Switch Your Carrier, Get 1 Million? Korea’s Telecom Subsidy War Explodes as Customers Rush to Move

South Korea’s mobile telecom market has entered a full-scale subsidy war, with cash incentives reaching as high as ₩1 million for customers who switch carriers. The aggressive competition was triggered by KT’s decision to waive contract cancellation fees, prompting rival operators to roll out unprecedented promotions to attract defecting users.

According to industry sources, SK Telecom is offering subsidies of up to ₩1 million, alongside payback events that refund the first month’s subscription fee in full via Naver Pay points when customers sign up for specific plans. LG U+ has reportedly raised its official device subsidies to the ₩700,000 range, intensifying pressure across the market.

The competition is not limited to head office promotions. Local carrier dealerships have joined the fray with their own aggressive offers. In Chuncheon, one dealership is providing more than ₩1 million in subsidies to customers who port their numbers. Another store in the same area reportedly sold the Galaxy S25 for as little as ₩1,000 on a first-come, first-served basis to number-porting customers. In Wonju, a separate dealership offered devices such as the Galaxy Z Flip at half price, quickly selling out due to strong demand.

The surge in promotions coincides with a sharp outflow of KT subscribers. Since the contract penalty waiver took effect on December 31, the cumulative number of customers leaving KT has reached 266,782, with total departures expected to approach 270,000 by the end of the period. Among those switching to another major carrier, 74.2% moved to SK Telecom, and even when budget carriers are included, SK Telecom still captured 64.7% of the migrating users, making it the largest beneficiary of the shift.

Industry analysts attribute the scale of the exodus not only to the extended penalty-free period, but also to differences in compensation strategies. While SK Telecom attempted to retain customers by offering 50% discounts on mobile fees, KT focused on benefits such as additional data, which were perceived as less impactful by consumers.

Meanwhile, KT continues to face uncertainty related to a personal data breach, with the Personal Information Protection Commission still in the process of determining potential fines. As the investigation remains ongoing, market observers expect competition among carriers to remain intense, at least in the short term.