South Korea’s largest fixed-line operator, KT, is considering a merger with KTF, the country’s second largest mobile phone operator, according to a report from Korean national daily Chosun Ilbo. “It’s true that the idea of a merger has become more concrete than last year when we began talking about it,” KT President Nam Joong-soo told the publication. “A task force is now carefully studying the timing and method of a merger.”

According to the report, the two firms began discussing the possible merger when SK Telecom, the country’s largest mobile operator, purchased second-ranking fixed-line operator Hanaro Telecom. Nam is reported to believe that the merger of KT and KTF, whose combined assets would be valued at more than W25 trillion (US$26 billion), will help rally KT’s stock price, which has been declining recently. A merged entity would likely provide landline and mobile services, including technology such as HSPA, WiBro, and IPTV. According to Wireless Intelligence, KTF had 32% share of the South Korean mobile market as of end Q4 2007, with 13.7 million subscribers.