LG TELECOM SEES DROP IN PROFITS

Info-Prod Research (Middle East), February, 2003

LG Telecom, the smallest South Korean mobile carrier, has seen a plungein its 2002 net profits, hit hard by growing marketing expenses.The dismal results cast doubts on the company's mid-term businessoutlook, showing the physical limitation to compete with its two giant rivals SKTelecom and KTF.LG Telecom, a wireless subsidiary of LG group, posted 72.5 billion wonfor 2002 net profits on sales of 2.2 trillion won, a 7 percent increaseyear-on-year.

However, its fourth-quarter revenue was reduced by 11.6 percent fromthe previous quarter, the company said.LG Telecom officials said the sharp drop in net profit was attributableto huge marketing costs for the second half of 2002. - (World ITReport.com)