KT seeks to sell SK Telecom shares

Korea Telecom (KT) is planning to sell 2.67 million of its 12.94 million shares of SK Telecom. The state-run telecommunication service provider has decided to sell the SK Telecom shares it owns in order to invest in its international mobile telecommunication (IMT)-2000 and internet businesses and to expand the super information highway network. Negotiations are under way between KT and SK Telecom, according to KT officials Sunday.

KT asked SK Telecom to buy its SK Telecom stock in the event that the price reaches around 250,000 won per share, the target price, the officials said. SK Telecom`s stock was priced at 192,000 won as of Friday, far below the target price.

An SK Telecom official said that there was a legal problem in buying only its shares owned by KT and that it had no plan to buy them at present.

In case its negotiations with SK Telecom are unsuccessful, KT is considering selling the shares in the market.

Cheon Kwang-Am iam@donga.com