Literally, Mount Ear, in county Savukoski, Lapland. The height is about half a kilometer, so it is a big hill, really. It has three summits and the Finnish-Russian border divides them. The traditional dwelling place of the Finnish Father Christmas, "Joulupukki". This region belongs to the reindeer country proper, thus the place is lots better for Santa to live than the North Pole (with no reindeers at all - its only stiff water there!).
Korvatunturi is situated within the border region which is strictly off-limits for ordinary tourists - maybe this has added to the myth and mystery of the place. Actually this tradition is very young one. In 1927 the Finnish radio personality Uncle Marcus invented the whole thing telling his young listeners that Father Christmas lived in (on?) Korvatunturi and used the ears of the mountain to listen to the wishes of children. This stuck and the story goes that after the war, when Finland was compelled to make concessions to Russia, they demanded the whole mountain, but relented when they were told about the significance of Korvatunturi for Finnish kids.