The mobile phone industry is stepping up cooperation with its Chinese partners to develop next-gen. mobile phones in time with President Roh's state visit to China. According to the related industry on July 13, with leaders of Korea and China agreeing on a ten-pointed business project for next-gen. IT, mobile phone companies are expected to strengthen cooperation with Chinese companies for developing 3G mobile phones.

In particular, the industry pins great hope on the President's visit to China for brightening export prospect to China which has been deteriorated as China was independently pursuing standard for 3G mobile telecommunications.

Large companies with sufficient liquidity are expected to carry out investment and cooperation for time division - code division multiple access (TD - CDMA), which Beijing is independently pursuing as a standard for 3G mobile telecommunications. Samsung Electronics set up a joint venture (company name: T3G Technology) for TD - CDMA mobile phone chip sets with China's DaTang Mobile Communications and Phillips on January. Samsung is expected to invest tens of millions dollars to develop commercial phones early next year and put them on the local market.

An official with Samsung Electronics said, "As Korea is sweeping China's CDMA mobile phone market, Beijing has been trying to keep Korean companies in check. Given the situation, Korea was on the verge of losing its leverage in the next-gen. mobile phone area." "The establishment of full-fledged cooperative partnership with China as a result of President Roh's visit improved the environment for investment and cooperation," he added.

LG Electronics, which is participating DaTang Communications-led separate standardization group along with Nokia and Texas Instruments (TI), is boosting investment in China's next-gen. mobile phones. LG plans to seek cementing cooperation with China's manufacturers as well as service providers through China's global R&D centers to take part in next-gen. telecommunications standardization works such as 3G, 4G and TD - SCDMA. An official with LG Electronics said, "Under active support from local universities including Chingwha Univ., we are concentrating on securing top-notch manpower for the mobile phone and IT fields," adding that the company will release 3G mobile phones beginning next year.

Pantech subsidiaries set up production entity in joint investment with China's Daxian Group, and is moving to build massive R&D center there. The latest move is meant to grow into the biggest major mobile phone maker in China by enhancing cooperation with the Chinese group and hiring specialists at the local level. Managing director Noh Sun-seok of Pantech said, "We will be producing 10 million units of mobile phones on a yearly basis through the cooperation enhancement with Daxian and a joint venture in 2008." "During President Roh's visit, Beijing promised cooperation for CDMA technology standardization providing Korean mobile phone industries with greater influence," he added.

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