Photo by: Posco company website
POSCO, world's 2nd largest steel producer, is the 19th foreign corporation and first company from East Asia to join gov't sponsored R&D program, joins other well-known program participants such as Intel, Oracle, Merck and GE.
Korean steel giant POSCO (Pohang Iron and Steel Company) agreed to participate in a joint Israei-Korean industrial R&D program on Sunday.
Chief scientist at the Industry, Trade and Labor Ministry Dr. Eli Opper on Sunday signed a R&D cooperation agreement with POSCO CEO Chang Jeon-Yong that will facilitate the company's investment in R&D projects in Israel.RELATED:IBM’s IT knowledge being used to conserve water
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POSCO is the first Korean as well as first East Asian company to participate in a joint R&D agreement under the auspices of the Industrial Cooperation Authority of the Industry, Trade and Labor Ministry. Eighteen other international corporations already participate ICA administered R&D programs, including Abbott Laboratories, Intel, Oracle, IBM, General Electric, Microsoft, Deutsche Telecom, Merck, HP, and others.
POSCO, the world's second largest steel producer by market value was founded in 1968 as part of a joint government-private sector initiative by the South Korean government to help build a domestic steel industry in Korea to fulfill the supply finished steel to country's developing shipping and automotive industries. The company reported $33 billion in global sales in the last fiscal year.
Under the agreement, office of the chief scientist will help the company locate Israeli technologies that meet the needs of the corporation, and provides financial support to fund the necessary R&D required to complete development and commercialization of the technological know-how. The chief scientist under the authority of the ICA may also provide financial grants equal up to 50 percent of the total approved corporate R&D expenditures as well as lending research equipment, providing technical and regulatory advice, and marketing assistance.
According to the Office of the Chief Scientist's, the goal of the ongoing cooperating R&D program is to provide encourage increased foreign corporate investment to benefit Israeli society as well opening overseas markets for Israel-designed products. A potential financial return on the government's investment is also possible in the event of a successfully commercialized research breakthrough.
"When a government-assisted R&D project results in a commercially successful product, the company is obligated to pay royalties, which will be used to fund future grants to encourage, according and support other industrial R&D programs. In general, royalty payments are 3% - 3.5% of the total annual revenues derived from the sales of a developed product which R&D was supported by OCS grants," states the Office of the Chief Scientist's website.
POSCO participation in an R&D agreement was greatly encouraged by the Korea-Israel Industrial R&D Foundation created by both countries' governments in 2001, which has taken a lead role in developing and deepening ties between Israeli and Korean scientists, government officials and business leaders.