necessitating the distribution and installation of numerous small cells and micro-RAN units, especially in dense urban environments. Domestic players like Samsung Electronics mitigate this by offering end-to-end, integrated solutions (Compact Macro and Core), providing a more consolidated and less fragmented procurement path for local operators, thus adding resilience to the domestic market.

Government Regulations

In-Depth Segment Analysis

By Spectrum Band: High-band/ mmWave (>24 GHz)

The High-band/mmWave segment, characterized by the 28 GHz frequency band, has experienced a severe deceleration in infrastructure demand despite its technical capacity for multi-gigabit throughput. The primary growth driver for this band—ultra-high-density data transfer in specific, localized environments (e.g., stadiums, transport hubs)—was fundamentally undermined by deployment complexity. Operators faced significant financial hurdles related to the high cost of base station densification and the poor propagation characteristics of mmWave signals. The critical catalyst for the current market state was the MSIT's decision to revoke the 28 GHz licenses from two major MNOs in 2023 due to unmet deployment deadlines. This regulatory non-compliance has virtually halted demand for mmWave RAN equipment for public carrier networks, redirecting investment to the less problematic 3.5 GHz mid-band. Future demand remains contingent on the government’s next spectrum auction strategy and a clear business model for localized, private enterprise applications, which is currently a niche market.

By End-User: Manufacturing and Industrial Automation

The demand for 5G network infrastructure within the Manufacturing and Industrial Automation segment is propelled by the industry's imperative to transition to Industry 4.0 standards, which require reliable, ultra-low latency, and high-throughput connectivity. Unlike the public network, this sector demands Private 5G Networks, which are critical for enabling use cases such as real-time process monitoring, remote-controlled robotics, and industrial IoT (IIoT) applications like digital twin implementation. This specific requirement creates a direct procurement requirement for dedicated infrastructure, including Compact 5G Core, localized RAN equipment, and specialized Edge Infrastructure components, which must support URLLC and massive machine-type communication (mMTC). Companies are adopting these private solutions to integrate critical safety platforms and enhance operational efficiency, moving infrastructure procurement from telecom MNOs to enterprise IT/OT departments, generating new revenue streams for vendors that offer end-to-end private network packages, such as Samsung.

Competitive Environment and Analysis

The South Korean 5G network infrastructure market features a dynamic competitive landscape dominated by global technology giants, with strong domestic representation from Samsung. Competition centers on 5G Standalone (SA) Core capabilities, Open RAN innovation, and specialized private network solutions for enterprise customers. The three major MNOs (SK Telecom, KT, LG Uplus) act as central procurers, creating an oligopsony that favors vendors capable of meeting stringent performance, security, and local deployment requirements. The competitive edge is shifting from basic radio equipment volume to delivering highly customized, software-defined network (SDN) solutions that facilitate the transition to 5G-Advanced and 6G concepts.

Samsung Electronics Co., Ltd.

Samsung Electronics is strategically positioned as a key domestic vendor offering end-to-end 5G solutions, encompassing RAN, Core, and network management software. The company focuses on leveraging its semiconductor and consumer electronics expertise to deliver optimized network components, including its Compact Macro and Compact Core solutions tailored for both carrier and private enterprise networks. Samsung's competitive strategy centers on accelerating the virtualization of network functions (vRAN), reducing hardware dependency, and integrating advanced concepts like AI-RAN. Verifiable company activities highlight a focus on the domestic public sector, notably through a successful bid with KT in October 2024 to deploy a Private 5G network for the ROK Navy's 'Smart Naval Port,' demonstrating its capability to supply secure, mission-critical infrastructure.

Ericsson Korea Ltd.

Ericsson Korea maintains a strong market presence, particularly through its historical relationship with the major MNOs and a strategic emphasis on the 5G Standalone (SA) transition. The company's positioning is rooted in its robust 5G Core portfolio and its ability to provide seamless network upgrades and sophisticated software capabilities. Ericsson advocates for 5G SA as the essential foundation for next-generation monetization via new services like network slicing and low-latency applications. Its strategy focuses on supporting MNOs in migrating from Non-Standalone (NSA) to SA architecture, which directly drives demand for its cloud-native Core Network functions and orchestration software.

