Daum gearing up for big 2006

Having recently completed a restructuring drive, the nation’s leading portal operator, Daum Communications Corp., is gearing up for a major expansion this year with emphasis on the online multimedia-platform sector. Lee Jae-woong, Daum’s chief executive, said in a meeting with reporters yesterday, “Now that we have secured 60 billion won ($61.7 million) of liquid assets after shedding several unprofitable businesses and selling stocks, we are ready to adopt a more aggressive management strategy.” Starting with the sell-off of its entire holding in online music portal and shopping mall Oi Music on Jan. 19, Daum has been getting rid of a lot of excess weight. In recent weeks, Daum sold the financial information unit of its U.S. subsidiary Lycos Inc. while spinning off its e-commerce sector. It also sold all 50,000 shares it held in the local entertainment agency JYP Entertainment. Discussing Lycos, which Daum took over in October 2004, Mr. Lee said, “Even if it is impossible for Lycos to become another Google, it is expected to serve as a stable source of revenue beginning this year.” The chief executive, who made about 10 trips to the United States last year, is not coy about his desire to succeed in that country. “The U.S. market is too valuable to give up,” he said. “When we take advantage of our experience in advanced technologies and services, the United States is a platform where we can try a lot of things, and there’s much room for us to grow.” Mr. Lee also outlined a plan to make the multimedia sector as important to Daum’s success as its e-mail, online community, search engine and online shopping services. He said he wants to develop a multimedia business that takes a more comprehensive form than simple video-on-demand. He also refused to rule out acquisitions to achieve growth in the sector. by Seo Ji-eun