iMarket Korea, an industrial material distribution company, announced on the 8th that it has signed an agreement with Gukpung Investment Holdings Limited (Gukpung Group) and the Yeontae Hwang Balhae New District Management Committee to promote the establishment of a local joint venture and cooperate in business to expand the integrated purchasing business in the Chinese market.
Through the agreement, the three organizations decided to establish and operate a joint venture (JV) to carry out integrated purchases and related businesses in China. The detailed conditions will be finalized within this year.
JV, which will be established locally, plans to supply total outsourcing service (TOS), iMarket Korea's integrated purchase service, to listed companies invested by Kukpung Group and companies in Yeontae Hwanghae New District. TOS is a service that integrates a company's purchasing work and is a key business model of iMarket Korea that supports customers' purchasing competitiveness through efficient purchasing process, supplier management, and item standardization.
In addition, iMarket Korea plans to expand into business areas that can be linked to integrated purchases such as trade and logistics, and create synergy with existing Chinese subsidiaries iMarket Focus and iMarket draft.
Kim Hak-jae, CEO of iMarket Korea, said, "We will not only improve the purchasing competitiveness of local companies but also expand our business areas to various fields such as trade and logistics beyond integrated purchases."
Gukpung Group, with total assets of about 106 trillion won, is a state-run investment platform company under the government of Yantai City in Shandong Province, China. Founded in February 2009, Kukpung Group has stakes in eight Chinese-listed companies, including Xuyang Chemical Group, Bingryun Heavy Industries and Dongbang Electronics, and is involved in the establishment of a total of 38 funds, including bio, aerospace and marine.
The Yeontae Hwangbalhae New District Management Committee is an administrative agency responsible for fostering industries, attracting companies, and supporting investments in the Hwangbalhae New District in Yeontae City, Shandong Province, China. Currently, 80 of Fortune Global 500 companies are located, and the size of foreign investment projects attracted exceeded about 68 trillion won as of last year. More than 650 Korean companies, including Hyundai Motor, POSCO, and LG, are also moving into the Hwanghae New District to continue their business activities.
