Korean Policies for Sustainable Trade Growth
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- Beatrix Moody
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1 Korean Policies for Sustainable Trade Growth - Facilitating Trade for SMEs - Oct 2012 Korea Paperless Trade Office, KITA
2 Korean Economy & Global Network - 1 -
3 Policies for Sustainable Trade Growth - 1 -
4 Policies for Fostering Trade Industry K I T A Reinforce support to companies to maximize the earning of FTA Build strategic FTA plans with promising countries Enforcing marketing strategies for emerging market Expanding information and infra to access new emerging market Expanding FTA global network Facilitate accessing new Market Encourage major and small businesses to expand overseas collaboratively Advanced trade infrastructure FDI-friendly policies & Environment Extent trade financing and ex/import insurance Foster international conventions in Korea Activate e-trade based on the Internet Improve the system of Foreign Investment Intensify efforts to attract strategic investments Develop Free Economic Zone
5 Service Road Map to Support Trading Companies K I T A 1st Starting trade business 2nd Overseas marketing 3rd Contract and Export Extra supports - Int l standard Certification - Funds to develop overseas markets - Selecting export items - Giving a trade registration number - Changing a business license - Educating how to start trade business - Superior product exhibition - International trade show - Trade mission - Internet Global matching service - Overseas market research - Credit inquiry - Producing catalogues/manuals - Translation service - Filling out documents - Trade consulting - Reviewing the contract - Export clearance and transportation - Export Insurance - Payments for the bills - Tariff refund - International patents - Export packing - Help to receive uncollected money - Information of overseas companies
6 Relevant Int l Service Agency for Export K I T A Before Contract (Marketing) - KITA - KOTRA - Association established by respective industries - Local Government - Association established by Local Government After Contract - Paperless Trade (KTNET) - Cargo Clearances (Customs) - Freight (Shipping, Transport) - Export Insurance (K-sure) - Payment (Banks) - Export Inspection - Credit Inquiry Agency
7 What is KITA? - 1 -
8 Introduction of KITA Foundation Established in 1946 Status Goals Korea s largest and most influential business association with 65,000 members Supporting domestic companies to expand their business on a global scale Fostering partnerships between domestic and overseas enterprises Homepage View of the World Trade Center Seoul - 1 -
9 KITA s Main Activities 1. Opening Doors For Foreign Traders & Investors l Marketing through KITA s e-marketplace, tradekorea ( l Networking with foreign traders & investors l Hosting exhibitions & conventions 2. Improving the Trade Environment 3. Building u-tradehub for Paperless Trade 4. Researching the Global Economy & Training Trade Experts 5. Developing an Advanced Logistics Industry 6. Operating the World Trade Center Seoul since 1988 Major exhibitions hosted by KITA SPOEX (Sports & Leisure) Jewel Fair Korea World IT Show BIO Korea Marine Week OFFICE SPACE : Trade Tower, ASEM Tower, CALT Tower BUSINESS FACILITIES : COEX Convention Facilities, COEX Exhibition Halls TRANSPORTATION : CALT (City Airport, Logis & Travel) LODGING : Grand & COEX InterContinental Hotel, Oakwood Premier COEX Center SHOPPING : COEX Mall, Hyundai Department Store LEISURE : COEX Artium Performance Center, Movie Theater, Aquarium, Seven Luck Casino - 2 -
10 KITA s Global e-marketplace for SMEs-tradeKorea.com - 1 -
11 Paradigm Shift in International Trade Procedure of International Trade Marketing Nego. Contract Customs Clearance Shipment Settlement Transport -ation Promotion Search Biz Matching Negotiation - e-catalog - Trade Leads - Products - Companies - Trade Info -In/Out-bound Biz-Matching - Sending/Receiving Inquiries - 3 -
12 KITA s e-marketplace, tradekorea.com tradekorea.com is launched on April 8, 2008 Providing basic tools for online marketing such as posting e-catalog, sending/receiving inquiries, etc Promoting Korean suppliers to foreign buyers - 4 -
