South Korea has officially revoked the mobile license of Stage X, a telecommunications consortium led by Stage Five, an affiliate of tech giant Kakao Corp. The decision, confirmed by the Ministry of Science and ICT, comes after Stage X failed to meet the requisite financial and operational criteria to launch its services.
The ministry revealed that Stage X could not raise the necessary paid-in capital of KRW 205 billion. Additionally, discrepancies were found in the ownership ratios of its major shareholders compared to the data submitted in the frequency allocation application. As a result, the government refunded KRW 43 billion ($31.1 million) paid for the frequency allocation back to Stage X.
Stage X had ambitious plans to become South Korea’s fourth mobile carrier, joining the ranks of SK Telecom, KT, and LG Uplus. The consortium planned to launch a nationwide mobile network in the first half of 2025, using the 28 GHz spectrum band. They aimed to invest KRW 612.8 billion to deploy a 5G network across South Korea by building 6,000 base stations, in line with the mandated installation standard for the 28 GHz network.
However, challenges arose, as noted by Second Vice Science Minister Kang Do-hyun, who stated, “Considering expected future concerns of partners such as equipment manufacturers, investors, and users, we concluded that cancellation of the selection of companies subject to allocation was inevitable.” The government had doubts about Stage X’s ability to secure the stated capital, making it difficult for the company to effectively execute its business plans.
In response, Stage X described the government’s actions as unfair and plans to explore legal and administrative avenues. The company is considering various options, including filing a lawsuit for damages against the government. An official from the company emphasized that Stage X is determined to challenge the decision and take necessary legal steps.
Adding another layer to this story, Rakuten Mobile and Rakuten Symphony had previously announced a strategic collaboration with Stage X. This partnership aimed to establish a comprehensive framework for cooperation between the companies.
Moving forward, the Korean government may consider another auction for the 28 GHz spectrum band if necessary. This would provide another opportunity for companies to step in and fill the void left by Stage X’s exit.
