'Made in Korea'
On December 14th 2009 the Ministry of Knowledge Economy announced the 'World Class Product of Korea.' This was a triumphant moment for 387 current world class products and 197 next-generation world class products of Korea for the event was the promise of active support from the government.
'Discount Korea'
Before 2002, Korean products were those that could be found in markets or on a shelf at a dollar store. It was the days of 'discount Korea,' where Korean products were expected to be cheap in both price and quality. Sure, there was good quality but there was no will to pay large amounts of money for Korean goods. Therefore in 2002, the government started a project to compile a directory of top class goods to be named, 'World Class Product of Korea.' Through the project, Korean goods would find themselves off the shelves of a dollar store and inserted as premium items in malls and retail stores.
Current and Next-Generation World Class Products
The World Class Products are divided into two large categories: current and next-generation. Current world class products are exports that rank at least fifth in market shares in their designated fields. Next-generation world class products are exports that have a large possibility and potential to qualify as a current world class product within five years. The standards are strict and next-generation products that lose potential or are unable to meet standards within five years are suspended from the list. The biggest goal of the project is to provide consumer confidence in those products that are selected. For example, the United Kingdom Accreditation Service (UKAS) certification of a product ensures consumers, suppliers, purchases, and specifiers that they can have confidence in the product. The attempt is identical for Korea. The products that are named current world class products receive a certification that assures the global market that the export will bring consumer utility. In the future, as more products receive the certification, consumer expectancy on Korean products will rise hence diminishing the term, 'discount Korea.'
Interview with Director General Jeong Marn-Ki
On December 28th 2009, Korea IT Times held an interview with Jeong Marn-Ki, Director General for Trade Policy of the Ministry of Knowledge Economy. Director General Jeong Marn-Ki was a key character in the launching of the world class product project in 2002 when he was the director of development. After his 7 years of dedication to the project, if there is one thing that certainly shined from his experience, it was his smile.
Q: What do you think is the reason Korean exports were able to thrive through the global economic recession
A: The reason our exports were able to do so well is because the industry concentrated on the qualitative and technological development of goods. Based on information from 2003 to 2006, we went from being 16th to 12th in the field of science, and 27th to 6th in the field of technology. In addition, while foreign investors reduced their exports during the global economic recession, local companies increased their market power through aggressive management skills especially in fields like semiconductors, mobile phones, and cars.
Q: The Ministry of Knowledge Economy has been selecting competitive local goods and giving them 'World Class Product of Korea' certificates. What are the qualifications and which goods have been selected
A: The products are divided by current world class products and next-generation world class products. The certificate of 'World Class Product of Korea' is given to those products that have market shares within fifth place in the global market and next-generation world class products are picked from exports that have the potential to become a current world class product within five years. There are currently 387 world class products ranging from shipping to IT, and 197 next-generation world class products.
Q: Which of the products are 1st in the global market
A: Currently, there are 121 goods that are ranked 1st in the global market. Some of these products include memory semiconductors, Polyester LM Fiber, seawater desalination plant, and refrigerators.
Q: It's easy to think that a lot of the world class products are from major corporations. How many of the goods are from small and medium enterprises
A: Of the current world class products that come within fifth in market shares, 228 (59%) are from small and medium enterprises. 67 of these are first in the world. Some of the goods include cycling shoes, motorcycle helmets, aloe, and electric door lock. 90% of the next-generation world class products are from small and medium enterprises.
Q: What kind of support is there for the world class products
A: As for the world class products, the government will support all the steps from technology, design, development, and advertising. We will also provide support benefits for the companies to participate in overseas exhibitions held by the government to advertise world class products. In addition, the government will also link companies with other support systems related to technological development, design, finance, and labor.
Q: It seems that in order to further raise exports, there will be need for more world class products. What kinds of efforts are needed for more world class products to come spilling into the market
A: For the continuing expansion of world class products, we must keep producing exporting goods that are not only competitive in terms of technology, quality, and price but also competitive in terms of brand power. In addition, through aggressive investment and technology development, the government must support potential industries so that one day they may also produce world class products.
Q: Specifically, how will the government help advertise the world class products of Korea
A: Firstly, the products will have the "World Class Product of Korea" certification on them. This will have great advertising power since it will give customers assurance and confidence about the product. Next, there is already active advertising happening through the KOTRA channels. In addition, we will introduce the world class products through TV channels like Arirang TV once a week. And because Incheon Airport has the most foreigners, we will broadcast the world class products through the airport TVs.
Q: Would you please tell us about the world class product selecting and awarding system that will be applied starting from next year
A: We plan on choosing world class products in their own industries. From the world class products, we will choose approximately thirty based on market shares, brand value, and brand awareness overseas. The chosen products will be named the top of the world class products and be advertised through all the existing channels.