Recent Market Developments

• March 2025: Samsung Advances AI-RAN with NVIDIA Interoperability Samsung Electronics announced advancements in its Artificial Intelligence-RAN (AI-RAN) initiative, demonstrating successful interoperability between its virtualized RAN (vRAN) technology and NVIDIA's accelerated computing platforms. This development is a strategic move to optimize network performance and energy efficiency through AI-driven load balancing and resource allocation, positioning Samsung for future infrastructure tenders that mandate superior spectral efficiency and reduced operational expenditure.
• December 2024: Nokia and SK Broadband Deploy Quantum-Safe Network Nokia and SK Broadband deployed a leased line network for Korea Hydro and Nuclear Power (KHNP) using quantum-safe MACsec technology. This deployment, completed in August 2024, enables KHNP to protect its critical energy infrastructure against existing and emerging quantum computing-based cyber threats. This event signals a rising, high-security demand for specialized, quantum-safe transport and routing equipment within the critical infrastructure end-user segment.
• October 2024: Samsung and KT Selected for ROK Navy Private 5G Samsung Electronics and KT were selected to deploy a Private 5G network for the Republic of Korea Navy’s 'Smart Naval Port' program. This deployment, leveraging Samsung's end-to-end Private 5G solutions, demonstrates a commercial launch of customized infrastructure for the public sector. The project emphasizes secure, reliable, high-capacity coverage, directly driving demand for compact, deployable, and secure RAN and Core network infrastructure components outside the traditional public carrier market.

South Korea 5G Network Infrastructure Market Segmentation

• BY COMPONENT
  • RAN
  • 5G Core Network
  • Transport or Backhaul Network
  • Edge Infrastructure
  • Network Management and Orchestration
  • Others
• BY SPECTRUM BAND
  • Low-band (<1 GHz)
  • Mid-band (1-6 GHz)
  • High-band/ mmWave (>24 GHz)
• BY DEPLOYMENT TYPE
  • Public Carrier Networks
  • Private 5G Networks
  • Shared Infrastructure
  • Hybrid
• BY DEPLOYMENT MODE
  • Standalone
  • Non-Standalone
• BY END-USER
  • Telecom Operators
  • Manufacturing and Industrial Automation
  • Transportation & Logistics
  • Energy and Utilities
  • Healthcare
  • Education
  • Retail and Hospitality
  • Public Sector
  • Other Enterprises

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. SOUTH KOREA 5G NETWORK INFRASTRUCTURE MARKET BY COMPONENT

5.1. Introduction

5.2. RAN

5.3. 5G Core Network

5.4. Transport or Backhaul Network

5.5. Edge Infrastructure

5.6. Network Management and Orchestration

5.7. Others

6. SOUTH KOREA 5G NETWORK INFRASTRUCTURE MARKET BY SPECTRUM BAND

6.1. Introduction

6.2. Low-band (<1 GHz)

6.3. Mid-band (1-6 GHz)

6.4. High-band/ mmWave (>24 GHz)

7. SOUTH KOREA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT TYPE

7.1. Introduction

7.2. Public Carrier Networks

7.3. Private 5G Networks

7.4. Shared Infrastructure

7.5. Hybrid

8. SOUTH KOREA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT MODE

8.1. Introduction

8.2. Standalone

8.3. Non-Standalone

9. SOUTH KOREA 5G NETWORK INFRASTRUCTURE MARKET BY END-USER

9.1. Introduction

9.2. Telecom Operators

9.3. Manufacturing and Industrial Automation

9.4. Transportation & Logistics

9.5. Energy and Utilities

9.6. Healthcare

9.7. Education

9.8. Retail and Hospitality

9.9. Public Sector

9.10. Other Enterprises

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Samsung Electronics Co., Ltd.

11.2. Ericsson Korea Ltd.

11.3. Nokia Korea Ltd

11.4. Mavenir Systems, Inc.

11.5. Parallel Wireless, Inc.

11.6. Cisco Systems, Inc.

11.7. NEC Corporation

11.8. Qualcomm Technologies, Inc.

11.9. Cisco Systems, Inc.

11.10. Hewlett Packard Enterprise Company

12. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Samsung Electronics Co., Ltd.

Ericsson Korea Ltd.

Nokia Korea Ltd

Mavenir Systems, Inc.

Parallel Wireless, Inc.

Cisco Systems, Inc.

NEC Corporation

Qualcomm Technologies, Inc.

Cisco Systems, Inc.

Hewlett Packard Enterprise Company

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