The Korea Times

LG to up outsourcing for handset production

By Kim Yoo-chul LG Electronics has planned to increase its outsourcing of handset production this year in order to expand its global market share, according to a company executive, Monday. He said that although there was a chance the move could undermine its corporate image, it anticipates that expanding outsourcing will help the phone business regain its competitive edge. “LG plans to double production outside the Korean Peninsula by the end of this year,” said a senior LG executive, Monday, on condition of anonymity. This means that a maximum of 7.2 million handsets are going to be manufactured by LG’s main OEM partners including Foxconn of Taiwan. LG’s target is to sell 80 million handsets this year, 35 million of which will be smartphones, according to the company. Currently, outsourcing accounts for about 5 percent of production, but LG plans to increase this to 8 or 9 percent. “Manufacturing of premium models will mostly remain local, though,” said the executive. He claimed that LG Electronics still has no intention of re-entering the ultra low-end of market

Jul 16, 2012By Kim Yoo-chul

Tech & Science

LG rare entertainer at dull Yeosu Expo

By Kim Yoo-chul While the World Exposition in Yeosu has been a bit of a letdown, LG Group says it’s still managing to use the event to raise its corporate profile. Disappointing visitor numbers and a lack of inspiration from the products, technologies and services displayed at Yeosu have worried organizers. But LG has invested heavily in its pavilion to try and cause a buzz and increase its exposure as a global corporate power. Group officials say the LG Pavilion is targeting potential customers from developing nations, including China, Vietnam, Thailand and the Philippines. The company needs to diversify its markets for consumer electronics, mobile phones and displays as the economic news from Europe and North America worsens. ``The LG Pavilion is helping us boost partnerships with businessmen in emerging Asian economies. So far, some 200 CEOs and businessmen from Asia have discussed business opportunities with our executives,’’ said Choi Jun-hyuck, a spokesman for LG. He declined to give specifics on deals supposedly inked on the sidelines of the expo. At least 55

Jul 15, 2012By Kim Yoo-chul

Tech & Science

Google backs network neutrality

‘Broadband providers should not deny users’ access to network’ By Kim Yoo-chul A senior executive at U.S.-based search giant Google said that it is not desirable for mobile carriers KT, SK Telecom and LG Uplus to limit user access to competitive applications or networks. He said such a move will hinder the creation of an innovative ecosystem and that network neutrality should be taken into consideration as an issue of competition for people’s choice. His view is likely to gain attention in Korea because the debate over network neutrality has been heating up between the Korea Communications Commission (KCC), mobile carriers and content providers after Kakao Talk recently launched a service offering free calls. ``Would all providers of services on the Internet need to pay the broadband provider to use the network, in addition to the fees that users pay for broadband? That is not feasible, nor would it create the innovative ecosystem that the Internet provides for services of all kinds,’’ said Google Vice President Vint Cerf, in a recent interview with The Korea Times.

Jul 13, 2012By Kim Yoo-chul

Tech & Science

KT aims for W4 tril. in global sales by 2015

By Kim Yoo-chul, Cho Mu-hyun KT, the nation’s No. 2 mobile carrier, said Thursday that it is aiming to increase its revenue from overseas business to 4 trillion won ($3.4 billion) by 2015. To that end, the company plans to focus on emerging markets by purchasing stakes in telecommunications firms there and to form more business alliances and partnerships. ``KT will go global. Specifically, we are aiming to create 4 trillion won outside the Korean peninsula by the end of 2015,’’ said Chief Transformation Officer (CTO) Kim Hong-jin in a press conference at its main office in Seoul. Kim said that the company will focus on four key areas ― strengthening strategic partnerships with overseas clients, partnering global telecommunications companies, acquiring new information and communication technology and commercializing group-wide products. The revenue target is ambitious given KT’s weak presence globally ― last year, it created 700 billion won overseas, just 2.8 percent of total revenue. ``Our previous approaches for overseas businesses started yielding visible profits.

Jul 12, 2012By Kim Yoo-chul

Tech & Science

LG loses patent battle over Osram

By Kim Yoo-chul The latest setback to hit the LG Group is its intellectual property battle with Germany’s Osram over lighting technology. LG Electronics and LG Innotek are entangled in a legal battle with Osram in major markets like China, Germany and the U.S. over patents related to light-emitting diode (LED) lighting. Judge David Shaw of the U.S. International Trade Commission ruled in favor of the German firm, posting a notice on the group’s website Wednesday (KST) that LG companies have infringed one of the two Osram patents in dispute. If Shaw’s finding is upheld by the full commission, it could result in an import ban on some of the LG-branded LED lighting products, a scenario company officials in Seoul dreaded as the worst-case possibility. ``We are sorry about the decision in the U.S. We and LG Innotek will try our best to protect our intellectual properties,’’ said an LG Electronics official. LEDs, which can be loosely described as a light-glowing semiconductor, are increasingly used for providing lighting in consumer electronics products, vehicles, street

