Colorado Technical University

Green industries are new target for SME growth

Summary: 10th Anniversary Special Interview Series Kotra president says opportunities exist in automotive componentsCho Hwan eik the president of the Korea Trade Investment Promotion Agency stresses that this is an opportune moment for small and mid size Korean companies to raise their competitiveness in green technologies Especially with Korea having to find new growth engines the failure to miss out on collaboration with leading global green companies will hurt Korea s economic legacy The economy s rapid rise after the Korean War was mainly based on manufacturing industries Although the manufacturing companies still dominate the nation s economy Korea has become a global powerhouse in the IT industries thanks to a boom in the sector in the late 1990s and early 2000 Cho says that Korea should repeat this strategy when it comes to green industries Of course there is still a lot more that we can do in the IT industry for another 20 to 30 years Cho said However if we concentrate too much on IT we could lose everything suddenly and therefore we need to find new areas to sustain long term growth In diversifying into the green industry Cho notes that Korea s market share in the global green industry is only 1 4 percent Although in other areas we are surpassing Japan when it comes to the green sector we are still behind Additionally competing with China in fields like solar energy is difficult because of their massive supply Cho however said Korea has a competitive edge against Japan and China in IT convergence As the green industry is moving towards IT convergence we could find a way where we could lead in areas like smart grids Kotra in the last two years has been holding various expos and events promoting small and mid size Korean companies specializing in green industries It has also used the events to introduce these companies to global enterprises since the Lee Myung bak administration has been promoting the green industry as a national priority since 2008 When Korea first entered the green business it was focused on domestic oriented policy Cho said But it was Kotra that first mentioned the importance in advancing the industry into the overseas market Cho said There is a strong potential for Korean parts companies to be suppliers to major green industry manufacturers Cho said that Kotra can play a key role because of its extensive international network We have a network whose history is nearly 50 years One of the first overseas businesses we opened for example was in Panama in 1969 He said that Korean companies should also seize opportunities to tap the consumer market in China where the focus by Korean manufacturers until now has been setting up production facilities rather than marketing Many Korean companies that invested in China did so because of the cheap labor costs Cho said But for such companies to maintain competitiveness they need to look inward to the market as well Compared to Japan Korea s market share of consumer goods in China is low Cho said To improve support for Korean small and mid sized companies Kotra is planning to increase the number of business centers in China by setting up seven more next year Cho does not believe that monetary tightening by the Chinese central bank will reduce market demand in China and as a result reduce Korean exports there China accounts for 25 percent of Korea s total exports It is certain that China in 2011 will continue to enjoy 8 to 9 percent GDP growth and even if the interest rate goes up and the Chinese currency appreciates there is abundant liquidity Cho said Cho said one of his priorities is the globalization of the small and mid sized companies Thanks to Kotra many Korean automotive part companies have become suppliers to global vehicle manufacturers In the last two years orders have been secured with nine leading automakers including General Motors and Volkswagen There are 10 major automobile companies and Honda is the only one that hasn t given supply orders to Korean companies Cho said This is a significant step considering that just a couple of years ago the automotive parts they supplied were largely limited to tires He said the same could happen in other industries adding that major global companies have strong faith in suppliers introduced by Kotra We could expand Korean food industries by connecting with global retail companies and Kotra should be the driving force behind it Cho said When the competitiveness of small and medium companies is recognized by global companies their position with Korean conglomerates will be improved as well Cho said Besides promoting the small business sector Kotra is encouraging the hiring of college graduates by foreign companies Kotra recently held a job fair at COEX where 95 foreign companies including Google and DHL participated We re still at an early age Cho said It s not easy but the point that we re trying to open up opportunities for young people is meaningful By Lee Ho jeong Yim Seung hye ojlee82 joongang co kr Copyrights ⓒ JoongangIlbo Jcube Interactive Inc All rights reserved 10th Anniversary Special Interview Series Kotra president says opportunities exist in automotive componentsCho Hwan eik the president of the Korea Trade Investment Promotion Agency stresses that this is an opportune moment for small and mid size Korean companies to raise their competitiveness in green technologies Especially with Korea having to find new growth engines the failure to miss out on collaboration with leading global green companies will hurt Korea s economic legacy The economy s rapid rise after the Korean War was mainly based on manufacturing industries Although the manufacturing companies still dominate the nation s economy Korea has become a global powerhouse in the IT industries thanks to a boom in the sector in the late 1990s and early 2000 Cho says that Korea should repeat this strategy when it comes to green industries Of course there is still a lot more that we can do in the IT industry for another 20 to 30 years Cho said However if we concentrate too much on IT we could lose everything suddenly and therefore we need to find new areas to sustain long term growth In diversifying into the green industry Cho notes that Korea s market share in the global green industry is only 1 4 percent Although in other areas we are surpassing Japan when it comes to the green sector we are still behind Additionally competing with China in fields like solar energy is difficult because of their massive supply Cho however said Korea has a competitive edge against Japan and China in IT convergence As the green industry is moving towards IT convergence we could find a way where we could lead in areas like smart grids Kotra in the last two years has been holding various expos and events promoting small and mid size Korean companies specializing in green industries It has also used the events to introduce these companies to global enterprises since the Lee Myung bak administration has been promoting the green industry as a national priority since 2008 When Korea first entered the green business it was focused on domestic oriented policy Cho said But it was Kotra that first mentioned the importance in advancing the industry into the overseas market Cho said There is a strong potential for Korean parts companies to be suppliers to major green industry manufacturers Cho said that Kotra can play a key role because of its extensive international network We have a network whose history is nearly 50 years One of the first overseas businesses we opened for example was in Panama in 1969 He said that Korean companies should also seize opportunities to tap the consumer market in China where the focus by Korean manufacturers until now has been setting up production facilities rather than marketing Many Korean companies that invested in China did so because of the cheap labor costs Cho said But for such companies to maintain competitiveness they need to look inward to the market as well Compared to Japan Korea s market share of consumer goods in China is low Cho said To improve support for Korean small and mid sized companies Kotra is planning to increase the number of business centers in China by setting up seven more next year Cho does not believe that monetary tightening by the Chinese central bank will reduce market demand in China and as a result reduce Korean exports there China accounts for 25 percent of Korea s total exports It is certain that China in 2011 will continue to enjoy 8 to 9 percent GDP growth and even if the interest rate goes up and the Chinese currency appreciates there is abundant liquidity Cho said Cho said one of his priorities is the globalization of the small and mid sized companies Thanks to Kotra many Korean automotive part companies have become suppliers to global vehicle manufacturers In the last two years orders have been secured with nine leading automakers including General Motors and Volkswagen There are 10 major automobile companies and Honda is the only one that hasn t given supply orders to Korean companies Cho said This is a significant step considering that just a couple of years ago the automotive parts they supplied were largely limited to tires He said the same could happen in other industries adding that major global companies have strong faith in suppliers introduced by Kotra We could expand Korean food industries by connecting with global retail companies and Kotra should be the driving force behind it Cho said When the competitiveness of small and medium companies is recognized by global companies their position with Korean conglomerates will be improved as well Cho said Besides promoting the small business sector Kotra is encouraging the hiring of college graduates by foreign companies Kotra recently held a job fair at COEX where 95 foreign companies including Google and DHL participated We re still at an early age Cho said It s not easy but the point that we re trying to open up opportunities for young people is meaningful By Lee Ho jeong Yim Seung hye ojlee82 joongang co kr Copyrights ⓒ JoongangIlbo Jcube Interactive Inc All rights reserved

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