KT and KTF merger could be completed in 1H 2009

The Korean Times is reporting that fixed line and broadband operator KT Corp is planning to submit an application to the South Korean telecoms regulator seeking approval to merge with its mobile unit KTF Corp. The application is expected to be lodged by the end of January 2009, and the Korean Communications Commission (KCC) will have 90 days to consider the merger proposal. If approved the merger of the two operators could be completed by the end of June 2009. The KT/KTF merger is expected to be the first of several, as South Korean operators look to consolidate subsidiaries in a bid to streamline operations and increase operational efficiencies. The LG Group’s three telecoms companies – LG Dacom, LG Telecom and LG Powercomm – are expected to be brought together. However, wireless operator SK Telecom has denied reports that it could consider a merger with SK Broadband.