Korea Thrunet Announces Spin-off of Its Broadband Portal 'Korea.com'

Apr 25, 2001, 01:00 ET from Korea Thrunet Co., Ltd.

    SEOUL, South Korea and NEW YORK, April 25 /PRNewswire/ --
 Korea Thrunet Co., Ltd. (Nasdaq: KOREA) ("Thrunet"), Korea's largest
 cable modem broadband Internet-access services provider and operator of the
 Korea.com broadband portal, announced that its Board of Directors had approved
 the spin-off of the Company's Korea.com broadband portal on April 17, 2001.
 The newly spun-off corporation will be a separate entity named KOREA.COM
 Communications Co., Ltd. ("KOREA.COM Communications").
     The spin-off is expected to be completed in early May, following
 completion of required legal processes.  Thrunet will have 100% ownership of
 the new entity, which is expected to have initial capital stock of KRW 35 BN.
 The investment will be in form of "investment in kind", which consists of all
 the Korea.com related assets that can be invested.
     KOREA.COM Communications will have approximately 110 to 130 employees.
 In addition, the board of directors of Thrunet has approved a new management
 team for KOREA.COM Communications, consisting of 3 directors and 1 auditor.
 Yong-Hoe Kim, the Vice President of Thrunet who is currently in charge of the
 Korea.com business unit, will serve as the Representative Director and CEO.
 Jae-Hyun Lee and Joo-Man Park, currently CEO and Director of Thrunet,
 respectively, will also serve as Directors of KOREA.COM Communications Co.,
 Ltd. Charles Rim, currently Senior Vice president and Chief Financial Officer
 of Thrunet, was appointed as an Auditor of KOREA.COM Communications.
     Jae-Hyun Lee, CEO of Korea Thrunet, stated, "We expect the spin-off of
 Korea.com to bring three positive effects.  First of all, by spinning off
 Korea.com from Thrunet, both companies will have more flexibility in terms of
 funding and the creation of new strategic alliances.  Secondly, given the
 distinct, albeit complementary nature of the Internet access and portal
 businesses, separation will allow both companies to focus more on their own
 core businesses, backed by more effective strategies and adequate resources,
 and eventually lead to improvements in profitability.  Lastly, Thrunet and
 KOREA.COM Communications are separate business entities that should reflect
 different organizational cultures. Even though Thrunet and KOREA.COM
 Communications are becoming separate entities, as a 100% owner of KOREA.COM
 Communications, Thrunet will continue its efforts to capitalize on synergies
 between broadband access and broadband portal businesses."
 
     Founded in July 1996, Korea Thrunet Co., Ltd. is a major provider of
 broadband Internet access services and data communications services in Korea.
 The first to offer broadband Internet services in Korea, with 900,754 paying
 end-users at the end of March, 2001, Korea Thrunet currently passes over
 8.3 million homes.  Thrunet service features "always-on" Internet access at
 speeds up to 100 times faster than traditional dial-up Internet access, with
 compelling multimedia content such as on-demand movies and music videos,
 network games, Internet telephony, unified messaging services as well as
 multimedia bulletin board and chatting services.  On the data communication
 side, Korea Thrunet services more than 270 customers, with major Korean
 telecommunications companies such as SK Telecom and Shinsegi Telecomm
 accounting for a substantial majority of data communications revenues.
 
     This release may contain forward-looking statements that are subject to
 risks and uncertainties.  Important factors which could cause actual result to
 differ materially from those in the forward-looking statements, include but
 are not limited to: the Company's short operating history which makes it
 difficult to predict its future results of operations; the Company's history
 of operating losses and expected future losses which could impede its ability
 to address the risks and difficulties encountered by companies in new and
 rapidly evolving markets; the Company's future operating results could
 fluctuate which may cause volatility or a decline in the price of the
 Company's stock; the possibility that the Company may not be able to price its
 services above the overall cost of bandwidth causing its financial results to
 suffer; and other factors detailed in the Company's filings with the
 Securities and Exchange Commission.
 
     Corporate Headquarters: Korea Thrunet's principal offices are located at
 1337-20, Seocho-2 dong, Seocho-ku, Seoul, Korea 137-751.
 
