Roaming by Top 3 Carriers Threatened by eSIM... Vacation Season Promotions Like Discounts and Free Calls

Convenient Installation and Affordable Prices:
A Threat to the Big Three Mobile Carriers' Roaming Demand

As local telecommunications eSIMs touting affordable prices become more accessible to consumers, roaming demand for Korea’s three major mobile carriers is under threat. SK Telecom, KT, and LG Uplus are responding to the peak summer vacation season by launching roaming service discount promotions and releasing new roaming products in an effort to retain their customer base.

According to the telecom industry on July 24, SK Telecom is offering first-time roaming at a 70% discount for customers in their 20s and 30s during the summer holidays, while also providing an extra 1 gigabyte (GB) of roaming data via its membership benefits program. KT has introduced a new affordable roaming plan, priced at 25,000 won, for use in Southeast Asia. LG Uplus has also enhanced user convenience by streamlining its roaming service process.

Partnerships with specialized services are also active. Since 2018, SK Telecom has offered “Baro Call,” a free calling service to Korea from overseas, leveraging the Aidot Phone (formerly T Phone) app and data networks, without incurring international calling charges. When first launched, this free calling service was available even with local SIM (physical or eSIM), regardless of whether a roaming plan was used. Now, however, users need to subscribe to a SK Telecom roaming plan or connect to Wi-Fi to use the free call feature. LG Uplus also plans to launch a similar service called “IXIO Roaming Call” in over 100 countries in the second half of the year.

The main reason carriers continue to offer roaming discounts and free call services during peak holiday or vacation periods is the growing number of travelers opting for local SIM (physical or eSIM) cards to address communication and data needs abroad, instead of using roaming plans. According to a “Mobile Communication Survey” conducted by Consumer Insight, a consumer research institution, in the first half of 2024, the method of “purchasing a local SIM abroad” accounted for the highest proportion at 42%. In comparison, carrier roaming accounted for 33%, representing a gap of 10 percentage points. The share of local SIM usage increased by 5 percentage points compared to a year earlier.

eSIMs, in particular, are recognized for their convenience: they can be installed online and do not require the physical effort of swapping cards as with traditional SIMs. Moreover, consumers can maintain their Korean phone number while adding an eSIM for overseas data use, allowing two lines to operate simultaneously. This enables travelers to continue receiving calls from Korea while abroad.

Above all, travelers are choosing eSIMs due to significantly superior price competitiveness compared to roaming. For instance, when traveling to Japan—a popular destination for Korean tourists—a roaming plan from a major Korean operator providing 3-4GB of data during the trip costs about 29,000 won. By contrast, a local eSIM offering 3GB of data for three days is priced at just 3,900 won. Even an unlimited data eSIM, valid for the same period, costs only 10,900 won—less than half the price of the roaming plan.

Demand for travel eSIMs is increasing in the global market as well. Market research agency Wise Guy Reports projects that the travel eSIM market, currently worth $5.45 billion (about 8 trillion won) in 2024, will grow at an average annual rate of 21% to reach $25.1 billion (about 36.88 trillion won) by 2032. The agency analyzed, “As more people use devices that support eSIMs, demand for convenient and cost-effective travel eSIMs is likely to rise.”

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