Time for Korean brands to go global

Among the world`s top 100 brands, Samsung, ranked 43rd, is the sole Korean entry, according to a survey by the Interbrand Group, an international brand evaluation agency. The reality is that there are very few local brands of world-class quality.

The Interbrand Group`s evaluation of brands is disputed in terms of credibility and propriety, but it is very useful in that it emphasizes brands as hugely important intangible assets.

With mergers and acquisitions growing more common, brands are a simple way for companies to differentiate themselves from their competitors. Brands are thus a core element in estimating the value of a firm.

In spite of the growing importance of brands, Korean brands do not yet cut a conspicuous figure on the world market. Furthermore, there are too many brands in various markets. A lot of new brands tend to hit the market, but a considerable number of them disappear in just one or two years.

World-renowned brands like Coca-Cola and GE have been around for more than 100 years, but Korea`s representative brands have very short histories. Korean enterprises tend to change their brands frequently in hopes of profiting in the short term rather than cultivating brand loyalty in the long term.

Korean companies must promote world-renowned brands beyond the local market. They should create brands that are not associated with low quality or cut-rate prices. They should strive to avoid difficulties owing to low recognition of their brands. The quality of a product tends to be judged on its place of origin. It is high time to raise the nation’s international standing by developing brands capable of succeeding in overseas markets.

Our enterprises typically supplied goods to foreign companies under the original equipment manufacturing (OEM) system. When they began to roll out products with their own brands, they faced mounting trade barriers. However, now is the time to make efforts to globalize our brands to let the world know about our culture and national image in this way.

Hong Sung-Min, Brand consultant, Cheil Communications