‘How does a new form of Pantech going to look like after it captured an opportunity to revive.’
After buying Toshiba Samsung Storage Technology last year, Optis Consortium decided to buy Pantech that was in a danger of liquidation. Main points that Optis want for Pantech are listed per issue.
◇Only 400 people are succeeded to be employed?...It is a misunderstanding that only minimum manpower will be employed contractually
As the deal for Pantech became known recently, news that Optis Consortium is succeeding only 400 Pantech’s employees had been reported. Pantech’s executives and staffs, who were happy about the possibility of Pantech’s revival, are now becoming unrest about employment. Optis Consortium however explained that the number 400 is only the minimum of number that was stated at the time of the deal. This explains that the number actually exceeds 400 when it comes to estimating reasonable manpower during actual process. Optis Consortium is planning to keep not only Pantech’s previous management, but also core manpower responsible for research development and production.
“There is no one from Consortium who worked in Smartphone industry before. We are planning to look for efficient way of utilizing current Pantech’s management to maximum. We are also considering ways where we can help employees who can’t stay at Pantech to continually work at Optis and our cooperative companies.” CEO Lee Ju Hyeong of Optis said about what Optis is planning to do with Pantech’s executives and staff.
◇Optis Consortium is definitely keeping production field
Optis Consortium is pushing for its own production ways of Smartphones after buying Pantech rather than using foreign businesses. Although it is better to use Chinese and Taiwanese Electronic Manufacturing Service (EMS) if it is thinking about production cost, Optis thinks that it will make a breakthrough in the market by sustaining competitiveness in production in long-term. To raise competitiveness in production cost, it is planning to lower emphasis in production in Korea and establish new Smartphone factories in Indonesia. It also set up a plan to establish a cluster of Smartphone industry in Indonesia by entering not only with Pantech but also with its cooperative companies. It is also thinking about a solution to maximize synergy effect since Korea’s part businesses such as Optis are expanded not just in Indonesia but in Philippines as well.
Optis is examining a way to establish a joint venture capital that will take full responsibility of production of Smartphones by working together with local companies. Many famous big companies in Indonesia are showing lots of interests in Pantech expanding over to Indonesia.
◇It is focusing on finding niche markets rather than competing against Samsung Electronics and Apple
Pantech had been competing against big companies such as Samsung Electronics and LG Electronics in Korea’s Smartphone market, but Optics Consortium is trying to focus its ability on finding niche markets in foreign countries. It is observing carefully at the markets in Indonesia. Most of Indonesians are currently using 2G phones, and Indonesia government is looking into ways of going straight to 4G LTE and skipping over 3G.
Pantech thinks that it can preoccupy LTE Smartphone markets up to a certain degree if it can add speed by producing in Indonesia. Hardware specification such as Application Processor and Display are already at an upward leveling up to a certain degree.
“We are able to connect with Indonesian sides during the process of Optis’ foreign business. We are going to obtain abilities that will enable us to rapidly develop and make products that local market needs. It is not a wishful thinking that Pantech will make Smartphones for citizens in Indonesia.” CEO Lee Ju Hyeong said about what Optis will plan to do in Indonesia.
Optis Consortium needs to complete its inspection of Pantech by the 7th of July and sign on formal agreement on the 17th of July. “Optis paying performance deposit of 1.8 million dollars (2 billion KRW) shows its will to buy Pantech, and there were no problems with payments to buy Pantech. Because we think that there will not be any particular problems with Pantech since it was under supervision for reasonable time, we are going to discuss with Pantech’s executives and staff during the inspection period about its management plan from hereafter.” CEO Lee Ju Hyeong said about what Optis plans to do with Pantech by discussing future plans with Pantech’s executives and staff.
Staff Reporter Lee, Hyeongsu | goldlion2@etnews.com