LG Telecom's Credit
Rating Up
- The company boosts sales over 30 pct to 2.3 tln won last year

Credit ratings of LG Telecom have been raised by credit rating firms recently in a show of the company's strengthened operation base, with subscriber number rising to 6.07 million at the end of last year.
Korea Business Evaluation Co. boosted its credit rating of LG Telecom's from BBB+ to A- and its commercial papers from A3+ to A2-, following the similar move by Korea Credit Information Co.
The telecommunication firm not only expanded the number of its subscribers, but also increased the average sale per subscriber(ARPU) by taking in many good-quality subscribers.
The credit firms projected that LG Telecom will be able to improve its operation profitability gradually and stable finance.
They said improved credit ratings will cut the company's interest expenses and thus raise its profits and stabilize finance.
LG Telecom's net increase of its subscribers came to 1.24 million last year, boosting its sales to 2.285,2 trillion won, up 31.5 percent from the previous year.
Korea Business Evaluation projected that the telecom company will be able to improve its operational profits gradually due to stable market and minimum subscriber loss through an intensive marketing effort and boosts in its service competitiveness, despite the complete opening of the number mobility from January.
The credit rating firm also projected that the telecom company will be able to meet its fund requirement for investment in its facilities needed annually from its own funding resources, thus maintaining its financial stability.
Improved credit ratings will cut interest expenses for the telecom company at the bond market, which would contribute to stable financial structure and profitability.
In the meantime, LG Telecom will expand its subscriber base and continue to expand its profitability for its growth, leading to strengthening of its operation capability to secure leadership in convergence business areas including DMB and music-on.
From April, 2003, the company has been running its operations on a strategy that all of its activities to be based on Customer Champion Value Proposition(CCVP) because companies were masters of all their business activities instead of customers despite the fact that these telecom companies have been providing many kinds of service.
LG Telecom called for CCVP to correct the situation by taking care of problems for customers before complaints are made. The company has decided to focus its activities on three major principles; One to become a trustful company for its customers by keeping all of its promises with customers; Two is always to treat its customers by providing VIP services; and Third is to provide services at reasonable charges.
LG Telecom will strive to provide best quality telecom services; The services will be provided at reasonable fees; The charges will be competitive compared with those charged by its competitors; The charges will be simple and flexible and benefits will cover a wide range of its membership.
The company was set up in July, 1996, following the successful commercialization of CDMA(code division multiple access). The company launched the commercial operation in October of the following year.
The company launched its wireless Internet service for the first time in the country in May, 1999. It was the first company to develop Java technology from CDMA phone becoming a leader of the wireless Internet technology.
The company also opened the mobile settlement age for the first time in the world by starting the easy pass service for riding on subway and buses with PCS phones. The company also became the first company to launch a mobile banking service based on chips in the country.
LG Telecom will strive to open a new chapter in the telecommunication industry by taking on next-generation mobile communication system, by developing a new and convenient mobile communication service. nw