ID :
73425
Sun, 08/02/2009 - 22:48
Auther :
Shortlink :
https://www.oananews.org//node/73425
The shortlink copeid
S. Korea to help local companies win foreign procurement orders
SEOUL, Aug. 2 (Yonhap) -- South Korea is taking steps to help local companies win
foreign procurement orders, an area that accounts for 15 percent of the global
economy, a government official said Sunday.
The official at the Ministry of Knowledge Economy said the state and
international procurement sector is a viable niche market that has been
overlooked by Korean companies.
Procurement orders are generally related to national defense or government
construction projects, such as building mass transit lines. Most smaller projects
are given to companies within that country but larger projects can involve
overseas firms, according to the official.
The South Korean government has drawn up an initial draft of its support plan and
will announce it in September, he said. The official stressed that if Korean
companies are able make inroads into the procurement sector, it could become a
steady export market that is less affected by sudden fluctuations in the global
economy.
South Korea's exports fell 22.2 percent annually in the first seven months of
this year due to weak demand caused by the worldwide economic slump.
The official, who declined to be identified, said the Korea Trade-Investment
Promotion Agency will provide basic information on potential procurement
projects, while a joint government-civilian team reviews the feasibility of South
Korean companies winning deals.
Experts have projected that US$100 billion worth of procurement projects could be
accessed through open bidding, according to the official. South Korea hopes to
play a part in a high-speed rail project in California and secure more deals from
the U.S. Defense Department, he said.
South Korea also plans to train small- and medium- sized enterprise on how to
take part in procurement deals and to register domestic firms as vendors for
overseas agencies. The government will provide full export insurance coverage to
companies that win foreign government procurement orders, according to the
official.
yonngong@yna.co.kr
(END)
foreign procurement orders, an area that accounts for 15 percent of the global
economy, a government official said Sunday.
The official at the Ministry of Knowledge Economy said the state and
international procurement sector is a viable niche market that has been
overlooked by Korean companies.
Procurement orders are generally related to national defense or government
construction projects, such as building mass transit lines. Most smaller projects
are given to companies within that country but larger projects can involve
overseas firms, according to the official.
The South Korean government has drawn up an initial draft of its support plan and
will announce it in September, he said. The official stressed that if Korean
companies are able make inroads into the procurement sector, it could become a
steady export market that is less affected by sudden fluctuations in the global
economy.
South Korea's exports fell 22.2 percent annually in the first seven months of
this year due to weak demand caused by the worldwide economic slump.
The official, who declined to be identified, said the Korea Trade-Investment
Promotion Agency will provide basic information on potential procurement
projects, while a joint government-civilian team reviews the feasibility of South
Korean companies winning deals.
Experts have projected that US$100 billion worth of procurement projects could be
accessed through open bidding, according to the official. South Korea hopes to
play a part in a high-speed rail project in California and secure more deals from
the U.S. Defense Department, he said.
South Korea also plans to train small- and medium- sized enterprise on how to
take part in procurement deals and to register domestic firms as vendors for
overseas agencies. The government will provide full export insurance coverage to
companies that win foreign government procurement orders, according to the
official.
yonngong@yna.co.kr
(END)
