Seeking Alternative Export Markets in the 'Shinbukbang' Region

KOTRA Holds CIS Region Trade and Investment Expansion Strategy Meeting in Kazakhstan

KOTRA held the CIS Region Trade and Investment Expansion Strategy Meeting in Almaty, Kazakhstan on the 28th of last month. The photo shows the trade representatives of the CIS region attending the meeting posing for a commemorative photo (Photo by KOTRA).

[Asia Economy Reporter Kim Ji-hee] KOTRA announced on the 1st that it held the CIS Region Trade and Investment Expansion Strategy Meeting in Almaty, Kazakhstan on the 28th of last month.

Amid recent difficulties in our exports due to the novel coronavirus disease (COVID-19), a method to pioneer promising alternative markets and activate non-face-to-face marketing has been proposed as a solution. Last year, Korea's exports to the CIS increased by 24.8% compared to the previous year, and the New Northern regions, including Russia, have already emerged as strategic markets for Korea.

At this meeting, KOTRA discussed ways to achieve results in the New Northern Policy under themes such as ▲development of COVID-19 response strategic projects and corporate support ▲entry into the materials, parts, and equipment sectors based on Korea-CIS industrial technology cooperation ▲diversification of export marketing for promising new industries ▲economic cooperation on the 30th anniversary of diplomatic relations ▲utilization of digital economic policies in the CIS region.

Since the 2014 annexation of Crimea, the CIS has experienced an economic crisis and is currently expanding import substitution industries, strengthening non-tariff barriers to protect domestic manufacturing, and increasing technology outsourcing for manufacturing companies. Local demand to cooperate with Korean companies possessing excellent technology is also growing. The industrial technology cooperation project currently being piloted in Russia is expected to expand throughout the CIS region in the future.

KOTRA plans to collaborate with Korean local governments and sector-specific institutions and associations to discover key companies and research institutes related to materials and parts, and to establish a local network in Russia. Utilizing this network, KOTRA will also engage in matching activities by identifying Russian companies' demand for commercialization of Korean technology. The primary focus support sectors include manufacturing, shipbuilding, medical, automotive (including autonomous and electric vehicles), smart cities (including 5G), and smart farms.

Furthermore, as the trade paradigm is changing with consumer goods and cosmetics being added to Korea's top 10 CIS export items, which traditionally consisted mainly of the automotive industry, machinery, and equipment, KOTRA plans to diversify overseas marketing by including new promising industries as targets for market entry support.

KOTRA will expand exchanges in various fields on the occasion of the 30th anniversary of diplomatic relations with Russia, the center of the New Northern Policy. First, it will hold an industrial and cultural convergence-type ‘Korean Product Exhibition.’ According to local demand-tailored strategies, various projects such as exhibitions, consultations, forums, and cultural events will be conducted focusing on medical, agriculture (smart farms), consumer goods (cosmetics), and innovative technologies. In Mongolia, projects related to railroads, environment, power, and medical industries, which are strategic cooperation fields of the New Northern Policy, will be prioritized.

Lee Jung-hoon, head of KOTRA's CIS regional headquarters, said, “The export environment has become challenging due to COVID-19,” and urged, “Let us make every effort in marketing activities centered on the CIS region, which is emerging as an alternative market.”

This content was produced with the assistance of AI translation services.