The next-generation 5G wireless network that the South Korean government aims to commercialize by next year would create at least 48 trillion won ($43 billion) in social and economic values by 2030, showed a study.
According to a study report released by KT Economics and Management Research Institute on Monday, the rollout and adoption of 5G networks would allow the country’s 10 major industries including automotive, manufacturing, and finance plus four key 5G infrastructure solutions such as smart home to generate social and economic values of at least 30.32 trillion won by 2025 and 47.75 trillion won by 2030. That would be nearly 2 percent of the country’s gross domestic product in 2030.
5G offers data speeds 10 to 100 times faster than current 4G networks, enabling higher productivity growth. The Korean government and the country’s major wireless providers are readying to commercialize the new network by March next year.
The report said the automobile industry would benefit the most from the 5G network technology, generating 3.3 trillion won by 2025 and 7.2 trillion won by 2030 from upgrades to smarter, connected cars. The media industry would also see virtual/augmented reality business expand following the introduction of the ultra-fast network, adding 2.5 trillion won in value by 2025 and 3.6 trillion won by 2030.
The report estimated added values from the 5G network to reach 2.9 trillion won for the healthcare industry by 2030, 2.8 trillion won for transportation, 260 billion won for agriculture, 720 billion won for security/safety, 1.1 trillion won for energy, 2.5 trillion won for wholesale/retail, and 5.6 trillion won for finance.
The 5G network is also expected to substantially improve people’s living conditions by providing more smart solutions. The report estimated social and economic value of at least 5.4 trillion won would be added from 5G-backed smart city and smart home solutions that would be more efficient in preventing crimes and reducing carbon dioxide level.
By Seo Dong-cheol and Cho Jeehyun
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