With the global economy expected to slow down in 2011, the Gyeonggi Provincial Government has formulated new overseas marketing strategies to fully accommodate free trade agreements (FTAs) and announced four strategies to gain footholds in the new markets of Brazil, India, China and Indonesia. 

– Gyeonggi Province, Korea’s top exporting region, has formulated new overseas marketing strategies so as to prevail in global markets. © G-News Plus 

Gyeonggi Province, Korea’s top exporting region, has formulated new overseas marketing strategies so as to prevail in global markets. 

According to an announcement by the provincial government, consumption and investment in advanced countries will slow due to poor financial environments, low employment rates and overcapacity. In addition, exports by developing countries will be sluggish due the influence of economic slowdowns in advanced countries in tandem with price increases and the expected strengthening of monetary policies. As a result, the world economy is expected to grow 4.4 to 5% this year, but growth in 2011 is expected to stand at just 3%. 

In South Korea, the economic growth rate reached 7.6% with exports of USD 221.5 billion dollar, the seventh highest in the world, during the first half of this year. The nation’s economy is expected to grow by up to 6% this year, but, is projected to grow just 4% next year due the influence of worldwide economic trends. 

In particular, exports are projected to be just 8.5% in 2011 due to the worldwide economic slowdown, a third of the 2010 expectations of 25.4%. Such being the case, the necessity for new export strategies has become imperative. 

– The provincial government has formulated four overseas marketing strategies for, vitalizing e-trade, addressing free trade agreements, advancing into new markets and implementing economic policies selectively and intensively. © G-News Plus 

Accordingly, the Gyeonggi Provincial Government has formulated four overseas marketing strategies to revitalize national exports. So far, the government has be able to identify new buyers through the implementation of ten projects including the UT Program (a business support program jointly operated by Gyeonggi Province and the University of Texas) and G-FAIR, and has supported the overseas marketing efforts of domestic companies by propelling eleven projects related to export insurance and foreign standards. 

First, the provincial government plans to vitalize e-trade in line with global trends, supporting the participation of domestic companies in prominent e-marketing sites such as Alibaba and Google which are being used by 53,400 companies. The corresponding support fund will amount to USD 3,000 per company. 

It will also activate the use of its G-Trade System, a B2B system, in cooperation with EC21, a company specializing in overseas marketing. Additionally, it will work out measures to cope with exchange rate fluctuations and to raise export capacity in collaboration with exporting associations in relevant regions. 

Furthermore, the Gyeonggi Provincial Government will strengthen measures to cope with free trade agreements. It has held G-FAIR events and various exhibitions through which the competiveness of domestic products – including automobile parts and electronics – are publicized among overseas visitants. 

It will organize a FTA center in the Gyeonggi Small & Medium Business Center so as to resolve FTA-related difficulties experienced by exporting companies, such as the issuance of certificates of origin, and to help them to achieve certification by overseas organizations. Moreover, it intends to enter the new markets of rapidly growing countries such as Brazil, India, China and Indonesia. It will target the markets of Beijing, where IT is rapidly growing, Shanghai, which is focused on high-priced consumer goods, and India, which is strong in automobile parts and steel products, according to their particular characteristics. 

Additionally, the provincial government will offer incentives to Gyeonggi Business Centers that have been established in China and other countries. The center that ranks lowest 2 years in a row will be penalized, and the operations will focus on regional specialization. 

– The provincial government has secured promises and entered into contracts totaling KRW 11.986 billion during the first half of this year through 24 overseas marketing initiatives such the UT Program, GBC and e-trade. Gyeonggi Province has lead exports in Korea 15 months in a row since July of last year. © G-News Plus 

Finally, the provincial government plans to push forward with its economic policies under the principles of ‘selectivity’ and ‘intensity’ through which promising businesses will be expanded or funded by the central government, but similar businesses will be downscaled or merged. 

It has increased the number of companies eligible for the Gyeonggi Province-University of Texas ‘Innovation Program (UT Program)’ from 12 to 15 and the number of companies that can take part in exhibitions from 168 to 200. 

The provincial government grants favorable consideration to companies that create jobs or serve as growth engines for the Korean economy, and facilitates the efficiencies of businesses relative to export insurance and foreign industrial standards. It also plans to merge similar businesses such as the Trade Promotion Corporation and the FTA Promotion Office. 

Meanwhile, the Gyeonggi Provincial Government has secured promises and entered into contracts totaling KRW 11.986 during the first half of this year through 24 overseas marketing initiatives such as the UT Program, GBC and e-trade. 

Of particular note, small enterprises in the province accounted for 32.7% of provincial exports in 2006 and for 48.4% in 2009; this is approximately 16% higher than the national average of 32.2%. Moreover, Gyeonggi Province has led exports in Korea 15 months in a row since July of last year. 

© G-News Plus News / Joung Seung-Do copylie@kg21.net Original Text: http://gnews.gg.go.kr/news/news_detail.asp?number=201011021418457055C052&s_code=C052