Clockwise: Samsung Electronics' MP3 players YP F1 and YP-T7, Reigncom's iRiver N10 and Apple's iPod

Korean makers of MP3 player are chasing merger and acquisition deals to boost their competitiveness with global market leader Apple.

Samsung Electronics recently announced it is absorbing the research, development and marketing workforce of its subsidiary Bluetek into the parent company to nurture digital audio devices like MP3 players. Bluetek is a spin-off of Samsung Electronics established after the audio equipment section of Samsung Electronics separated from the parent company in 1998. But since MP3 players emerged as an important market, Samsung decided to directly manage development and marketing of products. With the move, the company aims to capture a 10 percent global market share this year and take first place by 2007, a Samsung official said.

MPIO meanwhile bought PVR (personal video recorder) maker Digital & Digital through a subsidiary last month. With the merger, MPIO, which exports MP3s to 57 countries, plans to make significant inroads into overseas home entertainment markets.

Korea’s largest MP3 player manufacturer Reigncom in April bought Early Adopter, a company that plans and tests cutting-edge IT devices. The move aims to harness early adopters, who set the trend in developing state-of-the-art products. Reigncom also landed a scoop by acquiring MP Man.Com, which holds the original patent on MP3 players.

A Reigncom official said competition had become stiff with Apple and Sony vying for dominance in the MP3 player business, and mergers and acquisitions had become inevitable to maintain the company’s competitiveness.

(englishnews@chosun.com )