South Korea’s telecom landscape is gearing up for a transformative journey into the metaverse as major players SK Telecom Co., KT Corp., and LG Uplus Corp. commit to substantial investments in metaverse-related technologies and platforms. Despite a sluggish year for extended reality (XR) device sales, industry insiders reveal shared anticipation of an XR boom in 2024, prompting these telecom giants to focus on expanding their global metaverse presence.
The XR Landscape: A Shift in Focus
As the curtain falls on a year marked by slower XR device sales, SK Telecom, KT Corp., and LG Uplus are pivoting toward the metaverse content business, signaling a strategic shift in their approach. XR, encompassing virtual reality (VR), augmented reality (AR), and mixed reality (MR), is poised to take center stage in the coming year, prompting these telecom giants to position themselves at the forefront of the evolving landscape.
Competitive Dynamics: Global Expansion Amidst XR Device Market Competition
The Korean telecom trio faces heightened competition in the XR device market, with global tech giants (for instance, Apple Inc. and Samsung Electronics Co.) making significant strides. Apple’s plans to launch the high-end AR headset Vision Pro in the coming year and Samsung’s collaborative efforts with Google LLC and Qualcomm Inc. in developing an XR headset underscore the industry’s dynamic nature. In September, Meta Platform Inc. added to the momentum with the release of its MR headset, demonstrating robust sales.
SK Telecom’s Strategic Alliance with Meta Platform Inc.
As the exclusive distributor of Meta Quest 3 in Korea, SK Telecom is strategically aligning itself with industry leaders. The company is enhancing collaboration and jointly developing initiatives to integrate its metaverse platform, Ifland, with Quest 3.
SK Telecom aims to bolster its metaverse presence by focusing on K-pop content, evident in Ifland’s impressive milestone of surpassing 50 million subscribers in the third quarter of this year.
Global Expansion Strategies: From Southeast Asia to the United States and Europe
SK Telecom’s ambitions extend beyond domestic borders as it conducts tests with local telecom carriers in Southeast Asia, including Malaysia and Indonesia. With plans to enter markets in the United States, India, and Europe, SK Telecom is poised to become a global player in the metaverse arena. The emphasis on K-pop content is a strategic lever to attract diverse audiences globally, reinforcing South Korea’s cultural influence.
Discover more! SK Telecom’s Ifland Expands Globally
KT Corp.’s Technological Innovation Division and Genieverse
KT Corp. is proactively establishing a technology innovation division that integrates information technology and research and development units. The company plans to focus on new ventures such as artificial intelligence technology and the metaverse. KT’s metaverse platform, Genieverse, launched in March, is set to make significant strides in overseas markets in the coming year. This strategic diversification positions KT Corp. to adapt to technological shifts and be a catalyst for innovation.
Collaborative Ventures and Global Metaverse Expansion
Collaboration and global expansion are recurring themes among Korean telecom giants. LG Uplus, while not detailed extensively in the available information, is likely to follow suit in leveraging collaborative ventures and strategic alliances to fortify its metaverse foothold. As the metaverse landscape evolves, partnerships and innovative initiatives become essential for success.
Conclusion: A Metaverse Odyssey Beckons
The concerted efforts of SK Telecom, KT Corp., and LG Uplus reflect the evolving dynamics of the telecom industry as it prepares for a metaverse-centric future. The strategic bets on metaverse-related technologies and platforms align with anticipating an XR boom in 2024. As South Korea’s telecom giants navigate this metaverse odyssey, their proactive approach positions them as pioneers in technological innovation and as key contributors to the unfolding narrative of the global metaverse landscape.