By Na Jeong-ju
Staff Reporter
South Korea is considering creating a pool of 100 billion won ($74 million) to spruce up its negative image overseas and build a brand as a ``respected and beloved'' member of the global community, the chairman of a presidential commission on nation branding said.
In an exclusive interview with The Korea Times, Tuesday, Euh Yoon-dae said the country must increase economic aid to underdeveloped countries to share the premium of its rapid economic growth.
``Creating a fund is one of the options to ensure successful nation branding. We will discuss finding the best way,'' said Euh, 63, who starts a two-year term today as the first chairman of the Presidential Council on Nation Branding.
The 50-member council, including eight ministers and several experts from the country's leading conglomerates, will play a central role in reorganizing Korea's branding activities and creating positive images abroad for the world's 13th largest economy.
``We forecast the total amount of money spent annually on branding by the Seoul metropolitan government, the Korea Tourism Organization and other government agencies to reach about 100 billion won ($74 million). The council will find ways to maximize the effects of branding activities through close policy coordination with them,'' Euh said.
Last year, New Zealand spent about 100 billion won on branding campaigns and Denmark created a pool of $85 million to support global promotions, according to the former president of Korea University, President Lee Myung-bak's alma mater.
``Many government agencies and municipal governments have their own branding programs. The council will coordinate policies with them to make South Korea a globally respected and beloved country,'' Euh said.
He said South Korea has become a wealthy country, but has not been active in helping underdeveloped countries and that it needs to improve its reputation abroad by increasing official development assistance (ODA) to underdeveloped nations.
``Korea's economy has grown rapidly in recent decades, but its global contribution is not commensurate with its economic power. Korea's hardware has grown quickly, but its software development has been too slow,'' Euh said.
Korea was on the ODA recipient list up until the late 1990s. Since entering the new millennium, Korea has become a donor.
According to the Organization for Economic cooperation and Development, Korea's ODA provision was $264 million in 2001. It increased to $672 million in 2007, 0.07 percent of gross national income (GNI), but is still far below major donors, whose average donations in 2007 accounted for 0.3 percent of GNI.
Euh said the country's leading conglomerates, Samsung, LG and Hyundai, have a better global reputation than their country.
``In terms of branding on the global stage, Korea lags far behind these companies,'' he said. ``Our activities will focus on reducing the gap and preventing such firms from receiving undue treatment just because they are from South Korea.''
Euh said it was President Lee's idea to create the council on national branding.
Lee, a former CEO of Hyundai Engineering and Construction and mayor of Seoul, is well aware of Korea's image problems and has a firm resolution to increase Korea's role in the world, he said.