KTF wins suit against SK

KTF, the second largest mobile phone service provider, won a legal fight against its larger rival, SK Telecom, over an advertising feud last year. KTF filed a defamation suit against SK Telecom last year, arguing that it incurred financial losses because of a slanderous advertisement by SK Telecom, and it sought 50 billion won ($43 million) in damages. The Seoul District Court yesterday ordered SK Telecom to pay KTF 7.5 billion won in compensation. The tug of war started when KTF took out a full-page newspaper advertisement adopting Business Week’s “Infotech 100” chart starting on July 3. The U.S. business magazine had released its “Infotech 100” report in its June 24 issue, listing the world’s 100 best information technology companies. KTF was ranked fourth in technology but topped the chart in the telecommunications category. The advertisement said KTF was named the No. 1 mobile company in the world, and drew a red line around the name of SK Telecom on the chart, which was placed third. SK Telecom fired back with a full-page newspaper advertisement that said, “KTF’s No.1 in the world, is it reliable?” SK Telecom attacked KTF in its advertisement, saying that the chart was based upon manipulated data. “It is recognizable that SK Telecom’s refuting advertisement was ill-intentioned,” the court said in its ruling. “Thus SK Telecom is responsible for paying damages.” But the court cut the damages considerably from the amount requested by KTF, saying that although KTF argued it incurred more than 100 billion won in damages because of SK Telecom’s data, the claim lacked sufficient evidence. The court also dismissed SK Telecom’s suit worth 1 billion won against KTF. by Kim Hyeon-kyeong