WPP in talks to take control of Korean advertising agency

by Staff,, Brand Republic 12-Jun-02, 15:10

HONG KONG - In a big week for acquisitions, WPP Group is reported to be in talks to buy into Korea's second-biggest advertising agency LG Ad, as it seeks to expand its presence in Asia.

WPP is reported to be trying to buy a 31% stake in LG Ad, which would make it the agency's largest shareholder and give it a controlling stake.

The talks follows three other acquisitions earlier this week. In Asia, it acquired Chinese PR agency H-Line, which will make it one of the biggest agencies in the People's Republic. Outside of Asia, it bought Samcor Communications, a Miami-based PR agency, and the market research firm HeadlightVision in London, which is to become part of its fourth-string creative network Red Cell.

A recent survey revealed that emerging markets, especially those in Asia, were riding out the advertising downturn with more success than those agencies operating in established markets.

Apart from H-Line, WPP has made a number of other recent acquisitions in Asia including the direct marketing firm BrandOne in China, and a stake in Japan's largest PR agency, PRAP.

Two of WPP's established advertising networks, J Walter Thompson and Ogilvy & Mather, already have a presence in the South Korean market.

LG AD, headed up by president and CEO In-ho Lee, had sales of $520m (£350m) in 2001. It is part of a large conglomerate LG Group, which has been disposing of non-core businesses as it prepares to set up a holding company next year.

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