Gov't revokes license of new mobile carrier Stage X over funding questions

Second Vice Science Minister Kang Do-hyun speaks on the government's decision to revoke the license of mobile carrier Stage X at a press briefing held at Government Complex Seoul in Jongno District, Seoul, June 14. Yonhap

The government said Wednesday it has revoked the license of Stage X as the country's fourth mobile carrier due to the company's failure to secure paid-in capital and meet other requirements.

Stage X, a consortium comprising mobile virtual network operator Stage Five and other partners, secured the 28 gigahertz spectrum band for the fifth-generation (5G) network in an auction hosted by the ministry earlier this year.

However, funding questions have persisted over the little-known company because a mobile carrier needs tens of millions of dollars to build a nationwide telecom network.

The Ministry of Science and ICT said in a press release that it has finalized the license cancellation process and has refunded the 43 billion won ($31.1 million) paid for the frequency allocation to Stage X.

According to the ministry, Stage X has not raised the fully required paid-in capital of 205 billion won, and the composition of the company's stockholders and the ownership structure between the shareholders were also different from what Stage X initially said.

Of the six main shareholders who own more than a 5 percent stake each in Stage X, only one shareholder paid some of the required capital, the ministry said.

Stage X has insisted that the decision is unfair and said it would take necessary legal and administrative steps. An official at the consortium said it was considering various options, including filing a lawsuit for damages, against the government. (Yonhap)