Swedish telecom gear manufacturer, Ericsson is set to invest $ 1.5 billion over a period of five years in South Korea as announced by a South Korean presidential office statement on Sunday. The announcement follows a meeting by South Korean President Lee Myung-bak with Ericsson CEO-elect Hans Vestberg in Sweden.

The investment will see increased spending on R&D activities by the Swedish firm as well estimated creation of 1000 new jobs at Ericsson’s Korea facility. Main activities at the facility will revolve around development of 4G technology.