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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: John Biddle who wrote (34064)	4/10/2003 10:49:03 PM
From: waitwatchwander	Read Replies (2) \| Respond to of 196605

S Korea Samsung Elec,LG Elec Halt Shipments To SK Telecom biz.yahoo.com Thursday April 10, 10:31 pm ET Dow Jones Business News SEOUL -(Dow Jones)- South Korean makers of mobile phone handsets Friday said they have halted shipments to wireless operator SK Telecom Co. (SKM) in the wake of an accounting scandal at affiliate SK Global Co. . SK Telecom receives handsets distributed by SK Global, a trading company under the country's third largest conglomerate, SK Group . SK Global is currently embroiled in an accounting fraud worth about 2 trillion won ($1=KRW1, 227.5). Local handset makers Samsung Electronics Co. , LG Electronics Inc. and Motorola Inc. (NYSE:MOT - News) unit Motorola Korea Inc. said they have stopped providing handsets due to concerns that they won't be able to collect payment. The move began earlier this week. "We've deferred shipments to SK Global for the time being and don't know as of yet when shipments will resume," said Kim Se-Hun, a spokesman for Samsung Electronics' handset division. The spokesman declined to comment on how many handsets the company provides to SK Telecom through SK Global. "Until we can establish a more accurate way of receiving payment, we've decided to halt shipments. Things are uncertain right now with SK Global," said Hyun Lee, senior marketing specialist for Motorola Korea Inc. Meanwhile, Pantech & Curitel is also looking at the possibility of halting shipments to SK Telecom but hasn't as of yet, a spokesman said. "We demanded payment guarantees but for now, we are still supplying handsets," said Yang Yul-Mo, a manager at Pantech. Yang said more than 50% of the company's handset shipments go to SK Telecom. SK Telecom said the company "isn't concerned" and the halt, which it sees as temporary, won't affect its ongoing operations. "There are other means of getting handsets such as using another distribution channel besides SK Global...or we can deal directly with the manufacturers," said SK Telecom spokesman Chul-Keun Kwon. Kwon said the company receives shipments one month in advance and has enough inventory for now. As reported, SK Global creditors, on March 19 approved a three-month freeze on repayment of SK Global's domestic debt totaling KRW6.7 trillion. -By Yun-Hee Kim, Dow Jones Newswires; 822-732-2165; yun-hee.kim@dowjones.com