SEOUL, KOREA – Parker Hannifin Corporation, a global company (headquartered in Mayfield Heights, Ohio) with annual sales of KRW 10 trillion, has recently developed quite an affection for Korea. Yet, its share of the Korean market is less than 5% of its total sales. Parker was deeply committed to manufacturing and marketing in China several years ago and even set up a joint venture with a Chinese firm to penetrate the Asian market. But, the bottom line was technology leaks and a brain drain. Having learnt from such bitter experiences, Parker has decided to set up an additional production facility in Korea.
Besides, a growing number of global companies (e.g. German chemical company Wacker, Basf and Dowcorning) are either relocating their R&D centers to Korea or expanding manufacturing facilities in Korea.
Such renewed attention to Korea is because Korean workers are known to be punctual in meeting supply deadlines, highly-educated and reasonable enough to communicate with. In other words, these multinationals view Korea as a trustworthy nation harboring a lower risk of technology leaks.
Sean Chung (hbpark@etnews.com)
**Article provided by etnews [Korea IT News]
[Reference] : http://english.etnews.com/electronics/2715655_1303.html
Besides, China’s rising wages have pushed up the maintenance costs of their manufacturing facilities in China, consequently turning away numerous global companies.
