[Why&Next] Are Mobile Fees in Seoul the Highest in the World? Why Korean Telecoms Are Refuting the Claim

Japanese Ministry Ranks Seoul Second Most Expensive for 5G 20GB, After New York
Comparison Covers Six Major Cities
KTOA Refutes: "Comparison Follows Japanese Patterns"
Criticizes Omission of 5G Cross-Enrollment, Use of Outdated Pricing

South Korean telecommunications companies have actively refuted the Japanese Ministry of Internal Affairs and Communications' recent announcement, which stated that Seoul's smartphone mobile communication fees were the highest among six major global cities. The telecom companies pointed out that since 2023, cross-enrollment between 4G and 5G plans has been permitted, and in July of this year, an integrated pricing plan was launched. They claim that, if these changes are reflected, Seoul's ranking could shift to the middle range in the future.

On September 27, the Japanese Ministry released a report titled "Survey on Domestic and International Price Differences in Telecommunications Services," comparing 4G and 5G mobile communication fees in six cities: Seoul in South Korea, Tokyo in Japan, New York in the United States, London in the United Kingdom, Paris in France, and Dusseldorf in Germany. The comparison focused on the largest carrier in each country and looked at consumer payments (as of the end of last year, for new contracts, and for the lowest-priced plans available) based on data usage tiers.

For 4G plans with a monthly data allowance of 20GB, SK Telecom users in Seoul paid 6,916 yen (about 60,846 won), the highest among the six cities. The second highest was Verizon in New York at 6,684 yen, followed by Telekom Deutschland in Dusseldorf at 4,037 yen, and Telefonica UK in London at 3,0259 yen. The cost of mobile services in Seoul was 2.3 times and 2.8 times higher than fifth-ranked NTT Docomo in Tokyo (2,974 yen) and sixth-ranked Orange in Paris (2,495 yen), respectively. Even when the data limit was increased to 50GB, Seoul remained the most expensive at 6,916 yen, followed by Dusseldorf (6,732 yen), New York (6,684 yen), Tokyo (4,954 yen), London (3,686 yen), and Paris (3,465 yen).

Seoul was also the most expensive for 5G plans. For plans with 20GB of monthly data, New York had the highest price at 6,684 yen, with SKT in Seoul ranking second at 4,902 yen (approximately 43,127 won). Tokyo was the lowest among the six cities at 2,974 yen. For unlimited data plans, Seoul ranked third at 7,237 yen, following Dusseldorf (11,450 yen) and Tokyo (9,332 yen). New York and London were at 6,684 yen and 4,966 yen, respectively.

The Japanese Ministry also compared consumer payments for the third and fourth largest telecom operators in each of the six countries. In South Korea, LG Uplus customers' expenditures were also among the highest. For both 4G and 5G plans at the 20GB, 50GB, and 100GB tiers, LG Uplus ranked second; for unlimited data plans, it was the most expensive.

However, the Korea Telecommunications Operators Association (KTOA) issued a statement challenging the Japanese Ministry's findings. KTOA emphasized that since 2023, South Korea has already permitted cross-enrollment between LTE (4G) and 5G plans, and this change should be reflected in such comparisons. Additionally, the introduction of integrated plans in July this year, designed to make user choice easier and alter the pricing landscape, should also be taken into account, potentially shifting South Korea’s ranking for this year.

KTOA stated, "When the Japanese Ministry compared 4G monthly 20GB fees, they used an older, more expensive plan instead of the realistically applicable 4,200 yen (about 42,000 won) plan, which made South Korea appear to have the highest costs among the six countries." They further pointed out, "In particular, while calculating domestic rates, Japan excluded additional charges for voice and text, but if these are included, the Japanese fee becomes 2,000 yen (about 20,000 won) more expensive." KTOA concluded, "The comparison was tailored to Japanese telecom plan structures, resulting in an excessive estimation of South Korean rates. When considering actual consumer payments and carrier profitability, South Korea's pricing is in the mid-range compared to the six countries."

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