First Foreign-Korean Steel Company in the Works

The first steel joint company with an investment of foreign capital is likely to be established.
A market source said on April 14 that Kangwon Industries, producing electric furnaces,is negotiating with a foreign steel company that disclosed it's intention of investment to steel joint company.
Establishing a steel joint company by attracting foreign capital is the first case in Korea and considered as the restructuring model for the whole steel industry.
Kangwon Industries will build production facilities for steel reinforcing and section steel and the foreign company will invest capital.
Kangwon Industries,in a restructuring situation is expecting not only an improvement in their financial structure but also making inroads in foreign markets with the cooperative marketing strategies,after establishing a joint company.
Kangwon Industry said,'The negotiation is still in the early stages but once the joint company is established, we will concentrate on strengthening competitiveness by producing diverse steel products.'
Jooan Kang : jooan@joongang.co.kr