Interview with General Magazine [Overseas Commercial Terrestrial Broad…

Interview with General Magazine [Overseas Commercial Terrestrial Broadcast]

Blue Ocean Export and Trade for Promotion to Central Asia

The BRIC countries, such as Brazil, Russia, and India, which were considered emerging markets, are now becoming the Red Ocean, while Vietnam and Indonesia, which are called post-China countries, are already so called among the global companies. How do Korean companies survive? There is a domestic company that opened a new market, deciding on a path that others do not have. Evergreen Motors Co., Ltd., a foreign automotive company, received a total of five export awards in 2007, 2008 and from 2010 to 2012 as well.

Evergreen Motors, founded in 2003, has been a exclusive distributor for the sales of Hyundai Motor, Kia Motors and Hyundai MOBIS in three Central Asian countries. It has more than 10 years of experience in sales, maintenance and logistics of vehicles. The company has three subsidiaries and four branches in each country, and more recently it is promoting a project to build a KD (Knock Down) car assembly plant at Hyundai Motors (commercial vehicle sector) in the Namangan Region of Uzbekistan. We already implemented the groundbreaking ceremony on November 2018 and will begin construction in April of this year in order to begin production in early 2020.

Exploiting an Emerging Market of Export and Trade 

Mr. Kim Chang Keon, CEO of the “Evergreen Motors Group”, had worked at Kia Motors for over eight years in sales and marketing abroad. When he worked overseas, he naturally found out about foreign trends and became interested in the Middle East, where other companies could not easily enter due to public peace or security problems at that time. His bold investment by targeting niche market and strategic marketing strategy accelerated the growth. However, political instability in the Middle East did not seem to cease. Civil war and terrorism continued, so that Mr. Kim Chang Keon felt that there was in hazard to keep continuing the business. His view of the nascent blue ocean was Central Asia, which is situated not far from there.

    “It is unfamiliar to us, but Central Asia has unlimited potential to sustain a steady from 6 to 7 percent economic growth rate. In case of Uzbekistan, three years ago, after the new government of the President Shavkat Mirziyoyev, the politics has been stabilized. Furthermore, the youth population is growing, and labor costs have been increased. That’s why I have decided that it is a market with potential for development."

The fact that it is culturally familiar has also helped me to advance here. I felt friendly with the culture of welcoming guests and embracing foreigners, and above all, the image of Koreans was positive through Korean Wave. Since 2009, “Evergreen Motors” has been selected as a local business partner for Kia Motors in Turkmenistan, and has expanded its business partners from one country to another every year, including Tajikistan, Kyrgyzstan and Uzbekistan.

Factors of Successful Localization Strategies 

The successful starting of “Evergreen Motors” is thanks to the chairman of Mr. Kim Chang Keon’s localization strategy. Domestic companies often encounter difficulties in communication and personnel management when they enter overseas market. Although it can be considered as a small factor, it is the cornerstone of running a company. Therefore,  Mr. Kim has built a system with know-how in the meantime.

"We regarded equal treatment and smooth communication between Koreans and local staff as the most important tool. For this purpose we chose local managers to manage the workforce in order to handle cultural and religious issues adroitly. I believe that the success rate has been raised because I have been doing business based on stable manpower management. "

In 2016, Mr. Kim Chang Keon was appointed to the honorary consul of Uzbekistan in recognition of his contributions to the civilian diplomacy of Korea and Uzbekistan and the development of economic cooperation between the two countries. In 2018, he visited domestic companies in Uzbekistan as a representative of economic delegations, and led active business negotiations that contributed to the conclusion of MOU between the two countries' organizations and companies. Currently, he is a chairman of Korea-Uzbekistan Business Center in Korea and he is faithfully carrying out his role as a bridge of connecting the two countries.

"Uzbekistan has a strong will to reform and open up after the new government took over. Foreign invested companies have been secure, and Korean corporations are deducting corporation tax for 10 years. I hope that economic exchanges between the two countries will become more active with the dispatch of economic delegations in April."

This year, “Evergreen Motors” plans to diversify its business in emerging markets. It is expected to grow synergies by expanding into automobile business, manufacturing, resource development, and logistics business, challenging new markets and linking with existing businesses. “Evergreen Motors”, which does not hesitate to challenge ahead, is waiting for greater opportunities and growth ahead of it.