Under the rapid changes in the overall communication environment, the Korea Postal Service Agency is faced with the various competitive challenges. Juggling with the multiple mandates of ‘public value’ and ‘efficiency’ (which are often conflicting with each other), the Korea Postal Service Agency has to overhaul its business strategies. Changes in the overall service portfolio should entail complicated policy challenges. Focusing on the strategic issues regarding the premium services, this case describes the unique challenges in the public sector business.