Tailored Export Strategies for Key, Strategic, Emerging Markets
The Ministry of Trade, Industry, and Energy (MOTIE) has announced plans to achieve a US$700 billion export target this year. To attain this goal, the ministry will tailor export strategies per market by dividing them into key, strategic and emerging categories such as the United States, China, the European Union (EU), and Central and South America, respectively.
The MOTIE held the 2024 Global Market Strategy Conference under the leadership of Minister Ahn Duk-geun on Jan. 24. During the conference, it reviewed export targets and market entry strategies for each global market. The ministry set this year’s export target at US$701 billion, representing a 10.8 percent increase compared to the previous year.
The export target amounts for specific markets are as follows: North America with a target of US$138.7 billion, showing a 10.7 percent increase; China with a target of US$187.8 billion, reflecting a 10.3 percent increase; and ASEAN with a target of US$154 billion, indicating a 12.8 percent increase. The total export target for key markets is US$480.5 billion. For strategic markets like the EU, the export target is US$85.0 billion, reflecting an 11.0 percent increase; the Middle East with a target of US$30.0 billion, showing a 7.9 percent increase; and Japan with a target of US$31.0 billion, indicating a 6.9 percent increase. The planned export amount for these strategic markets is US$169.5 billion. Additionally, the export target for emerging markets like Central and South America, set at US$26.4 billion with a 10.9 percent increase; the Commonwealth of Independent States, set at US$14.5 billion with a 9.0 percent increase; and Africa, set at US$10.1 billion with an 11.0 percent increase, is US$51.0 billion.
To achieve the export targets for this year by market, the MOTIE has decided to implement tailored strategies. First, the plan involves securing a key partner position in the restructuring of the supply chain in the U.S. market. To accomplish this, it will support collaborative-based export, including joint research and development (R&D), particularly centered around tech companies. Subsequently, there will be a focused effort to identify and connect import demands in the restructuring process of key industries’ supply chains.
For China, the largest export market, the strategy involves adapting to the subdivided industrial demand and emerging consumer trends. In the field of Information and Communication Technology (ICT), the focus is on supporting the digitalization of industries and pioneering markets linked to on-site specific demands. Regarding the bio-industry, the plan is to target the increasing demand driven by China’s aging population and the growth of the smart healthcare market.
The plan for the ASEAN market involves leveraging entry into regional value chains, utilizing digital marketing, and harnessing the influence of the Korean Wave, or Hallyu. In the future and key sectors such as electric vehicles and shipbuilding, there will be an expansion of participation in regional value chains. Additionally, there will be an increase in promotional support linked to online distribution networks and the Korean Wave to enhance the consumer goods market. The MOTIE aims to support the entry of large local distribution networks and plans to organize the “K-Lifestyle in ASEAN” event in Malaysia from March to November.
The government’s strategy for the key market, the EU, involves preoccupying the carbon-neutral market by aligning with new investments related to supply chain restructuring and eco-friendly transitions. Additionally, there is a focus on targeting the defense industry market. To support this, there will be assistance for exports through the expansion of regional production bases, particularly in batteries and semiconductors. The government also plans to strengthen support for project orders, especially in new sectors such as offshore wind power and nuclear power generation.
For the Middle East market, the plan is to strengthen business cooperation, focusing on promising items such as automobiles, following the signing of major trade agreements. In the case of Japan, the strategy aligns with increased investments in digital transformation (DX) to address aging facilities and declining productivity. Furthermore, there are plans to connect opportunities for exports with investments in carbon-neutral technologies such as electric vehicles, renewable energy, and hydrogen.
To expand exports in emerging markets like Central and South America, the plan is to explore opportunities for the export of materials, components, and equipment related to supply chain restructuring. In Africa, the focus will be on market development, particularly capitalizing on the opportunity presented by the South Korea-Africa Summit scheduled for June. The ministry aims to concentrate on discovering new trading partners. To support export expansion this year, the government plans to provide 355 trillion won (US$266 billion) in trade finance and 1 trillion won in export marketing expenses.