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Asahi Kasei Corp. said Monday it has set up a wholly owned subsidiary in South Korea to boost sales of pellicles, which are used to prevent impurities from settling on photo masks of liquid crystal display panels and semiconductors.

Asahi Kasei’s wholly owned electronics arm, Asahi Kasei EMD Corp., set up Asahi Kasei EMD Korea Corp. in Suwon last month, capitalized at about 80 million yen.

The new company will enable Asahi Kasei to deliver pellicles more efficiently to its customers in South Korea, where demand is rapidly expanding due to rising production of LCD screens for products such as cell phones and notebook computers.

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