By Kim Hyun-cheol
Staff Reporter

South Korea was ranked 10th in the world in national brand value, which was calculated at $1.1 trillion this year.

In an annual survey of national competitiveness, the country was included in the top 10 list of the most valuable countries in the world for a third straight year, the Institute for Industrial Policy Studies (IPS) said Thursday at the 2009 Korea Brand Conference in Seoul.

The survey was conducted on 1,962 people in 64 countries.

The United States topped the list with $10.4 trillion, followed by Germany and the United Kingdom with $6.5 trillion and $3.4 trillion, respectively. Among Asian countries, Japan and China were ranked ahead of Korea in fourth and sixth.

In the evaluation, the brand power of each country was calculated by exports, numbers of inbound tourists and familiarity polls among foreigners.

The research also showed Asian people feel more familiar with Korea than those on other continents.

In psychological familiarity, Korea earned 5.08 out of 7 points in Asia, ahead of 4.84 in the Middle East and Africa and 4.47 in North America. Its campaign for promoting national brands was also the most active in Asia.

Local companies, however, are not enjoying Korea's brand power to the fullest as their products have lower price premiums, according to the study.

In the survey, respondents were asked to value a nameless soap product with a base price of $10 on the basis of the image for each country. The Korean product was tagged at $11.51, the 20th highest in the 40 target countries and $3.29 lower than that of the highest-ranked Switzerland.

The price premium for Korea was the highest in Asia, and lowest in Europe, the IPS said. Asian respondents labeled Korean products at $13.29, while Europeans gave them $9.06.

Different approaches are necessary to promote national image in different regions, the IPS said. Overall results of the survey showed Korea's image is relatively better in the Middle East and Africa, casting positive prospects for companies doing business in the regions, but leaving something to be improved in European countries.

"As well as policies to foster exports and tourism, Korea needs to focus on activities to make the nation better recognized globally, preferably through cooperation with government companies and non-government organizations," IPS chief researcher Ha Su-kyung said.

Thursday's forum also unveiled ranks of local companies and cities in brand value. Seoul outnumbered all other major Korean cities with 447.5 trillion won ($387.3 billion), with Busan and Incheon trailing with 104 trillion won and 81.3 trillion won, respectively.

Samsung Electronics topped the company list for the 10th consecutive year. It was tagged at 20 trillion won, well ahead of Hyundai Motor with 8 trillion won and LG Electronics with 7 trillion won.

hckim@koreatimes.co.kr