KT sold KT Powertel for 40.6 billion won… Concentration of IT and communication business capabilities

Decision to sell to security company IDIS
Group company reorganization focused on growth business

KT will sell its wireless communication subsidiary, KT Powertel, and begin reorganizing the group’s business.

With the sale of KT Powertel, KT plans to reorganize the KT Group portfolio as a platform company focused on growth businesses such as finance, media, and contents by concentrating its IT and communications business capabilities and securing resources for new growth engines.

KT held a board meeting on the 21st and announced on the 22nd that it would sell KT Powertel, a representative Korean radio company.

The buying company is IDIS, a digital security equipment manufacturer.

KT selected IDIS as the preferred negotiator for the sale of KT Powertel on January 11th.

After a negotiation process, it was decided to sell the entire 44.85% stake in KT Powertel held by KT.

On the 4th of the 4th, KT CEO Suh Su-mo emphasized new growth through the transition to a digital platform company (Digico) at the’Live LAN New Year’s Ceremony’.

KT’s strengths in artificial intelligence (AI), big data, and cloud were used to demonstrate its will to challenge new businesses with high growth potential.

KT announced the merger between KTH and KT M House in October last year, and announced the reinforcement of its business capabilities in the distribution sector by launching the KT Group’Digital Commerce Specialist’.

IDIS is the leading digital security equipment company in Korea and developed DVR (Digital Video Recorder) in 1998.

Since then, it has actively entered the global market and is selling its products to global markets such as the United States, Europe, Japan, and the Middle East.

IDIS Group has previously acquired Kotek, an industrial display company and BIXOLON, a label printer company, and Kotek is currently the world’s No. 1 casino monitor company, and its sales have more than doubled since its acquisition by IDIS Group in 2012.

IDIS plans to expand the wired network-based’CCTV integrated control solution’ to a wireless network-based integrated control system by utilizing KT Powertel’s wireless business and radio capabilities based on past successful M&A experiences.

KT and IDIS Co., Ltd. are planning to close the contract after completing the KT Powertel shareholders’ meeting and regulatory agency approval by the end of March.

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