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Appraisal of Korean companies skyrockets
Appraisal of Korean companies skyrockets
2002/05/12
Fortune magazine has ranked Samsung within the top 100 leading
global companies.
The magazine assessed brand value of Samsung as exceeding that
of Panasonic and Sony. Hyundai and POSCO were also cited as being among the
world's most promising companies.
The world's leading economic and business analysts have
commented that Korean companies such as Samsung, LG, SK, Hyundai Motors have
improved their values immensely suspect that there will be many more companies
that the world will focus on in the future.
They have also noted that electronic products from Korean
manufacturers such as Samsung and LG have upgraded their "cheap" brand image to
one of quality.
At the end of last year, the Financial Times reported that, "In
the past, many didn't like to receive Korean manufactured goods as Christmas
presents, but those days are over now."
In its ranking of the top 500 global companies, Fortune magazine
placed Samsung Electronics at twenty-second position, the first time the company
has been ranked within the top 100.
This is 39 positions higher than in 2000 (131st) and a massive
115 positions higher than in 1999 (207th).
Forbes also lifted Samsung's ranking in 1999 to 97th (from
111th) and to 70th in 2000.
In "The World's Most Valuable Brands, 1999," brand diagnosis
group Interbrand ranked Samsung Electronics outside world ranking (75th) but in
2000, placed it in 43rd position and in 2001, in 42nd position.
However, its improved brand value in monetary terms ranked just
behind that of the American coffee shop chain, Starbucks. Samsung's brand value
increased 22percent from US$5.2 billion in 2000 to US$6.4 billion in 2001.
Philips of the Netherlands and Panasonic of Japan, Motorola of
the United States and others that were ranked higher than Samsung Electronics in
2000, ranked ten to twenty positions behind the Korean company the following
year.
Kim Kwang-Tae, Executive Managing Director/Marketing Manager of
Samsung Electronics said, "Last year most companies' brand value took a dive,
whereas Samsung Electronics increased its brand value by 20percent and is
attracting much attention."
He also stated that, "Due to timely launch of high quality, high
priced products and market occupancy, Samsung gained world competitiveness by
refocusing out business management strategy from manufacturing to marketing."
LG, Hyundai Motors, POSCO and others also have raised their
brand image in the estimation of overseas observers.
Among the top 500 international companies selected by Forbes, Hyundai Motors'
ranking jumped from 337th to 198th to 151st positions in 1999, in 2000 and in
2001, respectively. LG Electronics also raised its ranking from 255th to 142nd
to 124th position.
Kia Motors escalated its ranking by a massive 200 positions
(from 589th to 323rd to 271st), and POSCO from 246th to 228th to 215th.
Fortune ranked Hyundai International in 107th position in 2000
and 103rd in 2001, Hyundai Motors from 202nd to 149th, LG Electronics from 308th
to 244th and POSCO from 460th to 422nd positions.
The most striking news was that Forbes included eight Korean
companies in its "A-list" of top 400 global companies. They included POSCO,
Hyundai Motors, and Korea Electric Power Corporation.
Introduced last year, the list was compiled by evaluating the
business performances of global companies with sales in excess of US$5 billion
within 27 industries.
Based on analyses over the past five years, factors taken into
consideration included sales/profit increases, net worth gains, stock price
gains and management abilities.
Forbes reported that in a comparison of sales and profits in
2000, American sales of Hyundai Motors in 2001 indicated a high growth rate and
evaluated that it had transformed itself into a very different company.
POSCO was also assessed to have the most efficient manufacturing
structure and low cost price, so receiving a higher evaluation than Nippon Steel
Corporation.
The professor Park Seung-Rock of the Korean Economic Research
Institute, Industrial Studies Section stated that, "Not only have corporations
raised their image but also their profitability and value" and also that "
In the future, not only will corporations be able to raise
product competitiveness, heighten their brand value and improve the transparency
of their accounting, but also encourage a global mindset among their staff to
change the way Korean companies are viewed overseas."
