SEOUL — The government announced Wednesday that it has revoked the license of new mobile carrier Stage X, citing insufficient funding and failure to meet other regulatory requirements.
According to Yonhap News Agency, Stage X was unable to secure the necessary paid-in capital of 205 billion won to operate as the fourth mobile carrier in the country. The consortium, which includes mobile virtual network operator Stage Five and other partners, had previously secured the 28 gigahertz spectrum band for a fifth-generation (5G) network earlier this year. However, the ministry highlighted that the actual composition of Stage X's shareholders and their ownership structure differed significantly from initial disclosures. Among the six main shareholders, each holding more than 5 percent, only one met some of their capital obligations.
In a recent press release, the ministry confirmed the cancellation of Stage X's license and the refund of 43 billion won ($31.1 million) paid by the company for frequency allocation. Despite the setback, Stage X contends that the government's decision was unfair and plans to pursue legal and administrative actions to seek redress, including potentially filing a lawsuit for damages. An official from Stage X stated the consortium is exploring various options in response to the license revocation.