TOKYO (07/05/2000) - With an eye on South Korea's rapidly expanding information technology sector, Hitachi Ltd. has taken majority control of LG Hitachi Ltd., a joint venture with LG Electronics Inc.
The company, established in 1996, currently markets computer systems such as mainframes, sells software products and offers consulting services but Hitachi plans to use it as a vehicle to grab a larger share of the South Korean systems, software and services market, said company spokesman Masanao Sato [CQ].
Hitachi purchased around half of LG Electronics' stake in the venture to give it a 51 percent shareholding in LG Hitachi. LG Electronics, one of Korea's largest electronics companies, holds the remaining 49 percent stake. Financial details were not disclosed although the Korea Herald reported LG received around 6 billion [B] won (US$5.4 million) for the shares.
With Hitachi in the driving seat, the company hopes turnover at LG Hitachi will hit 20 billion [B] yen (US$188.7 million [M]) in calendar year 1999, up from 4 billion yen in 1999.
LG Hitachi, in Seoul, can be contacted at +82-2-3459-4354 and is online at http://www.lghitachi.co.kr/. Hitachi, in Tokyo, can be found online at http://www.hitachi.co.jp/. LG Electronics, in Seoul, is online at http://www.lge.co.kr/.