LG Electronics and Nortel Networks launch a wireless equipment JV in South Korea.

LG Electronics and Canada’s Nortel Networks Corporation have formally launched a wireless equipment joint venture in South Korea.

In August, LG and Nortel agreed to establish the 300 billion won ($295 million) joint venture in mid-October to produce telecommunications network equipment. LG also said in a regulatory filing that it would spend 152.5 billion won to buy a 49.99 per cent stake in the LG-Nortel venture. Nortel will hold the remaining stake in the venture and is reportedly planning to absorb the Canadian company’s South Korean operations and workforce.