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Special Supplement: South Korea - Dangerous Liaison? - Korea Is Becoming Far Too Reliant On...

The primary concern for South Korea's mobile phone industry is neither technology nor marketing strategy. What worries manufacturers is growing signs that the Chinese government might take measures aimed at lowering the share of Korean players.

"The portion of sales in China is growing fast, and it's natural that we are very concerned about what the Chinese government does in connection with trade polices with Korea," says an official of a mid-sized Korean handset manufacturer.

The move shows two conflicting aspects: Korea's export to the fast-growing Chines

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