South Korea’s Ministry of Science and ICT is preparing to withdraw the operating license of Stage X, which was positioned to become the nation’s fourth mobile operator, as it reportedly did not satisfy the regulatory prerequisites necessary to commence mobile services.
Stage X is composed of a consortium led by Kakao, a major player in messaging, along with MVNO Stage Five.
The announcement follows one month after the start-up revealed Rakuten Mobile as a strategic partner for launching 5G services scheduled for the first half of 2025.
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The Korean government will hold a hearing to conclude its decision, considering the cancellation of the company's authorization to hold mobile frequencies.
In February, Stage X acquired 28 GHz spectrum for its 5G services, with a committed investment of KRW 430 billion (USD 311.6 million).
However, the company reportedly did not fully meet the payment requirements, and discrepancies were found in the ownership ratios of major shareholders compared to what was declared in its frequency allocation application.
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During a press conference, Second Vice Minister of Science, Kang Dohyun, noted that the government requested clarification, but the issues remain unresolved.
“We concluded the capital raising claimed by Stage X could not be trusted and that it would be difficult to properly carry out the business if the capital specified in the allocation application was not properly secured,” Dohyun added.
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