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To: Pierre who wrote (6598)	12/18/1997 12:09:00 AM
From: stealthy	Respond to of 152472

All: Attached are couple of items on Telecom impacts in South Korea: -------------------- [Navigation Bar] Samsung Elecs. Unveils Compact PCS Phone December 17, 1997 (SEOUL) -- Samsung Electronics Co., Ltd. unveiled a new compact PCS handset that is the lightest mobile phone in the Korean market. The handset, announced Dec. 15, weighs 105 grams with the battery. The new product, the SPH-3000, measures 114 mm x 50 mm x 22 mm, and is scheduled to go on sale this week. Using a small lithium ion battery, the handset lasts for 60 minutes during a continuous call and has a lifespan of 16-20 hours. When the customer uses a large battery, a continuous call can last for 240 minutes and the battery lifespan is 79 hours. In addition, the new PCS handset features a voice-activating dialing function as well as a function that allows the user to record the conversation. The retail price is about 750,000 won (US$454). Samsung said it plans to sell a total of 6.5 million mobile phone handsets, including PCS phones at home and abroad next year. It will also increase exports to 55 percent next year, aiming to take up 7.4 percent of the global mobile phone market. By 2001, Samsung seeks to become the world's third-largest mobile phone maker, the company said. ------------------------------------------ [Image] Wireless Week South Korea Survives IMF Bailout May Affect Growth By Bill Menezes The record $57 billion rescue package intended to save South Korea's financial system could have wireless companies biting the bullet along with the country's economy. Conditions of the bailout agreement between South Korea and the International Monetary Fund include a sharply lower target for 1998 economic growth in what has been one of Asia's booming markets. That directly could affect telecommunications industry growth, which has supported the rapid expansion of Korea's wireless networks with equipment from such vendors as Nokia Corp., Ericsson Inc., Qualcomm Inc. and Powerwave Technologies Inc. "You could see operators taking a hit on subscriber growth, and if subscriber growth slows you could see slower demand from the vendors," said Jonathan Tarlin, vice president-international at The Strategis Group. "But Korea is still in a growth mode overall. Slow growth is all relative." While some companies in recent months have said widespread Asian currency volatility might not have a dramatic effect on their regional business, the Korean situation presents a more direct challenge. The nation was suffering from a rapid weakening of its currency, the won, in the face of mounting debt problems for major banks and corporations. Those problems were linked to growth fueled by protectionist economic and financial policies. South Korea sought IMF help to cover billions in bad bank and corporate debts and avoid defaulting on short-term loans maturing over the next several months. The IMF will provide a $21 billion, three-year credit line, while another $36 billion will come from other multilateral agencies and individual countries such as the United States and Japan. The package tops the $50 billion the IMF raised for Mexico in 1994. South Korea had to agree to make structural economic changes long sought by its trading partners, such as an end to protectionist policies that reportedly will mean greater access by foreign investment and freer trade. However, the transition could be difficult. A reduction in government spending--a key element of past economic stimulation--and a tighter monetary policy will lead to a slowdown in economic growth. "In general we see growth slowing considerably in Korea," said Tom Byrne, vice president in the Sovereign Risk Unit of Moody's Investors Service. "Infrastructure definitely would slow down, because the government would want to minimize its fiscal stimulus." Because of the economic effect of IMF-mandated structural adjustments on Korea's financial and corporate systems, Moody's recently nudged its credit ratings lower for more than a score of banks, manufacturers and utilities. Those included some of the biggest backers of foreign technologies, such as SK Telecom, Korea Telecom and Samsung Electronics America, which could see domestic demand for their products and services slow as the government reins in economic growth. Earnings slowdowns also could shrink the amount of investment that companies such as Samsung and Pohang Iron & Steel--also downgraded by Moody's--are willing to place in startup U.S. wireless enterprises, such as financially strapped NextWave Telecom Inc. Directly affected, although to what extent is unclear, are companies such as Qualcomm. The company notes that its code division multiple access technology has more than 3.5 million users in Korea, making it the biggest single CDMA market. But the broader impact of the nation's economic slowdown could be positive. Analysts said the short-term medicine heads off the turmoil that could have resulted from failure to support South Korea, the world's 11th-largest economy. ---------------------------------------------------------------------------