South Korean LG Telecom Sees Drop in Profits

South Korean LG Telecom Sees Drop in Profits

LG Telecom, the smallest South Korean mobile carrier, has seen a plunge in its 2002 net profits, hit hard by growing marketing expenses.

The dismal results cast doubts on the company’s mid-term business outlook, showing the physical limitation to compete with its two giant rivals SK Telecom and KTF.

LG Telecom, a wireless subsidiary of LG group, posted 72.5 billion won for 2002 net profits on sales of 2.2 trillion won, a 7 percent increase year-on-year. However, its fourth-quarter revenue was reduced by 11.6 percent from the previous quarter, the company said.

LG Telecom officials said the sharp drop in net profit was attributable to huge marketing costs for the second half of 2002. – (World IT

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