TOKYO (03/23/2000) - China.com Corp. has announced plans to take a stake in a Korean Internet company and said it plans to establish a joint venture fund to invest in Korea's Internet industry.
China.com will take a stake in KoreaOnline Ltd., the company said in a statement -- although did not disclose the size of the stake or the amount paid. KoreaOnline plans to offer various online financial services via the Internet after market deregulation comes into effect on April 1. In addition, it owns one of Korea's 11 non-life insurance licenses.
The news follows a successfully completed local placement of 9 million new shares in KoreaOnline (KOL), which took place earlier this week. The company made US$117 million from the placement and said it will use the money to finance various projects of KOL, including the construction of an online financial services business. Hong Kong-based conglomerate Regent Pacific Group Ltd. is a major shareholder in KOL with a 46.2 percent stake.
In addition to announcing its investment in KOL, China.com also said it plans to establish a new venture fund to invest in Korean Internet and hi-tech projects. China.com will take a 50 percent stake in the fund while KOL and its affiliates hold the other 50 percent. The size of the proposed venture fund was also not disclosed.
China.com Corp., in Hong Kong, can be found online at http://www.corp.china.com/.