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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, November 2, 2025 — New data reveals that mobile phone bill delinquencies among South Korea’s budget mobile service (MVNO) users are 4.6 times higher than those of the country’s three major telecom operators — SK Telecom, KT, and LG Uplus.
According to data obtained by Rep. Lee Ju-hee of the National Assembly’s Science, ICT, Broadcasting and Communications Committee from the Ministry of Science and ICT (MSIT) and 30 telecom companies, including 27 MVNOs, the total number of unpaid mobile bills this year reached 912,674 cases, amounting to ₩49.1 billion (approximately $36 million).
Among the three major carriers, there were 163,137 unpaid bills — 70,792 from SK Telecom, 55,056 from KT, and 37,289 from LG Uplus — representing 17.9% of the total. Out of 47.2 million total subscriptions, the delinquency rate stood at 0.35%, with total unpaid bills of ₩24.48 billion (average of about ₩150,000 per case).
By contrast, MVNOs recorded 749,537 unpaid cases, accounting for 82.1% of all delinquencies. Out of roughly 10.2 million MVNO subscriptions, the delinquency rate reached 7.35%, with total unpaid amounts of ₩24.62 billion — averaging ₩32,000 per customer.
This means MVNO users defaulted 4.6 times more frequently than subscribers of the major carriers, and the rate of delinquency per subscriber base was 21 times higher. More than 700,000 MVNO users are estimated to have overdue bills excluding mobile micro-payments.
Both MVNO and major carrier customers face similar penalties for non-payment — including late fees, service suspension, debt collection, and credit score damage. However, MVNO customers, who often subscribe to low-cost plans, are more prone to rapid service suspension after just a few months of delinquency.
In response, the government expanded its Credit Recovery Committee’s debt-adjustment program in September 2025 to include long-term unpaid MVNO bills. This allows MVNO customers to apply for debt restructuring or installment repayment plans, though final approval still requires committee review.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
