By Kim Yoo-chul
Top exporters are making more resources available in order to localize operations in China.
The move comes after Beijing recently renewed its determination to boost its own industries and improve their innovative edge.
Last week, China unveiled its development agenda for 2011-2015, setting out goals of finding breakthroughs in economic restructuring, while boosting the people’s standard of living.
It is widely interpreted as Beijing’s shift in focus from its decades-long heavy dependence on heavy equipment, external growth and clarification to fostering balanced economic growth.
China is the biggest market for Korean goods.
On Tuesday, Samsung Electronics, LG Electronics, steel giant POSCO and Hyundai-Kia said they will further diversify their approach to China.
This is expected to entail a sweeping change in production facilities, distribution channels, product lineup and to strengthen corporate social responsibility (CSR) activities.
Samsung Electronics, which has been continuing its consistent sales growth in China, is planning to lure customers in rural cities, said a Samsung spokesman.
``Samsung will increase the number of `mega electronics stores’ in China. With allocating more budgets for CSR activities and sport marketing, Samsung will seal more partnerships with leading local distributors,’’ added the spokesman.
Samsung, the official sponsor at the Beijing Olympics, is having its marketing staff members ready to fly to Guangzhou for target marketing at the upcoming Asian Games.
Samsung is still waiting for final approval from Beijing over its 2.2 billion won investment plan to construct the latest flat-screen manufacturing line in southern China.
Sources at Samsung told The Korea Times that their hopes for a green light have been raised.
Flat screens are used for everything from handsets to televisions. Samsung is the world’s top maker of flat-screen TVs, trailing Nokia in the overall global handset market.
LG Electronics has revised up this year’s sales target in China to over $3 billion from $2.5 billion in 2009.
An LG spokesman said the consumer electronics company has been in internal talks to find effective ways to increase more sales in China next year.
``LG will press on a `two-track’ strategy targeting both affluent and budgetary Chinese customers as Beijing is expected to spend more money to boost consumer-related sectors,’’ said the spokesman. He said it has recently opened operating service centers in Nanjing and Shenyang.
Hyundai-Kia said its latest third car-making factory in China will meet an explosive growth in car demand.
It has a plan to more than quadruple its car sales in China to 1.3 million vehicles from an estimated 300,000 in 2010.
SK Group is planning to raise its China profile.
SK officials say its logistics affiliate SK Networks will be given more authority in managing a group-wide approach on the Chinese market. The spokesman declined to elaborate.
The plan is being pushed by Chairman Chey Tae-won. SK launched a group-within-the-group affiliate.
POSCO, Hyundai Heavy and Hanwha are also going all-out to nurture their presence in China.
``POSCO will prepare advanced customized production and sales strategies as the demand for value-added steel products is expected to continue to rise in China,’’ said a POSCO spokesman.
He said the steel giant is in the process of finding local partners to improve logistics and distribution systems.
Hyundai Heavy has been on a stable route to build a large-sized wind-power plant and scaled wheel-loader facility, while Hanwha is increasing its capital expenditure to nurture its solar cell-related businesses in China.