S. Korea eyes greater share of U.N. procurement orders

By Lee Joon-seung
SEOUL, Jan. 29 (Yonhap) -- South Korea is aiming to increase its share of
products and services that it provides to the United Nations as part of its
ongoing effort to bolster exports, the government said Thursday.
The Ministry of Knowledge Economy and the Small and Medium Business
Administration said South Korean-made goods only accounted for 0.51 percent or
US$52 million of the $10.1 billion worth of goods procured by the international
body in 2007.
Of the total, manufactured goods reached $48 million, with various
service-related support making up the rest.
The numbers represent a gain from the $20 million worth of products and services
offered to the U.N. in 2003, but fall well shy of countries like the United
States, India, Switzerland and France, which account for a sizable share of the
total. The top 10 countries that sell goods to the New York-based body account
for 38 percent of all purchases.
The ministry in charge of the country's industrial and trade promotion policies
said local companies are not provided with accurate and timely information, and
detailed procedures for acquisition, which place them at a disadvantage compared
to competitors.
"Seoul plans to remedy this shortcoming by offering related information and
assisting companies interested in making bids," a policymaker said.
He added that in case a company is able to win orders, but lacks the necessary
funds to start production, the government can provide necessary financing through
the Small Business Corp.
The U.N. must regularly buy food, medicine, vehicles, communications equipment
and chemicals, and requests security, engineering, transportation and consulting
services from private companies to maintain its operations and engage in numerous
relief efforts through the World Food Program and the United Nations Development
Program.
In the past, South Korea had provided various communications and testing
equipment, vehicles and medicine.
The plan is part of a greater effort by Seoul to push up exports to $426.7
billion by the end of the year for a gain of 1 percent from 2008.
Think tanks and many independent economists, however, say that export growth may
fall into negative territory this year as the global economic slump exerts its
toll on demand.
yonngong@yna.co.kr
(END)