[KT Privatization 20th Anniversary] From Telecommunications Wasteland to ICT Powerhouse... Connecting South Korea

The Launch of Korea Electric Telecommunications Corporation in 1981... From Landline Phones to Satellites
KT Was There at Historic Moments Like the Olympics, World Cup, and Reunions of Separated Families

Koo Hyun-mo, CEO of KT

[Asia Economy Reporter Oh Su-yeon] KT (formerly Korea Electric Telecommunications Corporation), born in 1981 in a telecommunications wasteland, has led the development of Korea's information and communication technology (ICT) since its privatization in 2002. Covering land, sea, and air through high-speed internet, wireless communication, satellites, and submarine cables, it connected South Korea and led the telecommunications industry. It shared the joys and sorrows of the people while accompanying the nation's economic growth and historic moments.

Launched in a Telecommunications Wasteland... Connecting South Korea

Although the opening of the Korean Telegraph Bureau 137 years ago can be considered the predecessor of KT, the official start of the company known as KT was the launch of the Korea Electric Telecommunications Corporation in December 1981.

From the late 1970s to the 1980s, rapid economic growth and improved living standards caused a surge in telephone demand, but supply could not keep up. This led to the separation of the Korea Electric Telecommunications Corporation from the Ministry of Communications on December 10, 1981. A company, relatively faster and more agile than a government agency, was deemed suitable to respond to the rapid development of the telecommunications market. The launch of the Korea Electric Telecommunications Corporation is regarded as a turning point for systematic and comprehensive development in the information and communication sector.

In 1984, the Korea Electric Telecommunications Corporation independently developed the electronic exchange TDX-1, becoming the 10th in the world to do so, and commercially launched it in 1986. By producing exchange equipment domestically, which had previously been dependent on foreign countries, it resolved chronic telephone congestion and initiated nationwide telephone distribution. In September 1987, with the establishment of 10 million telephone lines nationwide, the "one phone per household" era was realized. Telephone subscribers steadily increased, and by 1995, the telephone penetration rate exceeded 40 per 100 people, approaching the level of developed countries. In 1999, the launch of the TDX-100 further advanced the self-reliance of electronic exchanges (TDX) and elevated Korea's information and communication industry to a global level.

KT also played a role in the history of wireless communication. In 1982, it began supplying wireless pagers, commonly called "bippis." Around the same time, in 1984, it launched cellular car phone services. The popularity of "car phones" increased customer demand for wireless communication, leading Korea Telecom to establish Korea Mobile Telecommunications (now SKT) in 1984 to secure expertise in mobile communication business and enhance user benefits, marking the beginning of a new era in mobile communication services.

Subsequently, Korea Telecom acquired the PCS business license in 1996 and founded "Korea Telecom Freetel." After launching the service in October 1997, it surpassed 1 million subscribers by April 1998, just six months later. The total number of mobile phone subscribers, which was only 2,658 in 1984, exceeded 10 million by June 1998. In September 1999, the number of wireless phone subscribers (21.56 million) surpassed that of traditional wired phone subscribers (21.04 million), marking a significant shift in the telecommunications paradigm. Korea Telecom then acquired Hansol M.com in 2000 and launched the integrated corporation "KTF" in 2001, establishing independent competitiveness in mobile communication services.

Photo by KT

From High-Speed Internet to the Launch of Mugunghwa Satellites... A Pillar During the IMF Crisis

The development of high-speed internet in the 1990s was one of the pillars supporting the dark era of the International Monetary Fund (IMF) foreign exchange crisis. Despite the difficult economic situation, it brought changes to people's lives as a new channel for obtaining information such as email and search. When the World Wide Web (www) emerged in the 1990s, signaling explosive internet growth, Korea Telecom prepared for the new internet era by launching the commercial internet service "KORNET" in 1994.

In May 2000, it launched the high-speed internet service "Megapass," surpassing 1 million subscribers by September of the same year. About a year later, in June 2001, Megapass subscribers exceeded 3 million, officially ushering in the high-speed internet era.

As internet technology emphasized faster downloads over uploads, ADSL (Asymmetric Digital Subscriber Line) emerged as a new form of "high-speed internet." In response, Korea Telecom began commercial ADSL service in December 1999 and grew the ADSL sector to become the world's number one within two years.

Photo by KT

In 1995 and 1996, Korea successfully launched the Mugunghwa satellites 1 and 2, joining the ranks of countries possessing commercial satellites and opening the space era. In 1999, the launch of Mugunghwa satellite 3 enabled access to cutting-edge communication and broadcasting services. Notably, on January 1, 2000, it was first used for the live broadcast of the New Millennium sunrise scene hosted by the three domestic broadcasters, marking the first time a TV live broadcast was made using a Korean-registered satellite. Subsequently, in 2001, Korea Telecom changed its name to "KT" and initiated privatization, marking the beginning of its current form.

KT Was There at Historic Moments... A National Company Sharing Joys and Sorrows

KT was also present at historic moments in modern Korean history. During the 1988 Seoul Olympics, it live-broadcast vivid scenes of the games through independently developed game operation systems and integrated information network services. To showcase Korea's telecommunications technology to the world, it supplied container-type mobile phone facilities with 3,000 lines at the Han River rowing stadium using domestically produced electronic exchanges (TDX). The international TV broadcast operated a total of 27 lines, setting a record for the longest broadcast time of 9,200 hours and 11 minutes.

The 2002 World Cup is regarded as not only the first time South Korea reached the semifinals in history but also the best IT World Cup ever. KT, as the overall telecommunications organizer, introduced 3G services domestically for the first time. It moved beyond voice-centric mobile services to realize high-speed data and video services. Korea and Japan, co-hosts of the World Cup, attracted global attention by showcasing the world's first international video calls via mobile phones.

KT was also present during moments of inter-Korean harmony. The communication network between North and South Korea had been disconnected since 1948 by the Soviet army and remained unconnected for 60 years. Starting in 2004, KT attempted negotiations with North Korea's Chosun Telecom Company as part of the Kaesong Industrial Complex project to connect inter-Korean communication networks. In July 2005, KT connected optical cables extending from its Munsan branch and North Korea's Kaesong telephone office, opening the era of inter-Korean optical communication networks.

On August 15, 2005, under KT's communication support, the first video reunion of separated families between North and South Korea took place. For this historic meeting, KT deployed 2,000 personnel on a cumulative basis, operating tri-party communication equipment on a 24-hour standby basis. Subsequently, KT established and operated 13 reunion sites in 9 regions nationwide, successfully supporting four rounds of video reunions. In December 2005, KT opened a direct communication network between North and South Korea and established a KT branch in the Kaesong Industrial Complex.