Outsourcing has been a common practice most companies use in order to reduce cost. Samsung Electronics, the second largest handset maker in the world, is planning on reducing phone
production in Korea and sending it abroad. It will now reflect a decrease to 23 percent production in Korea while places like China, Vietnam, and India will see an increase. This all being executed in order to keep up with competitors and expand its mid and low end mobile phone production. There was some retaliation last year when the Korean company tried to transfer high production costs to its subcontractors. It incited some resistance when their Gumi production plant halted operations for half a day.
via Telecoms Korea