Former Vice Minister Kim Jae-hong of the Ministry of Trade, Industry and Energy (MOTIE) took office as the 19th president of Korea Trade-Investment Promotion Agency (Kotra) on Jan. 2.
The new KOTRA president delivered his inaugural speech at a ceremony not only to take the helm at the ceremony but also embark upon the new year at the KOTRA headquarters in Seocho-gu, Seoul, on Jan. 2.
“Korea, a country that has achieved economic prosperity through export-led industrialization, has always looked to global breakthroughs in difficult times,” said the KOTRA president in the inauguration speech. “Through developing a new trade paradigm, KOTRA will pursue a 2nd trade renaissance by providing support to change SMEs and mid-size superstars into exporters.”
Looking back, Kim said, “KOTRA, established in 1962 under the banner of building the nation into a trading power, has contributed greatly to the nation’s ushering in an era of $1 trillion in annual trade. Many Korean companies have turned to KOTRA to help them explore overseas markets, and your seniors have waded through murderous heat in deserts and jungles to make Korean companies go global.”
In 2013, he said, Korea declared its 2nd Trade Renaissance, and set a goal of rising to the top five trade powers in the world, achieving $2 trillion trade by 2020.
But Korea’s export environment is never easy, the KOTRA president said. With the tapering off of quantitative easing in the United States, an economic downturn in Europe, a low yen, and a setback in Korea’s major export markets, the export environment today poses challenges, he said.
KOTRA is entrusted with a mission of the times — pursuing a 2nd Trade Renaissance by overcoming these difficulties and developing a new trade paradigm, he said. Kim expounded the tasks KOTRA will implement during this year.
First, President Kim called for support to nurture SMEs and mid-size superstars into export forces. Through supporting companies with customized service packages, he said KOTRA will have to foster 100,000 export SMEs and 400 specialized global companies by 2017. KOTRA will strengthen support to prominent domestic companies with no export records and those just starting to export. And KOTRA needs to help venture start-up companies establish business strategies with their entry into foreign markets in mind by connecting them with 17 Creative Economy Innovation Centers so that effects of the creative economy can pay off overseas.
Second, he called for continued creation of new export bread-winners. Only the manufacturing-oriented trade structure cannot achieve the goal of $2 trillion trade. “KOTRA will increase trade in such new fields as cultural contents, services, medical goods and services, new energy industries, agriculture and fishery and defense.
“We will proactively respond to new trade methods, including intermediate and processing, e-commerce and government-to-government,” he said. To this end, he said KOTRA will have to change its organization and functions, which have been geared to concentrate on its export support to the manufacturing industry.
Third, he called for effective inroads into expanded overseas markets. Despite the hard times the nation suffered during last year, he said. Korea has concluded FTAs with China, Canada, Australia, New Zealand and Vietnam. From now on, he said KOTRA will have to proactively help Korean companies make the most of the expanded economic sphere. In particular, it is important for Korea to make the most of the FTA with China. KOTRA needs to make inroads into China’s domestic markets while attracting foreign R&D centers and global headquarters so that they can make Korea a platform for entering the Chinese market. KOTRA will have to accelerate efforts to make inroads into Central and South America in keeping with the establishment of diplomatic ties between the United States and Cuba.
“KOTRA will also help our companies maximize the networks established and information gained through the economic diplomacy of the Korean government. We will strengthen our mutual development cooperation with developing countries by sharing our development experiences and expanding our global corporate social responsibility activities.
“In the process, we will contribute to the Eurasia Initiative, which is linked directly to trade logistics,” he said.
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