Hyundai Group has decided to withdraw bid to participate
in the competition to select the Korea’s fourth telecom project.
Hyundai Group’s affiliate Hyundai Ubiquitous and Information Technology said it
will be withdrawing from the IST consortium, indicating it will take out its
investment sum of 35 billion won ($30.4 million).
We were planning to inject about 35 billion won because we believed the fourth
telecom project was a promising one for future growth and a plus for the
country’s economy, but we came to this conclusion due to many complicating
issues existing within the consortium,” said a company official told Korea Herald.
Hyundai Securities, another Hyundai affiliate involved in the consortium, which
was planning to invest 145 billion won in the project, will also follow suit.
Hyundai Group was reportedly planning to grab the No. 2 stakeholder spot in IST
by having its two affiliates Hyundai U&I and Hyundai Securities invest 180
billion won in the consortium.
Hyundai Group has changed its plans as a financial firm from the Middle East
unveiled its plan to offer 200 billion won in investment to become the second
stakeholder.
Earlier last month, Hyundai announced it would invest in IST as it secured
703.8 billion won in paid-in capital along with the consortium’s largest
stakeholder SB Mobile, as well as small and mid-sized firms. Samsung
Electronics, Curious Inc. and Middle Eastern financial institutions were also
among the investors.
IST had planned to increase its paid-in capital to 750 billion won, with it expecting
to release government-issued stocks on two different occasions.
The move prepared the groundwork for IST to compete with KMI, a group which won
financial support from Dongbu Group in its third attempt to become the nation’s
fourth telecom.
KMI had already failed twice in getting state approval because it was unable to
collect the necessary funding and win the government’s trust.
For the past 10 years, Korea’s telecom market has been dominated by three
players SK Telecom, KT Corp. and LG Uplus.
By Telecomlead.com Team
editor@telecomlead.com