13 Global e-marketplace, tradekorea.com In July 2009, newly born tradekorea.com as a Global e-marketplace Offering free services to international players with no restraints Providing user-friendly web services - 5 -
14 Global e-marketplace, tradekorea.com 1. Open to International Players l Free & simple registration l World-wide promotion to international traders 2. Reliable Database and Trade Information l Extensive database on a variety of products and Korean companies including KITA s 65,000 members and overseas Korean companies l Up-to-date information on domestic and international trade shows l Special cyber exhibitions through cooperation with global e-marketplaces 3. 1:1 Business Matching Service l Direct online/offline matching service by trade experts l Help in finding the most reliable and suitable trade partners in Korea 4. User-friendly Web Services l Skype video consulting, Google Map, Instant Trade Alerts, Credit Verification - 6 -
15 Screen Shot of tradekorea.com - 7 -
16 Screen Shot of tradekorea.com (Cont d) - 8 -
17 tradekorea.com Global Biz Network Establishing networks with trade promotion agencies worldwide
18 tradekorea.com Global Biz Network Connecting suppliers and buyers through cooperation with major global e-marketplaces Joint promotion through banner exchange Signed comprehensive cooperation MOU Multi-posting on tradekorea.com & Alibaba.com Export to China, Export to the World Test Project of B2C market entry B2B e-trade Mission project Global e-ta training program
19 Paperless Trade in Korea - 1 -
20 Needs for Paperless Trade export import
21 Establishment & Dissemination of Paperless Trading System v Milestone of Paperless Trade in Korea Computerized Trade Data EDI service (frame relay) Online Marketing Paperless Trading System vtrade Automation Act(1989) For national competitiveness by cutting costs through automated transaction system vestablishment of KTNET(1991) A 100% investment holding subsidiary of KITA Implementing IT based projects between public and private sector the sole designated system operator for utradehub a service provider of the national paperless trade system
22 Establishment & Dissemination of Paperless Trading System Paperless Trade Governance in Korea
23 Concept of utradehub Establishment & Dissemination of Paperless Trading System
24 Establishment & Dissemination of Paperless Trading System Course of Actions Phase3 ( 07~ ) Establish e-trade Platform, utradehub for all the trade related communities è Link systems of banks, logistics and many other related organizations Phase2 ( 06) Build a trade portal for traders è License/Certification/Clearance support system Standardize documents è ebxml based document standardization Phase1 ( 04-05) Build Core Infrastructure of e-trade Platform è u-trade document circulation system è e-l/c service system
25 Legal framework Digital Signature Act Trade Automation Act (1991) Foreign Trade Act e-trade Facilitation Act (2005) Electronic Transactions Act Commercial Law (2007)
26 Expected Economic Benefits Productivity increase [554.3million USD] + Reduction of extra fees [2.11billion USD] + Reduction of redundant investment in the IT sector [318million USD] Productivity Increase Reduction of extra fees Reduction of labor costs (263.3million USD) Reduction of printing costs (19.1million USD) Reduction of circulation and storage costs(271.9million USD) Reduction of warehousing costs (1.36billion USD) Reduction of inventory management costs (750million USD) Reduction of redundant investment in the IT sector (318million USD)
27 e-nego Pilot Project Banks Linked Authorities Trading company e-nego e-l/c Logistics companies e-b/l e-i/p e-c/o Linked Authorities Insurance companies e-trade Documents Repository RelatedOrganizations
28 Expected Economic Benefits Cost saving cases in Paperless Trade LG ELECTRONICS SAMSUNG ELECTRONICS. INTERFLEX DAEWOO ELECTRONICS. Reduced Labor costs, documents handling charges, etc. by 30mil USD for a year Reduced labor for the customs clearance department by 50% : 89 persons 43 persons Shortening of working hours and process simplification : 25days 5days, 53steps 17steps Reduction of extra fees for trading : 29,000 USD 9,160 USD Shortening of the time required : 12hours 30mins Shortening of handling hours for shipping requests : 22mins per 6mins per
29 Thank You - 1 -
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