Ericsson has acquired additional shares in its South Korean arm LG-Ericsson, strengthening its majority holding from 50 percent plus one share to 75 percent. Financial terms were not disclosed.

The Swedish equipment giant entered into the JV with LG Electronics after buying out Nortel’s majority shareholding (50 percent + 1 share) for US$242 million in cash in July 2010, renaming the firm from LG-Nortel in the process.

At the time of the deal, Nortel’s stake in LG-Nortel was one of the last remaining assets held by the bankrupt Canadian firm, but was a standalone business that had not filed for creditor protection. 

Ericsson said (in 2010) that the deal was designed to “significantly expand Ericsson's footprint in the Korean market and provide Ericsson with a well-established sales channel and strong R&D capability in the country..  and provide Ericsson with an industrial base and the ability to build new customer relationships."

Formed in 2005, the company has 1,300 employees and is headquartered in Seoul in South Korea. It claims to have “important contracts” with all three of the main South Korean operators, and is among the vendors currently building out the LTE networks for local operators SK and LG U+.