Samsung SDS is targeting the CIS region with underlying success in Kazakhstan since the establishment of a branch there in October 2009
Samsung SDS’s business is successfully settling in what is somewhat considered unexplored land, Kazakhstan, seeing consecutive orders such as the lottery system ITO, Media Center “Media Facades” and Department of Transportation ITS. Samsung is actively pursuing the Kazakhstan centered transportation system in Central Asia especially based on the recent memorandum of understanding for Department of Transportation ITS and accordingly has high hopes.
The executive vice president of global business division Andrew Chang commented on Samsung’s recent advance in Kazakhstan. “It is certain that Kazakhstan is a land of opportunity and worth investment. However, several limitations require us to approach with caution.”
He went on to say, “As most business opportunities in Kazakhstan are central government ordered, it is essential to collaborate with government-friendly firms.”
The priority in the Kazakh market is the creation of “a model where foreign investment and local business can collaborate under fair competition and a business-friendly environment.” To do this, the protection of intellectual property, reformation of the legal system concerning the restriction of global firms, the guarantee of local firms and the simplification of administrative procedures are urgent issues that must be tackled.
If these difficulties can be improved with the efforts of the government, it is forecasted that not only Samsung but many global companies will invest in Kazakhstan.
Andrew celebrated the 20th anniversary of diplomatic relations with Kazakhstan, saying, “The land of curiosity has become a partner and we hope to grow together.” He added, “I hope the friendship and trust we have built over last 20 years will develop into one that last forever.”
Despite the short history of diplomatic relations, President Nazarbayev’s visits in 1990 and 1995 played an important role in Korea’s active involvement in Kazakhstan business.
Andrew also emphasized the importance of the Kazakh embassy’s role, with it serving as a bridge between Kazakhstan and Korean companies, allowing Korean companies to contribute to Kazakhstan becoming the center of Central Asia. He added, “In particular, we expect the embassy to plan and hopefully organize Human/Technology exchange seminars and conferences with Kazakh IT companies that will help our understanding of the market environment as well as increase exchanges.”
This year, Samsung SDS plans to do more in-depth, professional market research in an attempt to discover new businesses and improve quality and quantity in Kazakhstan.