This is the third of a series highlighting successful ethnic Korean entrepreneurs overseas. E-Bay Korea, JTI Korea, Korea Post and World OKTA have contributed. ― ED.
By Kim Tae-gyu
When Ampelos Group Chairman Kim Dong-woo opened his business to ship medical and high-tech products to Central and South America in 1996, Cuba was his target country.
Facing multiple layers of socialistic bureaucracy from the start, Kim’s Cuba initiative was full of challenges but he persevered and was eventually allowed access.
``Things progressed painfully slowly. It was like taking one baby step after another starting with registration as a qualified supplier for Cuba’s government-backed agencies,’’ Kim said in a recent interview.
``In 1998, we managed to export our first shipment of eye glass frames to Cuba. Thereafter, we eventually extended our presence there.’’
It was his trademark ― steadfastness ― that allowed Ampelos to reach more attainments.
``We introduced power generators of Hyundai Heavy Industries to Cuban officials starting in 2003. Initially, they hardly paid attention to products made by Hyundai, which was not well known at the time,’’ he recalled
``When a hurricane devastated Cuban electricity facilities in 2005, they carried out auctions for generators and Hyundai was invited to bid.’’
In the mid 2000s, Cuba experienced chronic electricity shortages resulting in frequent power outages. To deal with the energy crisis, it set up a plan of upgrading its power infrastructure based on a contract with a foreign supplier.
Hyundai Heavy was as an underdog but the world’s No. 1 shipbuilder eventually won the deal in 2005 of installing 544 package power stations across the country.
The container-size power generators substantially improved things by providing around a third of the electricity needed in the Caribbean island country.
And the Cuban administration recognized the contribution in a big way ― its central bank printed the Hyundai generator in its new 10-peso banknotes beginning in the late 2000s.
The bills are still in circulation in Cuba with a Spanish slogan that translates to mean “energy revolution.’’
``Thereafter, we could wade into the neighboring areas including Nicaragua, Haiti, Ecuador and Venezuela with Hyundai’s generators. We are still an agent of Hyundai’s power facilities in Central and South America,’’ Kim said.
Kim has not sought after only short-term profits at the expense of long-term gains as amply demonstrated by its after-service policies, which date back to the late 1990s.
``The high percentage of humility and salinity sometimes cause technical glitches of high-tech products in Cuba and if they take place in Havana, we can easily deal with them,’’ Kim said.
``If they happen in far-off regions where the amount of purchase is typically small, it is difficult to cover them due to high costs. But we did not factor in such expenses and resultant short-term losses to offer proper services, thus winning trust over the long haul.’’
The 49-year-old with a slow-and-stead-win-the-race mantra noted that winning trust is the essential part of his success without regard to the economic system of any market.
``It is not so important whether the economic system is capitalism or socialism. The punch line is whether or not you can win the trust of customers through sincere efforts,’’ he said.
Kim said that Ampelos will become more deeply rooted in Cuba.
``Cuba is the very place where I could create a base camp for doing business in Central and South America, which I really appreciate. Plus, the Cuban office is the centerpiece in our operations in nearby states,’’ he said.
``We plan to reinvest the proceeds, which Ampelos gains in Cuba, to the country as it is in line with our entrepreneurial philosophy. If we can enlarge our presence in Cuba, we think of establishing plants there to export elsewhere.’’
Kim is the head of a Korean people’s association in Havana and also leads a newly-launched Caribbean office of the World Federation of Overseas Korean Traders Association (OKTA), an outfit of successful ethnic Korean entrepreneurs across the world.
Set up in 1996 in Seoul and Panama, Ampelos currently has offices in eight countries with factories located in China.
The group’s annual turnover was around $50 million last year and it strives to double the figure to reach $100 in the not-so-distant future.
Havana has yet to set up diplomatic relationships with Seoul but Kim said that the two share many things in common. For one, he said that Cubans are as compassionate as Koreans.
In fact, Korean products such as electronic gadgets of Samsung Electronics or vehicles of Hyundai Motor are quite popular there now, according to Kim.
``Cubans have tender feelings and are also loyal and work hard just like Koreans. In addition, their relationship can be complementary ― Korea has capital and technology while Cuba has raw materials and a good workforce,’’ he said.
``We strive to find a win-win solution, which will be beneficial to both countries.’’
In particular, Kim stresses the significance of cultural exchanges between the two so that they can better understand each other.
Thanks to the Korean association in Cuba, the University of Havana is set to teach a Korean language class this autumn at the earliest. Also, he is in talks with the state TV networks on airing Korea’s educational content.
Later on, he jockeys to introduce Korean dramas there so that the Korean wave, or hallyu, can lead to a closer relationship between the two down the road.