South Korea's Ministry of Science and ICT said on Thursday it will expand the spectrum usage fee discount rate applied to small budget mobile operators to 90 percent from the current 50 percent and extend the discount period by three years.

The measure is part of a "living costs stabilisation and burden relief measures" package jointly announced by relevant ministries at an emergency economic headquarters meeting held at the Government Complex Seoul on Thursday.

Spectrum usage fees are costs paid by telecommunications operators in return for using radio waves under the Radio Waves Act. Small budget mobile operators receive a 50 percent discount this year, which had been set to expire next year.

The discount rate has been lowered in stages from 100 percent before 2024 to 80 percent in 2025 and 50 percent this year. Large companies have had no discount benefits since 2023.

The ministry made the decision after considering that budget mobile rates are about half those of the three major carriers and that usage is high among ordinary people such as young people and vulnerable groups, as well as the fact that a significant number of small budget mobile operators have recently recorded operating losses.

The expanded discount rate will be applied from the first quarter of next year after a revision to the Enforcement Decree of the Radio Waves Act in the second half of this year.

The ministry also plans to expand to budget mobile operators the "data peace-of-mind option (QoS)" that it decided to apply first to the three major carriers. The option provides a minimum speed level of about 400 kbps for basic functions such as messaging and map searches.

The ministry is set to draw up a comprehensive package to promote budget mobile services and announce it before August.