Scottish businesses urged to explore Opportunity Korea

According to research, Western Europe and the rest of the UK receives more than half of the exports made by Scottish businesses. However, with growth in these territories dipping in response to extended Eurozone and global economic uncertainty, and Scottish firms facing the ongoing challenge of maintaining turnover and profits in this low growth economy, this level of contribution is unsustainable.

Opportunity Korea, an initiative led by UKTI and SDI and supported by PwC, aims to emphasize the wide range of specialist support available for small to medium enterprises (SMEs) and mid-cap firms keen to develop and expand their international markets in countries such as South Korea.

With export a key ingredient in the ongoing recovery of the Scottish and UK economy, the initiative also encourages debate on the export challenges being faced by businesses.

As the 12th largest economy worldwide and the fourth largest in Asia, there is great potential for Scottish businesses of all sizes to do business in South Korea. The introduction of the EU-South Korea Free Trade Agreement and high recognition of Scottish and UK brands and products, the country is potentially one of the top overseas markets for Scottish and UK companies with numerous and varied opportunities for export.

Caroline Roxburgh, private business leader at PwC in Scotland, said:

"As UK forecasts continue their low trajectory, businesses already exporting to emerging economies such as China, India and Mexico, should look at increasing their activity to other regions.

“The economic conditions in countries like South Korea demonstrate strong industrial development and a growing, aspirational middle class, so companies thinking of exporting to emerging economies can be reassured that such markets represent a significant opportunity to boost sales and increase profits.

"By having the right package of support and putting export at the heart of their strategy, businesses can succeed in reinvigorating their financial performance."

South Korea is also forecast to make the 10th largest contribution to world growth over the next five years, becoming one of the most attractive export destinations globally alongside the BRIC countries – Brazil, Russia, India and China – and other emerging economies such as Mexico.

Anne MacColl, chief executive of Scottish Development International said:

“We know that international trade is a key way for Scottish companies to grow and overcome the economic uncertainties that continue to face us all.

“Scotland already has a tremendous reputation for export and there is a continued demand for Scottish products and services globally - the latest Global Connections Survey reports that Scottish exports increased by £1.6 billion to £23.9 billion in 2011. In particular, exports to Asia have grown by 8.7 per cent.

“There are significant opportunities across key industries in Asia as the region’s economies are helping to drive the global economic recovery. SDI wants more home-grown companies to view doing business with these emerging economies as an essential part of their growth strategy.

"However, we understand that the prospect of targeting overseas markets can be daunting. SDI has a team of experts with in-depth industry and geographical market knowledge who work hard to help Scottish companies plan their business growth in South Korea.

"This event will also draw upon the expertise of our partners to provide the advice and contacts needed to help Scottish companies take the first steps to doing business successfully in the region. “

Mark Hogarth at Harris Tweed commented on their success in emerging markets such as South Korea. He said:

"South Korea was our fastest growing market in 2011 and continues to perform well. The global appeal of a brand like Harris Tweed depends heavily on the quality of the designers and retailers that buy our cloth and South Korea is blessed with an abundance of creative talent. In the event that demand from Japan may level off over the next few years then this market will be a natural successor.”

An Opportunity Korea event, led by SDI and UKTI and supported by PwC, will take place in Edinburgh on Thursday, 7 February, 2013.

Delegates will be able to meet and hear from experts about doing business in South Korea including the British Ambassador Scott Wightman and Henry An from PwC in Seoul.

For more information visit www.sdi.co.uk/events/2013/02/opportunity-korea