Appraisal of Korean companies skyrockets
Face-to-face meeting
with Korean suppliers on the internet
2002/04/26
Dear Sirs
KOTRA (Korea Trade-Investment Promotion Agency), a
non-profit government organization, will host a series of trade
event, both in on-line and off-line format.
 This time we proudly would like to offer you on-line
meeting event with Korean companies. Carefully-selected 1,000
quality products from Korea will be available for you in the form of
e-catalogue including 3D type. We expect that the whole contents
will be uploaded by not later than May 6 so that you can make an
appointment for on-line meeting in advance with particular Korean
company which, you think, can meet your purchasing requirements.
On the basis of this on-line event, you can also participate
in the off-line meeting with Korea suppliers to be subsequently held
in Korea on May 20-21 with the title of
"Korea
Export Plaza 2002" in conjunction with 'Seoul International
Consumers Goods Fair 2002'(May 20-23)
As for the on-line meeting, we present the
meeting date to take place anytime convenient for you between May 7
and May 9. Appointment with Korean counterpart can easily be made by
visiting this site beginning from April 22 till May 6. You can
simply notify convenient time suited to your local time so that the
Korean representatives can be called on to their computer to meet
with you on the internet.
Thank you for your reading
OH YOUNG-KYO
CEO & President
Multinational Phama Companies Intensify Marketing Efforts
in Korea
2002/02/19
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On Nov. 24th last year a combination of Latin dance
and the smash hit non-verbal musical Nanta electrified an audience at
the Grand Ballroom of the Hyatt Hotel in Seoul. Fascinated by the
gyrations of samba, salsa and rumba dancers amid dazzling colored
lights, the audience broke out into wave after wave of applause.
Judging by the audience's response measured by the volume of cheers
and applause, the performance of Nanta brought their appreciation to a
climax.
This extravaganza was organized by Roche Korea, the
local branch of the Swiss-based multinational pharmaceutical giant to
introduce Tamiflu, the world's first influenza remedy that the company
had recently developed. The 400-strong audience, meanwhile, was
composed of physicians, suppliers of medical products and members of
august medical institutions including the Korean Society of Infectious
Diseases.
Pharmaceutical product launches had hitherto been
stogy affairs and took the form of seminars, the drug companies taking
their cues from the strongly conservative Korean medical circle. That
mold was broken, however, when the curtain went up on Roche Korea's
show at the Grand Ballroom of the Hyatt. A company insider said of the
event: "Up until now, we had to keep our marketing activities low
key in order not to irritate our Korean competitors, but from now on
we will intensify our efforts."
Since the separation of pharmaceutical dispensing from
medical practices in Korea, prescription of "original"
(copyright) drugs has dramatically increased, providing a brilliant
opportunity for multinational drug companies to increase their
revenues. Greatly encouraged by the trend, these companies have
abandoned their usual conservative way of doing business for a more
aggressive approach to the Korean market.
◇ Making Contact with Users
In the wake of their dramatic increase in sales in the
Korean market, the multinationals have increased their marketing
staffs and introduced the "customer-contact" technique in
their marketing efforts.
The two-pronged approach by Abbott Korea to market its
new obesity remedy, Reductil, is a case in point. Following a laser
and fusion jazz show staged last September at the Shilla Hotel for an
audience of potential prescribers in the form of some 550 physicians,
the company opened a Web site (www.reductil.co.kr) for obesity
sufferers in last December. Abbott Korea also launched Reductil Club,
a support group for obesity sufferers and potential users of the drug.
"People's response has been great although it is a new
site," an Abbott Korea executive said. "On average the web
site attracts 30 to 50 hits per day."
Handok-Aventis, a supplier of the Nicodum nicotine
patch, plans to capitalize on the current anti-smoking trend by
organizing an art performance to attract those who want to stop
smoking.
At the same time the multinationals are beefing up
their marketing capability. BMS Korea, for example, has recently
placed a marketing expert in a top managerial position. Pfizer Korea,
too, successfully scouted for an outside marketing expert to place in
the top managerial post of the company's PR department. For MSD Korea,
marketing has been given a great deal of weight by the promotion of
the head manager of its PR team to the position of director.
