KT under Koo Hyun-mo, KT Powertel Sale... Group Restructuring in Full Swing

[Asia Economy Reporter Seulgina Jo] KT is selling its corporate wireless communication affiliate KT Powertel. This is part of the group's business restructuring to leap from the existing telecommunications business framework to a digital platform.

On the 22nd, KT announced that it will sell KT Powertel to IDIS, a domestic video security solution specialist company. The deal involves selling 44.85% of KT Powertel shares held by KT for 40.6 billion KRW.

KT Powertel is a KT affiliate whose core business is industrial walkie-talkies (TRS). Although its annual sales reached 127 billion KRW in 2010, sales have continuously declined as the telecommunications market shifted to LTE and 5G mobile communications. The company has about 140 employees.

This sale is considered the first de facto affiliate restructuring case since KT CEO Koo Hyun-mo took office. At the end of November last year, KT announced the merger of KTH and KT M-House, a leader in mobile coupons. The dominant analysis is that KT, transitioning into a digital platform company, made the final decision to sell KT Powertel for 'selection and concentration.' It is reported that the industry also considered selling KT Submarine and KT Telecop.

This is expected to mark the beginning of full-scale group restructuring. CEO Koo has announced the group's business structure reorganization, stating, "We are preparing for spin-offs and value reassessment through listings." While previously sold KT affiliates were mostly in non-telecommunication areas such as rental cars, bold restructuring is also expected in the telecommunications sector.