UPDATE 1-S.Korea KT sets 2008 earnings goals higher

(Adds details, shares)

SEOUL Jan 16 (Reuters) - KT Corp (030200.KS) set this year's operating profit target higher than estimated 2007 results and decided to keep capital expenditure steady, South Korea's top fixed-line and broadband operator said on Wednesday.

KT said in a filing with the local exchange that it was targeting 1.5 trillion won ($1.6 billion) in operating profit in 2008, higher than its 2007 target of 1.4 trillion won.

The company has yet to release its 2007 earnings, which are scheduled for Jan. 25.

The operating profit target is in line with an average forecast of 1.49 trillion won from Reuters Estimates, which estimates last year's operating profit at 1.46 trillion won.

KT, which has 91 percent of South Korea's landline market and 44.5 percent of broadband customers, hopes to see a boost from new services such as high-speed mobile Internet Wibro and upcoming Internet Protocol television (IPTV).

However, it faces stalled market growth and attacks from cheaper broadband and landline firms. Rival hanarotelecom inc (033630.KQ) is also gearing up to provide full IPTV service.

KT plans to spend 2.6 trillion won in capital investment this year, compared with 2.8 trillion won it planned for 2007.

KT expects 3.6 trillion won in earnings before interest, tax, depreciation and amortisation (EBITDA) in 2008, the same as its 2007 target.

Shares in the company fell 1.59 percent to 46,300 won by 0156 GMT, underperforming the wider market .KS11 off 0.71 percent. ($1=937.9 Won) (Reporting by Rhee So-eui; Editing by Keiron Henderson)