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South Korea, China to Establish Joint Venture For IT Work
South Korea and China will establish their first official cooperative venture fund in the information and technology sector in October, the Ministry of Information and Communication said Friday.
The information ministry of S. Korea and the municipal government of Shanghai agreed to raise $30 million to establish the fund, each country investing half.
"The municipal government of Shanghai expressed its wish to join hands, especially with handset manufacturing companies, high-speed Internet service firms and computer game companies in S. Korea," an official from the ministry said. "If such firms forge alliances with Chinese corporations, Shanghai promised full support."
More specifically, Shanghai pledged to help S. Korean firms find suitable Chinese corporate partners, to be guaranteed by the city government, the ministry said. Shanghai will offer aid when the joint ventures go public.
Rho Hee-do, head of international cooperation at S. Korea's information ministry and Cai Laising, president of Shanghai Industrial Investment Holding Co. signed a letter of intent, the ministry said. Shanghai Industrial is a public company set up by Shanghai city government in 1981.
Seoul and Shanghai plan to sign the agreement in October and to complete the fund in November. S. Korean firms may be able to access the fund from December.
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