Nokia scales back Korean business

Nokia has struggled to break into a market dominated by home-grown players such as LG Electronics

Story Tools

SEOUL, South Korea (CNN) -- Cell-phone giant Nokia said it will end a partnership in South Korea with Telson Electronics Co. and slash its research and development operations in the country.

The Finnish phone giant will start making its own handsets to sell in South Korea after scrapping the Telson deal.

Spokesman Kari Tuutti told news media that Nokia would cut back its R&D in Korea because it will start using the same technology in Korea that Nokia has developed for use in the rest of the world.

Nokia has struggled to make much headway in the South Korean market, which is dominated by hometown heavyweights Samsung Electronics and LG Electronics.

The company plans to maintain its sales and marketing operations.

Nokia makes about one in every three mobile phones sold around the world. But it contracted out production of phones in Korea to Telson because Korean companies use different software and radio technology.

Telson was still making the phones under the Nokia brand. Nokia phones sold in South Korea will now have the same software as Nokia phones elsewhere in the world.

Nikkei rebounds to above 10,000 • Japan talks trade at ASEAN summit • Japan-Thailand move on trade talks • China, U.S. lead oil demand boom

CNN/Money: Security alert issued for 40 million credit cards • Bin Laden deputy sends message • U.S. House votes to keep U.N. dues • Iran poll to go to run-off