     Phone: 822-3488-8058     Fax: 822-3488-8511     http://www.thrunet.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X75232046
 
 

SOURCE Korea Thrunet Co., Ltd.
    SEOUL, South Korea and NEW YORK, April 25 /PRNewswire/ --
 Korea Thrunet Co., Ltd. (Nasdaq: KOREA) ("Thrunet"), Korea's largest
 cable modem broadband Internet-access services provider and operator of the
 Korea.com broadband portal, announced that its Board of Directors had approved
 the spin-off of the Company's Korea.com broadband portal on April 17, 2001.
 The newly spun-off corporation will be a separate entity named KOREA.COM
 Communications Co., Ltd. ("KOREA.COM Communications").
     The spin-off is expected to be completed in early May, following
 completion of required legal processes.  Thrunet will have 100% ownership of
 the new entity, which is expected to have initial capital stock of KRW 35 BN.
 The investment will be in form of "investment in kind", which consists of all
 the Korea.com related assets that can be invested.
     KOREA.COM Communications will have approximately 110 to 130 employees.
 In addition, the board of directors of Thrunet has approved a new management
 team for KOREA.COM Communications, consisting of 3 directors and 1 auditor.
 Yong-Hoe Kim, the Vice President of Thrunet who is currently in charge of the
 Korea.com business unit, will serve as the Representative Director and CEO.
 Jae-Hyun Lee and Joo-Man Park, currently CEO and Director of Thrunet,
 respectively, will also serve as Directors of KOREA.COM Communications Co.,
 Ltd. Charles Rim, currently Senior Vice president and Chief Financial Officer
 of Thrunet, was appointed as an Auditor of KOREA.COM Communications.
     Jae-Hyun Lee, CEO of Korea Thrunet, stated, "We expect the spin-off of
 Korea.com to bring three positive effects.  First of all, by spinning off
 Korea.com from Thrunet, both companies will have more flexibility in terms of
 funding and the creation of new strategic alliances.  Secondly, given the
 distinct, albeit complementary nature of the Internet access and portal
 businesses, separation will allow both companies to focus more on their own
 core businesses, backed by more effective strategies and adequate resources,
 and eventually lead to improvements in profitability.  Lastly, Thrunet and
 KOREA.COM Communications are separate business entities that should reflect
 different organizational cultures. Even though Thrunet and KOREA.COM
 Communications are becoming separate entities, as a 100% owner of KOREA.COM
 Communications, Thrunet will continue its efforts to capitalize on synergies
 between broadband access and broadband portal businesses."
 
     Founded in July 1996, Korea Thrunet Co., Ltd. is a major provider of
 broadband Internet access services and data communications services in Korea.
 The first to offer broadband Internet services in Korea, with 900,754 paying
 end-users at the end of March, 2001, Korea Thrunet currently passes over
 8.3 million homes.  Thrunet service features "always-on" Internet access at
 speeds up to 100 times faster than traditional dial-up Internet access, with
 compelling multimedia content such as on-demand movies and music videos,
 network games, Internet telephony, unified messaging services as well as
 multimedia bulletin board and chatting services.  On the data communication
 side, Korea Thrunet services more than 270 customers, with major Korean
 telecommunications companies such as SK Telecom and Shinsegi Telecomm
 accounting for a substantial majority of data communications revenues.
 
     This release may contain forward-looking statements that are subject to
 risks and uncertainties.  Important factors which could cause actual result to
 differ materially from those in the forward-looking statements, include but
 are not limited to: the Company's short operating history which makes it
 difficult to predict its future results of operations; the Company's history
 of operating losses and expected future losses which could impede its ability
 to address the risks and difficulties encountered by companies in new and
 rapidly evolving markets; the Company's future operating results could
 fluctuate which may cause volatility or a decline in the price of the
 Company's stock; the possibility that the Company may not be able to price its
 services above the overall cost of bandwidth causing its financial results to
 suffer; and other factors detailed in the Company's filings with the
 Securities and Exchange Commission.
 
     Corporate Headquarters: Korea Thrunet's principal offices are located at
 1337-20, Seocho-2 dong, Seocho-ku, Seoul, Korea 137-751.
 
     Phone: 822-3488-8058     Fax: 822-3488-8511     http://www.thrunet.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X75232046
 
 SOURCE  Korea Thrunet Co., Ltd.