Ampal American Israel Corporation

(Nasdaq:AMPL) today announced the establishment of a venture capital fund in South Korea, in conjunction with the South Korean government.

The fund will manage investments totaling $30 million. The money is to be raised from Ampal (20%), the Korean government (40%), and from the South Korean company InterVest (11%).

Ampal International Ventures will manage the new fund, and

InterVest

, which already has venture capital investments in South Korea, will serve as its main management partner. Ampal International Ventures is owned by Ampal, and is headed by Nitzan Yanovsky, who serves as deputy CEO of Ampal.

The new fund will invest in Korean technology and hopes to help upgrade the hi tech sector there by utilizing Israeli know-how and technological advancments. The fund is to direct its investments towards the communications, semi-conductor and electronics industries.

Ampal hopes to utilize its investment expertise to help foster growth in the Korean start-up industry. The company is also hopeful that its Korean involvement will lead to new business opportunities for the firms that Ampal has invested in.

Ampal is an investment company with interests in various sectors including real estate and infrastructure. In recent years, the company has made a sharp transition towards also investing in startups, especially those just starting out. Among Ampal's more notable investments are

MIRS Communications

,

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