With September’s days passing quickly, a short update on Korea is timely.
1. It seems the Korean economy is recovering. In 2009, we might see the Korean economy only shrink 1.5%. This is considerably less than earlier economic predictions.
2. Although export volume is down ( 20 %), a weak Won has resulted in strong profits for many Korean global firms. (This always seems counter-intuitive, but remember a few years ago when the Won was strong to the U.S. Dollar? Profits plunged and many Korean firms were in a crisis mode with last Q budget cuts, etc.)
3. Many Korean global firms have recently seen record sales numbers. Analysts’ note that Korean firms are among the few to make gains in markets–capitalizing on opportunity. (Remember early this year I stressed this would be an aggressive Korean strategy).
4. I’ll continue to watch trends carefully and report. Meanwhile, please share with your teams Bridging Culture Worldwide Blog’s daily hints on Korean global business. I’m posting one hint each day in September.
BTW My lecture at The Korea Society was well received. I spoke on the Korean car market, and the recent successes of Hyundai and Kia Motors. Lots of Korean media covered the event, too. They seem very interested in thoughts and insights into why Korean cars were making huge strides in market share, etc. (TKS will soon offer a video version of the lecture).
As always, I’m here to support you and your teams. 24-7-365 Please feel free to call 1-310-866-3777 or email.
Regards,
DS
By Don Southerton, Korea Expert Witness Editor and Chief Blogger