KT Corp. plans major investments

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KT Corp. plans major investments

KT Corp. said yesterday that it is planning to invest 3 trillion won ($2.6 billion) each year until 2010, beginning next year. It plans to concentrate on five new businesses: next generation mobile communication, home networking, media industry, information technology services and digital content. Lee Yong-kyung, KT’s president, announced the plan at a press conference celebrating the second anniversary of the company’s privatization. “We are planning to spend 500 billion won a year out of the 3 trillion won for the five businesses,” he said. “Considering the current cash flow, there should be no problem in supplying that amount of money. I already told the shareholders that KT would spend 15 percent of sales on facility investment.” He said that if the investment were completed by 2010 as planned, it would be expected to create 41.8 trillion won in production and 67,000 new jobs. He expects KT Group’s sales to reach 27 trillion won in 2010, up 11 trillion won from last year. KT and its subsidiaries would confront competitors jointly, he said, indicating that it would strengthen the relationship between the parent company and subsidiaries. Mr. Lee said KTF, KT’s mobile telecommunication arm, cannot compete with SK Telecom, the industry leader, by itself, nor can Paran.com, its Internet portal subsidiary, fight against rivals such as Daum Communications, one of the leading portal sites here. by Lee Hee-sung
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