Korean Brands Enjoy Warm Welcome in S.America

Korean brands are taking off in South America, where Korea has come to symbolize "cutting-edge technology" and "new culture" among consumers.

In the past, large Korean companies such as Samsung and LG Electronics were sometimes mistaken as Japanese firms in South America since they did not actively promote their national identity. According to a recent study, Korea now ranks 10th in terms of national attractiveness in Chile, 11th in Mexico and 13th in Colombia.

"In some South American countries Korea is still considered less attractive than China and Japan, but it has overtaken Britain and France in a short period," said Prof. Rhee Sung-hyong of Seoul National University's Institute of Latin American Studies. "Korea is now seen as attractive as the U.S."

People enjoy performances at the B-boy Championship Latin America hosted by LG Electronics in Bogota, Colombia. People enjoy performances at the B-boy Championship Latin America hosted by LG Electronics in Bogota, Colombia.

A senior official at the Colombian branch of the Korea Trade-Investment Promotion Agency said, "Colombia is the only South American country that took part in the Korean War, and it still regards Korea as a close ally. Korea's brand image in Colombia is as good as Japan's."

Korean companies expanded operations in Colombia in the 1990s when Japanese firms pulled out because of a growing armed insurgency and extreme political insecurity. Now some 80 percent of the Colombian TV market is controlled by Korean companies, discouraging Japanese companies from attempting to reclaim their market presence.

In 2004 Korea became the first country to sign a free trade treaty with Chile. Thanks to a boom in the raw materials market, Chile's average per capita income rose to about US$10,000, prompting explosive growth in the consumer goods market. Korean manufacturers were well-placed to satisfy the burgeoning demand for quality home appliances at competitive prices.

Chile signed a trade deal with China in 2006 and with Japan in 2007. But Chilean consumers are already familiar and happy with Korean-made products. In 2007, Korean carmakers captured the largest share of the Chilean market, beating Japanese rivals. Exports of cell phones to Chile also have been growing 54.8 percent annually since the bilateral trade pact went into effect.

Meanwhile, a Korean home appliance maker, which is on a debt relief program, is the second or third most popular supplier in the Chilean home appliance market, following Samsung and LG, despite having no special marketing activities. The secret lies in the enhanced national brand image of Korea.

englishnews@chosun.com / Dec. 02, 2009 07:38 KST