IT Exports Rise, Ventures Resurrect

As exports of Information Technology (IT)- related venture enterprises are increasing, the depressed venture circle is energizing. Such phenomenon is the result of the fact that the venture circle turned to the foreign market for profit improvement. Its share in the export market also rose, extending hope for resurrection of the venture industry.

* Rising Venture-Exports = Despite conglomerates’ continuing inactivity of exports, venture corporations are visibly growing in exports.

According to the Ministry of Commerce, Industry and Energy, venture exports added up to 439 million dollars in January. The amount is 36.8 Per Cent higher than the same time period last year. Also in last year, conglomerate exports declined 21.1 Per Cent, but venture exports increased by 14 Per Cent.

This happened as the main share of IT-related exports shifted from large corporations’ specialties like computers and monitors to venture products, such as digital satellite broadcasting transmitters, MP3 players, and Personal Digital Assistants (PDAs). “Such trend has become more definite this year, and venture exports will grow further,”predicted Samsung Economic Research Insititute’s head researcher, Kim Jung-Ho.

* Venture Circle Turns To Overseas = Digitalway plans to extend exports to the U.S. and European markets during this year, as most exports currently rely on Japan and China. It is also promoting a project to make a deal with a large U.S. electronics distributor and supply 150,000 – 200,000 MP3 players through 480 local distributors annually.

Asymmetric Digital Subscriber Line (ADSL) equipment enterprise, Corecess, is raising its share in the foreign market with ADSL equipments that cost half of other products, but have the speed 2 – 3 times faster. The company’s president Hah Jung-Ryul said, “This year’s export quantity will extend further along with the world’s high-speed internet boom. So, we are building another manufacturing factory in Seongnam, Kyeonggi.”

Software venture enterprises, which experienced serious counter-tide of trade, are also enjoying risen exports, and there are certain enterprises that expect on exports worth over 10 billion won.

In the beginning of the year, Jungsoft signed a deal with Europe’s largest software corporation, SAP, to supply 800,000 dollar-worth of data protection software called `Hard Disk Sheriff`, and it also made export contracts with DaimlerChrysler, Siemens, and Fujitsu. This year’s export goal is 20 billion won, which is 6.7 billion won more than last year. Ahn Chul-Su laboratory (Ahnlab), which has advanced to the Japanese market, also marked the year’s export goal at 10 billion won.

* Exporting, The Only Way To Survive = As funds flow into export-centered venture enterprises, the venture circle is rapidly acknowledging that `exporting is the way to survive`. Mirae Asset Securities’ chairman, Park Hyung-Ju, said, “The key to venture industry’s resurrection is with exporting. Venture enterprises will survive depending on the export results.”

“Domestic market is too small, and that is why venture companies are advancing into foreign markets. The phenomenon of money flowing into venture industry will continue for a while,” said Woori Technology Investment Co., Ltd.’s president, Kwak Sung-Shin.

The government has also become actively involved in funding venture enterprises. Ministry of Information and Communication (MIC) is to organize Nasdaq Venture Fund within the year’s first half, and support domestic IT venture enterprises for advancing into the U.S. market. MIC has currently established Venture Corporation, and is promoting measures to help advancement into foreign markets, exports, attraction of foreign funds, and strategic coalition of venture enterprises.

Head researcher, Kim Jung-Ho, emphasized, “In order to extend venture exports, the priority should be venture enterprises’ competence in international competitions. What they first need is help in foreign-marketing and information-gathering.”

Tae-Han Kim freewill@donga.com · Chang-Won Kim changkim@donga.com