Local information technology businesses knock on China's door
07/24/2000
koreaherald.co.kr
by Yook Jin-young, The Korea Herald
Information technology companies are heading west in search of gold, the Chinese market with its potential 1.3 billion consumers.
China declared that it will open its telecommunication market once it joins the World Trade Organization, prompting Korean IT companies to establish Chinese subsidiaries or start joint ventures.
China is by far the largest wireless communication market in the world. Last year, 43.24 million Chinese subscribed to mobile communication service, and the number is estimated to be 60 million at present.
The figure has been rising sharply since 1997, when there were 13.23 million customers. It was 24.98 million in 1998. In comparison, as of the end of May, there were 27.27 million mobile phone customers in Korea.
Now that China will pick up CDMA (code division multiple access) network, whether it is second- or third-generation, the country will become the biggest market for large telecommunication companies in Korea.
LG Information and Communications (LGIC) said last month that it will set up a joint venture Shenzhen ZTE-LG Mobile Communications in China in partnership with ZTE Corp., China's largest telecom equipment manufacturer. LGIC also set up a CMNA WLL (wireless local loop) joint venture in Guangdong, China last year.
Small- and medium-size enterprises (SMEs) are heading west as well.
Sungmi Telecom, a telecom equipment producer specializing in fiber loop carriers, launched Shanghai Sungmi Telecom in partnership with a Chinese Prima Trading Co. last month and is testing CDMA relay equipment.
Yuyang Telecom is field-testing CDMA and GSM relay equipment in China to secure supply orders from China Telecom, a mobile communication operator.
Computer telephony integration (CTI) companies such as Nexus Community, Locus, Kisan Telecom and N'ser Community are also gearing up to enter the Chinese market.
Nexus Community said it will visit Beijing in August to do market research with the help of the Korea Trade-Investment Promotion Agency.
Cyberspace security companies are reviewing prospects in the Chinese market since the government announced it will support electronic commerce.
At last month's Korea-China Information Technology Venture Fair, half of the 40 participating local companies were computer security firms.
Ahnlab, a total security solution provider which earned its reputation from vaccine programs, will open an office in China next month.
However, local companies are proceeding with caution as the Chinese central government still holds a strong grip on market operations.
"Chinese companies are sensitive about information on business negotiations leaking out, so we are very careful about revealing our business plans with China," said Shim Hae-jin of Nexus Community.
"It is wrong to think one can experience freedom in Chinese cyberspace, local companies must accept the Chinese government as an important partner before proceeding in business there," a source from LG said. (Yonhap) |
