Hanaro Telecom Quitted Discussing the Merger with Thrunet

With Hanaro Telecom declaring to quit discussing the merger with Thrunet on the 31st, the merger of these two companies, which is the key of restructuring in communication market, faced the crisis to go amiss.

Hanaro Telecom announced that it would `stop the negotiation for the merger with Thrunet` as Thrunet made a provisional contract with SK Telecom to sell exclusive line business to SK Telecom.

Previously, Thrunet reportedly exchanged a memorandum of understanding after it agreed to sell the business for exclusive line service, which is valued at around 400 billion won (book value), to SK Telecom on the 25th. In relation to this, Thrunet said, “we regret that Hanaro Telecom unilaterally broke off the negotiation. The selling the business of exclusive line service was already open to the public, though we have not decided specifically. ”

Tae-Han Kim freewill@donga.com