Xperia Arc, the newest model in Sony Ericsson’s smartphone lineup, on Friday hit nationwide SK Telecom stores at a retail price of 803,000 won ($737).

Prices will vary depending on the type of call plan customers decide on, Sony Ericsson representatives said.

The latest in the Xperia series was priced slightly cheaper than other smartphones released here, such as Samsung’s Galaxy S and Apple’s iPhone.

South Korea was the second country Sony decided to release its Arc phone, followed by Japan where sales began on March 24. 

Company spokespeople said the prices were not changed too much from previous models, such as the Xperia X10, which also cost around 800,000 won.

Prices of smartphones have been catapulted to the center of controversy in Korea as consumers are increasingly complaining about the suggested retail prices that are as a rule higher than when the same phones are sold elsewhere in the world.

Both the Galaxy S and iPhone, for instance, are more expensive in Korea than in the U.S.

The country’s telecommunications regulator, the Korea Communications Commission, is currently working with a government task force aimed to reduce communication costs, including phone bills.

Xperia Arc will run Android’s mobile based Gingerbread with a 4.2-inch display, adapted from Sony’s Bravia televisions.

Also taken from Sony’s digital cameras is the Exmor R back-illuminated CMOS sensor, which helps take brighter and clearer pictures even under dim lighting or at night.

Known for its ergonomic design, the Arc measures just 8.7-millimeters at its thinnest point.

By Kim Ji-hyun  (jemmie@heraldcorp.com)