The Korean mobile telecommunication services industry is entering a new transition period. This has been brought about by the market for mobile telecommunications reaching maturity, the launching of the IMT-2000 service and the scheduled introduction of mobile number portability. In response, the industry is shifting its strategic focus away from attracting new customers, towards retaining existing customers through the promotion of customer loyalty. This paper investigates how customer satisfaction and the switching barrier influence customer loyalty. The adjustment effect of the switching barrier on customer satisfaction and customer loyalty is also analysed. (C) 2004 Elsevier Ltd. All rights reserved.