KTF-SK Severe competition

SK Telecom and KTF, taking the first and second place respectably of Korea’s mobile telecom industry, began ‘Post-World Cup marketing’ and newspaper advertising aggressively.

World Cup’ star, Ahn Jung Hwan and his wife, Lee Hae Won have agreed to act as exclusive models for each company. It is the first case that a couple acts exclusive models for rival companies.

SK Telecom that obtained good results from “Red Devils” during the World Cup agreed with Ahn Jung Hwan for I year exclusive model at 4th of July.

At 3rd of July, his wife Lee Hae Won agreed with KTF for advertising drama of ‘016 Exclusive Service for Female’ with three-month term.

SK Telecom did not disclose, but it is estimated as historical amount of 1 billion won. It is more than 800 million won for Park Chan Ho by 200 million won.

Lee Hae Won will receive 200 mill won for 3 months. It is also an exceptional amount considering top entertainers receiving 400 to 450 million won for 12 months.

SK Telecom and KTF also compete severely on advertising of newspaper.

At 4th of July, KTF advertised on Dong-a, and other daily paper. The advertising quoted the articles of Business Week, US Economic weekly magazine such as ‘ KTF- ranking 1 in world mobile telecom industry, and SK-ranking 3’.

In response, at 5th of July, SK Telecom advertised with the contents that KTF distorted the truth and KTF advertising was not reliable.

KTF will sue SK Telecom for libel to Korean Fair Trade Commission and claim for compensation. The trouble between the companies is supposed to proliferate.

Chang-Won Kim changkim@donga.com