As a closing remark, Director General Jeong stated, "This 'World Class Products of Korea' project is a great opportunity for Korea to advance even further as an export superpower. When we talk about world class products, people may think about TVs and refrigerators from large corporations. However, our system acts to truly benefit the small and medium enterprises that need the extra push from us to grow into a great exporting company. The world class products take more than 50% of our total exports and if we do better next year, Korea may exceed 3% of global market shares for the first time. As I have mentioned, Korea can look forward to more 'World Class Product of Korea' export goods spilling into the global market.
Here are glimpse of a few ingenuous products that were chosen as the World Class Product in 2009:
Nation's First Digital Mammography
The product is called Brestige, which obviously rhymes with prestige. Whatever people may think about the name, it certainly speaks well for itself. Medi-Future is a corporation that concentrates solely on breast cancer. Some of their important products are the digital mammography, review workstation, stereotactic biopsy, and tomosynthesis. The Brestige is the first digital mammography invented in Korea that constantly uploads x-ray results into the Picture Archiving and Communication System (PACS), and also makes it possible to send the x-ray results anywhere. Where most hospitals in Korea still use film, Medi-Future is the first to digitalize the process. Compared to other companies, it has a very high Detective Quantum Efficiency of over 80%. This is the reason Brestige is attracting much attention. In contrast to the former cold and heavy design of its forerunners in the industry, Brestige shows off a more feminine touch.
Pioneer in the Field of Korean Medical Technology
Medi-Future is the only small but strong company in Korea that is able to stand up against large companies in the United States, Germany, Japan, and other advanced nations in the field. Brestige is stirring up a new paradigm about local technology. Brestige has already received the CE mark; a mandatory conformity mark placed on products traded in the European Economic Area, and is currently waiting for approvals from Taiwan, China, and the United States. In addition, because Brestige has been designed specifically for 'dense breast,' there are already calls being made from all over Asia. Brestige will be installed in a general hospital in Vietnam next March. CEO Lee Jeong-chai stated, "We are planning on actively exporting our product to China, Taiwan, Brazil, Venezuela, France, Italy, and other Asian and South American countries. Through Brestige, Medi-Future will become a pioneer in the field of Korean medical technology."
Daewoo Drilling Rig
Daewoo Shipbuilding and Marine Engineering (DSME) is one of the world's largest shipbuilding companies, with 29,000 employees. The Ministry of Knowledge Economy selected the drilling rig as a World Class Product this year. Most recently, DSME received 2 orders of drilling rigs from an American drill company and another semi-submersible drilling rig from a different company. The orders amount to 1.8 billion dollars in total. The drilling rigs that will be built are 243 meters in length and 42 meter in width, and they contain GPS and computer control systems. The ships can locate themselves at the drilling point through dynamic positioning system. The drill ships can drill 12,000 meters below sea level. DSME plans to deliver the ships to the companies before March 2012. These drill ships that can drill 12,000 meters below sea level and are considered to be the best ship in the world.
DSME on the Top
DSME recently enabled a proactive and centralized IT management. With the system, DSME can now monitor a complex and evolving IT environment and reduce costs. The Assistant IT Manager of DSME stated "Improved IT management has helped to increase the quality and continuity of our operations, which impacts customer satisfaction and gives us competitive advantage." A newly developed IT management and continuing orders from abroad mainly contributed to the achievement this year. DSME builds around 70 commercial and naval vessels a year as well as offshore platforms, drilling rigs and floating oil production units.
Korea to Spur Utility and Will
50 years ago, South Korea was the poorest country in the world. However, in 1988 Korea hosted the Olympics. In 1996 Korea entered as a member of the Organization for Economic Cooperation and Development (OECD). In 2002 Korea hosted the World Cup and on November of 2009, Korea entered the Development Assistance Committee (DAC). Within fifty years, Korea evolved from being the poorest to one of the most developed with 387 current world class products and another 197 next-generation world class products. Truly a triumph and the path was certainly no lottery. The logo of 'World Class Product of Korea' is that of a wave reaching a star, which symbolizes the Korean market reaching out to the world. The ministry of knowledge economy started the 'World Class Product of Korea' project in 2002 and has been soaring fast towards the world market. By differentiating competitive Korean products in the global market and offering consumers the trust they need in the product, there only seems to be one thing left to do on the list: to wait. In a matter of years, Korea will not just be a small peninsula that is normally referred to as that country divided into two. In a matter of years, people will stop calling the Hanbok, a traditional Korean costume, a Japanese style Kimono or Samsung a Japanese firm. In the future, the words 'Made in Korea' will spur consumer utility and most importantly, the genuine will to purchase the good.
