LG Hitachi (CEO Lee Gi-dong) held the spotlight from IT industry for discovering a Korean solution and planning to initiate a sales campaign in Japanese market after localization and quality control process.

13th of this month, LG Hitachi announced that it effectuated a distribution contract for domestic Japanese market with Hitachi System Qushu (referred as HSQ hereafter) to promote Korean made Reporting S/W, ‘Report Designer,’ courtesy of M2Soft.

This contract was made possible by LG Hitachi, which sensed demand for a Reporting S/W in Japanese IT market having similar detailed reporting culture and being dominated by CS environment instead of web environment, introduced the solution to its headquarter in Japan. LG Hitachi will provide Japan with it after the end of localization process participated by the company’s QA team.

This deal was shortly followed by a similar event. Last September, a Korean network solution company, ‘Nitgentechnologies,’ signed another distribution agreement with ‘Hitachi OPSS,’ an Hitachi subsidiary specialized in IT for the sales of a load balancing solution thanks to blessing of the same company. HSQ launched a marketing campaign for M2Soft’s Report Designer in Japan with the projected sales target starting with a million Yen this year and 4 million Yen by 2008, anticipating 100% sales growth each year.

Aside from these two deals, ‘Pasu.com,’ a digital copyright management solution provider, made 150 million won worth sales consist of three-year contract for its corporate document security solution with ISID and Hitachi SAS in March of 2005, also mediated by LG Hitachi.

LG Hitachi’s effort of trying to penetrate Japanese market with Korean made software is mainly due to the company’s newly adapted strategy, aiming at increasing total sales by reselling Korean software in Japan, which in turn pays a positive contribution to the domestic software industry. Especially, the company believes there’s a good growth potential with this new tactic because of possible sizable demand on Korean tools in Japan, having similar computation environment.

A department manager of LG Hitachi, Lee Hyack-Geun, added, “we are planning to aggressively market Korean tools to other Japanese conglomerates starting with the subsidiaries of Hitachi and ISID. We will strike Japanese market by painstakingly managing domestic products’ quality with the help of fourteen full-time QA personnel in our company.”