UPS buys out partner in Korean joint venture

UPS buys out partner in Korean joint venture UPS on Wednesday said it has acquired 100 percent of a joint venture it previously shared with The Korea Express Co. to serve the Korea market.
   “The transformation of the joint venture to a wholly owned subsidiary will allow UPS to grow its business in Korea and better serve its customers in a key market,” UPS said in a statement.
   'UPS and KEC have had a successful partnership in Korea for more than 10 years, but UPS has arrived at a point where we need greater flexibility to match our commitment to this important market,' said Derek Woodward, president of UPS's Asia Pacific Region. 'With the establishment of wholly owned operations in Korea, UPS will have the flexibility it needs to invest in facilities, infrastructure, technology and employee development and to expand operations. And our customers will have the confidence of knowing we can stay ahead of demand in a market that is rapidly growing in importance, particularly in light of the pending U.S.-Korea Free Trade Agreement.'
   The two companies signed a cooperation agreement for continued collaboration that will focus on UPS's global network and infrastructure and KEC's local network and customs brokerage operations.
   UPS expects to enhance its levels of reliability and to further build its brand presence in Korea. As part of its strategy to provide total integrated logistics solutions, UPS will begin integrating its Supply Chain Solutions operation with the newly formed package express entity to offer a single UPS branded portfolio. Earlier this year, UPS rolled out new services to better serve Korean customers, including a simplified suite of three services for shipping international air freight. The suite includes a substantially expanded express freight option with guaranteed door-to-door service.
   UPS began operating in Korea in 1988. The company operates 31 weekly flights to and from Incheon Airport using B-747, B-767 and MD-11 aircraft connecting Seoul to Qingdao, Shanghai, Taipei and Anchorage.
   Terms of the deal were not disclosed.