Korean mid-sized cos to drop anchor here
Economic Times, India
Korean mid-sized cos to drop anchor here
13 December 2005
Mumbai: After the big daddies, it appears to be the turn of mid-size Korean companies to hot foot it to India.
Several such tier-II firms are now working on plans to invest in India on the back of the success experienced by the top industrial groups such as LG and Samsung in the country. With the promise of a Free Trade Agreement (FTA) in sight in ’07, Indian companies could also look Eastwards.
According to consultancy firm, KPMG, it is now advising Indian companies to use Korea as a base for outsourcing work from Japan for instance.
According to KPMG’s head of markets, Asia Pacific, Pratap Nambiar, the aim was to position Indian companies to enable them to gain first mover advantage keeping the FTA in mind. Besides auto parts, pharma and the steel industries hold out promise for Indian firms.
Korean companies, on their part, are looking at India with more interest considering the mineral resources which can be tapped here to their advantage. Posco’s project in Orissa which is expected to see an FDI investment of $12bn over a five year period is a case in point.
Korean companies are also keen on investing in real estate and retail segments provided the policy initiatives are translated into action.
A US fund is now trying to bring in Korean companies as partners in Indian firms in which they have invested. Given the growing Korean interest in the country, a proposal also has been mooted on developing a Korean village in the country.
This is aimed at building a place which will provide an expat enough comfort with Korean schools, cultural and entertainment centres and the like.
The group CEO of KPMG, Seoul Young-Gak Yun said that the firm was working with Indian clients to develop a Japanese strategy in the software sector. The advantage it offers is that Koreans have Japanese language skills which can be used to woo new business in Japan.
