The Incheon Information Technology Industry Promotion Agency (IITPA) has been excavating information communication companies located in Incheon that have the possibilities for growth and technologies since 2003. In order to have the companies avoid the fiercely competitive domestic market, in which Korean large companies have already preoccupied, and overcome the limitations of the level of brand awareness that regional companies have, the IITPA has been concentrating on the pioneering of overseas markets on the part of the companies in Incheon so that they can convert to overseas marketing.
The total number of cases of the support by the promotion agency in the past four years, from 2003 until 2006, is 372. The results involved US$3.88 for 42 companies in 2003, US$25.05 million for 54 companies in 2004, US$43.48 million for 134 companies in 2005, and US$55.95 million for 142 companies in 2006. On the average, about 215% of growth took place every year.
Through these, among the promotion agencies nationwide, the IITPA achieved number one in terms of the relative weight of the import amount compared to the total sales of the companies supported. And it accomplished number two in terms of the total amount of exports on the part of the companies supported. In addition, it had induced an additional overseas business budget of 400 million won from the Incheon City and the Small and Medium Business Administration (SMBA) based on the overseas results.
For one example, in 2005, Namjootech's total sales of defense industry products in Korea were less than 1 billion won. But from the latter half of 2005, the company developed civilian goods and participated in the overseas marketing support project executed by our agency. In January 2006, it participated in the CES2006 exhibition held in Las Vegas in the United States. It concluded export contracts worth a total of US$6.67 million with the buyers it consulted at the exhibition. It achieved a total sales expansion of over six times the total sales of the previous year through overseas exports. It is predicted that the company will go through a growth of over 10 times compared to the previous year once the follow- up contracts are concluded.
As a result of such efforts, the IITPA has been the subject of the benchmarking of the promotion agencies in other regions. When pursuing overseas projects, other regions have hoped for participation. The agency has been performing an innovative role in the economic invigoration of the Incheon region.
It is forecast that, in 2007, the domestic consumption business conditions will continue to go through a recession due to such risks as the instability of the financial market due to the dropping of the exchange rates, the worsening of the labor-management relations, etc. Also, the rapid rise of the Chinese economy and the continued rapid progress of the information commu- nication industries of Japan, China, etc, have been threatening us.
However, I believe that, like the saying "Opportunities come to those who are prepared", enterprises must begin the era of US$30,000 of citizen income, which is our dream, through systematic preparations, including that of working on overseas markets. The important thing is to concentrate on overseas markets instead of the domestic market. In Korea, the supply and demand system is overcrowded mostly in the capital city area. And it is not easy for small- and medium-sized enterprises to cultivate the market which is already preoccupied by large companies. As such, I believe that we, as a nation that is strong in information and communication, must challenge the world market. We must exert the efforts to learn all kinds of overseas information, policies, etc, at all times. And we must aggressively participate in such world-class exhibitions as CeBIT, CES, and GITEX. We must concentrate on more offensive overseas business marketing.
In 2007, too, for regional companies' pioneering of overseas markets and to provide marketing support to the companies, the IITPA will participate in famous overseas exhibitions. It will organize and operate an Incheon hall. It plans to continue to support the overseas market entry of IT enterprises in the Incheon area.
The IITPA had participated in the CES2007 exhibition held in the United States in last January. It has been providing the support so that 16 enterprises can take part in the CeBIT 2007 Hanover information and communication exhibition, which is the largest of its kind in the world. Also, five companies will participate without a booth but engage in on-the-spot c o n s u l t a t i o n s , thereby engaging in diverse business activities and marketing.
Other than these exhibition projects, the IITPA plans to continue to strengthen the global cooperation system with overseas organizations. Currently, it has been maintaining continued friendly relations related to overseas exports through agreements with 16 specialized overseas organizations, including PIKOM of Malaysia, the IT association of Hungary, etc. It has been supporting the continued exchanges between the companies that have made ties. And, this year, too, it will excavate overseas IT specializing organizations with which cooperation will be possible. Its plan is to help Incheon make the leap to becoming an IT hub city in Northeast Asia.
Thanks to the support of the Ministry of Information and Communication and the Incheon City, the IITPA has been continuing to participate in CeBIT Hanover from 2003 until this year.
Especially, in CeBIT 2006 Hanover, which opened on March 9 last year, the IITPA selected 16 information and communication firms in the Incheon area and participated in the exposition. A total of US$25.61 million worth of export contracts was decided to be concluded. Thereby, the technologies of the IT enterprises in Incheon were well displayed.
During the time period of the exhibition, a very high number of leading buyers from the world, including Europe, paid visits. The total number of cases of consultation reached 2,448. The total monetary amount of the export consultations reached US$446.89 million.
Hanho Electronics, a company specializing in bone conduction headsets and earphones, signed export contracts which amounted to a total of US$7.51 million, including US$4.5 million with WIO of Great Britain and US$3.01 million with Digital of France.
Multichannel Labs, an MP3P, DMB, and PMP producer, signed export contracts worth US$7.3 million with 7 companies in Europe, including Dectron of Spain. Also, Nexio, a firm that produces TFT LCD touch monitors and screens, signed export contracts worth a total of US$4.08 million with Dobit of Belgium, BIKOM of Poland, and Exhibo of Italy.
SB Telcom, a firm manufacturing GPS navigations and handheld TV's, concluded an export contract with Nesa of the United States that was worth US$2.9 million. Yuhanhitec signed export contracts worth a total of US$1.06 million, the counterparts of which included Zitech of Denmark and ICS of Tunisia.
There were other Korean companies that concluded export contracts. In the end, many companies from Incheon signed export contracts with foreign counterparts. This year, 14 companies in the Incheon area will participate in the exhibition. All the enterprises are small but strong enterprises that are representative of Incheon.
The exhibition has been a great help for small- and medium-sized IT companies of Incheon to enter the world market. At the CES (Consumer Electronics Show), it was difficult to find small- and medium-sized Japanese companies. I have high expectations that the exhibition will prove to be of a great opportunity for new products and that we will achieve results that surpass those of last year. When the technologies and efforts of the small- and medium-sized companies are translated into overseas exports through the participation in CeBIT this time, Korea, a country that is strong in IT, will become even stronger. Clearly, CeBIT 2007 Hanover will prove to be a place where the technologies and possibilities of the small- and medium-sized IT enterprises of Incheon are confirmed. And I have high expectations that the companies will be able to prepare a foundation for their advancement through the participation in a world-class IT exposition.
