Feeds

IBM and LG endure post South Korea scandal breakup

Go your own way

  • alert
  • submit to reddit

Boost IT visibility and business value

IBM and LG Electronics are going their separate ways in South Korea, dissolving an eight-year pact around PC manufacturing and sales.

LG IBM PC Ltd. had operated as a joint venture of the two firms with IBM holding 51 percent of the company and LG picking up the other 49 percent. By the end of this year, both firms plan to operate on their own and have competing PC lines. The LG IBM alliance was damaged by scandal early this year, when Korean investigators charged the firm with contributing to an IBM Korea bribery operation. Three IBM Korea workers and three LG IBM workers were fired as a result of the case, which saw executives use handouts such as exclusive golf club memberships to secure server and PC sales.

IBM denied that the scandal had anything to do with the end of he join venture.

IBM originally tapped LG Electronics to help it gain entry into the South Korean PC market. LG, an electronics makers, benefitted by learning the ins and outs of the PC business from IBM.

IBM Korea will continue to ship its ThinkPad laptops and LG will move its Xnote laptop line. ®

Related stories

LG will persist with Smart Display, even after Microsoft drops it
Java and DRM key to mobile ambitions
Symbian doubles sales

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.