The Korea Electronics Show (KES) is the largest domestic exhibition in the electronics/IT field. With a 36-year history it can truly be said to have contributed to the development of the national electronics industry In keeping with its theme of 'New Start!' the KES 2005 to be held on this forthcoming October is garnering expectations that it will serve to both spur competition and reflect the latest trends in the world electronics industry. Korea Electronics Association CEO and president Lee Gam-Yoel, says he expects this year's KES to be on a par with the CES (Consumer Electronics Show) of the U.S., and Germany's CeBIT held in Hanover in terms of overall quality. As the CEO explains, KES 2005 will feature variegated exhibition concepts beyond a mere hardware displays. Further, demonstrations of new growth engine technology, environment-friendly electronic products, and new technological developments will be formatted by theme. Of special interest to Chinese visitors to KES 2005 will be the convention of Chinese businesspeople worldwide to be held in Seoul concurrently. Nevertheless, Mr. Lee concedes that in order for domestic exhibition industry to become truly world-class, more elements must be improved relative to exhibitions such as CES or CeBIT. In addition, he said, small exhibition centers are an Achilles Heel of the domestic industry, adding that almost nowhere in the world are exhibition centers to be found in the central part of cities. In that respect, he says the KEA (Korea Electronics Association) expects that KES 2005 would serve as a turning point for the domestic exhibition industry since it will be held in a spacious 10,000-pyung (32,157m2) area in the KINTEX located in Goyang city, Gyeonggi province. This year's event will be one of the largest electronics/IT exhibitions in history in which about 600 companies from 20 countries throughout the world will take part. Q: What are the chief features of KES 2005 A: With 450 companies from 15 nations taking part in KES 2004 to attract 190,000 visitors, the KES is recognized as Korea's top industry show. Based on its success over the last 35 years, KES 2005 will show the present and future of the electronics industry by showcasing cutting-edge IT products such as digital devices, networks and digitally converged state-of-the-art products. Regarding results, because of a promotional campaign run by the Korea Trade-Investment Promotion Agency (Kotra) through its offices worldwide, we expect even more buyers this year than for any previous exhibition. Q: What results is the KEA expecting from this year's KES A: Our association is expecting that KES 2005 would contribute to boosting electronics/IT exports to the $100-billion level through negotiations worth $2.5 billion in deals and signing actual contracts worth over $250 million. Q: In that respect, how do you assess Korean electronics industry's international competitiveness A: Korea's electronics industry is heavy exporter, with IT products heading the list followed by semiconductors, displays, cellular phones, and MP3Ps. In all, the sector accounts for 38% of all exports. Yet, in terms of quality as well as price competitiveness, Korean products are between the 'nutcracker' of Japan and China. (In descending order of quality the countries may listed as so: Japan > Korea > China. In terms of price: China > Korea > Japan). Moreover, the technology gap between Chinese and Korean products is narrowing. Q: Stimulating next-generation growth engine industries would seem, then, to be a matter of urgency in the electronics sector. A: The next-generation growth engine industries are 10 in number, 8 of which are electronics-related. In late 2004, the government invested a total of 333.2 billion won in each of these industries to spur their development. In particular, the digital TV and broadcasting industries are narrowing their gap with their Japanese counterparts in terms of technology and market share by concentrating on developing advanced technology under conditions of stable domestic demand following the establishment of the international Advanced Television Systems Committee (ATSC). What's more, the display field is developing core technology in order to secure the No. 1 spot in the world market for PDP/OLED following its achievements in LCDs. In the case of next-generation semiconductors, the domestic manufacturers are putting their heart and soul into R&D in the non-memory semiconductor (SoC) field. Q: What has the KEA been doing to aid technological development as well as support exports A: Our Association supported the creation last year of an industry technology development fund now worth 24.5 billion. In addition, we have recommended 141 parts special firms for funding and achieved standardization on 10 electronic parts. In addition to these efforts, the KEA dispatched a trade delegation to Taiwan and two to Japan. (The mission to Taiwan generated negotiations valued at $17.74 million, and resulted in actual contracts worth $500,000. The two missions to Japan spurred business talks valued at $350 million, and contracts of $50 million). By connecting the databases on Korean and Japanese electronic parts, our Association has publicized parts information on 390 of our firms as well as information on 1.2 million parts. Q: What is your outlook for the Korean electronics industry A: Although the growth of the world's major economies is being curbed by high oil prices, Korea's digital electronics industry exports will continue in the fields of digital TVs, cellular phones, semiconductors and displays, products whose quality as well as price competitiveness is demonstrably world class. Accordingly, this year's exports are forecast to reach $112.7 billion, up 16.6% in comparison with the preceding year. Exports of cellular phones and satellite broadcasting receivers are forecast to increase to the U.S., China and Europe. In particular, the weighting of value-added product such as digital TVs, high-function air conditioners and drum washing machine will be considerably amplified.