Thrunet was Korea's first broadband pioneer — building the network bankrupted it

Thrunet (두루넷) was founded in 1996 by Sambo Computer as Korea's first broadband internet service provider. It pioneered the country's broadband market, rolling out high-speed internet across major cities when dial-up was still the norm. In 1999, Thrunet became the first Korean company to list on NASDAQ, raising capital to fund its aggressive network expansion. At its peak, Thrunet was Korea's third-largest broadband provider with over 1.2 million subscribers and a 13% market share.

The nationwide network buildout required massive upfront investment. Thrunet borrowed heavily to lay fibre and build infrastructure, but the revenue from subscribers was never enough to service the debt. By August 2001, creditor banks designated Thrunet as a special management company, signalling deep financial distress. The company continued to accumulate losses as competition intensified with Hanaro Telecom and KT, both of which had deeper pockets and more established customer bases.

On March 3, 2003, creditors of Thrunet filed for court receivership at Seoul District Court. The company had spent years burning cash on infrastructure it could not afford, and the debt burden had become insurmountable. Thrunet operated under court protection for over two years while its assets were restructured. In March 2005, Hanaro Telecom acquired Thrunet for 471.4 billion won ($460 million). The company formally exited receivership on June 23, 2005, and was merged into Hanaro Telecom (which later became SK Broadband) on January 1, 2006.