Global Belt is a new business operation system which utilizes total marketing in the appropriate field by networking KOTRA offices at home and abroad as one Belt and by differentiating specific fields by region, function as well as industry.
By selecting nine strategic industry belts like IT as well as culture content, this Global Networking is intended to boost cooperative synergy effects with associated institutions by boosting business capacity, says director Ahn Sang-Keun of the IT & Cultural Industry Marketing Team, KOTRA (Korea Trade-Investment Promotion Agency) Regarding the team's business direction conversion, nine strategic industry belts include auto parts, medical treatment (including BT), culture content, IT, machinery plant, textile, shoes, the environment and electronics, according to Ahn.
Tailor-made overseas marketing support
Concerning IT Belt business, Ahn elaborated on the business environment, saying, "Global IT market scale is presumed to be $2.6 trillion, including hardware, software, IT service and so forth." In respect to the domestic market situation, Ahn explained that affiliated IT products account for around one-third of Korea exports, with 25.3% ($31.7 billion, 1995), 29.7% ($51.2 billion, 2000) and 29.2% ($74.3 billion, 2004) respectively in terms of its relative importance, but preponderance phenomenon by items is the point at issue as three items like cellular phones, semiconductors, and display account for three quarters of total IT exports.
In that context, the director - who oversees KOTRA's IT & Cultural Industry Team - insists, "Marketing focus has tended to move from established product-oriented to service-centered (DMB, telematics etc.) in recent years," explaining that associated business circles at home aim to accomplish IT exports of $110 billion in the course of 2007 through overseas marketing of next-generation growth industries such as IT 839 strategy.
As concrete propulsion strategy for IT Belt business' activation, Ahn said that KOTRA's IT & Cultural Industry Team is striving to boost the future cutting-edge industry contribution through the Daeduk R&D Special Zone, differentiation of overseas marketing, and national priority projects.
To this end, KOTRA is exploring tailor-made overseas marketing business (research, manpower nurturing, consulting, marketing, and ex post facto control) for Daeduk Special Zone's star companies plus success example's early actualization through Daeduk Special Zone's oversea marketing Best Practice creation.
The director added that KOTRA's IT & Cultural Industry Team is also trying to make more inroads in global markets in the next-generation strategy field (IT 839) including new media service (DMB) support in connection with culture content belt business, China Telematics Roadshow, the U.S. RFID business consultation meetings, and so forth.
In regard to supporting Daeduk Special Zone venture startups in advancing into foreign markets, the Team is planning to assist 15 companies in 2006, 30 venture start-ups in 2007, 50 companies in 2008, 100 start-ups in 2009, and 200 companies by 2010. Concerning overseas market inroad support for the next-generation IT field (DMB, Telematics, SoC, RFID) as well, the Team plans to help them access foreign markets with a view to assisting 10 companies in 2006, 15 companies in 2007, 20 companies in 2008, 25 companies in 2009, and 30 companies by 2010.
Forty-nine KOTRA overseas offices are taking part in this IT Belt business and they are divided into three regions, namely advanced IT markets, Asian markets and new emerging markets, according to Ahn.
Concretely-speaking regarding major promotion projects, KOTRA's IT & Cultural Industry Team supports tailor-made overseas marketing for Daeduk Special Zone star companies by stages of business propulsion process such as overseas market surveys, marketing manpower nurturing, strategy consulting, premium marketing, and buyer ex post facto control.
Through this, Ahn stressed that the Team wishes to strive for Daeduk Special Zone's early activation plus creating Best Practice of successful oversea marketing business as well as nurturing star companies through promising product's export enlargement.
Second, as for next-generation strategic field's overseas marketing, new media service (DMB) publicity as well as overseas inroad support, hosing an RFID North America Business Consultation Meeting, and hosting the China Telematics Export Roadshow host are being planned. Besides, Ahn said KOTRA's IT & Cultural Industry Team will dispatch e-Government project survey teams to the Middle East, CIS, and Asia in the interests of e-Government project inroads in the course of the first half of 2006, plus organizing a North America SoC Export Roadshow in the second half of 2006.
