WWLegal.com :: IE Singapore inks MOU with Korea Trade Agency to boost business collaboration in Singapore and South Korea

IE Singapore inks MOU with Korea Trade Agency to boost business collaboration in Singapore and South Korea
Posted on Friday, June 30, 2006 - 08:00 PM

Following the Korea-Singapore Free Trade Agreement (KSFTA) that went into force on 2 March 2006 , International Enterprise (IE) Singapore and the Korea Trade-Investment Promotion Agency (KOTRA) have signed a Memorandum of Understanding (MOU) in Singapore today to further enhance collaboration between the two agencies. The MOU was negotiated under the “Cooperation” chapter of the KSFTA. It was signed by Mr Chong Lit Cheong, Chief Executive Officer of IE Singapore, and Mr Ki Hwa Hong, President and Chief Executive Officer of KOTRA.

2. The MOU serves to promote strategic alliances between Singapore-based and South Korean companies, as well as to assist them in market expansion, and developing market knowledge and networks.

3. Said Mr Chong, “ South Korea 's GDP in 2005 reached US$787.6 billion1. With a population of 48.4 million and an increasingly affluent consumer base, it is a country that presents immense business potential for our companies. KOTRA's key role is to attract investments into South Korea , hence, our roles complement each other well. Through the MOU with KOTRA, we hope to deepen our existing collaboration to better assist Singapore-based companies venture into South Korea , specifically in high growth sectors such as electronics, lifestyle services and infocomms technology. Our companies have the necessary expertise, innovation and unique selling points to complement the South Korean market in these areas.”

4. Mr Hong added, “Under the Korea-Singapore Free Trade Agreement, KOTRA and IE Singapore have reached an agreement to sign a MOU to further strengthen cooperation between the two trade / investment promotion agencies. IE Singapore is renowned as the business architect with global connections. The MOU will enable South Korean companies to ride on this expertise to gain inroads into the global market with their Singapore counterparts. This MOU has created a strategic alliance for both Singapore and South Korean companies to work together to seek fruitful outcomes.”

5. The MOU outlines the following collaboration between the two agencies:

• Setting up of Korean Business Support Centre – KOTRA will set up and operate a Korean Business Support Centre at its premises in Singapore within one year from the signing of the MOU. This is to facilitate internationalising South Korean companies to explore new markets in the region through Singapore . Its presence here would also serve to encourage Korean companies to partner Singapore-based companies in their globalisation plans.

• Linking of online databases – IE Singapore and KOTRA will electronically link up their online business match-making databases of Singapore and South Korea to bring together companies keen on establishing business ties with each other. Companies keen to look for a business partner can access information about companies from the other country to find a good fit for their business requirements. The two agencies will maintain and promote the linkage to their member companies; exchange relevant information on their respective companies; facilitate in business negotiations and effect business tie-ups.

• Joint business missions and activities – Organising industry-specific business missions and activities that focus on high growth sectors such as infocomms technology, electronics, automotive, F&B and the logistics sectors. IE Singapore and KOTRA also plan to work together with business associations to organise such activities.

• Participation in exhibitions – IE Singapore and KOTRA will e ncourage companies from Singapore and South Korea to participate in exhibitions organised by either agency, especially for those related to the identified high growth sectors.

6. South Korea was Singapore's 10th largest trading partner in 20052, with bilateral trade reaching S$27.74 billion. Traditionally, electronics and precision engineering (automotives, consumer electronics and communications), and real estate have been areas of focus for Singapore-based companies in South Korea . Moving in line with the fast-growing economy and changes in consumer demand, there is now increased emphasis on the lifestyle industry and more opportunities in areas such as food services and manufacturing, and spa services ( refer to Annex 2 for South Korea factsheet).

7. The two agencies are already in discussions to organise a marketing mission to South Korea early next year, with the objective of raising the profile of Singapore and encouraging South Korean companies to partner Singapore-based companies to venture into third markets together.

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