Telecom giant KT plans to set up satellite unit

KT Corp., Korea's top fixed-line operator and No. 2 mobile carrier, said Thursday it plans to establish a satellite business affiliate in December in an effort to boost its competitive edge in the sector.

Under the plan, the company, named KTSAT Corp., will spin off its existing satellite-related assets and hold a 100 percent stake in the envisioned affiliate, according to KT.

KTSAT aims to reap 200 billion won ($178 million) in revenues within the next five years. KT's revenues in the satellite business reached 120 billion won in 2011.

KTSAT also plans to expand its business beyond Korea and strengthen tie-ups with foreign firms, with a focus on Southeast Asia and the Middle East, according to KT.

Between 2009 and 2011, the global satellite market, valued at around 18 trillion won, posted a 7.8 percent annual growth on average. (Yonhap)