Mobile phone industry in South Korea

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The mobile phone industry in South Korea consists of domestic network infrastructure provision and the production of consumer mobile handsets.

Contents

History

Car phone era

In 1984, Korea Mobile Telecommunications Service, a subsidiary of Korea Telecom which was later renamed to SK Telecom, started its mobile communications service with the car phone. [1]

Mobile phone era

Consumer devices

Network and service developments

Smartphone era

Consumer devices

In 2009, KT was the first network to introduce the iPhone to South Korea. [5] The origins of South Korea's domestic smartphone production industry can be traced to Samsung's release of their first smartphone, a reaction to Apple's iPhone, which was well-received by the South Korean population.[ citation needed ]

Later, as the smartphone sector continued to grow, South Korean LG Electronics also joined this competition. Unlike Apple and Samsung, LG's business strategy was to make more affordable devices rather than devices with higher specifications. Eventually, LG shifted to offering phones with a better camera and higher screen quality which increased their cost of goods; however, the sales of their phones did not improve. [6]

LG announced its decision to exit the smart phone market in April, 2021 due to their continued net loss in this sector. Until now, Apple and Samsung have held the largest market shares, with LG trailing behind. Apple tried to capitalize on LG's exit of the smart phone market by advertising its products on LG's displays within markets. [7] [8] Samsung also took this opportunity to offer existing LG customers competitive deals on new Samsung phones such as running trade-in events for used LG smartphones.[ citation needed ] Competition between the two manufacturers in the South Korean market is still on-going.[ citation needed ]

Network and service developments

  • 2009, KTF merged with Korea Telecom.
  • 2010, LG Telecom, LG Dacom, LG Powercom were merged into LG U Plus.
  • 2012, KT shut down its 2G services and migrated to a 3G network.
  • 2020, SKT shut down its 2G services and migrated to newer generation networks.
  • New technology was developed such as WiBro and LTE [ citation needed ]

Handsets

Domestic production

Current South Korean producers of mobile phones include:

Former South Korean producers of mobile phones include:

Market share (domestic and imported handsets)

Samsung and Apple have the largest market shares in Korea.[ citation needed ]

Mobile phone service providers

There are three mobile phone service providers and they are currently deploying their 5G networks.

As of 2004 the market shares of the three companies were believed to be: SK Telecom's 50 percent, Korea Telecom's 30 percent and LG Telecom's 20 percent. [11]

Official bodies and technical partnerships

In South Korea, the Ministry of Information and Communication (MIC) is the telecommunications authority.

The Electronics and Telecommunications Research Institute (ETRI) supports Qualcomm's research and development of CDMA and CDMA2000 technology.

Regarding the Korean mobile phone industry's overseas experiences, SK Telecom has helped the first mobile phone service companies in Mongolia, Uzbekistan, Cambodia, etc. In China, it helped China Unicom's CDMA implementation, both technically and financially.[ citation needed ]

See also

Related Research Articles

The Universal Mobile Telecommunications System (UMTS) is a 3G mobile cellular system for networks based on the GSM standard. Developed and maintained by the 3GPP, UMTS is a component of the International Telecommunication Union IMT-2000 standard set and compares with the CDMA2000 standard set for networks based on the competing cdmaOne technology. UMTS uses wideband code-division multiple access (W-CDMA) radio access technology to offer greater spectral efficiency and bandwidth to mobile network operators.

<span class="mw-page-title-main">3G</span> Third generation of wireless mobile telecommunications technology

3G is the third generation of wireless mobile telecommunications technology. It is the upgrade to 2G, 2.5G, GPRS and 2.75G Enhanced Data Rates for GSM Evolution networks, offering faster data transfer, and better voice quality. This network was superseded by 4G, and later by 5G. This network is based on a set of standards used for mobile devices and mobile telecommunications services and networks that comply with the International Mobile Telecommunications-2000 (IMT-2000) specifications set by the International Telecommunication Union. 3G is used in wireless voice telephony, mobile Internet access, fixed wireless Internet access, video calls and mobile TV.

<span class="mw-page-title-main">Bell Mobility</span> Canadian wireless network operator

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<span class="mw-page-title-main">SK Telecom</span> South Korean telecommunications company

SK Telecom Co., Ltd., abbreviated as SKT is a South Korean wireless telecommunications operator and former film distributor and is part of the SK Group, one of the country's largest chaebols. It leads the local market with 50.5 percent share as of 2008. SK Telecom is the largest wireless carrier in South Korea, with 23 million subscribers as of Q4 2023.

