LG to Specialize in Wireless Communications

Korea Times (Seoul, Korea), November 30, 2000 | Go to article overview

LG to Specialize in Wireless Communications


LG, an electronic and chemical giant, said yesterday that it will be concentrating all of its energy on further building its wireless communications business. The telecommunications service businesses of LG Electronics will be spun off next year, leaving it only with digital home electronics and communications equipment.

According to Kang You-sik, president of LG's restructuring office, the conglomerate will utilize all of its resources in related fields for IMT-2000 (International Mobile Telecommunication) services.

``We have an abundance of experience in wireless Internet services, the most competitive contents in the industry and cutting- edge technology in the asynchronous mobile platform,'' he said.

The focus on IMT-2000 will mean that LG will not seek to increase its shareholding in Hanaro Telecom or seek majority ownership in Powercomm, which operates a nationwide telecommunications network.

``The IMT-2000 business will require a financing of 3.2 trillion won over the next three years, 750 billion won of which LG will be responsible for,'' Kang said.

Negotiating with its 60 percent ownership in ``LG Glocom,'' the company that will eventually run the IMT-2000 business, LG will be seeking to attract foreign equity and partnership. …

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