E-Soltec, which develops energy-saving houses as electronic machinery companies, participated in the Korea International Trade Association's "Indonesia-Cambodia Trade and Investment Mission" to develop new markets, away from existing clients such as Europe, Australia, Malaysia, and Nigeria. During his visit to Indonesia, E-Soltec signed a three-year business agreement worth $1 million with a local construction company. Song Jong-woon, CEO of E-Soltec, said, "It seems that participation in the delegation has enabled buyers to trust our company, leading to good results.".
Since the inauguration of the Donald Trump administration, the Korea International Trade Association has rolled up its sleeves to explore new markets for small and medium-sized companies amid growing demand for diversification of export markets due to strengthening protectionism and China's retaliatory measures following the decision to deploy the Terminal High Altitude Area Defense (THAAD) system. The Korea International Trade Association dispatched the Indonesia-Cambodia Trade and Investment Mission led by Chairman Kim In-ho for four nights and six days from the 3rd (local time) to hold business forums and one-on-one consultations in both countries. Thirty-five people from 26 small and medium-sized companies related to healthcare, cosmetics, electrical and electronic products and idea products participated in the delegation. In the case of Seshin Industries, which exports kitchen utensils, they applied for a delegation and already secured $15,000 worth of exports through buyers matched by the Korea International Trade Association in advance.
The Korea International Trade Association held a business forum in Jakarta, Indonesia, on the 4th under the theme of revitalizing e-commerce between the two countries and revitalizing the food and packaging industry in collaboration with the Indonesian Ministry of Trade and the Korea-ASEAN Center. At the meeting, the Korea International Trade Association and the Indonesian Ministry of Trade adopted a joint statement to promote bilateral trade and continuous mutual cooperation. Chairman Kim said at the Korea-Indonesia Business Forum, "The Korea International Trade Association opened a branch in Jakarta in 2015 to support the expansion of bilateral trade and investment, and is creating a win-win business environment through exchanges and cooperation with Korean and Indonesian businesses as well as supporting local companies." The delegation will hold a Korea-Cambodia business partnership seminar and a one-on-one business consultation meeting in collaboration with the KOTRA Phnom Penh Trade Center in Phnom Penh, Cambodia, on the 6th.
The reason why the Korea International Trade Association paid attention to the Indonesian and Cambodian markets is because of their high growth potential. Indonesia, with a population of 250 million, is the world's fourth-largest population, and according to the International Monetary Fund (IMF), stable growth of more than 5% is expected by 2020. Recently, the Indonesian government has announced 13 economic stimulus policies, actively attracting foreign investment and developing infrastructure. In addition, as the Korean Wave is widespread in the region, Korean cosmetics, food and beverages, and healthcare products are familiarly accepted, and they are attracting attention as promising production bases and consumer markets based on their abundant labor force and dynamic consumer base.
Cambodia has emerged as a market with great potential due to the recent rise in purchasing power, although the market size is small. Since 2011, it has continued to grow in the 7% range due to changes in the industrial structure, and has recently provided various incentives to promote foreign investment, and has attracted attention as an emerging production base due to its higher economic freedom than neighboring countries. Also, the foundation for exchange between the two countries is solid, with interest in Korea due to the popularity of Korean dramas, entertainment programs, and K-POP, and the number of Cambodians staying in Korea continuously increasing.
"We hope it will serve as an opportunity for Korean exporters to find a breakthrough to diversify their markets at a time of internal and external difficulties," said Kim Kuk-soo, head of the International Business Division of the Korea International Trade Association. "The association will also support small and medium-sized enterprises to settle in the Southeast Asian market."/Reporter Kim Hyun-jin
