Consolidation looks likely in Korean broadband sector

10 Apr 2003

South Korea’s KT Corp has indicated that it may acquire rival operator Thrunet in a bid to expand its broadband internet business. Thrunet, a victim of Korea’s overcrowded high speed internet market, filed for court receivership last month; roughly two-thirds of the country’s 15 million households use high speed internet services, giving it the highest broadband penetration in the world. KT’s decision could be affected by the actions of the LG Group, which is believed to be considering merging its two broadband subsidiaries, Hanaro Telecom and Dacom, to enable it to compete more effectively with KT and its main rival SK Telecom.