KT, Samsung hook up with a future venture

The KT Corp. and Samsung Electronics Co. are joining hands to develop a new industry. The two announced yesterday that they will sign a memorandum of understanding Friday to jointly explore an area that combines digital equipment with wire and wireless telecommunications service. The coalition of the two companies in the telecommunications and electronics sectors will have a great influence on the development of a future industry, where the manufacturing industry meets the service sector. Local information technology companies will have a ripple effect, as well. The two companies agree that sticking to one area will undermine further growth while the information and telecommunication sectors, including electronics, telecommunications and broadcasting, are expected to grow even bigger. “Our company has had difficulties in expanding sales because a wireless business has a certain limitations,” said a KT official. “In order to develop a new business and enter the overseas market, a partnership with Samsung Electronics Co. is an appropriate move.” The two companies will form a task force and settle key cooperation areas by September. by Cho Min-keun