Korea should target US, Chinese consumer markets: KOTRA

By Choi Sung-jin

For Korean exporters to increase overseas shipments this year, they should focus on the consumer markets of the United States and China, a state-run agency said Tuesday.

The Korea Trade-Investment Promotion Agency (KOTRA) made these and other points at an explanation session to help exporters advance to global markets.

KOTRA said the reason local exporters should target the G2 was that U.S. private consumption is recovering in earnest, thanks to low oil prices, improved job markets and reduced household debt. U.S. auto sales, for instance, have recovered to pre-crisis levels and private consumption is expected to grow by 3 percent, above its economic expansion rate, it said.

The Chinese market, despite concerns about overall economic slowing, has also been steadily expanding on gains in income levels, accelerating urbanization and a shift of economic growth from export-oriented to a domestic market-oriented pattern.

China’s consumer market, which stood at 16 percent of the U.S.’s in 2000, grew to 95 percent in 2014, KOTRA officials said. The conclusion of the Korea-China free trade agreement will likely improve the business environment for domestic exporters, too, they said.