S. Korean telecoms mull budget cuts for next year

(ATTN: RECASTS lead; CORRECTS US$630 to US$630 million in para 5)
SEOUL, Nov. 5 (Yonhap) -- South Korean telecom carriers are considering cutting
their budgets for next year due to fears that the slowing economy may dampen
domestic consumption, industry sources said Wednesday.

SK Telecom Co., the nation's leading mobile carrier, plans to cut its budget by
over 20 percent next year citing falling sales and net profit margins, the
sources said.
"The decision on the budget cut is being made as the economic downturn is
expected to aggravate our sales and net profit margins next year," an official at
SK Telecom said.
SK Telecom will also reduce its overall capital spending by up to 30 percent as
its investment into its nationwide 3G WCDMA service will be completed next year,
the sources said.
The second-largest mobile phone operator, KTF Co., is also drawing up plans to
cut costs by 10 percent next year, and has decided to reduce its capital spending
to 800 billion won (US$630 million) next year from 950 billion won this year.
No. 3 player LG Telecom Ltd. will cut its investment next year and KT Corp., the
nation's largest fixed-line operator, plans to freeze or reduce its budget for
next year.
Fixed-line operator LG Dacom and mobile carrier LG Telecom, however, will extend
their spending on marketing to attract more subscribers next year, as a phone
number portability system that allows users to easily switch carriers over the
Internet was implemented by the government on October 31.
ksnam@yna.co.kr
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