South Korean telcos see profit jump in 2020 thanks to 5G and remote services

South Korean telcos, SK Telecom and LG Uplus, saw their earnings in 2020 jump significantly thanks to an uptick in 5G subscriptions and higher demand for remote services.

SK Telecom, the country’s largest carrier, said on Wednesday it posted sales of 18.62 trillion won and operating income of 1.35 trillion won for 2020. These were increases of 5% and 21.8%, respectively, from 2019.

Wireless services contributed 1.02 trillion won in operating income, which was an increase of 7.5% from the previous year. The 7.5% improvement was primarily due to the continued growth of its 5G subscriber base, the carrier said.

Meanwhile, media services recorded 230.9 billion won in operating income, a surge of 59.2% from 2019. Its online commerce and security services also saw high sales increases during the year, SK Telecom said.  

In terms of the telco’s user base, SK Telecom said it has amassed 5.48 million 5G users

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