KT to acquire online ad agency as part of plans to become a media & entertainment company

December 17, 2007 – Korean telco KT has announced plans to acquire online advertisement agency Nasmedia for KRW 26bn (US$ 27.8mn), as part of its strategy to transform itself into a media and entertainment company.

Nasmedia will sell adverts on KT’s IPTV service, called Mega TV, increasing revenues substantially, and will also sell adverts on its wireless mobile Internet platforms next year.  “The purchase of Nasmedia is one of the steps KT is taking to transform itself from a telecom operator into a media and entertainment company,” said Lee Ok-ki, Head of KT’s business planning office.  “With this, we want to provide tailored advertisements for new media outlets.”

The acquisition will bring KT onto an even footing with rival SK Telecom, which bought ad company Aircross in 2000 and is awaiting government approval to purchase IPTV operator Hanaro Telecom.