Microsoft To Expand Investment In South Korea

Microsoft To Expand Investment In South Korea

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Story Published: May 25, 2006 at 6:50 AM PDT

Story Updated: Aug 31, 2006 at 8:26 AM PDT

By Associated Press

SEOUL, SOUTH KOREA - Microsoft Corp. says it plans to expand investments and projects in South Korea, expressing confidence in the future of the high-tech country even as it presses ahead with a legal challenge over an antitrust ruling.

The software giant said Thursday it is investing a total of $60 million over three years to promote innovation in information technology, Chief Executive Steve Ballmer said.

South Korea is "one of the two or three leading digital economies in the world," Ballmer said in a speech to Seoul Digital Forum 2006, a three-day gathering of leading industry figures. "Microsoft is very committed to really helping enable growth in this market."

Ballmer said the investment includes "innovation that's designed to help over 60 Korean software companies thrive not only here in Korea but in export throughout the world."

Under the plan, the company will invest $30 million to expand an innovation center to "incubate new products and technology for export," Microsoft said in a release.

That comes on top of $30 million already put into the project, Ballmer said at a press conference after the speech.

The expanded investment comes as Microsoft is embroiled in a dispute with the Korea Fair Trade Commission, which has fined the software giant $34 million, ruling it abused its dominant market position by tying certain software to its Windows operating system.

Under the ruling, Microsoft is required to provide two separate versions of Windows after Aug. 24. One must be stripped of Windows Media Player and Windows Messenger, and the other must carry links to Web pages that allow consumers to download competing versions of such software.

The commission on Monday rejected Microsoft's appeal to reconsider the ruling. The company has also lodged a separate appeal with the Seoul High Court, where no decision has been reached.

"Our case is obviously at this stage in the Korean legal system, which we respect," Ballmer said. "It'll work its way through that system."

Microsoft also said it would collaborate with South Korea's Ministry of Education in areas including curriculum development and teacher training. Microsoft said it also plans to expand technology education for senior citizens.

Separately, the company said it would cooperate with Samsung Corp., the country's largest conglomerate, in developing strategies for integrating digital products onto a single platform in new apartments Samsung will construct.

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