SEOUL − “This is a symbolic event that means Korea enters the center of the world economy and trade after 50 years of economic development with enterprising spirit,” said Han Jin-hyun, Deputy Minister for Trade & Investment Policy at the Ministry of Knowledge Economy when asked about what the meaning of Korea’s reaching USD1 trillion in trade and the role of Korea’ trade are. “This feat proves the elevated global status and enhanced image of Korea.  Korea joined the club of advanced countries such as the U.S., Germany and Japan which recorded USD1 trillion in trade as ninth member. So Korea has become a leading player in the world economy and trade.”  

 

According to Han, it is quite meaningful in that Korea overcame a foreign currency crisis in 1997 and is the first country to join the USD1 trillion trade club since the outbreak of the world financial crisis. On the other hand, it is needed for Korea to prepare for new growth while overcoming negative side effects of its economic growth such as the expansion of the gap between the rich and the poor and economic polarization. 

 

Korea’s exports have taken the initiative in its economic development while creating jobs. They also significantly contributed to Korea’s overcoming economic crises such as the foreign currency crisis by expanding foreign currency reserves. Korea has imported raw materials and capital goods for its economic growth and cheap and excellent consumer goods for better qualities of life for people. Korea’s trade expected to surpass around 2020 unless the financial crisis in Europe is unsolved for the long term.

 

“The Korean people, companies and the government should continue to make efforts to realize USD2 trillion in trade to make people happy and proud,” Han continued. “Korea needs to address its internal problems and deal with changes in the global business environment. Corporate Korea should develop better agricultural and fisher products and services by veering from the current industrial products-oriented exports.”

 

“Its products should have better styles, design and more Korean cultural elements. Korea also need to pay attention to software and contents. Korea’s small and medium-sized companies should grow into bigger and more globalized companies,” Han added.  

 

In addition, the Korean government should promote Korea's green industry. Korean companies should develop business in partnership with newly emerging economies. We should elevate the efficiency of overseas market development. Korean companies need to engage in forming global networks. Trade infrastructure should be strengthened and sustainable growth needs promoting.   

 

Korea’s IT exports in 2011 are expected to record an all-time high thanks to strong exports of smartphones and system semiconductors. They are projected to reach USD157 billion, 2.0% up from a year before.  Smartphone exports by Korea ranked first in the world in the third quarter, continuing from the second quarter in 2011. Exports of system semiconductors and SW have been on a steady rise.  “Exports of memory semiconductors and display panels slid in terms of monetary amount due to a global glut and a sharp decrease in unit prices but Korea’s market share in these sectors expanded,” Han said.   

 

The leadership in the global IT market is moving to SW from HW. So the Korean government will focus on strengthening its SW power and activating exports of products combining HW, SW and services.  “We will nurture sectors with big growth potential such as system semiconductors and SW and help Korean companies secure competitiveness in the smartphone and smart tablet PC sectors. The Korean government will spare no efforts to support the next-generation high-value-added sector of Korean companies so that they will be able to continue to take the lead in the semiconductor and display industry.”

 

In addition, the Korean government is planning to support about 400 robotics engineers a year to nurture specialized human resources and  establish meister high schools to secure excellent human resources. “This year, the government started a tentative government-wide robot project to help Korean robot companies secure global competitiveness and tap into overseas markets. Within this year, about 30 billion won will be spent on the project. As part of the project, the government is planning to push for overseas test bed projects such as a performance robot project in Italy, a human joint operation robot project in Singapore and a robot project to take care of senior citizens in New Zealand.  

 

At the same time, the government is planning to change the IT service market to be friendlier with small and medium-sized companies. In addition, the government will concentrate on strengthening the competitiveness of Korean companies such as R&D and human resources development.  “We will differentiate its support for the SI service sector and the package SW sector to expand Korean companies’ overseas advancement. The government will support SI service companies around the international contract market and newly emerging markets,” Han explained.   

 

The government is committed to making Korea an economic powerhouse where big, small and medium-sized companies grow in harmony. “Above all, will help small and medium-sized companies develop and expanded their competitiveness by expanding support in terms of technological power, human resources and marketing,” Han said

 

Of late, new opportunities knock the green energy industry. They include an increase in demand for energy and resources, continuing high oil prices and efforts to cut down on greenhouse gases in the international community.       The Korean government is pushing for a strategy for low carbon green growth with the aim of turning a crisis called “dealing with climate change” into an opportunity. 

 

“First, we will build an efficient greenhouse gas emissions to reach a goal of reducing greenhouse gas emissions by 30%,” Han said.  “Second, we will also establish an economic and social structure such as the actualization of energy prices, improving energy efficiency in all sectors and spreading a pan-national energy saving culture. We will push for making the green industry a new growth engine such as nurturing the new and renewable energy industry, building smart grid, developing and diffusing green cars.”