By Cho Jin-seo
Staff Reporter
Hanarotelecom's new chief executive pledged Wednesday to shed the firm's tarnished image by reinforcing customer service, introducing convergence products and changing its name and logo.
Cho Shin, who was appointed to the post in March, said the telecom company will put top priority on satisfying current customers and repairing its reputation, rather than expanding and seeking short-term profit. Among its redemption plans is changing its logo and name to one that suits the corporate culture of SK Telecom, its new owner, he said.
``Changing a brand name is not an essential issue, because our core competence should be in raising customer value. However, we are considering changing the name when the right time comes,'' Cho said during his first meeting with reporters.
A task force has been launched to work on five candidates, including SK-Hanaro, an executive said.
Hanarotelecom turned a profit last year under the guidance of a group of international managers hired by a consortium of foreign financial investors including AIG and Newbridge. However, consumers have been complaining about poor costumer service, frequent calls from telemarketers and a lax privacy protection policy.
Police announced Wednesday morning they had charged 22 former and current executives and managers of Hanarotelecom with leaking private information of its customers to telemarketers. Coincidentally, the report was released only hours before Cho's press meeting.
``It was disconcerting news. But I'd rather take it as a lesson ,'' Cho said. ``Our PR office asked me this morning whether I wanted to postpone this press conference because of the incident. But I didn't hesitate to say no. We cannot hide what had happened. We must not try to avoid what we cannot avoid.''
According to police, Hanarotelecom, the second largest telephone and broadband Internet operator in Korea, provided names, phone numbers and other private information of some 6 million customers to telemarketing firms between 2006 and 2007, damaging the firm's reputation despite an improved financial performance.
Police are also investigating whether officials of the former Ministry of Information and Communications, which changed its name to the Broadcasting and Communications Commission, tipped off Hanarotelecom officials about the investigation. The ministry was notorious for having behind-the-door deals with major telecom firms on regulations and penalties.
This will be no longer be the case for Hanarotelecom, Cho said. ``I told employees I won't forgive illegal activities. Making the same mistake twice won't be accepted.''
Executives agree. ``It is true that we have paid keen attention to short-term profits and share prices until last year,'' sales executive Shin Kyu-shik said. ``But our new management doesn't want to do that anymore. We now want to see a longer future.''
To revamp corporate image, Cho said the firm will focus on raising ``customer value'' by improving customer services and introducing various discount plans. As the first step, it plans to offer fee discounts for subscribers to Hanarotelecom's broadband Internet and SK Telecom's mobile service from June.
``Fixed-line Internet and mobile are two anchor businesses of the telecom industry,'' Cho said. ``Based on our fixed-line network, we can make inroads into the broadcasting sector as well. This will be the mainstream of the industry. But I believe there will be other new convergence businesses that we cannot imagine at this point.''
Hanarotelecom won't merge into SK Telecom in the near future as believed by some, he said.