Dentsu forms joint venture in South Korea

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TOKYO -- Japan's Dentsu Inc. and South Korea's Bokwang Co. Ltd. have signed a joint venture agreement to establish a jointly owned advertising agency with its headquarters in Seoul. The partners aim to establish the new company before the end of 1996. The new firm will not be affiliated with any existing group.

The new 50-50 joint venture will be capitalized at $3.6m and will be called Phoenix Communications Inc. The president will be S. Kyu Hong and the vice president will selected from Dentsu personnel.

The decision to participate in a joint venture comes two weeks after Dentsu opened a sales office in South Korea. Prior to both these moves Dentsu has been involved in a number of business activities in South Korea. These include establishing Dentsu Young & Rubicam Korea Inc., a joint venture with investment from Oricom Young & Rubicam and Dentsu, as well as forming a technical tie-up with LG Ad, South Korea's fourth largest agency.

Copyright October 1996, Crain Communications Inc.

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