Domestic Firms Attract Keen Interest From Foreign Investors

KOREA Times 2000/05/17

Domestic venture companies have begun to attract increasing interest from foreign investors as a promising target for investment mainly in the areas of information, technology and games.

Foreign venture capital companies are paying mounting heed to the local enterprises, heightening the possibility toward joint venture ties and strategic alliances, according to the Korea Trade-Investment Promotion Agency (KOTRA) yesterday.

Korean venture firms which took part in investment promotion fairs in Hong Kong, Los Angeles and Washington from May 7-15 succeeded in attracting some $80 million investment from abroad.

KOTRA, which organized the fairs jointly with the Korea Game Promotion Center under the umbrella of the Ministry of Culture and Tourism, said 14 Korean venture companies in high-tech areas covering information, electronics, software and gaming engaged in brisk negotiations with more than 130 leading venture capital concerns like Morgan Stanley and investors representing major enterprises.

``This reflects the foreign investors' growing interest in the high-level technology of the domestic venture businesses,'' said a KOTRA official.

Mirae Tech, a maker of antennas for mobile phone sets, has inked a letter of intent with Global Overseas, a leading venture fund of the United States.

ComTech, a provider of comprehensive solutions for Internet phone and computer communications, has set up a joint venture with a Hong Kong branch of a Singapore firm, agreeing to advance on the Chinese market under a partnership

ComTech expects to induce about $10 million from the company in the near future.

IMRI is also set to jump into the Chinese market jointly with a Hong Kong company by establishing a joint venture for the production of TFT-LCD goods.

An executive officer of the Hong Kong firm will visit Korea next month to discuss with IMRI ways to materialize their business projects in this respect.

Korea GMX, a manufacturer of data transmitting equipment, is progressing negotiations with an ethnic Chinese businessman who offered a $3 million investment for the firm.

Hyunwoo McPlus, an Internet equipment maker, has recently signed with a Hong Kong venture capital firm for exports of $5 million worth of products.

GIS Soft, specializing in geographic information system, is also attempting to make inroads to the U.S. market as it has recently been offered to set up technology ties from a U.S. firm.

Leading game software makers like Main GeoInteractive, JC Entertainment and Wiz Gate also participated in the investment sessions, exploring opportunities to advance on overseas markets.

``Companies from the U.S. and Hong Kong have opted to join hands with Korean counterparts to jump into the Chinese market, in particular, with huge buying potential,'' said a KOTRA official.

With the aim of preparing launchpads in Korea for advancing on the Chinese market, they are briskly seeking joint ventures with local enterprises, he said.