On June 13th, LG N-Sys (CEO Chung, Tae-Soo, http://www.lgnsys.com) announced a strategic alliance with ICA (CEO James Manny) and Neo Technology (CEO Kang, Jeong Seok, http://www.neotk.com) to target the global ATM market.
Through this triangle partnership, the three companies plan to expand into the overseas ATM market and cooperate to strengthen their marketing networks.
Based on its original mechatronics technology and production capacities, LG N-Sys has a competitive advantage in core modules for overseas ATM markets (including North America, Europe, and Russia). The company expects to gain synergies in developing and producing ATMs for export by partnering with Neo Technology, a Korean company that specializes in ATM modules and set exports. Also, by cooperating with ICA (International Concert Attractions, Ltd., listed in Australia) a company with an established ATM business network in China, LG N-Sys expects to minimize entry barriers to the Chinese market.
Although Korean ATM companies gained a windfall of approximately 1.1 billion USD from the government's issue of new bills and the resulting need for new ATM equipment, the market's growth will probably dwindle significantly in the next few years. The new alliances formed by LG N-Sys will help the company find new markets to overcome the limitations in the Korean market.
Chung Byung-Sun, head of the ATM division, commented, "This is our first year of exporting ATM set products, and our sales target for 2008 is approximately 32 million USD. We will first use China as a test market and establish an office there. We plan to use the networks of our local partner companies to target smaller regional and municipal banks in China. Through the success of China, we hope to expand ATM set exports to the global market including North America and Russia."
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