KTH-KT M-House Merger
Comprehensive Mobile and TV Platform Integration
Expansion of Data-Driven New Businesses
[Asia Economy Reporter Lim Chun-han] "We plan to secure new distribution competitiveness through the convergence of ICT infrastructure, TV, and mobile commerce, aiming to achieve a transaction volume of 5 trillion KRW by 2025."
KTH and KT M-House will merge on the 1st of next month to be reborn as the integrated corporation KT Alpha. KTH, which owns K Shopping and e-commerce, and KT M-House, which operates mobile coupon businesses including Giftishow, are merging and are expected to seek new business opportunities integrating broadcasting, e-commerce, and mobile commerce.
◆ New data-driven business through merger = On the morning of the 30th, Jung Ki-ho, CEO of KT Alpha, held a press conference at the KT West building in Gwanghwamun, Seoul, stating, "KTH and KT M-House can expect new business opportunities and greater synergy through the merger in a market where boundaries have already been broken down." On this day, KT Alpha presented customer-tailored commerce as its core vision and outlined key strategies including ▲ expansion of mobile and TV omnidirectional platform linkage and vertical new businesses ▲ strengthening commerce and advertising linkage platforms and direct-to-consumer (D2C) commerce based on group synergy ▲ expansion of business-to-business-to-consumer (B2B2C) commerce solution platform-centered business.
KT Alpha is building a new data-driven business model based on advertising businesses accumulated through Nasmedia, which has executed the largest number of YouTube digital ads in Korea, and PlayD, which focuses on search advertising. In particular, by combining commerce with advertising and marketing based on big data and insights on consumption and preferences of the main YouTube users aged 10 to 30, KT Alpha offers more sophisticated customer-tailored products. KT Alpha also plans to explore organic connections and collaborations with digital platform companies (Digicos) ecosystems such as content, media, and finance in the future.
◆ Commerce solutions and platformization = KT Alpha is also focusing on expanding the e-commerce market centered on K Shopping. K Shopping broke platform boundaries by being the first to offer simultaneous live broadcasts on mobile and TV applications. Vertical commerce targeting specific categories is also being promoted. Representative examples include Ripple, a limited-edition sneaker resale platform targeting the MZ generation (Millennials + Generation Z), and Wonsun Shop, a premium gift select shop.
KT Alpha plans to promote a commerce solution platform business that connects sellers and customers for small and medium-sized enterprises and small business owners who need know-how in building and operating online shopping malls. Through this, it supports customized mall construction for each business, efficient business operation, integrated sales management, marketing consulting, and expansion of sales channels.
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