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
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
Challenges and Opportunities
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
| Jurisdiction | Key Regulation / Agency | Market Impact Analysis |
|---|---|---|
| South Korea | Ministry of Science and ICT (MSIT) Spectrum Allocation and License Renewal | The MSIT’s 2023 revocation of 28 GHz licenses for KT and LG Uplus due to failure to meet base station deployment quotas severely curtails demand for high-band (mmWave) infrastructure. This governmental action compels MNOs to focus their investments and resource allocation on mid-band (3.5 GHz) densification and 5G SA Core upgrades, effectively reshaping the deployment strategy. |
| South Korea | Government Tax Incentives and Digital New Deal | Directs and subsidizes operator capital expenditure by offering tax credits for 5G network investment. This policy creates a mandatory baseline demand for infrastructure hardware and software, ensuring a sustained, if not accelerated, pace of network build-out regardless of immediate subscriber growth rates. |
| South Korea | Network Sharing Mandates (Rural Areas) | Imposes an obligation on MNOs to share network infrastructure in rural and less populated areas to ensure national coverage efficiency. This mandate decreases the incremental demand for new RAN and base station equipment in rural regions but potentially increases demand for sophisticated Network Management and Orchestration (NMO) software to manage shared resources. |
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
South Korea 5G Network Infrastructure Market Segmentation