S. Korea aims to expand into Latin America's IT, industrial plant markets

By Lee Joon-seung
SEOUL, March 8 (Yonhap) -- South Korea is eyeing greater market presence in Latin
America's information technology (IT) and industrial plant construction sectors
to help local companies cope with the worldwide economic slump, the government
said Sunday.
The plan comes as Latin American countries are expected to post steady growth in
the coming years that can help absorb locally made products, the Ministry of
Knowledge Economy said.
Countries like Brazil, Peru, Colombia, Chile and Argentina may be able to pull
off positive growth in 2009, compared to minus 2 percent growth being predicted
for South Korea.
Exports to these countries have grown by 30 percent on average in the last five
years, making them attractive markets, the ministry in charge of industrial and
trade promotion policies said.
It said emphasis will be placed on expanding tie-ups in the IT sector and
building social overhead capital (SOC), in which South Korea enjoys global
competitiveness, and increasing joint development efforts in energy resources.
To facilitate broader cooperation, a delegation led by Vice Knowledge Economy
Minister Kim Young-hak and executives of 50 private and state-run companies will
visit Columbia, Peru and Brazil Monday through March 20.
The delegation will pitch for sales of digital multimedia broadcasting, wireless
broadband and electronic governance technologies. They will also use the
country's Economic Development and Cooperation Fund to set up a IT research
center in Colombia.
In the SOC sector, Seoul will build an industrial plant and construction order
support center in Sao Paulo that could capitalize on Brazil's plans to inject $57
billion into various construction programs to fuel economic growth this year.
To advance energy cooperation, the ministry said working-level talks will be held
with Brazilian officials to exchange pertinent information on bio-fuel.
Seoul is a relatively late starter in this field, while Brasilia first introduced
bio-fuel in 1975.
South Korea also plans to strengthen cooperation in oil and gas development with
Latin America, which is estimated to hold 12.4 of the world's crude reserves.
The country recently bought a 50 percent stake in a private Peruvian oil company
and exchanged ideas on supplying expensive offshore oil rigs for Brazil in
exchange for a share in operational oil fields that can help reduce the country's
dependence on energy imports.
yonngong@yna.co.kr
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