Korean telcos mulling budget cuts for 2009

South Korean telcos are reconsidering their budgets for 2009 amid continued concerns about the slowing economy, Telecoms Korea is reporting citing industry sources. SK Telecom (SKT) and KTF Corp (KTF) are both understood to be examining their financial plans, with SKT poised to cut its budget by up to 20% for the year, whilst also mulling a 30% reduction in capital spending as investment in its nationwide 3G W-CDMA network drops as the infrastructure nears completion. ‘The decision on the budget cut is being made as the economic downturn is expected to aggravate our sales and net profit margins next year,’ an official at SK Telecom reportedly said. KTF is also planning cuts of up to 10% for costs, with capital expenditure likely to fall to KRW800 billion (USD630 million), down from KRW950 billion this year.