Jul 11, 2012By Kim Yoo-chul

Tech & Science

Downturn may hurt autumn tech show

Korean firms have no plan to display brand new products at IFA By Kim Yoo-chul The deepening economic turmoil in Europe is expected to hit the upcoming IFA global technology exhibition slated for August in Germany. The IFA trade fair is the Europe’s biggest technology exhibition showcase comparable to the Consumer Electronics Show (CES) in the U.S. Many, including IFA organizers, expected leading technology companies, including Samsung, LG and Apple, to unveil new devices and gadgets at IFA, which will run from Aug. 31 through Sept. 5 in Berlin. But unfortunately, Korea’s two giants have no plan to introduce brand new devices due to the economic slowdown caused by the deepening eurozone crisis. ``Samsung Electronics is preparing for this year’s IFA fair. But it’s unlikely that we will release wholly-new products. Rather, management will use the show to check up on business operations in Europe,’’ said an official, Tuesday. The company earlier confirmed that it is going to release an improved 55-inch flat-screen TV set using advanced organic light-emitting diode (OL

Jul 10, 2012By Kim Yoo-chul

Tech & Science

Samsung takes crucial win over Apple

By Kim Yoo-chul Samsung Electronics scored a critical win in its battle with Apple over intellectual property and design yet was still left nursing a bruised ego. In a ruling against Apple, which has been accusing its Korean rival of copying its smartphones and touch-screen tablets, Judge Colin Birss of the British High Court declared that the design of the Samsung Galaxy Tab isn’t cool enough to be confused with an iPad. Samsung seems relieved by the decision, which came after setbacks in American courts. Last month, a court in San Jose granted Apple’s demand for a temporary injunction against the sale of Samsung’s Galaxy phones and tablets, which will be upheld until a full trial begins on July 30. And the outcome there could irrevocably swing the fate of the fight between the two consumer electronics giants. Samsung officials welcomed the ruling from Britain, although were unwilling to discuss in length whether Galaxy devices are passing coolness tests. ``A court in Britain produced a different ruling from the court in the U.S. over the same design patents. This

Jul 10, 2012By Kim Yoo-chul

Tech & Science

Earnings shock

Cutthroat competition squeezes mobile carriers' profits By Kim Yoo-chul Domestic mobile carriers are crumbling under a severe earnings collapse in the second quarter in a battle for the upper hand in the long-term evolution (LTE) market. Lavish investment in the advanced, new-generation networks are challenging recovery. ``The worst is yet to come. The second quarter was terrible for all telecom carriers. Korea’s telecom industry experienced its toughest period for the three months to June,’’ said a top-ranked executive at KT in a recent telephone interview. Among the three firms, LG Uplus, the smallest carrier has the worst footing. According to market analysts, it is estimated that the company’s operating profit fell by around 80 percent to below 10 billion won for the second quarter. They estimate net losses of 20 billion won. Choi Nam-gon, an analyst at Tong Yang Securities, believes the main reason for LG’s steep drop in operating profit was heavy spending to climb to the No. 2 position. ``The combined spending for marketing by the carrier rose to 2 trillion w

Jul 8, 2012By Kim Yoo-chul

Tech & Science

Samsung posts record operating profit

By Kim Yoo-chul Samsung Electronics posted a record operating profit in the three months to June, powered by robust sales of Galaxy smartphones and a rising demand for computer memory chips. Its operating profit reached 6.7 trillion won ($5.9 billion) in the second quarter, up 80 percent from a year earlier, the largest-ever quarterly operating profit in its history, the company said Friday. Its sales stood at 47 trillion won, up 20 percent. ``It’s no surprise that Samsung set a new record in operating profit. The company’s IT and Mobile division were the best performers in the latest quarter,’’ said Noh Geun-chang, a senior analyst from HMC Investment. He said 4.4 trillion won of the operating profit came from these divisions. The world’s biggest phone-making company sold around 100 million phones, including 50 million smartphones. It sold over 7 million Galaxy S3s, which were released in late May, Samsung officials said. ``With today’s bullish numbers, any concern about Samsung’s business, as well as overall demand for technology products, can be put to rest for now

Jul 6, 2012By Kim Yoo-chul

Tech & Science

Qualcomm, Samsung to team up for chip

By Kim Yoo-chul As part of efforts to solve a supply shortage Qualcomm will soon sign a deal with Samsung Electronics to produce chips used in the Korean firm’s smartphones, according to industry sources. Industry and Samsung officials said Thursday that Samsung Electronics has ``tentatively agreed’’ with Qualcomm to produce the latter’s Snapdragon S4 chipsets using Samsung’s 28-nanometer technology from the first half of 2013. “The two companies have agreed in principle on chip production and are now trying to iron out details, including production volume,” an industry source said. Samsung expects that the latest partnership will help the company strengthen its capabilities for non-memory chip management. The Korean technology giant plans to invest more in non-memory chips this year than in conventional memory chips for the first time since it started its chip-making business. Qualcomm CEO Paul Jacobs has said his firm is seeing ``very strong demand’’ for the S4 chipsets amid the rising popularity of data-intensive and speedier phones that also use advanced long-term

Jul 5, 2012By Kim Yoo-chul

Kim Yoo-chul

Read more

LG to up outsourcing for handset production

LG rare entertainer at dull Yeosu Expo

Google backs network neutrality

KT aims for W4 tril. in global sales by 2015

LG loses patent battle over Osram

Downturn may hurt autumn tech show

Samsung takes crucial win over Apple

Earnings shock

Samsung posts record operating profit

Qualcomm, Samsung to team up for chip

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