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Korea Focuses on Fostering Hidden Champions

According to Newsis,

Korea, one of the “Big 8” global traders, will begin fostering hidden Korean champions to increase its influence in the overseas market.

After analyzing the “2012 Global Trade Statistics” of World Trade Organization (WTO), the Ministry of Knowledge Economy (MKE) reported on March 4 that Korea joined the ranks of the eight largest global traders last year, with the trade volume of USD 1.675 trillion.

In particular, Korea’s trade volume has dramatically gone up over the last decade, along with China. In terms of trade volume, Korea ranked 13th in 2000, 12th in 2003, 11th in 2007, 10th in 2009, 9th in 2010, and 8th in 2012, taking a step forward almost every year.

Overall, the US (USD 3.8824 trillion), China (USD 3.8668 trillion), Germany (USD 2.5757 trillion), and Japan (USD 1.6844) formed the “Big 4.”

However, the number of hidden Korean champions is remarkably smaller than those of other competitors, and this could lead to a drop in the ranking. Therefore, the ministry has decided to foster hidden Korean champions by finding new global markets and strengthening product competitiveness.

Meanwhile, the export ratio of small and medium domestic enterprises has decreased to 33 percent in 2011 from 42.9 percent in 2001. Besides that, the absence of hidden Korean champions has resulted in a smaller number of best-selling global items compared to rival countries.

Hidden champions mean internationally strong players with sales revenue of USD 4 billion or less, which also hold the first, second, or third highest positions in terms of global market shares. In 2011, Korea had only 61 top-selling items while 1,431 in China, 777 in Germany, 589 in the US, 229 in Japan, and 135 in the Netherlands.

Source Text

Source: Newsis (Mar. 4, 2013)

** This article was translated from the Korean.

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