SEOUL -- LG Electronics Inc. has signed a memorandum of understanding with Nortel Networks to form a telecom equipment joint venture here.

LG Electronics will hold just under 50%, and Nortel will have 50% plus one share.

The venture, temporarily named LG-Nortel Networks, will focus on developing equipment for 3G wireless networks based on W-CDMA technology, according to press reports.

Nortel is the larger shareholder for the purposes of accounting, the companies said.