Chinese Manufactured Product Cut From South Korean Website Interpark After Being Seen As Threat To Local Brands

Xiaomi, the second largest smartphone company in China and the fifth in the world, has been gaining popularity in the South Korean telecommunication market. The soaring sales of China-manufactured mobile phones is now being seen as a threat to homegrown brands such as LG Electronics and Samsung Electronics. 

KT Mobile, South Korea's second largest mobile carrier, and Interpark, a popular internet shopping site in the country, collaborated to market the latest smartphone innovation from electronics brand Xiaomi, which is the Redmi Note 3. The device carries a 16-gigabyte storage and has a price tag of $57.10 (68,000 won). Upon purchase, customers will be entitled to a 20 percent discount on their monthly mobile charges.

Local consumers' enthusiasm and interest with Xiaomi's Redmi Note 3 offering were suddenly stopped by officials from the local telecommunications industry who announced recently that Interpark has halted the sale of the Redmi Note 3.  

Korea Times reported Thursday that the tactical decision was made "to prevent the possible worsening ties with Samsung Electronics and LG Electronics because growing sales of Xiaomi devices will clearly sap demand for Samsung and LG phones."

However, LG and Samsung Electronics denied allegations that it compelled Interpark to pull out Xiaomi products from its shelves.

An executive of LG Electronics' said the company never pressured Interpark to stop its disbrution of Xiaomi smartphones. In fact, LG recognized the improving quality of Chinese phones in the market.

The Redmi Note 3 was introduced to the public in China last year and over 10,000 units have been sold to South Korean consumers through Chinese online shopping websites, The Chosun Ilbo reported Saturday.  

An official at the Ministry of Science, Information and Communications Technology and Future Planning said that the introduction of Chinese mobile technologies in the market will possibly become a factor that will encourage Samsung and LG Electronics to modify their high pricing strategies.

The official said, "Local brands will lower suggested retail prices of their devices to save their bottom lines, which will be helpful to consumers."