Merck seeks Korean partners for growth and diversification

Merck Korea, the local unit of German-based Merck KGaA, is looking to broaden ties with Korean companies to spearhead new technologies for future growth, its president Juergen Koenig said Tuesday.

The world’s oldest pharmaceutical and chemical group has been expanding its sphere into new fields such as electronics, biotechnology and renewable energy in recent years.

As part of its growth strategy, it acquired Swiss biotech company Serono in 2007 and U.S. life-science firm Millipore last year. Now Korea has emerged as a next investment target, Koenig told reporters in a meeting.

“It can be alliances, or it can be mergers and acquisitions. We’re all open to all different kinds of strategic partnerships in new areas of technology. There is no restriction in the type of sector,” he said. 

In September, the Korean unit hosted a seminar in cooperation with the Ministry of Knowledge Economy and the Korea Trade-Investment Promotion Agency for Korean businesses that want to work together in electronics components or renewable energy projects.

Of about 250 participant companies, Merck picked out five after analyzing their project proposals, Koenig said.

“We’re in negotiation with them currently for future joint research projects,” he said. “I can’t disclose to you who they are in which field for that reason but they’re companies developing new technologies.”

In the face of the 2008-09 economic crisis, many companies cut their costs, workforces and investments, but Merck remained persistent with its investment drive, Koenig said.

The firm then injected 11 million euro ($17.1 million) into a research and development center in Pyeongtaek, Gyeonggi Province, which launched last May.

It has intensified investment in liquid crystal display and other future businesses such as new materials development and renewable energy.

“When nobody else decided to invest, we saw Korea playing a significant role in the global market,” Koenig said. “We’re investing in new applications for organic light emitting diodes, liquid crystal mixtures and pilot projects for cardiology clinical trials, while hiring additional employees.”

By Shin Hyon-hee (heeshin@heraldcorp.com)