SK Telecom keen to acquire Hanaro; KT interested to merge with KTF.(KOREA)

Asia Pacific Telecom, December, 2007

The telecom industry of South Korea is likely to witness major developments in the near future. SK Telecom, the biggest mobile operator in the country, is planning to acquire Hanaro Telecom, the second-biggest telephone and Internet service provider.

After this announcement, KT has shown willingness to merge with its sister cellular company, KTF. If SK Telecom succeeds in taking over Hanaro, it would lead to the formation of a telecom giant having around 2.7 million wired and wireless users. KT's merger with KTF would result in the establishment of an entity with 4.1 million users. This ploy would also allow the telecom giants to boost their market shares and slash marketing expenses. A KTF official asserted that the Korean government should not have a problem...

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