Cisco Systems, the world's No. 1 supplier of networking equipment for the Internet, is considering establishing a major data center for the Asian region in Korea.
Cho Bum-coo, the president of Cisco Systems Korea, told reporters on Tuesday that "the San Francisco headquarters of the company had originally planned to set the center up in Malaysia, but with its recent agreement with the city of Incheon to erect the U-City Global Center in Songdo, Incheon, it has recognized the potential of the Korean market and has begun to consider Songdo as a possible candidate for the data center."
In February last year Cisco signed an agreement with Incheon to build a "ubiquitous" citywide network in Songdo. The company says the network will make possible an Internet-powered lifestyle, offering citizens real-time access to telecommunications, education and medical services.
Cisco was founded as a small networking equipment venture in Silicon Valley in 1984.
The data center for the Asian region would become a base for Cisco to expand into global businesses. The company plans to choose a location for the center within the year, and will start the construction next year.
Cisco CEO John Chambers visited Korea in April last year and pledged investments worth some $2 billion in the Korean IT network over the next five years. A month later, Executive Vice President Wim Elfrink said Cisco "sees new business opportunities in Korea and could expand investments in the future."
The latest news follows similar announcements by other foreign firms. Earlier this month, Qualcomm, the world's biggest maker of mobile phone chips, said it will set up a technology research facility to develop mobile communications technology in Korea.
And in December, General Electronics said it will build its new R&D center for health care service technology in Songdo.
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