SK Teletech, a subsidiary of Korea's SK Telecom, recently secured a license from the Chinese government to set up a mobile phone manufacturing joint venture in China. Named SK Mobile China, the new venture will target the high-end segment and start providing CDMA handsets (Code Division Multiple Access) under the SK brand in early 2005. 

 

SK Mobile China is created with an initial paid-up capital of US$200 million. SK Teletech has 60% stake in the new company, while two other Chinese partners Tiandi Group Telecom Industry and Datang Telecom Technology acquire 25% and 15% respectively. 

 

The joint venture aims to capture $100 million in revenue in 2005 and $600 million by 2007. It also marks SK Telecom's latest strategic move to expand its market presence through a range of subsidiaries.