KT Corporation, Korea’s largest fixed-line telephone and high-speed internet provider, continues to invest in an attempt to transform itself into a multi-media industry group. KT Corp. has just acquired 51% of Sidus FNH. Sidus FNH is the largest filmmaker in South Korea. This follows an 8 billion won ($7.8 million) June investment in a 30 billion won movie investment fund established by Show Box, Korea’s second-largest movie distributor. Analysts also believe that KT is currently negotiating a contract with Walt Disney to distribute the company’s content through mobile channels.

Nam Joong-soo, KT’s newly appointed CEO, told reporters that “contents, handsets and networks will be converged, putting the focus on customers.’. He also said that the company will invest 10.4 trillion won ($10 billion) between now and 2010, with 7.8 trillion won being used to strengthen South Korea’s telecom infrastructure and 2.6 trillion being spent on new growth areas.

These recent moves by KT Corp are in response to growing pressure from SK Telecom Corporation, South Korea’s largest mobile operator. SK Telecom has been aggressively advancing into digital content through a series of M&A transactions with broadcast and entertainment companies. The moves includes a 14.4 billion won investment into IHQ, Korea’s largest entertainment company in February, an acquisition of YTN Star (affiliate of broadcaster YTN) and an acquisition of YBM Seoul, Korea’s largest music company.

Why is this important for the rest of the world? South Korea is quickly becoming a first mover in the world of technology. South Korea has the highest density of DSL subscriber (per hundred main lines) in the world, with Taiwan a close second. While South Korea’s population is roughly 17% of the U.S. population, its penetration of high speed internet matched the U.S. in total subscriber numbers, and its adoption of mobile technologies is more impressive.

Content companies and telecoms in Europe and North America need to keep a close eye on the consolidation and developments in the content and distribution within South Korea. For good or bad, South Korea’s increased combination of content and distribution will help accelerate the market by removing discussions over pieces of the value chain. This may not be the best for the overall market, but it is sure to provide a consumer test bed for consumers’ opinions on digital content and access technologies.