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LSIS - Pantos signs MOU for cooperation...May 25, 2010

LSIS  Pantos Logistics signs MOU for cooperation
to galvanize u-Logistics

- Seek to expand joint projects, including introduction of RFID in export, import logistics–
- Manufacturing-logistics partnership holds significance as model for joint advance into overseas market-


LS Industrial Systems (Koo Ja-kyun, CEO), Korea's top RFID hardware solutions provider, and Pantos Logistics (Yeo Sung-koo, CEO), the nation's largest logistics company, signed an 'MOU for cooperation to galvanize u-Logistics' at Pantos Logistics' headquarters in Yeouido, Seoul on May 25. In attendance at the MOU signing ceremony were more than twenty executives from the two partners, including CEO Koo Ja-kyun of LSIS and CEO Yeo Sung-koo of Pantos Logistics.

Under the MOU, LSIS and Pantos Logistics will jointly seek to ▲ introduce RFID in the export and import logistics field, ▲ discover and implement business opportunities concerning RFID, ▲ conduct marketing campaigns targeting freight owners in Korea and abroad, and ▲ jointly execute diverse new strategic projects.

At the ceremony, LSIS CEO Koo said, "Despite the tremendous economic benefits the introduction of RFID will bring about, few domestic logistics companies have introduced RFID." Explaining the significance of the deal, he added that "Cooperation between LSIS, which boasts the biggest capacity in RFID hardware production in Korea, and Pantos Logistics, which retains massive export and import freight volumes, and extensive overseas networks, will have a very positive impact on the RFID and logistics industries, and further the Korean economy in general."

Pantos Logistics CEO Yeo said, "Cooperation between LSIS and Pantos Logistics will help expand the domestic RFID market and increase the price competitiveness of RFIDs, as well as galvanize research and development of the device." He went on to predict that "Our cooperation will help upgrade the global competitiveness of export-oriented manufacturers by cutting logistics costs and maximizing the visibility of supply chains." He added that if the installation of quality RFIDs enhances the visibility of real-time supply chains and the efficiency of inventory management, it will improve the quality of logistics services, and thus increase freight owner customers, while developing sales networks for RFIDs in the process.

The signing of the MOU also holds significance in that a manufacturer and a logistics firm have formed a partnership to establish a business model that will enable the two sides to coordinate a joint foray into foreign markets. The two companies will share strategic business information, jointly use their overseas business networks, and proactively assist each other's marketing activities, thereby generating synergistic effects.

Going forward, LSIS and Pantos Logistics plan to make concerted efforts to construct a global infrastructure and develop new technology in order to introduce RFIDs in diverse logistics services, including air freight transportation, marine shipping, railroad shipping, international courier services, and warehousing business.

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