KT to expand 'vitrual goods' business

Lee Suk-chae KT chairman

By Kim Yoo-chul

KT Chairman Lee Suk-chae said in a New Year’s address Monday that his firm will seek organic growth by expanding its online trade business in 2013.

``We will rise as the top provider that sells fine-tuned virtual goods this year,’’ said Lee.

Virtual goods are non-physical objects purchased for use in online communities or online games.

``We are in an era of broadband and the future will be the same. As a powerful local media content provider, KT has secured a solid base to effectively sell virtual goods and converged goods online,’’ the CEO said in a press release.

The market potential for virtual goods in Korea, one of the world’s most-wired societies, is huge as such goods in social games have already taken off. The local virtual goods market is fueled by virtual gifting on networks and forms of online items outside of social games.

A growing number of Koreans are using apps and online platforms for their daily needs like banking transactions and making purchases, giving new business chances to major local telecom companies to move from their heavy dependence on traditional services.

``With tireless changes and innovations, KT has so far survived. A better corporate future will come if we effectively diversify our businesses to non-telecom areas,’’ Lee said.

In line with the CEO’s initiatives for non-telecom businesses, the firm has tentatively established KT Media for its virtual goods venture. For an increased presence in the local property market, KT has also boosted the capital of its real estate affiliate KT Estate.

KT, the nation’s dominant fixed-line operator and the second-biggest mobile carrier, is also working to make direct investment for overseas telecom companies for corporate sustainability and to expand its cash-generating sources.