ANYANG, South Korea-South Korean handset vendor VK Mobile has gone under, according to news reports. The company, which entered business as a battery maker in 1997, had set its sights on becoming a global brand and had cut deals to supply handsets to mobile virtual network operator Helio L.L.C. and wireless giant Vodafone Group plc.
The company had struggled with competition and currency fluctuations that cut profits on its exports, and finally succumbed when it was unable to pay its debts. Reportedly the company had failed to meet maturing debts of about $1.9 million, according to The Korea Times. Creditors headed by the National Agriculture Cooperative Federation placed the company into receivership.
South Korean handset vendors are struggling in a hotly competitive domestic market where most consumers already own a cell phone. The country is home to Samsung Electronics Co. Ltd., LG Electronics Co. Ltd. and Pantech Group.
