Gov't to help companies grab Chinese upper-end market

SEOUL, May 21 (Yonhap) -- Concerted efforts will be made to help South Korean companies grab a larger share of China's upper-end market, the government said Thursday.

The support plan, which includes export project financing and expanded insurance
coverage for outbound shipments, aims to bolster exports to the large emerging
market in premium goods, the Ministry of Knowledge Economy said.
In an emergency economic policy meeting chaired by President Lee Myung-bak
earlier in the day, the ministry said Seoul will help hold "premium product
fairs" in large cities like Beijing and Shanghai to fuel sales of consumer goods
that have generally played a minor role in South Korean exports in the past.
Most South Korean shipments to China have been parts and components that were
sent to factories and then exported as finished manufactured goods by local and
multinational companies.
With the global slump hurting overall trade volume, government policymakers
stressed it is imperative to win a bigger market share in China.
South Korean exports to China plunged 23.4 percent in the first four months of
this year to US$23.5 billion, while imports nosedived 33.9 percent to $13.6
billion.
The ministry stressed that despite the overall drop in numbers, Kia Motors,
Hyundai Motor Co. and Samsung Electronics Co. posted gains, indicating that
quality products could attract customers.
It also said that greater efforts must be made to take advantage of large
economic stimulus programs being pursued by Beijing that could allow more
opportunities for business tie-ups in building industrial plants and other
construction work.
The export support plan, in addition, said the World Expo, scheduled to be held
in Shanghai next year, could help boost South Korea's national image, which can
further help exports, particularly in the service sector.
Service sector opportunities include greater cooperation in information
technology, medical services and tourism.