The M＆A is no longer uncommon event in Korea Mobile Telecom Industry in 2000. SK Telecom has already acquired Shinsegi Telecom to expect the synergy effects resulting from integration of wireless networks, co-marketing and improving the efficiency of spectrum use. But Fair Trade Commission approved the horizontal merger of SK Telecom and Shinsegi Telecom under the remedy they must reduce the market share of post-merger to 50% by 30$^{th}$ June, 2001. And there is another M＆A, that is, the horizontal merger of KT Free Tel and Hansol M.com, in mobile telecom market in 2000. Now as is known to us, it becomes easy to find the M＆A in telecom market in Korea.
The main purpose of this dissertation is to study the anticompetitive effects presumed by the horizontal merger, focusing on SK Telecom and Shinsegi Telecom case. Usually horizontal merger is said to decrease the social welfare. But this paper shows it is not always true. There is also exceptional case in telecom industry. Consequently it is necessary to examine and compare the anticompetitive effects with the synergy effects thoroughly in mobile telecom M＆A. But unfortunately we don’t have the related study or analysis performed before in mobile telecom industry.
To investigate the anticompetitive effects this dissertation deals with the regulatory framework on M＆A in other countries and economical theory and evidence on horizontal merger. And then it tries on defining the relevant market as a pre-step on analysis of the anticompetitive effects. At last it is implemented to verify the anticompetitive effects in depth. The result of this study will change traditional views which horizontal merger always do harm, into new one, it is possible to improve the social welfare under the horizontal merger, as it is, paradigm shift or new recognition to anticompetitive effects by horizontal merger in mobile telecom market.
