SK Telecom to buy 49 pct stake in Hana Financial's card unit

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SEOUL, Dec. 14 (Yonhap) -- SK Telecom Co., the country's No. 1 mobile operator,
said Monday it will purchase a 49-percent stake in the credit card unit of Hana
Financial Group Inc. for 400 billion won (US$343 million), becoming the first
telecom operator to tap the credit card market.
"We plan to launch a next-generation payment service in the future through
cooperation with Hana Card," SK Telecom Chief Executive Officer Chung Man-won
said. "Through a partnership, both companies will seek a convergence of telecom
and financial services."
The mobile operator said it will roll out so-called mobile credit cards soon.
Subscribers will be able to make wireless payments through their mobile handsets,
which will also offer a variety of other financial services.
Hana Financial has been seeking to seal the deal with the nation's top wireless
carrier that holds half of all wireless subscriptions in South Korea, where nine
out of every 10 South Koreans subscribes to a wireless telephone service.
Hana's eagerness for the deal came as the company struggles to boost the
relatively narrow customer base of its credit card unit and its wider financial
group.
Hana Card was spun off from its parent last month and has a market share of less
than 4 percent.
For SK Telecom, the deal could help it attract more customers, analysts said.
"The deal will allow Hana Financial to capitalize on SK Telecom's vast customer
list," said Choi Chung-uk, an analyst at Daishin Securities.
South Korea's saturated credit card market leaves little room for wooing new
customers and against this backdrop local players will compete to win over
customers from rivals, Choi said.
sam@yna.co.kr
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