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Last Updated: Thursday, 1 December 2005, 12:39 GMT
Firms slash flat-screen TV prices
Flat-screen TV
Experts are worried a glut of flat-screen sets will force prices down
South Korea's two largest manufacturers of flat-screen TVs are to slash prices in an effort to boost market share.

Samsung Electronics and LG Electronics are set to cut retail prices of LCD (liquid crystal display) sets in their home market by more than 20%.

The firms - the two main players in the market - face growing competition.

Despite the popularity of flat-screen TVs, analysts have warned that over-supply in the sector could force prices down sharply.

Strategic move

LG Electronics recently announced plans to spend $485m on building a flat-screen production facility near Seoul in partnership with Dutch firm Philips Electronics.

Samsung, the world's leading flat-screen producer, is also increasing production in anticipation of surging demand next year.

Experts believe next year's football World Cup will spur interest in flat-screen TVs in South Korea and Japan, both of which have qualified for the tournament.

"Investors seem to view their action as a strategic move to generate more demand and strengthen their market leadership," Chang Hwa-Tak, an analyst with Dongbu Securities, told the AFP news agency.

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