South Korea’s IT solutions provider LG CNS said Tuesday it has signed a memorandum of understanding with SAP, the German software giant, to bolster their strategic partnership in building next-generation enterprise resource planning, or ERP, solutions.

The MOU signing ceremony was held at SAP’s headquarters in Walldorf, Germany, on March 10, with LG CNS CEO Hyun Shin-gyoon and SAP CEO Christian Klein in attendance.

Under the MOU, the two companies agreed to develop and operate new ERP systems specifically designed for Korean corporate clients that are based on SAP’s own ERP software, called “S/4HANA.”

LG CNS will develop cloud-based ERP systems and combine advanced technologies such as application modernization and artificial intelligence to ensure stable operation.

Starting with LG companies, the company said it plans to diversify the clientele of the new solutions, both at home and abroad.

“This is a great opportunity for our company to raise next-generation ERP capabilities to the global level and for SAP to expand customer networks in the Korean market,” Hyun, the LG CNS CEO, said.

“We will work together to support the digital transformation of our corporate clients.”