Mr Lee Yi Shyan at the Korean Products Show Opening Ceremony

CONGRATULATORY ADDRESS BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE AND INDUSTRY AT THE KOREAN PRODUCTS SHOW OPENING CEREMONY ON MONDAY, 19 NOVEMBER 2007, 11.15AM AT SINGAPORE EXPO

Minister Kim Young-ju

KOTRA President Hong Ki-hwa

Ambassador Kim Joong-keun

Distinguished Guests,

An-yong-ha-say-yo (good morning).

In March this year, I spoke at a conference commemorating the first anniversary of the Korea-Singapore Free Trade Agreement (KSFTA).Today, it gives me great pleasure to attend the opening ceremony of the first Korean Products Show in Singapore. I am very glad that the economic links between our two countries have grown from strength-to-strength following the conclusion of the KSFTA.

Bilateral Trade & Investments

South Korea and Singapore are major trading partners. From January to September this year, total bilateral trade reached US$17.3 billion, an increase of around 9.8 per cent over the same period last year. In addition, South Korea’s investments in Singapore had surged more than four-fold from US$134 million in 2005 to US$602 million in 2006[1].Singapore investments in South Korea have also risen 30 per cent to reach US$557 million last year.

Just as South Korea is a hub for Northeast Asia, Singapore is a gateway into ASEAN, India and the Middle East. To date, over 500 Korean companies have set up offices in Singapore[2].Major Korean chaebols such as Samsung, LG, and CJ have established their regional headquarters here. Korean trade promotion agencies like KOTRA (Korea Trade-Investment Promotion Agency) and KITA (Korea International Trade Association) are also present in Singapore. Korean companies can tap on these agencies to facilitate their entry into Singapore, and use Singapore as a staging base to expand into other parts of Asia and the Middle East.

Increasingly, Singapore companies are also venturing into South Korea, attracted by its booming economy and exciting developments. For example, Singapore’s City Developments Limited (CDL) announced in August its partnership with Korean company DC Chemical to develop a 1.6 million square meter commercial and residential complex in Incheon city. While Korean companies are strong in R&D and product development, Singapore companies are strong in systems integration and are actively seeking projects overseas. I believe that together Korean and Singapore companies can form complementary partnerships for greater success.

People, Cultural and Tourism Links

Forming sustainable partnerships requires a certain degree of cultural familiarity. In this regard, “Halryu” or the Korean wave, has certainly helped to bridge cultural divides and foster closer links between our two countries. In fact, “Halryu” has been going strong in Singapore. For example, we saw the opening of Square 2, the first Korean-themed shopping mall in Singapore last October. The mall houses 200 shops and is modeled after popular Korean malls such as Space 9 at Yong San and Doota in Dongdaemun.

People-to-people exchanges are also increasing rapidly. Some 88,400 Singaporeans visited South Korea in 2006, making Singapore the 11th largest source of tourists for South Korea. The number of Korean tourists arriving in Singapore rose about 25 per cent to reach 455,000 in 2006.[3]More significantly, I understand that the Korean community in Singapore is now 13,000 strong. There is also a rising trend of Korean students coming to Singapore, where they can study both English and Mandarin. These students span the spectrum from pre-schoolers to post-graduates. This phenomenon of growing cultural and people-to-people exchanges bodes well for business. As more Koreans and Singaporeans travel to each other’s countries, I am sure that business linkages between our two countries will grow further.

Korean Products Show

We have come to recognize Korean products for their quality and design. In June this year, Hyundai Motors beat Nissan and Ford to take top spot in the Total Quality Survey by US-based Strategic Vision. Korean products are also renowned for their innovative designs. LG Electronics won nine international design awards this year for products such as the Prada phone and ARTCOOL air conditioner. Apart from quality and design, branding is another essential attribute for successful products. Korean companies such as Samsung and LG have turned themselves from Original Equipment Manufacturers into globally recognized brands. The journey taken by these companies offers useful insights for Singapore companies.

The inaugural Korean Products Show today is an excellent platform for Korean companies to showcase their products. I am glad that 82 Korean companies are participating in the show. The products showcased today represent the finest of South Korea, coming from sectors such as electronics and precision engineering, info-comm technology, industrial equipment, life sciences and consumer products. I believe such trade shows will benefit both the Korean and Singapore business communities.

Conclusion

On this note, I will like to wish the Korean Products Show every success, and I wish our Korean friends an enjoyable and fruitful stay in Singapore.

Thank you.

[1] Source: Korea Ministry of Finance and Economy (MOFE)
[2]Source: IE Singapore
[3]Source: Singapore Tourism Board