UPDATE 1-KT to boost profit; shares jump after merger

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SEOUL, June 1 (Reuters) - South Korea's KT Corp (030200.KS), which absorbed its mobile unit KTF on Monday, is aiming to boost the merged company's operating profit by 44 percent in the next three years by revamping service offerings and going after new business.

Its shares were up 6.2 percent at 36,100 won as of 0302 GMT, leading the wider market's 0.34 percent gain.

With its traditional stronghold landline business shrinking and competition increasing in the saturated domestic market, KT hopes the merger with KTF, South Korea's No.2 mobile carrier, can help it regain growth momentum and reduce costs.

KT said in a statement it was targeting a 2.6 trillion won ($2.07 billion) operating profit in 2012 on 22 trillion won in revenue.

In January, KT said it expected 1.8 trillion won in operating profit and 19 trillion won in revenue in 2009 for the combined company.

It said the combined company would focus on providing integrated services from mobile to Internet and televisi0on, as well as new services combining telecommunication with other infrastucture.

South Korean telecom companies, led by KT and No.1 mobile operator SK Telecom (017670.KS) are shifting to services bundling mobile and fixed-line products and looking at new business opportunities in areas such as home networks, corporate technology services and energy business. ($1=1257.0 Won) (Reporting by Rhee So-eui; Editing by Jonathan Hopfner and Chris Lewis)