Korean telcos to invest dragging feet on investment

Korea’s three telecom companies have said it would be stepping up investment in networks, especially 5G technologies, during the first half of this year, but they have yet to take any action, sources told The Elec.

“We have yet to detect any real action, and believe the investment will happen in the latter half of the year, considering the current economic conditions,” they said.
One source said she expects orders to begin rising slightly beginning in May.

On March 5, SK Telecom, KT and LG Uplus announced first half investment plans amounting to around KRW 4 trillion, which is about 50% more than the KRW 2.7 trillion they had initially pledged. The announcement was made via an online meeting hosted by Minister of Science and ICT Choi Ki-young. The uptick was due to government urgings, according to market watchers.

On April 1, Deputy Prime Minister and Finance Minister Hong Nam-ki said during a 13th ministerial meeting on responding to the coronavirus that telecom companies would be delivering on their promises as soon as possible. A week later, the heads of the three telecom companies confirmed this at a third meeting with government officials on 5G policies.

Several telecom sector suppliers, such as KMW and OE Solutions saw their stock prices surge on the news.

The Elec is South Korea’s No.1 tech news platform.