Korean companies stepping up advances into Africa

“Wonderful!” said an African buyer in giving a thumbs-up after drinking a cup of red vinegar. He said he did not expect it to taste that good.

“It`s surprising to see Koreans make vinegar drinks. It suits our taste. Though I don’t know Korea well, I`ve come to trust the quality of Korean products,” he said.

Korean businesses are expanding in Africa. The Korean Knowledge Economy Ministry and the Korea Investment-Trade Promotion Agency, or KOTRA, jointly held the Korea Product Exhibition Monday at Sandton Convention Center in Johannesburg, South Africa, to lay the basis for Korean business entry into the African market, the world’s last remaining "blue ocean."

This is the first time Korean products were widely introduced in Africa.

Buyers and visitors gathered around the CJ JeilJedang booth attracted by the scent of bulgogi, or Korean-style barbecued beef. Korean food is rarely eaten in South Africa, with the country`s largest city of Johannesburg having just one Korean restaurant. Yet the growing number of visitors to the CJ booth shows the degree of African interest in Korean food.

Korean food is growing more popular among Africans. After tasting bulgogi, a director in charge of investment at BigEye Investments told CJ that BigEye wants to be an exclusive importer of bulgogi.

Another buyer proposed a partnership with CJ by saying, “Korean kimchi has big potential in Africa. Let’s become partners and start a kimchi business here.”

Africa’s second-largest retailer Massmart also consulted CJ for imports.

Korean coffee roaster maker Taewhan Automation Industry will handle 18 export consulting cases over the three-day event. Taewhan CEO Kim Yong-han was busy greeting buyers at his company`s booth.

He said, “We began exporting to the U.S. and China three years ago, but this is our first entry into Africa. I`m bemused over the huge interest being shown by African people.”

Other buyers were drawn to Samsung Electronics’ 3D TVs. Wearing glasses, they seemed impressed by a virtual golf course and golf balls flying right in front of their eyes.

CJ JeilJedang manager Choi Hyeon-guk arrived in Johannesburg in April to work at his company’s newly created Global Post, a unit created prior to the establishment of a corporation. He will supervise test marketing on whether Korean products will be sold well in Africa.

Korean companies are trying to advance into Africa despite unstable security and lack of infrastructure there because the region is the world’s last remaining emerging market economy. Civil wars that had hampered African growth greatly eased entering the 2000s, with the continent posting annual growth of more than 5 percent since 2004.

Samsung has seen annual sales double over the past several years in Kenya and Nigeria.

KOTRA set up a Korea Business Center this year in Ethiopia, Ghana and Cameroon to help Korean advances into the African market, and has seven such centers in Africa.

Samsung Electronics has operations in South Africa and Nigeria and will enter Kenya by year’s end. Cheil Worldwide established an operation in Johannesburg in March, while POSCO, Hanwha and Hankook Tire set up liaison offices this year.

lycho@donga.com