Established as a battery manufacturer in 1997, VK started to make mobile phones in 2002. Initial success saw the company able to post sales of almost KRW400bn ($426.84m) in 2004, but cutthroat competition and the expensive purchase of French phone company VMTS took its tool in 2005, leading to a KRW65bn ($69.36m) loss.
VK CEO Yi Cheol-sang today pledged to get the company back on track. Options include receivership or debt restructure deals with VK's creditors. However, the competitive pressures that have caused the company such trouble remain.
Last month, it was rumoured that Motorola had signed a handset design and manufacturing deal with VK, and some analysts see a closer partnership with Motorola or one of the other major vendors as the smaller firm's only chance for long-term survival.