By Jane Han
Staff Reporter
Although local textile businesses have exceptional production skills, they must develop their original brands overseas to gain a sharper competitive edge among global competitors after the Korea-U.S. free trade deal takes effect, said a visiting chairman of one of the largest fabric dyeing and finishing companies in the United States.
``Korean makers are talented with preciseness, speed, design and responsibility'' Chang Jung-hun, chairman of USDF, said in a Korea Times interview. ``But they must now explore introducing their own brands to the U.S. market, instead of producing for others.''
Chang said the local textile industry is no exception to the ``sandwich'' phenomenon, as many American buyers are relying on China for low-end materials and Italy for top quality.
The chairman has been heading the California-based dyeing mill for the past 20 years and has done business with leading names, including Reebok, Foot Locker and JC Penny.
Participating in the ``KORUS Business Day'' hosted by the Korea Trade-Investment Promotion Agency (KOTRA), Chang said the KORUS FTA would widen bilateral import-export channels.
He met with eager small- and mid-size company executives in Seoul to discuss how future partnerships could be enhanced.
`` Many U.S. buyers have recognized the quality of Korean fabric and materials, but it's been the price issue that stood as a barrier,'' Chang said.
Even though tariffs are eliminated in phases, products from India, China, Pakistan, Cambodia and Vietnam will still be priced 20 to 30 percent lower than those from Korea, he said.
``This means local businesses must develop functional textiles and top-quality goods with added service to appeal to U.S. buyers,'' the chairman added.
About $1.8 billion worth of textiles were exported to the U.S. in 2006, down 5 percent from the previous year. But the relief of tariffs is expected to push up Korean exports to the U.S.
The Korea Institute for Industrial Economics and Trade (KIET) estimated that by 2015, when all tariffs are lifted, textile exports to the U.S. will be double the amount of 2006, reaching around $4 billion.