◇ Multinational Pharma Revenues Hit the Heights
While the Korean drug market has risen steadily from
5.2 trillion won in 2000 to 5.5 trillion won last year, this year's
volume is expected to reach 5.7 trillion won, the sales by
multinational drug companies within this total have soared almost
vertically.
Pfizer Korea's revenue from its high blood pressure
treatment, Norvasc, for example, reached over 100 billion won, alone.
The company said that its total revenues last year
soared to 170 billion won from 120 billion won in 2000, "Thanks
to the brilliant performance of the company's core products such as
Viagra, its erectile dysfunction treatment, and Lititor, a remedy for
hyperlipemia.
MSD Korea, the local subsidiary of the American drug
company, experienced a revenue increase of 42 billion won from 68
billion won in 2000 to 110 billion won last year. Over the same
period, BMS Korea increased its sales by 20 billion won to 65 billion
won thanks to the introduction of its Taxol anti-cancer drug,
Other multinational drug companies such as Roche
Korea, GSK Korea, Sanofi-Synthelabo also enjoyed dramatic sales
increases of between 60 percent and 95 percent. The average sales
increase of 17 foreign drug companies operating in Korea was 40
percent.
Sales
Performance and Target of Multinational Drug Companies in Korea
(unit: 100 million won)
|
Company Name
|
2000
|
2001
|
2002
|
|
Pfizer Korea
|
1,200
|
1,700
|
2,400
|
|
GSK Korea
|
847
|
1,443
|
1,883
|
|
Janssen Korea
|
1,100
|
1,200
|
1,300
|
|
Roche Korea
|
598
|
1,167
|
1,200
|
|
MSD Korea
|
680
|
1,100
|
1,500
|
|
Lilly Korea
|
640
|
850
|
1,100
|
|
Novartis
|
610
|
780
|
910
|
|
BMS Korea
|
450
|
650
|
1,000
|
|
Pharmacia
|
535
|
639
|
898
|
|
Schering
|
490
|
610
|
690
|
|
Astra Zeneca
|
415
|
600
|
850
|
|
Boelinger Ingelheim
|
481
|
564
|
650
|
|
Sanofi Synthelabo
|
300
|
500
|
700
|
|
Bayer Korea
|
382
|
465
|
500
|
|
Wyeth Korea
|
280
|
373
|
520
|
|
Otsuka Korea
|
224
|
270
|
316
|
|
Abbott Korea
|
103
|
134
|
205
|
|
40% of World's Top 500 Companies Operating in Korea
08/02/2002
About 40 percent of the world's top 500 companies have branch offices in
Korea showing that Korea is increasingly being recognized as an attractive
investment market, the Ministry of Commerce, Industry and Energy said yesterday.
According to the ministry, 197 of the top 500 international companies (chosen
by America's Fortune magazine) invested a total of $14.1 billion in 607 Korean
firms, thus making up 18.4 percent of total foreign direct investment ($76.6
billion).
The investment average per company is calculated at $70 million and the
average number of firms participating in the investments was 3.1.
By nation, there are 66 American firms operating in Korea, 54 Japanese, 20
Dutch and 15 German.
By investment size, France's Carrefour (37th on Fortune list) is the largest
of the top 500 firms in the Korean market with $1.33 billion, followed by
Coca-Cola (233rd) with $1.2 billion, Commerz Bank (226th) with $810 million and
BASF (111th) with $700 million.
Rounding out the top 10 are Koninklijke Ahold (58th), Wal-Mart Stores (2nd),
Costco Wholesale (116th), BT (128th), DaimlerChrysler (5th) and Goldman Sachs
(112th).
"A particularly noteworthy point is that all of the world's top 10
biggest companies - Exxon Mobile, Wal-Mart, General Motors, Ford Motor,
DaimlerChrysler, Royal Dutch/Shell Group, BP, General Electric, Mitsubishi and
Toyota - are in Korea," the ministry said.
By sector, the share of manufacturing and service companies was 51 percent to
49 percent, respectively, with Japanese firms mainly in manufacturing and
American in service, it said.
