MERGERS OF S.KOREAN HANDSET MAKERS WITH FOREIGN COS ON THE RISE.

SEOUL, Nov 1 Asia Pulse - More foreign telecommunications makers have been seeking mergers with small South Korean mobile phone makers recently, as two mergers were finalized and two others are under discussion, an industry source said Monday.

U.S.-based UTStarcom Inc., which sells wireless telecommunications equipment in China, recently acquired a research and development division of Giga Telecom Co. for US$14.6 million.

Giga Telecom develops code division multiple access (CDMA) handsets for the Korean and global markets.

The deal is expected to help UTStarcom get access to the mobile phone market using the CDMA standard, the second-most widely used standard after GSM technology, analysts here said.

Motorola Inc., the world's second-largest mobile phone vendor, also recently completed purchasing nearly all the stakes in Appeal Telecom Co., setting the stage for market-share battles with South Korea's established brands such as Samsung's "Anycall" and LG's "Scion."

In June, Motorola raised its interest in Appeal Telecom to 99 percent from 53 per cent.

In tech-savvy South Korea, ...