Endeavor to expand Middle East activities

With Middle Eastern oil producers poised to escalate infrastructure construction because of the recent steep price increases, private industry, economic associations, and governments are going to put together their energies to effectively infiltrate this market by the first half next year. Oh Young-gyo, vice minister of the Ministry of Industry Commerce and Energy, held "a strategic expansion meeting for the Middle East market" with the Korea International Trade Association (KITA), KOTRA, and business associations. Participants looked at the recent Middle East market situation and confirmed detailed plans to drive by the second half of this year and the first half of next year.

Global exports to the Middle East have increased drastically under the influence of increased oil prices. Plant-projects have boomed, and new constructions are expected to the tune of about $5 million from each of the Middle East countries after the second half of this year.

Korean industries, however, won't expect a bright future to march into the Middle East market for them. Korean industries have not paid a great deal of attention to the smaller Middle East Market, and as such, trading activities have weakened. After the Asian currency crisis in 1997, the credit ratings for Korean industries fell down, and there could be trouble in getting orders from the Middle East. Korean industries' skills in construction and financing have met their limits, even though orders for high tech constructions are increasing.

The government hopes to create a new Middle East boom again by preparing new policies for these markets. It will send 10 market exploration parties to these markets by the first half of next year, and hold 5 purchasing exhibitions to invite buyers. It will also supply plant-projects with mid & long-term export insurance, expanding from 7,450 billion won to 9,950 billion won.