OREANDA-NEWS. July 11, 2012. Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has established a new company in Korea, Mitsubishi Electric Korea Co., Ltd., to function as a local purchasing base for the Mitsubishi Electric Group and also as a sales base and representative for Group companies operating in Korea in the future.

The new company will start procuring materials and components from August and will aim for sales of over 3 billion yen in fiscal 2015.

New Company OutlineName Mitsubishi Electric Korea Co., Ltd.
Location Seoul, Republic of Korea
President Takeshi Tamai
Paid-in capital 900 million won (approximately 63 million yen)
Ownership Mitsubishi Electric Corporation: 100%
Registration July 6, 2012
Start of operations (plan)  August 1, 2012
Employees 7 (plan for current fiscal year)

Background to Establishment
 Following OECD membership in 1996 and the Asian currency and economic crisis of 1997~1998, the Korean government relaxed foreign investment restrictions and promoted far-reaching liberalization measures. As a result, with the exception of some industries, virtually all barriers have been lifted to provide a suitable environment for foreign investment. Despite impact from the current global economic downturn, Korea's real economic growth rate continues to be solid, and last year, the Korean government announced a national strategy to foster its materials and components industry.

To date, almost all of Mitsubishi Electric's businesses have procured materials and components from Korea, and with the establishment of Mitsubishi Electric Korea, Mitsubishi Electric will work to increase procurement from leading, fast-growing Korean suppliers. At the same time, Mitsubishi Electric Korea will plan to conduct sales activities and build a structure that provides enhanced corporate functions to Group operations in Korea.