Shortcut to Body Shortcut to main menu

Investment News

  • Home
  • About Us
  • Newsroom
  • Investment News
S. Korea seeks to develop parts, materials industry with global firms
제목 없음 South Korea signed agreements Monday with two global companies to jointly develop and sell industrial parts and materials in the international market.

   The move is specifically aimed at assisting the country's small and medium-size companies in the parts industry as the memorandums of understanding (MOUs) urge the two foreign firms to increase their use of South Korean products, according to the Ministry of Knowledge Economy.

   One MOU was signed between the ministry, the country's global memory chip and TV maker Samsung Electronics Co. and Applied Materials Inc., a U.S.-based company and the world's top computer equipment and software services provider.

   Under the agreement, the U.S. firm will jointly develop new parts and materials with South Korea's small and medium-size producers for use in its products.

   Samsung, in turn, will expand its use of products from Applied Materials that will be jointly developed by South Korean companies.

   "Samsung Electronics actively sought to sign the MOU as it realized the technology and products of the country's parts and materials companies also needed to be brought up to the global level for it to sustain its global competitiveness," the ministry said in a press release.

   The other MOU, signed between the ministry and the United States' Caterpillar Inc., also calls for joint development of new industrial parts and materials by local firms and the world's largest manufacturer of construction machinery and equipment.

   Under the two MOUs, South Korean firms are expected to be able to supply some 1 trillion won (US$871 million) worth of products to the two global companies by 2015, the ministry said.

   South Korea's industrial parts and materials industry is already growing rapidly with its exports in the first nine months of the year reaching US$192.1 billion, a surge of 14.6 percent from the same period last year.

   Both the amount and growth rate surpass those of the country's IT industry, previously one of the key exporting sectors. IT-related overseas shipments in the January-September period grew just 3.8 percent on-year to $117.55 billion.

Source: Yonhap News (Oct. 17, 2011)

Meta information