KT aims to unite and conquer by streamliningKT, the country’s biggest fixed-line service operator, said yesterday it will carry out a sweeping restructuring program to clearly differentiate its business interests and improve their competitiveness.
According to the reform plan unveiled yesterday, the third of its kind this year, KT will integrate various parts of its portfolio into three distinct enterprises, one for media content, one for satellite TV and another for real estate.
Various wired and wireless units will also be lumped together in a bid to build a strong synergy effect aimed at giving the three companies more of an edge in the market.
The move follows a series of scandals, including the recent leaking of large pools of user data, and comes just days after KT unveiled measures to prevent further information leaks.
KT’s businesses dealing with wireless products such as mobile phones will be brought together under the umbrella Telecom and Convergence (T&C) Sector, while those covering landline products such as broadband Internet will be reshaped into a new customer sector by readjusting their functions, the company said.
The new T&C Sector will develop future products by converging wired and wireless products and map out related strategies, whereas the latter will focus on delivering improved customer services.
The nation’s No. 2 wireless company will also integrate 42 local field organizations - thus bringing together landline and wireless operations - and designate 11 regional headquarters under the customer sector to offer consolidated services to customers.
KT has also launched a so-called cross-functional team, a special force tasked with researching ways of best using its assets, from real estate to telephone circuits, in order to appeal more strongly to customers.
The team will look into ways of renovating and remodeling the interior spaces of KT’s buildings along the lines of its highly successful Olleh Square.
The carrier said it expects to see significant benefits from operating three clearly differentiated companies focused on media content, satellite TV and real estate.
These three sectors “are seen as having the most potential growth, but they have not been able to stay competitive as they were overshadowed by our key interest in telecommunications,” said an employee at KT. “If we run them as separate professional enterprises, they will be able to grow.”
The new corporations will scout professional staff and promote multilateral partnerships with global enterprises, KT said.
The carrier is scheduled to confirm details on the business scope of the three corporations after holding discussions with their respective boards of directors.
By Kim Jung-yoon [email@example.com]
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