&lt;Goldstar Precision Co Ltd>, part ofSouth Korea's &lt;Lucky-Goldstar Group>, agreed with Japan's Canon
Inc &lt;CANN.T> to make cameras using Canon technology, a Goldstar
spokesman told reporters.
    He told reporters Goldstar will invest 25 billion won over
the next five years and would pay Canon three pct of total
sales, which are targetted at eight billion won this year, 25
to 30 billion next year and 76 billion in 1991, as royalties.
    Most of Goldstar's output, due to start in July, will be
sold in South Korea, he said.
    However, the Goldstar spokesman said, Canon has agreed in
principle to buy an unspecified number of cameras for resale in
Japan under its own name, he said, without providing further
details.
    In Tokyo, a Canon spokesman said that under the agreement
Canon would sell facilities, components and technology worth
1.5 billion yen to Goldstar in calendar 1987 and 3.5 billion in
1988, he said.
    He said Goldstar plans to make 35-mm single-lens reflex
cameras and 35-mm compact cameras at an annual rate of 70,000
in 1987 and 200,000 in 1988.
    The camera market in South Korea is expected to expand
rapidly ahead of the 1988 Olympic Games scheduled to be held
there, the Canon spokesman said.
    South Korean camera demand rose to 700,000 in 1986 from
640,000 in 1985. Cameras made with foreign assistance accounted
for 65 pct of cameras sold in South Korea, he said.
    Minolta Camera Co Ltd &lt;MNLT.T>, &lt;Asahi Optical Co Ltd> and
Nippon Kogaku KK &lt;GAKU.T> already assemble 35-mm cameras with
South Korean partners.
 REUTER
