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THIRUVANANTHAPURAM, Feb. 23

THE Kerala Industrial Infrastructure Development Corporation (Kinfra) and the Sigma Group of South Korea have entered into an agreement to form a joint venture company that will provide support services for Korean businesses that wish to start operations in Kerala.

Announcing this at a press conference in the city today, Mr Park Chan Dong, CEO, Sigma Group and Director General, Small and Medium Industries Association of Korea, said the concern would help Korean companies feel comfortable in the State. This venture will also provide Korean businesses desirous of investing in Kerala with a "clear picture" of conditions in the State, he added.

According to officials of the State Industries Department, this organisation would assist Korean companies in overcoming language and cultural barriers, besides serving as their interface with the State Government and other bodies in Kerala. Korean businesses that wish to start operations in the State can source a variety of support services, ranging from procurement of raw materials to hiring of suitable employees, through this JV company, the officials added.

Mr Park, who is leading an eight-member Korean delegation to Kerala, said he and his associates are in the State to follow up on some of the MOUs signed during the recently held Global Investors Meet (GIM). At the top of the delegation's agenda is the MOU on the establishment of a ship repair facility in Kochi. The delegation will meet with officials of the Cochin Port Trust on February 24 to work out more details, Mr Park said.

The facility, likely to be set up on a build-operate-transfer basis, will take two-three years to be completed if things go smoothly, he said. Mr Park, however, declined to speculate on what the investment in the project will be. "More information will be available only after we discuss things with the Cochin Port Trust," he explained.

Another delegation from Korea is expected to visit Kerala some time in April this year, said Mr Park. This team will focus on the proposal to set up a `Korean Industrial Village', another MOU signed during the GIM, said Mr P.H. Kurian, State Industries Secretary.

Korean companies are highly interested in the industrial village concept which will involve the relocation of Korean industrial units to Kerala, said Mr Park. Units from diverse industries have expressed an interest in this project, he added. Industries that are likely to start operations in the proposed `Korean Industrial Village' include chemicals, plastic manufacturing, animation studios and units that manufacture kitchen implements and white goods, he said.

Educational ties between Korea and Kerala have also received a boost with Korea's Chosun University instituting two `full' scholarships for students from Kerala, said Mr Park. The university, which is well-known for its naval architecture programme, hopes to be able to offer more such scholarships for students from Kerala, he added.

The State Industries Minister, Mr P.K. Kunhalikutty, who was present on the occasion, said the State Government would extend all possible support to the Korean companies that desire to start operations in Kerala. "There is a lot of potential for relocating industries to Kerala," he added.

Mr John Mathai, Principal Secretary, Industries, Mr Jiji Thomson, Managing Director, Kerala State Industrial Development Corporation, and Dr G.C. Gopala Pillai, Managing Director, Kinfra, were present on the occasion.

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