Business diversification of KT expects to bring about a great synergy effect within business areas to become the leader of each sector
KT is reaching beyond the limitations of communication and moving into comprehensive vehicle management, telematics (wireless communications service for vehicles) and used vehicle services. Last April, KT acquired Keumho Rental Car, the nation’s largest rental vehicle provider. As a result, the combined number of vehicles that KT currently owns is approximately 60,000, including the 50,000 it acquired through the M&A, and thus accounting for 30% of the nation’s rental vehicle market.
KT is now moving to turn a conceived idea into reality by embedding wired and wireless communication technology into its rental vehicle services. In addition, the company is turning its attention to finance in an attempt to combine financial services with communications in order for greater synergy. To that end, KT is now moving to take over Shinhan Card’s stake in BC Card.
The electricity industry is also in the spotlight. KT participated in a smart grid prototype project being carried out on Jeju Island in an effort to combine electricity with IT. The smart grid is designed to combine electricity production, delivery and consumption with IT, thus optimizing energy efficiency and becoming the next-generation intelligent electric network.
Furthermore, KT is gearing up to diversify its communications business, placing an emphasis on the expansion of its wireless Internet network and contents. By introducing Apple’s i-Phone last year, KT brought profound change to the domestic wireless Internet market, and positioning itself as a leader in the mobile Internet market. In order to facilitate mobile Internet use, an Internet-friendly environment needs to be established.
To that end, KT is now focusing its efforts on improving premium WiFi services as well as building wibro network. As a result, the number of WiFi zones (Qook & Show Zone) has reached approximately 20,000 and is set to increase to 27,000 by the end of the year. The company is also planning to establish a wibro-specific investment company in July, as well as increase the provision of its “egg,” a terminal designed to transform wibro signals into WiFi.