[Photo by Park Hyung-ki]

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KT Corp., one of South Korea’s three telecommunications providers, launched a fifth-generation mid-rate plan after similar moves were made by SK telecom Co. and LG Uplus Corp., intensifying competition among the three Korean telecom service providers.

The move came in response to the Korean government’s policy to reduce telecommunication costs and diversify mobile plans according to age and category.

KT said on Wednesday that it will additionally launch three types of 5G intermediate rate plans, four types of senior plans and five types of online-only plans to provide more options to consumers and reduce household communication costs.

“We expect this launch of customized 5G plans to greatly increase the number of options that customers can choose from and reduce the burden of communication costs through customized benefits such as OTT service and content discounts,” said Koo Gang-bon, senior vice president and head of KT’s Customer Business Division.

From June 2, KT will release a medium plan available to all consumers with three data options - 50GB, 70GB and 90GB - for 63,000 won ($47.1) to 67,000 won per month. It provides more options from the current offers of 30GB for 61,000 won a month and 110GB for 69,000 won a month. It also offers a rate system in which 2,000 won is added per month for every 20GB of data in the 30GB to 110GB range.

Until now, KT customers using 50GB of data each month have to use the 110GB 69,000 won monthly plan, but they will be able to choose the new 50GB 63,000 won monthly plan, which will enable them to reduce communication costs by 6,000 won per month.

KT also plans to provide the 5G intermediate rate plan with the same benefits to affordable phone operators after June 23.

“Y-Dum” [Courtesy of KT]

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The mobile carrier will launch a new “Y-Dum” benefit service for young customers in their 20s. The Y-Dum benefit, which applies to 15 types of 5G rate plans, including the 5G Direct plans, provides twice as much shared data or twice as much basic data depending on the rate plan used by customers. The Y-Dum benefit is automatically applied to those under the age of 29 without signing up for a separate exclusive rate plan. For example, customers in their 20s using the 50GB 63,000 won monthly plan can use 100GB of basic data.

KT plans to hold a promotion that offers a 50 percent discount on over-the-top (OTT) media service Tving’s subscription fees when customers in their 20s choose a rate plan of 63,000 won or higher per month.

KT will also release four types of senior plans for customers aged 65 and older on May 12. Like SK Telecom and LG Uplus, KT divided the age groups into 65, 75 and 80 years of age or older. Customers aged 65 can sign up for a 49,000 won monthly plan with 15GB of data or a 44,000 won monthly plan with 10GB of data. The company will also offer safety services for senior customers, such as real-time location information sharing for customers’ families, family notifications in case of emergency and voice phishing advance notifications.

From July, the mobile carrier will also release five types of 5G Direct plans, which are non-contract rates available for online subscriptions. They include plans offering 8GB of data at 34,000 won each month and unlimited data at 69,000 won each month. Discounts on smart device fees will also be provided for customers using monthly plans of 55,000 won or higher. For customers in their 20s, Y-Dum benefits are also applicable.