Gov't to spend 225 bln won to turn Daegu into 'global mobile cluster'

SEOUL, Jan. 14 (Yonhap) -- The government said Thursday that it will spend 225.3
billion won (US$200.6 million) in the next five years to transform the industrial
city of Daegu into a "global mobile cluster" that can strengthen South Korea's
leading position in wireless phones.
The buildup plan for the city 302 kilometers southeast of Seoul aims to counter
challenges posed by Apple's iPhone and foreign-made smart phones, the Ministry of
Knowledge Economy said.
South Korea currently controls 30 percent of the global market for mobile phones
making it one of the top three manufacturers of the product along with Finland
and the United States.
Of the total to be used from 2010 through 2014, 157.4 billion won will come from
the central government.
The government plans to use the money to enhance research and development
infrastructure in mobile convergence needed to make next-generation mobile
phones, and create a effective testing environment for prototypes and new
products.
"Daegu is an ideal site for the cluster since 51.1 percent of all locally
manufacturered mobile phone handsets are in the city and there are over 400
companies engaged in such businesses in and around the city," an official said.
Companies based in the city churn out 18 trillion won worth of mobile phone
products per year.
"Making a cluster is expected to help companies save up to 50 billion won per
year on test related costs and reduce development time by around 30 days," he
said. This can translate into a 10 percent increase in sales and creation of
5,000 new jobs.
yonngong@yna.co.kr
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