Hanwha, Emart, and Other Specialized Trading Companies Newly Designated 85 This Year... Total 391

'2020 Trade Specialist Day' Event
Awards for Outstanding Trading Companies and New Designations

[Asia Economy Reporter Moon Chaeseok] The government announced that 391 specialized trading companies, including Hanwha and Emart, are serving as 'mentors' for export novice companies. This year, 85 new companies were designated.

The Ministry of Trade, Industry and Energy and the Korea International Trade Association will celebrate this year's 'Specialized Trading Companies Day' on the 14th, awarding two outstanding companies, DK and Best Green Life, from 11 a.m. and designating 85 new specialized trading companies.

Last year's event for Professional Trading Companies Day. (Photo by Korea International Trade Association)

Specialized trading companies refer to export-specialized enterprises designated by the Minister of Trade, Industry and Energy since 2014 under the Foreign Trade Act. They act as export agents and supporters for export novice small and medium-sized enterprises (SMEs) and mid-sized companies, providing incentives such as trade insurance and marketing support to designated companies.

Specifically, they include ▲companies with an average annual export amount of over 1 million USD in the previous year or the last three years, with an export ratio of SMEs and mid-sized companies of 20% or more ▲companies recommended by the relevant ministry minister.

By scale, SMEs account for 89.2% (349 companies), the majority. Mid-sized companies such as iMarket Korea account for 4.1% (16 companies), large companies such as Hanwha and Emart account for 3.8% (15 companies), and overseas Korean companies account for 2.8% (11 companies).

The Ministry of Trade, Industry and Energy provides incentives to designated companies to expand the system, including expanded discounts on short-term export insurance by the Korea Trade Insurance Corporation, free credit investigations of overseas buyers by KOTRA up to 10 times a year, and additional points for overseas branch office projects.

At the event, DK, which received the Minister of Trade, Industry and Energy Commendation, is an export agency for domestic piping materials. It helped domestic Company A export valve products worth 1.6 million USD to a Japanese buyer. Last year, it handled exports worth about 3 million USD.

Best Green Life acts as an export agent for health products and kitchenware, supporting domestic Company B to export health products worth 100,000 USD to a German buyer. Last year, it handled exports worth 1.89 million USD.

Source: Ministry of Trade, Industry and Energy

On the same day, a certificate awarding ceremony was held for 85 newly designated specialized trading companies this year. The number increased by 27.7% from 306 companies last year to 391 this year. It was only 216 in 2016, 238 in 2017, and 240 in 2018, but surged last year and this year.

As the handling items of specialized trading companies have become more specialized and diversified, their recognition has increased. With the rise in export demand for K-quarantine supplies, export novice companies are requesting export agency services from specialized trading companies to meet this demand.

An official from the Ministry of Trade, Industry and Energy said that, given the spread of the novel coronavirus (COVID-19), they plan to expand non-face-to-face video consultation meetings. Seven regional video consultation meetings between specialized trading companies and export novice companies were held in the first half of the year.

Na Seung-sik, Director of the Trade and Investment Office at the Ministry of Trade, Industry and Energy, said, "This year, export conditions are challenging due to COVID-19," and added, "The role of specialized trading companies is very important to expand exports of export novice companies."

Source: Ministry of Trade, Industry and Energy

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