Abstract: A folder type portable terminal and a method for setting a key input unit thereof are disclosed. The folder type portable terminal includes a key input unit, a body, and a folder. The key input unit includes a first key set having a plurality of keys, each key being allocated a dial key to make a call and an alphabet key based on a QWERTY-type letter arrangement, a second key set having alphabet keys, a third key to perform a plurality of functions including making calls, and a fourth key set. The body is equipped with the key input unit. The folder is rotatably coupled to the body with respect to a hinge. At least a part of the key input unit protrudes from the body when the folder rotates with respect to the hinge to be opened with respect to the body.