[Edaily Reporter Yun Junghoon ] The government and the three major telecom companies have joined forces to expand investment in AI data centers (AIDCs)—a core infrastructure of the AI era—and to strengthen the competitiveness of next-generation networks. The government is reviewing measures to stimulate investment, such as tax credits for AIDC construction, and will begin discussions on specific institutional improvements through a public-private consultative body starting in August.

Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon held a meeting on the 23rd at SKTelecom’s Euljiro headquarters in Seoul with Jeong Jae-heon ( SKTelecom(017670) ), Park Yoon-young ( KTCorporation(030200) ), and Hong Beom-sik ( LG Uplus(032640) ) to discuss expanding investment in AI-based networks and current issues in the telecommunications sector.

During the meeting, the three telecommunications companies requested that the government implement measures including: △ tax credits to promote investment in accordance with subordinate regulations under the Special Act on AI Data Centers; △ expansion of public demand for next-generation networks; △ support for submarine cable investments; △ policy direction regarding the phase-out of 3G services; and △ improvements to the universal service rate reduction system.

The government decided to review tax incentive measures to expand private investment in the construction of AI data centers. Choi Woo-hyuk, Director General of the Information Security and Network Policy Bureau at the Ministry of Science and ICT, stated in a briefing following the meeting, “The Deputy Prime Minister responded that he would review the necessity of tax credits to ensure the timely construction of AI data centers and expand private investment,” adding, “We also agreed to consult with relevant ministries on creating public demand for next-generation networks and supporting investment in submarine cables.”

This meeting was particularly significant in that, as competition in AI infrastructure intensifies, the government and the telecommunications industry reached a consensus on the need to expand investment centered on AI data centers. The three major telecom companies are pushing ahead with the construction of their own AI data centers and the expansion of AI services, while the government is also promoting the expansion of national-level AI computing infrastructure as a key policy priority.

The meeting also featured notable connections within and outside the telecommunications industry. Attendees—Deputy Prime Minister Bae Kyung-hoon, SKTelecom CEO Jeong Jae-heon, KTCorporation CEO Park Yoon-young, and LG Uplus CEO Hong Beom-sik—all have ties to SK. Deputy Prime Minister Bae led AI research at SKTelecom, and CEO Hong is also a former SKTelecom employee. CEO Park also has experience working at Sunkyung Co., Ltd., albeit for less than a month. It is noteworthy that figures with past ties to SK gathered in one place to discuss future strategies for the AI and telecommunications industries.

Review of 3G Phase-Out and Improvements to Rate Reduction System Also Under Consideration

During the meeting, the direction for phasing out 3G services in preparation for the era of next-generation networks, such as 6G, was also discussed. The telecommunications industry conveyed the view that a policy review is necessary in terms of the operational efficiency of existing 3G networks—which are being maintained despite a decline in users—and securing funds for network investment.

The need to improve the universal service fee reduction system was also raised. The argument is that, as social changes—such as the growing elderly population—increase the burden on telecommunications companies, the system as a whole must be reevaluated. However, the government maintains that protecting the fundamental right to telecommunications for vulnerable groups is its top priority.

Choi Woo-hyuk, Director General of the Information Security and Network Policy Bureau at the Ministry of Science and ICT, stated, “Regarding the 3G shutdown, we emphasized that protecting users is the top priority,” adding, “We will also review the universal service fee reduction system while taking into account both the fundamental right to telecommunications for vulnerable groups and the burden on telecommunications carriers.”

Furthermore, in response to the government’s request to support people’s livelihoods, the three major telecom companies plan to develop company-specific support measures, such as data support for young people, expanded membership benefits, and enhanced partnership discounts.

The Ministry of Science and ICT announced, “The government and the three major telecom companies have agreed to work together to expand investment in AI-based next-generation networks and stabilize people’s livelihoods,” adding, “We plan to finalize related tasks through a public-private consultative body starting in August.”