7:30 PM Thu 1 May 2008

by Jeni Bone (MarineBusinessNews.com)

A contingent of Korean politicians from the Gyeonggi Province, business people, and an entourage from KOTRA, the Korea Trade Investment Promotion Agency, impressed local and trade media and delegates from Marine Queensland, prominent marine businesses and representatives from exhibitor companies with a presentation showcasing the inaugural Korea Boat Show.

Scheduled for 10-15 June 2008, coinciding with the Korea Match Cup yachting tournament, the event organizers admitted that they have been working quietly on the project ‘and now it’s time to sell the sizzle’.

Says Mike Derrett, Marine Industry Advisor to the province: ‘the region of Gyeonggi, home to Samsung, LG Philips and Hyundai-Kia Motors, has millions of dollars of government money invested in infrastructure and it’s going ahead rapidly.’

According to Governor Kim Moon-Soo, the West Coast of Gyeonggi Province – offering proximity to China and Japan – also boasts vast development potential. ‘With a coastline that stretches over 350 kilometers and tidal flat areas that encompass more than 150 square kilometers, the West Coast provides an ideal foundation for the marine recreation and tourism industry that is developing rapidly in Korea.’

The development of the Seongam Maritime Tourism Zone will add to the existing marine infrastructure of Incheon Port, Incheon International Airport, and Pyeongtaek Port as well as comprehensive road and rail links that connect land, sea and air.

The Governor stresses that the population of the region, affluent, educated and increasingly interested in the outdoor lifestyle, numbers around 11 million, which is a huge catchment area for the launch of the Korea Boat Show. In fact there are around 24 million people within 150km of the venue.

‘The Korea Boat Show will introduce the boating culture to the public, propel the global brand of Korea and evolve the local marine industry through business and trade, and also the festival of the Match Cup.’

KOTRA Executive Graeme Worthington explains there are currently there are four marinas and around 4000 registered leisure boats in South Korea, but the forecasts indicate that with foreign and Korean government investment, currently at $200 million, this is likely to boom within the next five to 10 years. There are 12 marina projects underway in the Province and a total of 38 around the country.

‘The Korean government is making this a priority,’ explains Derrett, whose experience encompasses 20 years in the Gulf region and Asia and 18 years as a consultant. ‘I have visited the region many times since November last year and there’s a lot more going on that I would have thought. It’s an active market, the government at all levels has given it the green light, and unlike a lot of emerging markets, there’s a lot of substance. It just needs the spin to get the message out there.’

‘People are becoming more interested in boating in all forms,’ explains Derrett. ‘They have gone from spectators to participants relatively quickly and now the industry is following to keep up with demand. There are many companies in Korea looking for joint venture partners and there is also plenty of potential for boat builders.’

Derrett identifies several areas of potential for Australian and international businesses: motorboats above 10m, sailing boats above 10m, small boats, equipment, manufacturers of fiberglass, steel and aluminium and designers and builders of marinas.

‘There is no industry in these areas, so it’s a niche that needs filling – now! The demand is there.’

His tips to facilitate businesses in the region include focusing on building relationships, investigating the government incentives, playing off the competitive state between the provinces, all hungry for business, learning some of the history and culture of the country and investing in reliable translation services.

David Fraser, managing director of Vail Imports – importer of US boat brands Crown Line and Pioneer – has been in Korea for three years and was one of the first companies to explore the market. He says that while it’s in its early stages, ‘the interest and wealth are there’.

‘The country is affluent, building on a strong economy and a high-tech industrial base. Golf and skiing are major pastimes and boating is the next to develop.’

Vail Imports will be exhibiting at the Korea Boat Show, taking 405m2 and displaying eight boats. AIMEX too will have a presence there, with 24m2 and eight member companies confirmed so far.

Boat Show organizers anticipate around 40,000 visitors to the four day event, and already have 60-70 domestic companies participating as exhibitors. ‘We are seeking the interest of Australian companies. The Australian market is a very aggressive, active and mature marine industry.’

The Queensland government is organizing a trade mission to Korea for interested companies to inspect infrastructure throughout the Gyeonggi Province and observe the Korea Boat Show. Trade Queensland in Brisbane is supported by an office in Seoul and can arrange a company profile in Korean, interpreter services and cultural assistance for interested businesses. It will also assist with TV interviews, seminars and business meetings.

Korea Stats & Facts:

• World’s 11th largest economy
• World’s largest ship building nation
• Leading producer of LCD products
• World’s 4th largest electronics manufacturer
• World’s 5th largest automotive manufacturer
• 24% of the world’s population [Northeast Asia]

More at www.koreaboatshow.org and http://english.kotra.or.kr

http://www.marinebusinessnews.com/index.cfm?nid=43858