Companies should aim to expand Russian market presence

Korean companies should set a coherent strategy to expand their market presence in Russia, local think tanks said Wednesday.

In a gathering hosted by the Korea Chamber of Commerce and Industry, local economic institutes forecast Russia could become a leading economic powerhouse in the foreseeable future.

Such development, they said, could open new opportunities for local businesses to enter the rapidly emerging market.

"If Russia joins the World Trade Organization (WTO) this year, it could become the world's fifth largest economy in 10 years," said Lee Jae-young, head of the Russian team at the Korea Institute for International Economic Policy.

He said companies must think long term when trying to gain greater market share in Russia, and develop coherent strategies in such fields as energy, construction, retail, financial services and maritime transportation.

That advice was seconded by Kim Hak-gi, a researcher at the state-run Korea Institute for Industrial Economics and Trade, who stressed Russia holds good growth potential for local businesses in areas such as autos, agriculture and medicare services.

Other experts said that once Russia becomes a WTO member, it will be obliged to open up 26 service sectors including retail, which could provide opportunities for South Korean companies.

In 2011, two-way trade between South Korea and Russia totaled $21.16 billion won with the former suffering a deficit of $549 million. South Korean companies invested $97.9 million worth into various projects in Russia last year. (Yonhap)