"Focus on Eco-Friendly Industry"... KOTRA's Briefing on Global Market Entry Strategies for Next Year

KOTRA held the '2022 Global Market Entry Strategy Briefing' online on the 17th, with Jang Hee-young, Adjunct Professor at Hanyang University (left), and Lee Geum-ha, Head of KOTRA Regional Research Office, conducting the briefing.
[Photo by KOTRA]

[Asia Economy Reporter Kim Heung-soon] KOTRA forecasted at the '2022 Global Market Entry Strategy Briefing' held online on the 17th that next year’s global market will see a full-scale reorganization of supply chains alongside rapid growth in the eco-friendly industry.

According to KOTRA on the 19th, Senior Partner Song Seung-heon emphasized in his keynote speech, "Transformations are occurring across various fields such as digital transformation and the bio revolution," adding, "Our companies must be equipped with bold portfolio restructuring, business model innovation, agile organizational capabilities, and execution power."

With the COVID-19 pandemic and the US-China hegemonic competition bringing the importance of supply chain stability to the forefront, major countries are focusing on building domestic supply chains centered on future core items.

Park Sung-ho, Head of KOTRA’s North America Regional Headquarters, stated, "The Biden administration is focusing on internalizing supply chains with allied countries to secure leadership in future industries such as semiconductors and electric vehicles," and added, "For us, a strategy of 'Ally Shoring' that leverages our status as an ally is necessary."

Hong Chang-pyo, Head of KOTRA’s China Regional Headquarters, noted, "The Chinese government is accelerating the establishment of a self-reliant supply chain centered on new materials and the bio industry," and suggested medical and industrial robots, machine tools, and key components for future cars as promising areas for cooperation between companies from both countries.

The European Union (EU) is focusing on building a production base within the region centered on promising future industries such as semiconductors, batteries, and hydrogen, while Japan is promoting diversification of the value chain mainly in the ASEAN region. Companies like Microsoft and Google are also increasingly relocating production bases to Southeast Asia.

Next year, as countries worldwide actively pursue carbon neutrality policies, the growth of the eco-friendly industry is expected to be prominent. Lee Gil-beom, Head of KOTRA’s Europe Regional Headquarters, said, "The EU’s full-scale eco-friendly policies, such as allocating 225 billion euros?about 30% of the economic recovery fund?to the Green Deal, present opportunities for our companies," but also emphasized, "With strengthened environmental regulations such as the Carbon Border Adjustment Mechanism (CBAM) and mandatory ESG (Environmental, Social, and Governance) supply chain due diligence, active efforts by our companies and government to reduce carbon emissions are necessary."

The United States is investing 550 billion dollars to expand eco-friendly infrastructure such as renewable energy and electric vehicles, and Japan plans to restructure its energy system and electrify 100% of new cars by 2030 through its 'Green Growth Strategy.'

The eco-friendly trend blowing through the Middle East is also noteworthy. Yang Ki-mo, Head of KOTRA’s Middle East Regional Headquarters, said, "Saudi Arabia is developing blue and green hydrogen using the Jafurah gas field, increasing cooperation opportunities with our companies such as building hydrogen charging stations."

KOTRA’s overseas regional heads also emphasized that markets rapidly growing after the COVID-19 pandemic, such as online consumer markets, telemedicine and healthcare industries, developing countries’ manufacturing promotion policies, and the new Korean Wave, are market opportunities that our companies should focus on.

KOTRA President Yoo Jung-yeol stated, "Next year’s global market will present various opportunities and risks amid COVID-19 uncertainties," and stressed, "We will closely monitor changes in overseas markets to timely capture business opportunities for our companies and actively support their market entry through customized marketing support."

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