SK Telecom's Q1 market share rebounds, but 40% recovery remains challenging

SK Telecom has seen its mobile market share rebound to 39.09% in the first quarter of 2024, marking a recovery after a significant drop following a data breach incident last year. The company's share had fallen below 40% for the first time in its history in May 2023 and continued to decline, reaching a low of 38.78% in December 2023.

The recent uptick began in January 2024, with the share rising to 39.02%, and has since hovered around the 39% mark. This recovery is partly attributed to KT's decision to waive penalties for customers who canceled their service mid-contract, which influenced number portability trends. While SK Telecom has regained ground, reclaiming its pre-incident market share of over 40% presents a substantial challenge.

To reach the 40% threshold, which stood at 40.41% in March 2023 (representing approximately 23.1 million subscribers), SK Telecom needs to secure at least 500,000 net new subscribers. This ambitious goal, which the company stated it aims to achieve by the end of the year, faces scrutiny from industry observers who question its feasibility given the competitive landscape.

Meanwhile, second-ranked KT maintained its market share in the low 23% range through March, showing limited subscriber attrition compared to SK Telecom's earlier struggles. LG Uplus, which benefited from SK Telecom's data breach incident, has maintained a stable market share around 19.5% during the first quarter. The industry is now focused on SK Telecom's strategy and performance as it strives to regain its dominant market position amidst ongoing competition.