Schools, Marketers Team Up for Profit

18 universities were selected as the first School Corporations of the Year at the end of 2004. Seven universities, including Chungnam, Chonbuk, and Incheon universities, passed the revaluation test and were selected again as the second School Corporations of the Year among the 19 universities.

Success by using accumulated techniques and local specialties-

‘CNU Biotech’, the school corporation of Chungnam University, made a profit of 2 billion won last year with a well-being product called “Hongsam 100.” The city of Geumsan, famous for ginseng, is the key point that strengthens its competitiveness. Since all raw materials are supplied from Chungnam Province, not only can they save on the distribution cost but also reinvigorate the local economy as well.

The agricultural department at Chonnam University produced “Nam-nyeok-deul” (the rice of southern fields) by linking up with the local farmers at the ‘eco-friendly agriculture research business center’ and made profits of about 2 billion won during 2005. Gil Jin-ryong, professor at the agricultural department who invented organic cultivation techniques, opened a ‘Chief executive officer for agriculture’ course for farmers and lectured eco-friendly methods of cultivating crops.

Maximizing profits by using school brand-

There were no better means to advertise great products by using trustworthy college brand names. Hankuk University of Foreign Studies provided a foreign language-learning program for middle and high school students. 600 participants that exceeded a lot more than the expected number attended at the “English Summer Camp for juniors’ which was kicked off for the first time this year.

Chonbuk University created a new brand for ham called “Hammi-yummi” by investing intensively in animal resources department at the college of agriculture & life science. The key to the success for this ham was the know-how of 30 years. They launched the full-fledged business 4 years ago and made profits about 300 million won in 2005. They even signed a contract with the worldwide sandwich restaurant ‘Subway’ to supply their products which leads to the rising stock prices.

Self-examination of the failed college enterprises-

Not all school enterprises are making success, though. There are a lot of colleges having difficulties due to lack of business experiences and lack of brand recognition of the school names.

The institute at Pusan National University offered “Bio kimchi of Pusan University” which didn’t gain much attention.

Jeju University offered sale for a variety of tangerine made products such as juice, tea and jam only to end up with little return. They expected organic products and the high brand name of Jeju Island would create a synergy to make profits but could not beat the competition with large corporation.

“Since one-stop process are not allowed to national schools like us, we have to go through several processes in order to merely execute budgets which slow down our management procedures,” according to a Jeju University official.

snow@donga.com