"The government is pushing to have all the parts that are used in CDMA (code division multiple access) wireless handsets and ADSL (asymmetric digital subscriber line) systems produced domestically.
"Announcing the plan, which envisions 100 percent domestic production of CDMA and ADSL parts by the end of next June, the Ministry of Information and Communication said it was prompted to take action by the steep increase in parts for mobile communication devices which are taking a heavy toll on the nation's trade balance.
"The plan, which follows closely on the heels of the government-placed ban on handset subsidies, a move made to contain the dollar drain on imported CDMA parts, would encourage equipment manufacturers and parts suppliers to work closely to ensure that more domestically developed parts are employed in the end-products.
"Korean makers of CDMA handsets have relied completely on Qualcomm for core chipsets. But chipsets have been developed locally, and a significant portion of other parts are made here, including liquid crystal displays (LCD) and printed circuit boards (PCB). "In fact, some 71 percent of the parts are made locally now," said a ministry official.
"... Meanwhile, exports of wireless telecom equipment, including CDMA handsets and systems and GSM handsets, in the first four months of the year recorded 2.08 billion dollars, while imports of parts stood at $1.14 billion.