KISDI Analyzes Factors Affecting Starlink Pricing and Examines Its Potential Impact on Korea’s Telecommunications Market (detail)

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KISDI Perspectives (26-03-03): Factors Determining Starlink Pricing and Its Impact on the Korean Telecommunications Market

▲ Starlink's residential service price in Korea is approximately 1.01 times the OECD average
▲ Higher prices tend to be observed in countries with lower urbanization rates or less developed competitive environments
▲ Short-term impact on Korea's telecommunications market expected to be limited, while long-term effects may include the advancement of satellite communications and 6G technologies

The Korea Information Society Development Institute (KISDI, President Sangkyu Rhee) recently published *Factors Determining Starlink Pricing and Its Impact on the Korean Telecommunications Market* (KISDI Perspectives 26-03-03), which analyzes factors influencing Starlink pricing across countries and examines the potential impact of Starlink's entry into the Korean telecommunications market.

According to the report, the monthly residential subscription fee for Starlink in Korea is KRW 87,000, equivalent to USD 61.16 based on the average exchange rate for 2025. This is slightly higher than the average monthly fee of USD 60.59 across 37 OECD member countries where Starlink services are commercially available, representing approximately 1.01 times the OECD average. As of January 2026, Starlink had launched commercial services in 37 of the 38 OECD member countries, with Türkiye being the only exception.

Following the launch of SpaceX's low-Earth orbit (LEO) satellite communications service, Starlink, in Korea in December 2025, interest has increased regarding the factors that influence Starlink pricing across countries and its potential effects on the domestic telecommunications industry. To address these questions, the report analyzes pricing determinants across 82 countries where Starlink services are available, including 37 OECD countries and 45 non-OECD countries, and assesses both the short-term and long-term implications for Korea's telecommunications market.

The study finds that Starlink pricing is influenced by a range of factors, including population distribution, income levels, and the competitive environment of the telecommunications market. Statistical analysis indicates that population density, urbanization rates, income levels, and the level of competition in the ICT sector all have a significant relationship with Starlink pricing.

The report shows that countries with lower population densities or lower proportions of urban residents tend to have higher Starlink subscription fees. This finding suggests that geographic characteristics play an important role in pricing decisions. In countries where access to fixed and mobile internet services is relatively limited, Starlink appears to be able to charge higher prices than in countries with more extensive communications infrastructure.

The analysis also finds that countries with less developed ICT competition frameworks tend to have higher Starlink prices. The ICT Competition Framework indicator is a component of the ITU Regulatory Tracker and measures the maturity of competitive conditions in the ICT sector, including market competition and foreign participation. The findings suggest that Starlink tends to set lower prices in countries with more developed and competitive telecommunications markets.

From an income perspective, the report finds that the real burden of Starlink subscription fees is greater in countries with lower GDP per capita based on purchasing power parity (PPP). This finding differs from the common assumption that lower-income countries necessarily receive lower prices. The report suggests that because nominal price differences across countries are relatively modest, the effective affordability of Starlink services can vary significantly depending on local income and price levels.

Jinwoo Park, Researcher at KISDI, noted that the study has limitations, including its inability to fully capture changes over time and the lack of access to proprietary Starlink data. He explained that the findings should be interpreted primarily as correlations between pricing levels and relevant variables rather than evidence of definitive causal relationships.

The report further suggests that Starlink's impact on Korea's telecommunications market is likely to be limited in the short term. Given the extensive coverage and strong price competitiveness of Korea's existing fixed and mobile networks, Starlink is expected to function primarily as a complementary service rather than a substitute for existing telecommunications services. Potential applications include underserved rural and remote areas, disaster response situations, and maritime communications.

Over the longer term, however, the report suggests that Starlink could contribute to the advancement of both 6G mobile communications and low-Earth orbit satellite communications technologies. As satellite communications are increasingly viewed as a key component of next-generation communications infrastructure, the report indicates that the service may also support broader industrial and technological development in related sectors.

The report is available for download from the KISDI website.

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KISDI Analyzes Factors Affecting Starlink Pricing and Examines Its Potential Impact on Korea’s Telecommunications Market