1994-07-07, English, Article, Other article edition: Phone deal in Korea sends clear message; bidding process remains as opaque, political as ever. (Pohang Iron & Steel Co shares cellular-phone license with Lolon) Glain, Steve

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Physical Description
  • Newspaper article
Published
  • Dow Jones &​ Company, Inc., 1994 July 7
Language
  • English

Edition details

Title
  • Phone deal in Korea sends clear message; bidding process remains as opaque, political as ever. (Pohang Iron &​ Steel Co shares cellular-phone license with Lolon)
Also Titled
  • Phone deal in Korea sends clear message; bidding process remains as opaque, political as ever.
Appears In
  • The Wall Street Journal Western Edition, 1994 July 7, pA8(W) pA6(E) (ISSN: 0193-2241)
Author
  • Glain, Steve
Published
  • Dow Jones &​ Company, Inc., 1994 July 7
Physical Description
  • Newspaper article
Subjects
Target Audience
  • General
  • Trade
Summary
  • A recent dispute over a cellular-phone license in South Korea illustrates the challenge President Kim Young Sam faces as he tries to separate business and politics. In late 1993, it was announced that a cellular-phone license would be awarded to a bidder chosen by the Federation of Korean Industries. The administration placed Sunkyong Group's Chey Jung Hyon in charge of the federation, believing that his position as chairman of one of the largest conglomerates in South Korea would enable him to select bidders wisely. However, Pres Kim's administration did not see the impending power plays as Sunkyong pulled out of the bidding and steel industry giant Pohang Iron &​ Steel Co (Posco) moved in. The only company that stayed in the race was Kolon Group, a textile company run by Lee Dong Chan. News leaks forced Pres Kim to set up a compromise in which the two conglomerates, Posco and Kolon, would be given dominant shareholdings in the Shinsegi Mobile Telecom Co consortium, which would offer GTE a 20% share, AirTouch 10% and Southwestern Bell Corp 7%.
Language
  • English
Database
  • Gale General OneFile
Identifier
  • 15560889

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