The report further showed that investment by American and European Union
countries picked up noticeably after the 1997 financial crisis, while Japan has
invested steadily since the 1960s.
"Our study also reveals that 81 percent of all investments from the top
500 companies, which total $11.4 billion, were made after 1990," the
ministry said.
Meanwhile, a separate report showed that 159 of the world's top 500 companies
have offices in China, a country regarded as the biggest competitor to Korea in
terms of foreign direct investment from this point on.
According to the Chinese trade office in Beijing last week, of the 159 firms,
19 have built Chinese branches that are bigger than the firms' headquarters.
Further proving that China is rising as a major foreign investment market,
the Chinese news report said that the total number of branch offices of
international companies in the country reached 10,380 as of the end of last
year.
Of these, 816 were established last year.
"Last year, Beijing gave operation permits to 1,147 companies that have
foreign capital in them. The total investment amount is $10 million and this is
a 28.6 percent increase from 2000," Yonhap News Agency said.
Sources: Korea Herald (2002.01.30)
Ten
major trends in 2002
08/01/2002
In 2001, several meaningful events took place in the domestic
economy. For example, the nation completely repaid its bailout loans from the
IMF, which it had received due to the currency crisis at the end of 1997,
earlier than scheduled on August 23, 2001. The nation's sovereign credit rating
was also upgraded by one notch by a major international credit rating agency on
November 13, 2001. But despite these improvements, the recovery of the domestic
economy, which has been stagnating since August 2000, was delayed and its
uncertainty was heightened. This is mainly ascribed to the fact that the world
economy, including the U.S.', went deeper down into recession. The terrorist
attacks on the U.S., Argentine's declaration of a moratorium on its foreign debt
and the weakening yen (against the U.S. dollar) aggravated the wrinkles in the
domestic economy.
At this beginning of 2002, when the uncertainty of the economy
remains very high, it would be worthwhile to monitor and forecast what kinds of
events or trends will happen through the year. For this purpose, the Samsung
Economic Research Institute (SERI) has analyzed and predicted some major trends
in the domestic economy during the new year.
Foreign Firms to Invest More in 2002
01/01/2002
Over half the foreign companies operating in Korea say they will make more
new investments next year than they did in 2001, sentiment that is a marked
contrast to that of most domestic firms. Foreign businessmen cited government
bureaucrats and local executives as the two groups that most discouraged new
investment in Korea.
The JoongAng Ilbo Economic Research Institute recently surveyed 77 major foreign
companies in Korea in cooperation with the American Chamber of Commerce and the
European Union Chamber of Commerce.
About 56 percent of the respondents, 43 companies, said that they will expand
their businesses in Korea next year either by increasing investments in existing
businesses or by entering new industries. Their confidence seemed to be based on
healthy revenues this year and an optimistic business outlook for 2002.
Half the respondents said they forecast Korea's economic growth to reach 3 to 5
percent in 2002. This is in line with the government's pledge to pull up next
year's gross domestic product growth by 4 percent.
Although less than half of the firms polled said the investment environment for
foreigners in Korea improved in 2001, when asked whether they had experienced
discrimination while doing business in Korea, about one third of respondents
said "almost never." That is significant progress: four years ago,
when Korea opened its door to foreign investors in earnest, most firms answered
in various surveys that they were faced with discrimination.
The survey respondents grumbled about Korean government officials, executives,
and labor unions. When asked to select the groups that are the biggest barrier
to drawing more investment to Korea, almost half of the firms selected
government officials, followed by Korean business executives at 17 percent and
employees at 14 percent.
About one in three foreign companies said they had received demands from
government officials for bribes or kickbacks. Five firms said they acceded to
the demands; the rest said they refused.
When questioned about the biggest difficulties of doing business in Korea,
foreign firms cited complex administrative regulations and labor relations as
the biggest nuisances.
High economic growth (27 percent) was selected as the biggest factor attracting
investment to Korea, while healthy domestic demand and highly educated human
resources were the next two most chosen responses, at around 20 percent each.
Source by : JoongAng Ilbo (2001. 12. 26)
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