Feeds

Phone maker VK declared bankrupt

Competition too strong

Secure remote control for conventional and virtual desktops

South Korean handset maker VK has been declared bankrupt after it failed to pay its creditors, local media reports reveal. Trading in the company's shares has been suspend pending a de-listing on 22 July.

According to a number of South Korean newspaper reports today, VK owed its creditors KRW1.78bn ($1.90m). Last week, an official from one of those creditors, the International Bank of Korea (IBK), was quoted as saying VK must put in place a strategy to deal with its debt or face collapse. The warning followed the passing of a deadline to pay back KRW2.8bn ($2.99m) and KRW3.5bn ($3.74m), though VK was apparently able to pay its creditors soon afterward.

Established as a battery manufacturer in 1997, VK started to make mobile phones in 2002. Initial success saw the company able to post sales of almost KRW400bn ($426.84m) in 2004, but cutthroat competition and the expensive purchase of French phone company VMTS took its tool in 2005, leading to a KRW65bn ($69.36m) loss.

VK CEO Yi Cheol-sang today pledged to get the company back on track. Options include receivership or debt restructure deals with VK's creditors. However, the competitive pressures that have caused the company such trouble remain.

Last month, it was rumoured that Motorola had signed a handset design and manufacturing deal with VK, and some analysts see a closer partnership with Motorola or one of the other major vendors as the smaller firm's only chance for long-term survival. ®

The essential guide to IT transformation

More from The Register

next story
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Apple to build WORLD'S BIGGEST iStore in Dubai
It's not the size of your shiny-shiny...
Just in case? Unverified 'supersize me' iPhone 6 pics in sneak leak peek
Is bigger necessarily better for the fruity firm's flagship phone?
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
TV transport tech, part 1: From server to sofa at the touch of a button
You won't believe how much goes into today's telly tech
The agony and ecstasy of SteamOS: WHERE ARE MY GAMES?
And yes it does need a fat HDD (or SSD, it's cool with either)
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.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?