A temporary waiver of early termination fees by KT, one of South Korea’s three dominant wireless carriers, has set off an abrupt burst of customer movement in the country’s mobile industry, exposing how tightly contractual penalties have constrained competition in a mature market.
Industry data show that 198,190 subscribers switched carriers between Dec. 31 and Jan. 5, more than double the normal pace. The figures, released by the Korea Telecommunications Operators Association, mark one of the sharpest short-term spikes in number portability in recent years, following months of relative calm even after handset subsidy rules were dismantled last summer.
KT absorbed most of the churn. Over the six-day period, 79,055 customers left the carrier, according to the association. Roughly two-thirds moved to SK Telecom, while a sizable share switched to LG Uplus. Others migrated to lower-cost virtual network operators, which have steadily gained appeal among price-sensitive users.
The pattern of departures suggests a release of pent-up demand rather than a gradual shift. Daily losses at KT accelerated through the first days of January, indicating that consumers responded quickly once the cost of leaving was removed. The waiver is scheduled to remain in effect through Jan. 13, effectively creating a short-lived opening in which the country’s three dominant carriers are competing more aggressively for subscribers.
The episode underscores a broader point about wireless markets shaped by long contracts and penalties. Regulatory changes alone did little to prompt switching when exit fees remained in place. It was only when that friction disappeared that large numbers of customers moved, revealing how strongly such fees can suppress mobility.
Whether the momentum lasts will depend on what follows. If switching slows once penalties return, the surge may come to be seen less as a change in consumer loyalty than as evidence of how quickly a locked market can move when a single barrier is lifted.
