A NORTH Hampshire company and a leading South Korean politician heading a trade delegation have signed a Memorandum of Understanding detailing a strategic investment deal worth up to £5.7million over the next three years.

The document was formally signed at RFI's head office at Ashford Park, in Winklebury, Basingstoke, by the company's chairman, David Thomas, and the governor of Gyeonggi Province, Dr Hak-Kyu Sohn.

RFI, which specialises in testing mobile phones and chip and pin technology for credit and debit cards, is establishing a cellular test facility in Gunpo City, Gyeonggi Province, in South Korea, with an initial investment of up to £3.6m.

The brand-new 600-square-metre laboratories will be equipped with the very latest platforms to test the frequencies of mobile phones. Scheduled to open in June, they will be near major Korean handset manufacturers Samsung and LG and offer easy access to South Korea's capital, Seoul.

Mr Thomas told the Korean delegation that RFI is the first company to make this level of investment in the region and is the only European company providing these services and entering into this kind of agreement.

"The establishment of RFI Korea in Gyeonggi Province is a significant event in the history of RFI and we welcome the opportunity given by your visit to develop the co-operative links between us," said Mr Thomas.

"Since being founded in 1987, RFI has established a global reputation for service engineering expertise and high standards.

"As a consequence, RFI is now a global leader in the provision of performance testing and development services for mobile telephone handsets and has established itself as the premier British test facility for Smart cards, and maintains a prominent position for varied wireless-related services."

Praising South Korea for successfully riding the tiger of rapid growth over the past 20 years, with the continued global success of Korean companies, Mr Thomas said: "I think success in today's global economy, whether at the micro or at the macro level of a national economy, demands constant innovation, individual and collective drive and ambition, and the creation by government of an economic environment which allows commerce to flourish."

Citing Samsung and LG as major players in global electronics and communication industries, Mr Thomas added: "Both companies are important to, and customers of, RFI and hence Gyeonggi Province was the preferred location for our first facility outside the UK."

Dr Sohn, who is tipped as a potential future presidential candidate for South Korea, said: "I am very proud, along with the people of Gyeonggi Province, that RFI, a company with state-of-the-art technology, has chosen to establish its first overseas facility here.

"Gyeonggi Province is a world-famous wireless communication cluster and I and the staff of the provincial office will strive to support the success of RFI's investment."

RFI managing director Stephen Kirk described the agreement as a milestone for RFI, adding: "The growth in cellular terminal manufacturing and development in East Asia is such that 60 per cent of RFI's cellular testing demand now comes from Korea, Taiwan, Japan and China.

"This growth has been dramatic compared with 10 per cent testing demand from East Asia in 2000/ 2001. This swing towards East Asia has been a primary factor in RFI's investment decision for the region."

Under the agreement, RFI will recruit locally wherever possible and co-operate with small and medium-sized companies located in the province.

In return, the Gyeonggi Province will provide help and support for infrastructure, provision of land and facilities, and consultation with central government.

First published: Thursday, April 20, 2006