By Kim Hyun-cheol
Staff Reporter
Bicycle-riding fever is gripping Korea. President Lee Myung-bak rides one and others are following in light of his government's ``green growth'' drive. Now, with signs of a higher demand in bicycles, and in an effort to meet the government's call, conglomerates are pondering whether to open bicycle production businesses.
The Ministry of Knowledge Economy is leading the way, after President Lee talked of the need for bicycle-making businesses when he said that it took Korea 20 years to become one of the world's five largest car-making countries, but it can be ``one of the top three bicycle makers within five years."
Korea is lagging well behind most advanced countries when it comes to bicycles. As of 2006, only seven local makers were manufacturing bicycles, most of them small-sized, according to data from the ministry.
Nearly 3 million bicycles were sold in 2007, but only 20,000 were made in Korea. In other words, the bicycle trade balance was $100 million in deficit.
Currently, the global market is estimated to be worth around 70 trillion won. Several countries, including China and the United States, produce more than 90 percent of all the bicycles sold in the world. Taiwan is strong in high-quality products and Japan is the global leader in various high-tech parts.
Several conglomerates are already showing an interest, according to the ministry, mostly in research and development (R&D) of parts technology.
Samsung SDI has recently said it will focus on lithium-ion batteries, which can be used as part of hybrid bicycles that use electric motors. Machinery and car parts maker Mando is also reportedly mulling over the idea to produce several bicycle parts.
POSCO is considering the production of an ultra-light magnesium frame to be used in high-quality bicycles.
The ministry last month asked Hyundai Motor to launch a ``collaboration'' brand project, with the No. 1 carmaker being responsible for final assembly and marketing. Hyundai has yet to make a formal response.
``It is a bit too early for us to respond, when no further details have been given out by the government," said a spokesman for Samchuly, Korea's largest bicycle manufacturer. ``We aren't entirely opposed to the idea because the conglomerates' participation can have benefits."
In reference to the President's call to become the top bicycle maker, the spokesman said he understands that as ``a symbolic gesture."
But the ministry said the rest is up to manufacturers.
``In the wake of the master plan, the rest is up to the players in the market. The ministry is more likely to be focused on playing a liaison role between makers in different fields and supporting some R&D projects," said Kim Chang-kyu, the director of the ministry's automobile and shipbuilding division.
``Some of the attempts to expand demand for bicycles are out of our control because they are more about overhauling infrastructure here."