Using Starlink in South Korea costs 25% more in real terms than the average across Organisation for Economic Co-operation and Development (OECD) member states, a new report found. While the nominal fee is similar to the OECD average, the actual burden is heavier when adjusted for purchasing power parity (PPP), which reflects local price levels.
According to a report titled "Determinants of Starlink Pricing and Impact of Its Domestic Launch on the Telecommunications Market," released Monday by the Korea Information Society Development Institute (KISDI), Starlink's residential monthly fee in Korea is 87,000 won, or $61.16 based on the projected 2025 average exchange rate. That is slightly above the OECD 37-nation average of $60.59, coming in at 1.01 times the OECD average at market exchange rates.
The gap widens significantly under PPP conversion. An international comparison table in the report shows Korea's Starlink fee at 107.5 in PPP terms, compared with the OECD average of 85.8 — making the real burden 1.25 times higher. Although the nominal price difference appears modest, Korean users effectively pay 25% more than the OECD average when local prices and purchasing power are taken into account.
KISDI identified population density, urbanization rate, income level and the ICT competitive environment as key factors behind cross-country differences in Starlink pricing. The analysis found that countries with lower population density and lower urban-population ratios tend to face higher Starlink fees. Countries with weaker ICT competition frameworks also showed higher pricing. This suggests Starlink can charge relatively more in markets where telecom infrastructure access is limited or competition is less intense.
The report also highlighted that lower-income countries bear a disproportionately heavy real burden from Starlink fees. This is not because Starlink sets especially high nominal prices for low-income nations, the report explained, but because fee differences across countries are small while gaps in income and price levels amplify the perceived cost burden.
The short-term impact on the domestic market is expected to be limited. "Given that Korea's wired and wireless networks already offer high coverage and price competitiveness, Starlink is more likely to serve as a complement targeting special demand — such as islands, mountainous blind spots, disaster situations and maritime use — rather than fully replacing existing mobile services," KISDI said.
Over the medium to long term, however, the effects are unavoidable. The report concluded that Starlink's domestic launch could serve as a catalyst for advancing low-earth orbit satellite communications and 6G technology. With satellite communications poised to become a core pillar of next-generation telecom infrastructure, the entry could also provide a positive stimulus to related industries and technology development, according to the analysis.