Telecommunication, "Capture the Smart Card "

KT officially announced a launching of ‘Smart Card’ business on November 12.

So, it is forecasted that the related companies such as KT and SK Telecom will compete in a field of ‘telecommunication finance which is watched as a new market in the future finance market in earnest

At that day, KT agreed to make ‘KT Smart Card Grand Consortium Agreement’ jointly participated by credit card companies, banks, VAN, electric money companies with affiliates.

There are total 28 participated companies including △ KT affiliates including KTF, KTICOM, △ credit card companies including Kookmin, BC & LG, △ MONDEX Korea, △Korea Financial Telecommunications & Clearing Institute (KFTC) and △ KSNET, KOCES.

KT will issue 3,500,000 smart cards with credit card for adults and 1,500,000 smart cards with additional functions excluding the credit card function for a minor next year. KT aims at issuing 30,000,000 smart cards up to 2006.

KT said that it would add a certification function, online site automatic login function, ticket reservation and PC security function as well as the credit card in an initial stage of the business.

Establishing ‘MONETA card’ connected with the credit card company and acquiring 900,000 members, SK Telecom has been preparing ‘MONETA Plus’ service having the smart card function of a chip-installed mobile phone.

SK Telecom has been negotiating a commission fee with card companies and will announce the definite business plan within the year. KTF also showed such service jointly with LG Card this month.

KT will severely compete with SK Telecom in the field, because it has officially launched the smart card business.

The smart card is an intellectual card which can save and process information. It is used in various fields including the electric money, online certification and distribution as well as the existing credit card function.

Jong sik Kong kong@donga.com