Competition to Own Big Communication Companies
The competition to own major information and communications companies including Dacom, Onse Communications, and Shinsegi Communications is heating up because companies feel it is pivotal to participate in the communications market in a dominate fashion.Dacom owns the most shares of Hanaro Communications, the only other local telephone company aside from Korea Telecom. Chollian, another one of Dacom's major share holdings is so profitable that American On Line wants to buy it. Because of this profitability Samsung, LG, and Dongyang have long competed to acquire the management rights of Dacom since 1995. Recently, Dongyang was able to purchase a large block of shares and raise its stake to 12.31%.
Samsung also increased its share of ownership in Dacom from 8.38% to 10.74%. A source at Dongyang said, 'LG is expected to have 30% of the company's shares but we will oppose LG's participation in management.' Samsung also plans to raise its holdings further.
As a result, the stock price of Dacom has risen by 30,000 won this month.
Onse Communications will start national distance telephone service as well as the ongoing international telephone service.
The sales of this company are predicted to reach 100 billion won per year. Hyundai currently is the major shareholder of this company.
Shinsegi Communications is a cellular phone company which has two million subscribers. Sales will increase from 460 billion won to 700 billion won this year. Two major shareholders, POSCO and Kolon want to buy the other's shares but they are only at the negotiating stage.
with the Korea JoongAng Daily
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