US software giant Microsoft yesterday agreed to set up a joint venture with two South Korean firms for a foray into the country's nascent Internet TV market, officials said.

The deal reached here involves Microsoft, South Korea's second-largest portal Daum Communications Corp and local set-top box maker Celrun, Daum spokeswoman Park Hyun-jung said.

Daum will provide content and know-how, while Microsoft agreed to offer its own Internet-protocol TV (IPTV) solutions and focus on overseas marketing, she said. Celrun will provide equipment.

Internet TV allows viewers with a broadband connection to choose content as well as receive live programming.

South Korea, despite being one of the world's most wired societies, has been relatively slow to introduce it because of disagreements between the broadcasting and communications industries.

The bill would allow customers to watch video on demand (VOD) this year, as well as real-time programming including sports, drama and news from next year.

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