Buffett flags more investment in S. Korean unit

(ATTN: ADDS info in paras 5-6,9; CLARIFIES paras 7-8; CHANGES photo) DAEGU, March 21 (Yonhap) -- U.S. billionaire investor Warren Buffett signaled Monday that he may invest more money in a local company controlled by his investment company Berkshire Hathaway Inc. Speaking at a groundbreaking ceremony for the second plant of TaeguTec Ltd. in this city 302 kilometers southeast of Seoul, Buffet said the company should keep expanding in the future and that this is only the beginning. TaeguTec, a metal-cutter manufacturing firm, is a local unit of Israel-based International Metalworking Companies, 80 percent of whose stake was purchased by Berkshire Hathaway in 2006. The company, estimated to have logged sales of around 500 billion won (US$444 million), is South Korea's leading maker of tungsten cutting tools and has posted double-digit growth in recent years. In a meeting with reporters after the ceremony, Buffet said that he is still investing in South Korean companies and has no plans to cut back on his investments. The U.S. investor said that POSCO, South Korea's leading steelmaker, is one of three to four companies outside the U.S. in which he has invested more than $1 billion. He declined to specify the names of other South Korean investments. Buffett also said that he heard about Daegu's efforts to foster a medical industry complex from Daegu mayor Kim Bum-il, but he did not speak on whether he will take part in the development. Buffett, who flew into the city on his private jet, had met with Daegu mayor Kim Bum-il ahead of attending the groundbreaking ceremony. Meanwhile, the U.S. investor said that he would not consider unloading shares of Japanese firms since Japan has the energy and will to restore damages from the 9.0-magnitude earthquake and tsunami that devastated the country. Buffett was slated to head to Seoul later in the day to meet with South Korean President Lee Myung-bak. The two were expected to discuss global economic conditions and the impact of Japan's troubles from the devastating earthquake and tsunami on the world's markets. Buffett's trip to Daegu marks his second visit to the country since his 2007 visit to the southeastern city.