(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] On August 21, it was reported that the capital expenditures (CAPEX) of South Korea's three major telecom companies—SK Telecom, KT, and LG Uplus—decreased by over 26% in Q2 2024, totaling ₩1.5879 trillion.

By company, SK Telecom's CAPEX dropped 53% to ₩388 billion, LG Uplus reduced its CAPEX by more than 15% to ₩557.1 billion, and KT spent the most among the three with ₩642.8 billion, though this was still a 6% decrease from the previous year.

The trend of reducing CAPEX is evident not just quarterly but also for the first half of the year. SK Telecom's cumulative CAPEX for the first half of 2024 fell by over 32% to ₩705 billion, while LG Uplus's CAPEX decreased by 20% to ₩942 billion. KT, which made the highest CAPEX investment for the first half, still saw a 3% reduction from the previous year, with a total of ₩960.9 billion.

Since the commercialization of 5G in 2019, these companies have consistently reduced their CAPEX. The combined CAPEX of the three companies declined from ₩9.595 trillion in 2019 to ₩6.9044 trillion in 2023, marking a reduction of more than 28% over four years.

While the reduction in CAPEX may seem inevitable as 5G enters its sixth year, it mirrors a similar trend seen after the introduction of LTE (4G) in 2012, where related CAPEX also decreased.

 

 

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