Nokia withdraws from Korean handset market

10 Jan 2003 at 20:24 GMT Marc van Impe

Nokia Korea Ltd. said Friday, January 10, that its head office in Finland has decided to close the CDMA research and development center set up in 1999 in Seoul. The company also said that it would also end its production alliance with Telson Electronic, a Korean handset maker, which has been supplying handsets to Nokia on an OEM or an ODM (original design manufacturing) contract, reported Korean newssite Chosun Nokia is not saying final goodby to the Korean market. It could re-enter the market, for the third time in May, when WCDMAmobile handsets debut in the Korean market. Nokia advanced into the Korean market with its CDMA handset in June 2001 but never gained the expected marketshare. The market has been dominated by domestic Samsung Electronics and LG Electronics. Nokia has been able to occupy a meager 1 percent market share in Korea for its annual demand for 15 million sets. Nokia TMC, the firm's production plant in Masan cranking out more than 30 million GSM handsets annually, will continue its operation.