Dacom to Focus More on E-Commerce
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In a bid find an alternative to its poor performance in telephone service operations, Korean long-distance telecom Dacom plans to restructure its existing businesses by focusing more on e-commerce and other Internet-related services.
"In order to overcome the limited growth potential of the phone service business, we will concentrate our efforts on promoting Internet-related businesses, which appears to have a great potential for growth in the 21st century," said Kwak Chi-Young, president and CEO of Dacom.
The company's new "Vision 21" business plan calls for an investment of 1 trillion won (about US$833 million) by the year 2001 and an additional 3 trillion won (US$2.5 billion) by 2005 in such business sectors as e-commerce and online information services.
In this connection, Dacom is planning to greatly expand its network facilities to offer high-speed Internet access at a speed of 2.5Gbps, while investing 400 billion won (US$333 million) in such business areas as the next-generation mobile telecommunication IMT 2000 and satellite telecommunication service.
Company officials said that Dacom will launch a portal service in 2001 by combining its online information service Chollian with Shimmani, its in-house search engine that is considered as one of the most popular search engines in Korea.
Under such a restructuring program, the company intends to raise its annual sales turnover to 5.3 trillion won (US$4.4 billion) by 2005, thus emerging as Korea's leading player in Internet service business.
"By 2001, Dacom will achieve 960 billion won (US$800 million) in sales from electronic commerce and online information services. By doing so, we expect to see the proportion of these business sectors rise from the current 34 percent of our total sales to 64 percent," Kwak said.
He added that his company will be listed in the NASDAQ some time next year in an effort to raise corporate value.