Microsoft Corp has made its first investment in a Korean internet venture by purchasing a $10m, 5% stake in Thrunet Ltd, a provider of high-speed internet services via a cable TV network which has applied for a Nasdaq listing.
Thrunet chief executive Kim Jong-kil said the two companies have signed an investment contract following a year of negotiations, and Microsoft has agreed to make an additional investment sometime next month. The funds from Microsoft will be used to form our own network in time for the planned extension of high-speed internet services to cover the entire country next year, he told reporters.
The money will also be used to develop a network maintenance system and to develop multimedia content and other added value services, said Kim. As part of their overall agreement, the two companies have agreed to jointly operate an internet portal site in Korea, he said. Thrunet hopes to receive approval next month to go ahead with its Nasdaq listing.
