By Kim Tae-gyu
Staff Reporter



Korea’s two flagship high-tech firms _ Samsung Electronics and LG Electronics _ are continuing to drive up exports through cell phones, the item now accounting for more than 10 percent of total exports.

The two firms, which ship up to 90 percent of their cell phones offshore, gained ground over the past three months in the global handset market.

Samsung, the world’s third-largest mobile phone maker, shipped 22.7 million handsets during the third quarter, closing the gap with runner-up player Motorola’s 23.3 million units.

LG is also expected to climb the global ladder two notches to fourth place, selling 11.8 million handsets to pass Sony-Ericsson’s 10.7 million units.

The German-based Siemens is yet to reveal its third-quarter performance, but market observers project the firm’s quarterly figure will be around 10 million units.

On an accumulated basis for this year, Samsung has manufactured a total of 65.5 million phones, up 63 percent from the corresponding period last year, for a turnover of about $4 billion.

LG also reaped 65 percent growth year-on-year during the cited span by making 30.5 million units for roughly $2 billion in sales.

``Samsung will take on Motorola for the global runner-up slot in the fourth quarter while LG is projected to stage an uphill battle with rivals for fourth position. But from next year, Samsung and LG will take firm holds on second and fourth spots,’’ telecom analyst Greg Roh of Dongwon Securities said.

The vigorous shipments are boosting the nation’s exports, bolstering an economy plagued by a protracted slump in domestic spending.

Exports of wireless telecom equipment, including cell phones and components, came in at $18.9 billion during the first nine months of this year, up 46.3 percent from the like period of 2003 and accounting for 10.2 percent of total exports.

The emerging sector outpaced cars, last year’s second-best item, of which outbound shipments stood at $18.3 billion this year, or 9.9 percent of all exports, and is posing a threat to the perennial leader semiconductors, whose $19.6 billion was 10.6 percent of total outbound shipments.

For last month alone, the handset and parts segment topped export standings with $2.28 billion, surpassing semiconductor’s $2.25 billion. Automobiles stood at $2.22 billion.

Despite the seemingly strong figures and rosy prospects, however, some critics have raised concerns regarding the extreme polarization of the nation’s cell phone industry.

Currently, the three big makers _ Samsung, LG and Pantech Group _ underpin the brisk cell phone exports, while mid-tier players has faced a series of collapse due to harsh competition in China.

The middle-of-the-pack manufacturers, which have relied on low-end models in the mainland, have suffered irreversible damage as Chinese makers pop up to provide phones at rock-bottom prices.

Just this year, Standard Telecom, Sewon Telecom and Telson Telecom all went bankrupt and applied for court receivership or court mediation.

voc200@koreatimes.co.kr