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<span class="mw-page-title-main">WiBro</span> Wireless broadband Internet technology

WiBro is a wireless broadband Internet technology developed by the South Korean telecoms industry. WiBro is the South Korean service name for IEEE 802.16e international standard. By the end of 2012, the Korean Communications Commission intends to increase WiBro broadband connection speeds to 10 Mbit/s, around ten times the 2009 speed, which will complement their 1 Gbit/s fibre-optic network. The WiBro networks were shut down at the end of 2018.

Pantech Inc. is a South Korean company that manufactures mobile phones. Established in 1991, its market is mainly domestic with partners in the United States, Japan, China, Europe and Vietnam. In 2012 Pantech was the second best-selling handset maker in South Korea, according to Gartner. In 2013 Samsung Electronics bought a 10% stake in Pantech. Pantech also partners with PCD for specialized phones.

KT Freetel Co., Ltd. was a South Korean telecommunications firm, now merged into Korea Telecom, specializing in cellular, or mobile, phones. Since 1999, it has also developed extensive overseas operations. The company is credited with developing customized ring back tones. On 1 June 2009, KTF was merged with KT.

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SK hynix Inc. is a South Korean supplier of dynamic random-access memory (DRAM) chips and flash memory chips. SK Hynix is one of the world's largest semiconductor vendors.

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<span class="mw-page-title-main">KT Corporation</span> South Korean telecommunication service provider

KT Corporation, formerly Korea Telecom, is a South Korean telecommunications company. KT is the second-largest wireless carrier in South Korea, with 13.5 million subscribers as of Q4 2023.

LG Uplus Corp. (Korean: LG유플러스; stylized as LG U+, KRX: 032640) is a South Korean mobile network operator owned by LG Corporation. It was formerly known as LG Telecom, but changed to its current name on July 1, 2010. LG Uplus is the second-largest wireless carrier in South Korea, with 18.411 million subscribers as of Q4 2023.

<span class="mw-page-title-main">LG Cyon</span>

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In telecommunications, long-term evolution (LTE) is a standard for wireless broadband communication for mobile devices and data terminals, based on the GSM/EDGE and UMTS/HSPA standards. It improves on those standards' capacity and speed by using a different radio interface and core network improvements. LTE is the upgrade path for carriers with both GSM/UMTS networks and CDMA2000 networks. Because LTE frequencies and bands differ from country to country, only multi-band phones can use LTE in all countries where it is supported.

<span class="mw-page-title-main">Mobile phone industry in China</span>

China's mobile phone industry or cell phone industry has high growth rate, raising its share on the global mobile phone market. During 2007, 600 million mobile phones were made in China which accounted for over 25 percent of the global production. China is the largest market in terms of mobile phone subscribers.

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3G mobile telephony was relatively slow to be adopted globally. In some instances, 3G networks do not use the same radio frequencies as 2G so mobile operators must build entirely new networks and license entirely new frequencies, especially so to achieve high data transmission rates. Other delays were due to the expenses of upgrading transmission hardware, especially for UMTS, whose deployment required the replacement of most broadcast towers. Due to these issues and difficulties with deployment, many carriers delayed acquisition of these updated capabilities.

References

  1. "SK telecom". www.sktelecom.com. Retrieved 2024-05-03.
  2. History of SK Telecom Archived 2010-03-15 at the Wayback Machine
  3. Korea Telecom - Company - History
  4. LG Telecom - About LG telecom - Milestones Archived 2011-07-13 at archive.today
  5. Katz, Leslie (November 29, 2009). "iPhone officially lands in South Korea". CNET. Archived from the original on September 20, 2020. Retrieved August 11, 2015.
  6. Schuhmacher, Alexander (2014-12-14), Can Innovation Still Be the Main Growth Driver of the Pharmaceutical Industry?, Perspectives on Sustainable Growth, Cham: Springer International Publishing, pp. 39–68, doi:10.1007/978-3-319-12526-8_2, ISBN   978-3-319-12525-1, S2CID   166817557 , retrieved 2021-12-11
  7. Park, Yuri; Koo, Yoonmo (April 2016). "An empirical analysis of switching cost in the smartphone market in South Korea". Telecommunications Policy. 40 (4): 307–318. doi:10.1016/j.telpol.2016.01.004. ISSN   0308-5961.
  8. Kim, Pyungho (July 2011). "The Apple iPhone Shock in Korea". The Information Society. 27 (4): 261–268. doi:10.1080/01972243.2011.583826. ISSN   0197-2243. S2CID   5212833.
  9. "Pantech to close smartphone business". Yonhap News Agency. 12 May 2017. Retrieved 22 August 2023.
  10. "LG to pull out of mobile phone market". The Guardian. 2021-04-05. Retrieved 22 August 2023.
  11. Three Korean mobile phone service providers (in Japanese, 2004)