The consortium comprising local companies Solid and Optis said Thursday it completed its takeover payment to buy the nation’s third largest smartphone maker Pantech under receivership.
Telecom device firm Solid’s regulatory filing showed that it lent 47 billion won to SMA, its subsidiary, in its attempt to take over the ailing smartphone firm.
With Pantech’s revival procedure coming to a close, the company has come under a media spotlight over whether it could revive and make success in overseas smartphone markets as the consortium planned.
The consortium reportedly plans to make Pantech center on the Indonesian market. Its smartphones are expected to be produced in the nation and the product planning and research and development will be carried out in South Korea.
As soon as Pantech’s workout procedure is completed, the firm is expected to set up a joint venture with local telecom operators and distribution companies in Indonesia. After seeing success, the firm plans to jump into other Southeast Asian countries.
Byun Yang-kyun, chairman of Optis, recently said during a press briefing that, "We are planning to penetrate into Southeast Asian countries including Vietnam, Sri Lanka and Myanmar apart from Indonesia.”
He added, "Although Pantech could not make success in the domestic market due to economic and industrial barriers, we will continue to ponder over how to achieve success in the global market."
Industry watchers have a mixed view about the firm's success in the already saturated smartphone market while Chinese companies such as Xiaomi and Huawei are extending their market shares. Still, some say the budget phone maker Pantech may have an opportunity as low-priced phones are gaining traction over premium phones in the global market.
It remains to be seen whether the firm could map out a strategic plan to beat Chinese rivals in the emerging markets.
Chung Joon, chief of Solid, said, "We are also making a blueprint for new Pantech, by setting an eye on a fast growing Internet of Things market alongside the mobile industry."
Pantech, set up in 1991, drew up its market share to a 14 percent in the local smartphone market in 2010, beating LG Electronics. But, the firm has since gone downhill for years due to sluggish sales and applied for court receivership in August of last year.
