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Businesses Have Mixed Feelings about Korea`s First Victory in the World Cup

Businesses Have Mixed Feelings about Korea`s First Victory in the World Cup

Posted June. 06, 2002 07:23,   


Korea`s first victory in the World Cup Games is giving mixed feelings to industries. Travelling industry and clothing markets are worried over less number of customers, but communication and distribution industry are benefitting from great marketing effects as their give-away prizes are decided.

Communication businesses put up tens of thousands of prize money for Korea`s victory. SK Telecom decided to give away 100,000 won per each goal to its new 10,003 011 Anycall subscribers through a random selection, if the Korean team wins. Some 80,000 people participated in the event making the total prize money 2 billion and 600,000 won in case Korea wins Poland by two to zero. KTF is having an event that gives away celebrating prize money to customers who join its service from May 1st to June 3rd in case Korea wins. It will have to give away a total of 1.6 billion won to customers because Korea won Poland by two goals, and it will give additional 160,000 won if Korea advances into the round of 16.

Insurance companies are burdened with a huge amount of insurance money. A World Cup Games` official business partner Hyundai Marine & Fire Insurance Co. will have to pay some 3.86 billion won worth of insurance money for SK Telecom, KTF, Lotte Shopping and Samsung Tesco. The company made an insurance contract with some 20 corporations for the World Cup Games and got some 3.1 billion won as insurance fees. But, it already spent 3.8 billion won as a compensation for Korea`s victory over Poland and will have to additionally pay 4.9 billion won if Korea gets to the round of 16. But one of its official said, "Over 90 percent of the insurance money will be coming from overseas reinsurance companies, so we do not have much burden on us. We would love to pay for insurance fees only if Korea could go to the round of 16."

Samsung Tesco`s Homeplus is under the spotlight for its exact prediction over the result. Homeplus held an event which gives away free airconditioners to 160 people if Korea wins Poland by two to zero from May 16th to 29th. It paid only 10 million won to Hyundai Marine & Fire Insurance Co., but Hyundai had to pay more than 100 million won.

Large TV sellers are benefitting from the World Cup Games. Cafes and restaurants are setting up a large TV in their stores to attract many customers. But taxi drivers are suffering from decreased nubmer of taxi users as people go home early to watch World Cup Games on TV.

Do-Young Kim Im-Sook Ha nirvana1@donga.com artemes@donga.com