SEOUL, KOREA - The Korea Trade Investment Promotion Agency (KOTRA) has been operating the buyKOREA platform, a site that connects international patrons with domestic enterprises.
"The operation of the buyKOREA platform helps international buyers search, order and receive Korean-made products anywhere, anytime. We can call it a global business ecosystem for both international buyers and domestic exporters," said Shin Hwan-sup, executive vice president for SME support at KOTRA.
Noting that international buyers can get such online services through 121 KOTRA trade centers in the world, Shin said, "KOTRA officials at the trade centers receive buying offers from international buyers and can provide them with a chance to meet with relevant Korean companies.” Through such efforts, KOTRA supported $50 million worth of initial foreign purchases for 660 contracts last year.
"To expand buyers' sourcing of Korean-made products, KOTRA plans to support the registration of Korean goods on the buyKOREA platform this year. For instance, KOTRA is moving to increase the number of registered Korean products by a factor of three this year from a year earlier by deploying new manpower exclusively dealing with the product registration service."
In an interview with the Korea IT Times, he also said, "KOTRA projects to expand video and audio-based consultation services this year, away from the existing E-mail and text-based consultations. At present, such free video communication services as Skype or NateOn exist, but real-time sharing of PowerPoint files and web screens is impossible. We will supplement such shortcomings for international buyers' purchasing of Korean products."
KOTRA has been supporting some 10,000 domestic companies every year through meetings with more than 100,000 international buyers.
“In the past, KOTRA’s business was limited to one-time connection between international patrons and domestic companies through offline exhibitions, consultation meetings, and trade missions. However, we are now propelling to advance the buyKOREA platform to help domestic exporters keep and develop their business with their foreign counterparts continuously online,” he stressed.
“Through the advanced buyKOREA platform, KOTRA will manage consultation careers between international buyers and Korean exporters that participated in major marketing events, including trade missions and overseas exhibitions,” he noted.
Stressing that support of international clients well means supporting domestic enterprises as well, Shin said, “We will persistently build such a virtuous cycle through the buyKOREA platform. It is the role of the KOTRA’s small and medium-sized enterprises support headquarters.”
Spread of KOTRA global brand
KOTRA plans to spread the KOTRA global brand project this year to help domestic SMEs enhance their reliability in overseas markets and promote their exports through the KOTRA brand.
“In 2008, the KOTRA global brand project started under KOTRA Seal of Excellence. KOTRA selected manufacturing companies among Korean SMEs with an annual export of less than $10 million and high competitiveness in terms of quality and technology. Those selected were entitled to use the KOTRA global brand for three years through a contract,” Shin explained.
“However, over 88% of the selected SMEs expressed their hope to reuse the KOTRA logo after the passing of three years. Accordingly, we changed the regulation in 2012 to allow those with outstanding export growth results use the logo for the maximum twelve years,” he said.
“Along with this, KOTRA established a three-grade system – blue, silver and gold – for effective management of the KOTRA global brand. Under the new system, initially selected SMEs can use the global brand for overseas marketing for four years and they can apply for promotion of the grade three years after their participation in the KOTRA global brand project,” he said.
As of February 2014, 325 companies with less than $10 million in annual exports obtained the blue grade and 32 companies with over $10 million in exports or over 50% in annual average export growth rate for three years garnered the silver grade. Meanwhile, 46 companies, which participated in the KOTRA global brand project for more than three years and exported over $20 million products or recorded an annual average export growth rate of over 100% for three years got the gold grade.
Selected companies can enjoy such support as the right to use the KOTRA global brand, joint marketing supports, online and offline overseas public relation activities and linkage supports from relevant institutions, including Korea Trade Insurance Corp.
“According to the 2013 survey of the selected companies on the degree of satisfaction, 92% used the KOTRA logo for overseas marketing activities and over 70% expressed satisfaction. Meanwhile, 87% replied that their use of the logo brought about positive effects on attracting overseas buyers,” said Shin.
“The average export growth rate of those using the KOTRA global brand for six years was 9%, higher than that of all Korean exporters,” he said.
Selection of world’s first-class products
“Since May 2013, KOTRA has been also making a strong push for a project to select and foster the world’s first-class products. To become the world’s first-class products, Korea’s export market share should exceed 5% and Korea ranked within the top five,” said Shin.
Commenting that the world’s first-class products are classified into the present first-class products and the next-generation first-class goods, he said, “The current first-class products are satisfying standards to become top-class products at present and the next-generation first-class goods are those with a potential to become the world’s first-class products within five years.
Those selected as the world’s first-class products are entitled to get direct support for overseas marketing activities through KOTRA, including between ₩15 million and ₩20 million in overseas marketing fund, and indirect supports in financing and manpower.
“As of April 2014, 727 companies producing 639 items were selected as the world’s first-class producers and products. KOTRA plans to actively foster 1,000 items as the world’s first-class products by 2020,” he added.
The total breaks down into 461 items as the present first-class products, 543 companies as the present first-class producers, 178 items as the next-generation first-class goods, and 184 companies as the next-generation first-class producers.
