Keen Competition of Mobile Phone Between Korea and China

As the mobile industry of China has rapidly developed, there is a cutthroat competition of mobile phone technology between China and Korea. It is because the mobile companies of China, the world largest domestic market, have absorbed the core technology of China rapidly.

According to the mobile industry on October 1, as the mobile phone exports to China have significantly increased, they have worried about that the core technology could be sold to China for its scrap value.

▽Technical Know-How Drain or Export? 〓 A venture company, ‘Ezzemobile’ exported the large quantity of mobile phones to China last year, but put a brake on exports owing to suspicion of handing over the technology of its competitor to partner of China. One Korean resident abroad attempted to sell the design know-how of the mobile phone stealing from the company, but he was seized.

‘Bellwave’ exported the large quantity of GSM terminal to China, but was tangled in dispute of technology drain.

Its three staff was kept in custody on suspicion of the drain of technical know-how of Samsung Electronics while manufacturing the terminal for export. However, Bellwave’ denied the suspicion. So, the court will judge its technology drain.

▽Keen Technical Competition of Mobile Phone Between Korea and China? 〓 Commercialized the CDMA service this year, China has launched offensive against the positive technology toward the Korean companies.

China has concentrated on learning the technical Know-How of Korea, by making the partnership with Korean small & medium companies. Under the circumstances, the domestic companies could not refuse to enter into China market. Song Mun-Seob, the president of CURITEL said “Inexhaustible China market is the big opportunity to 40 domestic mobile companies. We have to care about a protection of the core technical Know-How.”

Besides, China has strengthened the attack on Korean companies for the protection of the China market. So, there is the sign of technical trouble between them.

Cho Seong-Gab, the president of ICA said “China established the CDMA terminal standard different from Korea. Restricting the production quantity of CDMA terminal of Samsung Electronics and LG Electronics to 15000000 units a year in China is for restraining the Korean companies.”

Tae-Han Kim freewill@donga.com