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KT Planning to Merge with KTF

Posted December. 12, 2007 03:03,   

한국어

KT is actively seeking ways to retool its governance by merging with its daughter company KTF and transforming KT Group into a holding company.

KT President Nam Joong-soo said in a press conference Tuesday at the Korea Press Center on Taepyeongro, Jung-gu, Seoul, that, “Due to management variables, including SK Telecom merging with Hanaro Telecom, the merging of KT and KTF is under deep consideration as it is expected to enhance customer value.”

He added, “A newly-formed task force is trying to find ways to enhance the efficiency of corporate governance. Whether it is merging with KTF or becoming a holding company, we are open to possibility of reshaping. The core principle is when the structure changes, it should renew customer values and ultimately contribute to the further development of KT Group. At some point, we will be able to announce the results publicly.”

Observers in and out of the company think that by merging with KTF, KT will achieve synergy effects of wired and wireless communication services, and by becoming a holding company, it can reshuffle other business areas of interest. KT Vice President Seo Jeong-soo said, “In regard to possible antitrust issues, it’s nothing compared to what SK Telecom is trying to do.”

KT President Nam said concerning next year’s plans, “We will focus our energy on fostering new growth engines such as IPTV, VoIP, Mobile Internet and WiBro, with the aim of surpassing the 12 trillion won revenue mark. We will engage in aggressive management strategies.”

KT garnered 11.9 trillion won in revenue this year, and its goal for next year is to raise that figure to around 12.5 trillion won.



nex@donga.com