LG IBM Overtakes HP Korea in South Korean Notebook Computer Market

LG IBM Co., a joint venture between U.S.-based International Business Machines Corp. and LG Electronics, has outsold HP Korea in the fourth quarter of last year, marking the first time HP Korea has fallen to third place in the South Korean market. LG IBM sold 26,000 notebook computers locally between October and December, while HP Korea sold 24,000 notebooks during the same period. The achievement of LG IBM, however, has been marred by a bribery scandal involving itself and its parent IBM Korea Inc.

Key Takeaways:

• LG IBM Co. outsold HP Korea in the fourth quarter of last year, selling 26,000 notebook computers locally, while HP Korea sold 24,000 units during the same period.
• This marks the first time HP Korea has fallen to third place in the South Korean market.
• Samsung Electronics Co. remains the market leader, selling 50,000 notebooks in the fourth quarter.
• Toshiba Korea and Trigem Computer came fourth and fifth, with sales volumes of 12,600 and 12,500 units, respectively.
• The corruption scandal surrounding IBM Korea, involving bribery worth 66 billion won (US$55 million), is affecting its business and has been a boon for HP Korea.
• IBM Korea has ceased bidding for government contracts until it completes an internal investigation.
• Korean prosecutors have indicted 48 people in connection with the bribery allegations.

Statistics:

• LG IBM Co. sold 26,000 notebook computers locally between October and December.
• HP Korea sold 24,000 notebook computers during the same period.
• Samsung Electronics Co. sold 50,000 notebooks in the fourth quarter.
• Toshiba Korea sold 12,600 notebooks in the fourth quarter.
• Trigem Computer sold 12,500 notebooks in the fourth quarter.
• The bribery scandal involves 18 billion won (US$15 million) in commissions and 48 trillion won (US$40 million) in business deals.

Sources:

• Asia Pulse, Jan 7
• Yonhap News Agency