Microsoft Corp. and KT Corp. today announced they have signed a memorandum of understanding (MOU) renewing their current strategic relationship. The new arrangement represents the second phase of a relationship originally established in December 2001. Under the new MOU, which calls for the possible creation of a joint research and business development center, the companies are teaming to develop new communications technologies and solutions for the Korean market.

Under the new pact, Microsoft and KT are investigating the creation of a joint research and business development (R&BD) center in Korea. Its mission would be to establish new business models and new technologies in conjunction with KT�s five new "growth engine" businesses. In addition, Microsoft and KT will investigate forming a joint fund through which the R&BD center could access third-party content, technologies and external human resources. Finally, Microsoft and KT plan to participate in an employee exchange program, which will include seminars, training and exchange of employees in various business areas.