Success of Korean industry in India largely dependent on success of Korean SMEs: Shin Bong-kil
NEW DELHI: While hinting at the need for developing an ecosystem for smooth entry and sustainability of Korean small and medium enterprises in India, Shin Bong-kil, the Ambassador of the Republic of Korea in India has said that the success of Korean SMEs in India will be the key factor in measuring the Korean success in future business in India.
“Now survival and sustainability of medium and small Korean companies in the Indian market is the most important element of Korea’s success in the Indian market. Can they succeed in India or fail, is the most important factor in measuring the Korean success in future business in India,” said Shin Bong-kil.
The ambassador was speaking at the seminar “How to Come to India, Survival & Sustainability of SME Sector in Indian Market” on the outskirts of New Delhi on Tuesday when Korean and Indian SME bodies KOSMA and FISME respectively signed an MoU to foster cooperation between the two nations for boosting Korean investment in SME sector in India.
Later talking to Asian Community News (ACN) Network, the ambassador said India is the future, as it has a bigger market than the ASEAN countries combined together and Korean companies can make India as their production base for the entire world.
“But coming to India was not easy earlier as infrastructure was a problem and complex regulations as hurdles, and it was much easier for companies to enter Vietnam and Indonesia. Vietnam has a huge Korean community with over 7000 companies but still, India is the future, its capacity and income is growing and has good leadership and motivation. An earlier image of India was that it was difficult to do business here but the perception about India is changing,” the Korean ambassador said.
While praising the efforts put in by KOSAM for putting efforts for bringing Korean investment in the SME sector of India ever since its inception last year Shin Bong-kil, the Ambassador of the Republic of Korea In India said that the Korean investment in India growing each year.
“Last year Korean Foreign Direct Investment (FDI) in India was US$1.1 billion compared to previous year’s half a billion, which was more than double increase. I believe this trend will continue as many Korean companies which are withdrawing from China are either coming to India or other South East Asian countries like Vietnam and Indonesia. But I am very actively soliciting Korean companies to come to India as the future lies here,” said Shin Bong-kil.
The ambassador said that the Korean automobile companies such as KIA and Hyundai are doing well in India despite the sluggish auto market.
“Recently, during the KIA’s new car rolling out ceremony I was told that one car was being produced every minute. On the first day of its rollout, KIA made 6000 bookings. Hyundai’s small car launched a few months back too was doing well despite slow automobile market in India. Other Korean companies like LG, Samsung too are doing good but for Korean SMEs entering India is not easy,” the Korean ambassador added.
