(1) The Background of Korean Printing Export
There are two main problems that the Korean printing industry is now facing with. One of them is, in a narrow meaning, the inevitable structural problems of the printing industry as mentioned above. The other is, in a broad meaning, the challenge of the cyber industry.
The first problem comes from the 'internal situation' of the printing industry itself.
Basically, the printing industry has the characteristics of order based and equipment based industry. Printing companies are exposed to a weak structure as they cannot initiate developing and manufacturing the products and selling to customers even though a lot of capitals were invested in prepress, printing and bookbinding, they are dependent on customer orders following what customers design and develop. Because of such an unfavorable structure, the printing industry is exposed to the undesirable dual structures of high and low demand seasons, and cut-throat competition is repeated every year by slashing price especially during the off season. The reasons why prices have remained unchanged in Korea for the last 10 years and each other blames for dumping are derived mostly from such a passive structure.
The second problem results from an 'external situation', that is, the development of digital technology and computers and its effect on the printing industry. The broad meaning of printing industry comprised paper, ink, print equipment, publishing and printing has faced with a most serious challenge with the appearance of 'cyber' industry. Developed during the last a few centuries as a unique medium for mass-communication and for the preservation of knowledge and information, the traditional printing industry represented by paper and ink is challenged for its existence by the appearance of multi media such as CD-ROMs and the Internet represented by computer. When the market introduced electronic books which can contain dozens of books in a palm-size CD and can reach everywhere at the same time, the entire printing industry including publishing
were much worried. Fortunately, however, the two industries are complementing each other now rather than devouring each other. Companies which discontinued paper catalogues because they counted on the Internet where postage is not needed and information can be added or deleted at any time without any difficulties, now resume printing paper catalogues that are considered for a time uneconomical, inconvenient and difficult to modify. From the facts that Encyclopedia Britannica, known as the 'the' encyclopedia, was published only on CD and the Internet in 1998, 1999 and 2000, but from September 2001 also appeared in its traditional format, the future of printing industry can also presumed.
The export of printing materials is not only the only way to avoid an excessive domestic competition, but also the only alternative to overcome dual structures of high and low seasonal demands and the best method to bringing the paper and printing qualities of the domestic market to an international level.
(2) What is required for the Printing Export
Strategies for printing export will be different from each country. However, my consideration of the overall problems and my suggested solutions for the Korean printing industry for export may be of significance for the FAGAT member countries here.
In early 1980s when the export of Korean printing started, we had fundamental problems in every sector. As the quality of our paper and ink was far below international standards, we were forced to give up even business discussions with overseas buyers. We had limited types of paper, problem with paper dust, stains on paper, ink color differences between foreign ink and Korean due to different ink pigment, color inconsistency due to lack of color standardization. When we look back at these fundamental problems in the past, it seemed recklessly brave to have tried to export under such inferior circumstances.
Nowadays, however, Korean paper & ink are improved and their quality up to international standard being a great help to printing export. When I visited printing companies in Hong Kong 10 years ago, they were using paper only from America, Europe and Japan. Now paper is supplied from Korea. This is proof that the quality of Korean paper and ink is internationally acceptable.
Korea still has to improve in the area of non-toxic ink and paper diversification.
Even though most printing machines were imported from advanced countries, the Korean printing industry is equipped with the most sophisticated and modern facilities.
As mentioned before, the Korean printing industry has reached an international level of quality in paper, ink, and raw materials, and it is also equipped with the most modern and sophisticated facilities. But why is the export of Korean printing materials lagging compared with other exporting countries?
Like in selling other products, the key factors for printing export are high quality, competitive price, and reliable delivery. In addition to such key factors, it is required to understand language, culture as well as international trade and business practices in order to export to the advanced countries. The most important factor for printing export is accurate communications. Communication hardware such as facsimiles and the Internet are well developed while software to utilize them are relatively less developed. Printing export must start with the development of software, which is the education and training of specialists.
The specialist for printing export must command foreign languages and must understand the culture and business practices of their counterparts with specialized knowledge. From the order negotiations to the following stages of production, packing, shipping, delivery and payment, communications should be exercised without giving any troubles to customers. For those communications, it is essential to have specialized knowledge of printing and finishing. Knowledge of how to handle hardware such as facsimile and Internet is also necessary. The reason that the export volume of Korean printing materials is notably less than those of the main Asian exporters such as Hong Kong and Singapore is due to a lack of such specialists. In consideration of relatively low wages and unfavorable working conditions compared with other industries in Korea, the main task is how to secure qualified personnel in the printing industry.
(3) How printing export is being done in Korea
In order to promote the export of Korean printing materials, the Print Exporters Association in Korea (PEAK) is organized as an affiliate of 'Korea Federation of Printing & Information Industry Cooperatives'. Founded in 1989 by the companies who have interest in the export of printing materials, PEAK has been active in exchanging export information and friendship. Consisting of about 30 members, PEAK is open to anyone who is involved and interested in printing export. The present time we call 'the era of advertisement'. Even competitively priced products of good quality will not be sold if potential customer is not aware of them. The small companies cannot continuously advertise like big companies. Fortunately, a non-profit organization called Korea Trade-Investment Promotion Agency (KOTRA) plays a great role in supporting the export of printing materials. The small and Medium Business Administration (SMBA), a government organization also systematically supports the development of small companies. SMBA operates a supporting system as a means to promote business for small companies in two ways. One way is to support export organizations in the industry like Print Exports Association when they organize a trade mission to meet print buyers in overseas and the other is to support Korean participation in overseas exhibitions.
With the help from SMBA and KOTRA, every year PEAK sends the Print Trade Mission abroad to talk about Korean printing quality with successful order negotiations.
Financial support is also provided by SMBA to cover a part of expenses such as of marketing, telecommunications, translation and rental fees for meeting space.
All Korean export activities abroad are assisted by KOTRA through their worldwide branches. They arrange advertisements in local major newspapers and industrial magazine, contacts and discussions through telemarketing with potential customers and invitation for face-to-face business discussions. Through these meetings we are able to show our quality of printing and at the same time have an opportunity to learn our customers' business practices and cultures. Korea Printing Federation also financially support some travel expenses for export promotion. Summarized below are organizations supporting overseas market development.
Market Development Support
