UPS to Assume Full Control of Operations in Korea
Acquires KEC’s Interest in Existing Joint Venture
SEOUL, June 2008 – UPS (NYSE:UPS) today announced an agreement with The Korea Express Co., Ltd. (KEC) to acquire KEC’s interest in the UPS-KEC express joint venture company here. 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.
Terms of the deal were not disclosed.
“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, noting Korea now is America’s 7th largest trading partner.
“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,” Woodward continued. “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 also signed a cooperation agreement for continued collaboration. It recognizes 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 a series of 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. By combining the capabilities of the world’s 9th largest airline with UPS’s position as a global freight forwarder with access to other airlines, UPS is the only transportation and supply chain provider offering guaranteed integrated air freight services in a single portfolio.
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.
UPS (NYSE: UPS) is the world’s largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.
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