'Mobile Korea' takes on globe

Only a decade ago, Korean-made mobile phones were regarded as cheap and of low quality. But over the years, Korean mobile phones have become a world leader in mobile communication. According to the Ministry of Information and Communication exports of mobile phone sets in 2002 increased 32 percent from 2001 to $11.2 billion. Mobile phones are Korea's third-ranking export, following semi-conductors and automobiles. Last year, 112 million phone sets were manufactured in Korea, accounting for 26.8 percent of world production. Exports this year are projected at $14.2 billion. Volume of the world mobile phone market was estimated at 400 million mobile phones were sold last year, and that number is expected to reach 450 million this year. Nokia Corp. of Finland holds the top spot, with a global market share of well over 30 percent; Samsung Electronics Co. is aiming for first runner up, and LG Electronics Inc. has its sights trained on the No. 5 position. Samsung was the world's third largest manufacturer of mobile phones last year, with 10.6 percent of the market, behind Motorola, which held 14 percent. LG rose to the No. 6 position in the third quarter of 2002, with 4.4 percent of the market. It considers Sony-Ericsson, the fifth largest producer, to be within reach. Experts attribute Korean mobile phone makers' success to an effective combination of technology, design and marketing. Being the first in the world to commercialize the code division multiple access technology by the U.S. company Qualcomm, Korean mobile phone firms made big technological strides starting in 1995, coming up with smaller and lighter products. And their sophisticated designs and aggressive marketing won recognition. Korean consumers' strong demand for new products also contributed to the mobile appliance firms' worldwide success. The speed at which mobile technology is developing is reflected in the shortening product development cycles. Development of a new phone used to take one year, but now products are developed in eight months. An official from LG said, "The only way to catch up to competitors with a head start is to show consumers something different." By locating research centers in foreign locations producers are able to develop models to fit cultural characteristics. The high quality of Korean mobile phones was also made possible by the diverse digital content offered by telecommunications companies like SK Telecom and KTF. The phone producers upgraded the quality of their products to satisfy new system requirements for telecommunication services, whereas telecommunication companies improved their services to stay in step with the new functions of mobile phones. Competition between mobile phone makers for stylish designs is also very intense. Samsung, LG and Pantech each have design teams of 40 to 50 people. A designer from LG said, "To create new products, we study designs of cosmetic cases, wristwatches and digital cameras. Also, we examine consumer tastes at luxury department stores." He said that consumers are looking for phones that are small and luxurious. by Yum Tae-jung