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The exhibition is expected to present a vision regarding the digital electronics industry through technology demonstrations and the hosting of several seminars. The Korea IT Times spoke with Executive Vice Chairman Lee Gam-yeol of the Electronics Industries Association of Korea (EIAK) concerning KES2004's special features, the condition of the electronics information telecommunication market environment this year, EIAK's chief business plans and priority projects, and support for the development of overseas markets.
by Yeo Hong-il, Reporter / hiyeo@ittimes.co.kr
Q: First off, please introduce KES2004's distinctive features.
A: As the crowd level and overseas buyers' participation increases every year, KES 2004 has taken root as the largest exhibition at home in fact as well as in name. World-renowned IT corporations, including Samsung and LG, are expected to take part in large numbers this time. Programs such as world electronics business circle's CEO Forum, and promising technology seminars will be introduced. Thanks to several favorable conditions the world economy is recovering this year. Also, since Korea is recognized as an initial market for digital electronics and for its leading infrastructure development, KES is attracting a lot of overseas interest.
KES is currently equipped to function as a "one stop" marketing exhibition to include everything from parts and material to ultra-modern products. As an international exhibition connected with major Asian conventions in Japan, Hong Kong, China and Taiwan, KES is scheduled to establish a new e-Commerce pavilion and new pro-environment product publicity pavilion. We expect that KES2004 will be a showcase of superior electronics, such as the latest IT products and semiconductors including digital multimedia products and complex intelligent-model terminals.
Q: How do you see the IT market environment shaping up this year and what are the prospects for the IT business
A: Recently, the worldwide electronics information telecommunication market has been escaping its prolonged stagnation.
The United States' growth, which spearheads world demand, is showing a clear recovery pace. In terms of sectors such as digital TVs, semiconductors, PCs, and portable phones, demand is tightening from former oversupply. We are partially concerned about a supply shortage.
In particular, China, the factory of the world, is continuing its high growth at a 9 percent level. While the Chinese government is trying to calm its overheating economy, the energetic facility investment of corporations has maintained growth. In addition, business in Japan and the EU is taking a favorable turn.
Generally, world business is picking up and IT manufacturing turnover is showing signs of growth. The United States' NASDAQ index, in which major IT companies are listed, is already rising by a large margin compared to last year. As time goes by, the digital IT industry will expand.
Q: How is the export movement, as well as the brand awareness of Korean firms and Korea itself
A: As the world's digital electronics market resuscitates electronicssupplying nations begin to show life. It is no exaggeration to say that the electronics-related product manufacturing base is coalescing in East Asia, including South Korea, Japan, Taiwan and China.
Korea is considered to be a country that can meet the market demand for excellent quality digital electronic products. Our country's electronics industry exports are jumping from 20 percent of all exports last year to as much as 40 percent this year.
The electronics industry's trade surplus is also expanding. During the first quarter of the year, electronics industry exports were in the $23 billion range, with $4.2 billion to the United States, the largest export destination, up 31 percent compared to last year. During the first quarter, Korea's electronics industry exported $3.7 billion to China, up 57 percent, $4.0 billion to EU, up 44 percent, and $1.9 billion to Japan, up 56 percent.
This scale of exports is a barometer that shows how non-price competitive factors, such as Korea's brand image, have grown. At worldfamous electronics industry exhibitions, such as Germany's CeBIT, our up-to-the-minute machinery and tools such as portable phones and digital TVs are taking the highest prizes. Furthermore, in Russia and other countries, our brands are considered to be national brands. Q: How is the export movement as well as brand awareness by nations and by business fields A: As the world's digital electronics market resuscitates electronics-supplying nations begin to show life. It is no exaggeration to say that the electronics-related product manufacturing base is coalescing in East Asia, including South Korea, Japan, Taiwan and China. Particularly, Korea is considered to be a country that can meet the market demand for excellent quality digital electronic products. Our country's electronics industry exports are jumping from a 20 percent level last year to as much as 40 percent this year. The electronics industry's trade surplus is also expanding. During the first quarter of the year, electronics industry exports were in the $23 billion range, with $4.2 billion to the United States, the largest export destination, up 31 percent compared to last year. During the first quarter, Korea's electronics industry exported $3.7 billion to China, up 57 percent, $4.0 billion to EU, up 44 percent, and $1.9 billion to Japan, up 56 percent. Such export scales can be a barometer that shows non-price competitiveness such as Korea's brand image has grown. At world-famous electronics industry exhibitions, such as Germany's CeBIT, our up-to-the-minute machinery and tools such as portable phones and digital TVs are taking the highest prizes. Furthermore, in Russia and other countries, our brands are considered to be national brands.
Q: What are EIAK's chief business plan and priorities for this year
A: This year, EIAK is planning to help our nation's exports reach $100 billion. The electronics industry's exports are in a leading position accounting for roughly 40 percent of our entire export sector.
In the interests of the electronics industry's balanced development, we intend to reinforce the domestic electronics industry's competitive base. To enhance the quantity and capability of engineers, EIAK is operating a development council for the sake of electronics industry human resources.
With a systematic connection between the industry's human resource demands and training centers, the supply of manpower will become balanced. On top of that, EIAK intends to secure more price competitiveness through the improvement of the tariff system. We will correct reverse customs duties covering electronics parts and materials and enlarge customs assignments.
Q: Please touch upon your chief projects to support overseas market development.
A: To preoccupy global markets in advance of competitors as the digital electronics era begins in earnest, we are supporting actively corporations that open oversea markets.
First of all, EIAK will find overseas market opportunities by organizing and dispatching overseas market development delegations. We will help find buyers in cooperation with relevant institutions by dispatching teams to developing countries in Asia and Central and South America. Specifically, EIAK is promoting plans to capture markets in BRICs (Brazil, Russia, India and China).
Likewise, by opening a Beijing office, we will strengthen the electronics industry's market penetration in China. We will offer advice in special fields such as patent infringement and environment control, as well as acting as a liaison with relevant institutions.
By attending many oversea special exhibitions such as CeBIT and Ifsec, we will seek opportunities to boost the brand value of home-made products as well as corporations. Export consultation and contract conclusions achieved over $1.5 billion last year.
Q: Would you tell us what you are doing to promote technological innovations
A: In not a few items such as portable phone and digital TVs that are rising to worldwide fame, foreign-made parts' dependency is relatively high. To get around this, we are enforcing diverse policies to nurture domestic industry and to develop low-priced home-made parts and material, and technology of good quality.
The government is also carrying out plans to foster the growth of special industries.
At present, EIAK has a basic policy to find promising electronic parts for the sake of new technology innovation. Furthermore, EIAK is contributing to the development of new digital technology by constructing information service systems.
Q: How are you supporting small enterprise and start-up cybermarketing efforts
A: In this "on-line" or "cyber" era, EIAK is taking the initiative in constructing e-commerce infrastructures. To prepare for the full-scale ecommerce era and to contribute to the continuous promotion of the electronics industry, a key industry, we are undertaking the marketing of digital electronic products and parts in cyberspace.
EIAK will make efforts to maximize marketing effects by holding cyber exhibitions in accordance with all sorts of off-line exhibitions at home and abroad. In the meantime, cyber transactions have been a little dull due to business stagnation, but along with the business recovery we expect cyber marketing to be more brisk.
