Yang Seung Taik, the new communications minister, said the government will study lowering the license fee, said Kim Young Kwan, a ministry spokesman, confirming reports in Maeil Business and other newspapers.
The change of heart by the Ministry of Information and Communication--it previously said it wouldn't reduce the fee of between 1.1 trillion won (US$839 million) and 1.3 trillion won (US$995.4 million)--comes two days after LG indicated it might bid for the license.
On Saturday, executives from Korea's smallest cellular provider told shareholders that the company would consider a bid if the government were to lower the price.
LT Telecom, an affiliate of Korea's third-largest business group, now has less than half of the subscribers of competitors who won licenses in December to provide the high-speed mobile Internet services. Analysts and companies forecast that such date services will provide the majority of future earnings for cellular companies.
Losses
LG Telecom's losses more than doubled last year to 442 billion won (US$338.4 million) as it spent more to sign up new customers.
Groups led by Korea Telecom and SK Telecom won the government's first two wireless licenses, which called for using wideband code division multiple access technology, or W-CDMA. The remaining permit is earmarked for an operator that promises to use an alternative technology called CDMA2000.
The government decided not to award the CDMA2000 license in December after judging that the only bid, from Hanaro Telecom, was too weak. It is still considering when to offer the license, after postponing a second round of bidding last month.
LG Telecom shares rose by their daily limit for a second day. The stock gained 12 percent, or 560 won (US$0.43), to 5,280 won (US$4.04) on the Kosdaq index of over-the-counter shares.
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