Asia Times: Korea, China set up IT cooperation fund


	September 29, 2001	atimes.com

Media/Information Technology

Korea, China set up IT cooperation fund

SEOUL - South Korea and China will set up a US$30 million wireless technology cooperation fund that is expected to enhance greater exchanges between telecom companies of the two countries.

Seoul's Ministry of Information and Communication said on Friday that Roh Hee-do, the ranking official in charge of international cooperation, met Cai Lai-xing, president of the Shanghai Industrial Investment Co (SIIC), and agreed to a preliminary pact. The formal agreement will be signed in late October or November. The money should be made ready for investors early in 2002, with the ministry accepting companies who want to do business with Chinese firms in Shanghai around December. SIIC is a business concern run by the Shanghai municipal government.

The Korean government will come up with US$10 million, while SIIC will make up another US$10 million with the remainder to be raised by private companies and investors who have expressed an interest in the venture.

"This is the first time an agreement related to information technology has been reached between the Korean government and Shanghai," said an official. He added that the money would be used exclusively for the mobile communications sector, high-speed data links and other IT fields.

The official said that both sides hoped that the funds would broaden opportunities for joint Sino-Korean ventures between small and medium-sized businesses. In particular, they wanted progress made in the manufacturing of code division multiple access (CDMA) and global system for mobile communications (GSM) phone units, as well as the asymmetric digital subscriber line (ADSL) fields.

The money should also be allocated to strengthening telecom applications, building data relaying infrastructure, Internet platforms and on-line games production.

The two sides also said a roadshow to be attended by over 200 companies would be held in early December to facilitate discussions aimed at expanding Korean participation in the Chinese market through joint ventures. Companies will also be able to talk about prospects for future technology development.

The South Korean government believes that the creation of the fund signifies that the five-year long effort by the two countries to work together in the CDMA field has reached a stage that will now permit small and medium-sized businesses to participate in exchanges.

(Yonhap/Asia Pulse)