Third, overseas exhibitions and export roadshows are being supported by KOTRA's IT & Cultural Industry Team five times in the case of overseas exhibition and 22 times in the event of IT export roadshow respectively, according to Ahn.
Culture industry, the future's growth engine
In the case of culture content Belt business, the global economy growth's engine is moving its paradigm from established textile, iron, chemistry, & electronics to culture content, as The Economist reported in 2001.
Director Ahn particularly noted that the culture industry is the future's growth industry, whose high-growth, high valueadded, market scale as well as cultural and economic rippleeffects are huge, adding that global market scale is presumed to be roughly$1.5 trillion in 2006 and is forecast to post average 6.3% growth rate by 2008.
Major advanced countries such as the United States and EU member nations are nurturing the culture industry as next-generation growth engines, and for Korea too, our culture industry turnover amounts to 49 trillion won (around $51.6 billion) in 2004 plus accomplishing exports of $690 million, he said. For reference, Korea is striving to become one of five culture industry countries with $6 billion exports by 2010.
As a promotion strategy for culture content Belt business, the director explained, "As Kotra culture industry oversea marketing support organ, our team is striving to diversify support for fields like animation and character etc. and will beef up overseas inroad support for online game as well as mobile game by holding investment export consultation meetings in connection with E3, TGS, the largest game exhibition globally."
Through screen industry oversea inroad support too, he emphasized that the Team's efforts for hallyu ("Korean Wave")continuation as well as its enlargement will be promoted by means of new media services (DMB) as well as content publicity through the participation of famous broadcasting exhibitions (MIPTV/ Millia, Broadcast Asia) etc. An increase in culture industry exports will be advanced with an eye on $800 million in 2006, $1 billion in 2007, $2.5 billion in 2008, $4 billion in 2009, and $6 billion by 2010, according to 'CKorea 2010' vision accomplishment goal the government is promoting. Ahn said that for this culture content Belt composition, 17 KOTRA oversea offices take part in.
With regard to major promotional projects, the veteran director in conjunction with IT as well as culture content underscored that the Team would operate by enlarging service export stronghold trade offices, namely by securing overseas marketing strongholds of new promising service field like culture content in 10 Korean Wave major stronghold offices including Southeast Asia, China and Japan.
By culture contents, KOTRA's IT & Cultural Industry Team will push forward related projects for G-Star 2006 activation first off in game industry including influential game company (MS, Sony etc.) participation as well as buyer inducement support, global influential game publisher invitation export consultation meeting host with about 100 companies etc.
Second in broadcasting content, the Team is planning to support Korea broadcasting as well as new media (DMB) publicity and export consultation meeting through worldwide famous broadcasting-associated exhibition participation like MIPTV/Millia, and Broadcast Asia.
Third, director Ahn says in conjunction with movie industry that the Team will support Korean movies' globalization plus Korean movie's oversea inroad enlargemen effort through participation support of worldwide three famous movie markets such as EFM, AFM and so on.
Fourthly, in connection with animation, the Team will dispatch export roadshows for the purpose of Korean animation overseas inroads enlargement such as China animation export roadshow and Europe animation export roadshow in the course of the first half of this year respectively.
Business urged to create new markets
Director Ahn, who assesses that this year's E3 game exhibition paid off considerably in line with game power Korea's phase, sets great expectations on the forthcoming Germany World Cup 2006 too, explaining that ordinarily, IT product's sale such as DMB, display, and flat TV are on the increase greatly during the season of World Cup Soccer. In this context, the director urged associated business circles to create new markets such as DMB and WiBro, using the World Cup 2006 as an impetus on the basis of Korea's traditionally leading three industry item groups like cellular phones, semiconductors, and display.
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