South Korea's Government has cancelled LG Telecom's 3G license, in a move which now could force LG Telecom's chief executive to resign. LG Telecom was awarded an operating license in the 2GHz band for CDMA2000 services in 2001, but has concentrated on upgrading its existing 1.8 GHz CDMA network.

"The government has decided to cancel LG Telecom's license by respecting its opinion," Information and Communication Minister Rho Jun-Hyong said. Mr. Roh also denied recent claims that the government's policy to support IMT-2000 and CDMA technology was a bad decision. "LG Telecom's decision not to use IMT-2000 doesn't imply that the government's policy has failed. Our fundamental goal is to become a leading IT country and we are achieving that goal," he said. "Although synchronous transmission services are not popular globally, Japan's KDDI Corp. is using synchronous transmission. Currently, synchronous and asynchronous transmission methods are being used jointly."

Nam Yong, LG Telecom's CEO now also faces calls for his resignation as the government cites the country's telecoms laws which apparently would forbid him from remaining as CEO having lost a government license.

"At a time when there is little momentum to push for development of the 2-GHz CDMA service, we have no choice but to give up on the business," Kang Shin, a spokesman for LG Telecom, said. "We ask the ministry to work hard to minimize the impact that the license revocation would have on the company."