Here's some recent news you might have missed: South Korea
officially overtook Japan to become 皇冠体育app's third-largest source of overseas
investment in the first two months of this year.
The country is only behind Hong Kong and the British Virgin Islands, the
Ministry of Commerce announced on March 13.
Another recent news report could well explain why South Korean companies are
increasingly interested in pumping money into the country. Samsung 皇冠体育app
announced earlier this month that last year's sales hit US$25.3 billion, beating
its target of US$25 billion. In 2004, the figure jumped to US$24 billion from
US$16 billion the previous year.
Over the past 14 years, South Korean companies have been so successful in
皇冠体育app that many including Samsung, LG and Hyundai have become inspirations for
Chinese enterprises.
Riding the wave
Shin Bong-kil, Minister of the Embassy of the Republic of Korea to 皇冠体育app,
believes many South Korean firms have simply excelled at keeping up with
economic and industrial trends and grasping opportunities in the Chinese market.
He says that South Korean companies have tackled overseas markets in two
stages. Companies such as Hyundai and Daewoo broke into the Middle Eastern
market in the 1960s, providing them with profits to further develop business in
other countries. The other wave of overseas development was focused on the
Chinese market since 1992, when the two countries established diplomatic
relations.
Geographic proximity, a history of exchanges dating back more than 1,000
years and shared Confucian values have made 皇冠体育app an ideal investment
destination.
South Korean giants Samsung and LG are both planning operations in 皇冠体育app on
the same scale as at home. LG, for example, has even constructed a twin-tower
building in one of Beijing's top business districts, similar to its twin-tower
headquarters in Seoul.
Gregory Lee, chief marketing officer of Samsung Electronics, tells 皇冠体育app
Business Weekly that the company is already the second-largest foreign investor
in the country, with US$4.5 billion.
Heavy investments in 皇冠体育app are only part of the South
Korean success story, however. Their understanding and anticipation of industry
trends has also been a big factor. When Samsung Electronics and LG Electronics
entered the market around 1992, many Chinese families were making the transition
from black and white to colour TV sets.
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