Feeds

Phone maker VK declared bankrupt

Competition too strong

Providing a secure and efficient Helpdesk

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. ®

New hybrid storage solutions

More from The Register

next story
Apple iPhone 6: Missing sapphire glass screen FAIL explained
They just cannae do it in time, says analyst
Quit drooling, fanbois - haven't you SEEN what the iPhone 6 costs?
How keen will buyers be when exposed to the real price?
Slap my Imp up: Bullfrog's Dungeon Keeper
Monsters need to earn a living too
Amazon axes hated Fire Phone price: 99 pennies but a niche? Ain't none
Forgive the double negative but seriously, no one wants this mobe
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
The Apple Watch and CROTCH RUBBING. How are they related?
Plus: 'NostrilTime' wristjob vid action
Oh noes, fanbois! iPhone 6 Plus shipments 'DELAYED' in the UK
Is EMBIGGENED Apple mobile REALLY that popular?
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.