Busan is good

More small foreign firms eye Korean market

Contents

Forget the big guys. It's now the turn of smaller foreign companies to eye Korea.

They are not selling capital goods and raw materials, which account for the bulk of imports, but rather consumer products.

Although consumer goods represent only 11 percent of imports here, they are fast-catching the attention of manufacturers and traders not only from traditional sources such as the United States, Japan, China but remote countries, including Myanmar and Sudan.

The interest has been evident at the Imported Goods Fair, which ends on Thursday (April 29) after a four-day run at the Convention and Exhibition Center in southern Seoul.

Nearly 200 companies from 12 countries are at the fair, exhibiting some 1000 items, including kitchenware, footwear, apparels, cosmetics, ceramic ware, food and beverages, machinery, tools and electronic parts.

"The domestic market continues to attract imports from all over the world. More so for consumer goods now," said Soon H. Kwon, chairman of the Korean Importers Association, the exhibition organizer.

Except for the setback in 1998, resulting from the Asian economic crisis, Korea's annual imports have been breaching the $100 billion mark since 1994.

"Although raw materials and capital goods lead the way with a two-third market share, with a fully open market and a rapidly improving standard of living, there is a high growth potential for consumer goods imports," said Soon.

In keeping with last years trend, a majority of the space has been booked by Chinese and Taiwanese companies, who are seeking to attract importers for a variety of their products ranging from the traditional medicines to the more hi-tech household gadgets that they have to offer.

While most of the companies were new entrants into Korea, Taiwan-based Dintex Electronic Ltd., which has been here for nearly four years, was present.

Victor Kim, Sales, company representative, said Dintex is supplying telecom products to the United States and Europe, but believes Korea holds the greatest sales potential.

Another Taiwan entry was Gremmer Technology Co. Ltd., which wants to sell its compact disc repair kit, a patented product that resurfaces damaged DVDs and CDs, allowing them to be reread digital music and data.

Given the popularity of CDS and DVDs in Korea, the company believes its repair kit will become as popular here as it is in Europe, Japan and the United States, said Kevin Huang, Gremmer sales manager.

Many of the exhibitors from other Asian countries believe that Korea is also a huge market for the traditional products.

"I had heard of the large untapped market in Korea for traditional products and I wanted to come and see for myself. While it is too early to say whether this trip will be fruitful," said U Sai Maung Mung Myint, Managing Director, Selection Co. Ltd, based in Myanmar,

" I must admit that the policies are also very helpful for foreign businessmen. Importing into the country is totally hassle-free unlike most other Asian or even European countries," he said.

/ Korea.net 2004.04.29 08:49:00