Korea's LG Telecom merges with two affiliates

LG Telecom, the smallest of Korea's three mobile phone operators, said yesterday that it will merge with its two affiliates, LG Dacom and LG Powercom. The three companies have separate listings on the Korean stock exchange, but are all part of Korean conglomerate the LG Group.

The proposed merger is designed to help the new LG Telecom better navigate through the industry's competitive dynamics in the wake of recent consolidation moves by competitors, and where technological convergence creates additional business opportunities, said LG Telecom in a press statement. All three boards of directors have approved the deal.

LG Telecom's move follows that of KT Corporation, Korea's biggest telecom carrier by revenue, which...