The figures of printing materials export vary according to the source of the statistics. I will quote the data collected by Korea Printing Federation from its member companies.
The export of Korean printing materials has increased to a considerable extent since its beginning, but it has remained almost unchanged around one hundred million US Dollars (US$100,000,000) for the last 4~5 years. This figure is mere 2.5% of the total four billion US Dollars (US$4,000,000,000) of Korea printing market.
There must be many reasons for this standstill, but I would like to mention a few points.
First, this limping may be due to the limited number of export companies. As mentioned before, the number of export companies of printing materials is not growing any more. Even though many companies want to export, they cannot afford to do so because of problems that they cannot have personnel specialized in print export.
Second, our export market is not diversified. Export to a few specific countries cannot support continuous growth. It will be difficult to expand our export market of printing materials without diversifying export items to more countries.
Third, lack of qualified personnel in printing export would be another reason. It is rare to find personnels in our printing industry who know the required foreign languages, possess a broad knowledge of the printing process and technology, and have experiences in international businesses.
From time to time, some overseas inquiries are received in Korea Printing Federation. If the inquiry is for a large quantity, it is passed to major printing companies. But if the inquiry is for a small quantity, it is very difficult to find suitable companies to handle such an inquiry because they do not have trained personnel. Korean printing materials are exported to North America, Europe and Japan. But the main market is America. Japan would be considered as the best market for Korean printing materials in view of close geographical and cultural relations, and Korea's relatively low wages and high technology. On the contrary to our expectations, our export volume is not so much to Japan. More careful and detailed study is needed in order to develop the Japanese market in the future.
The procedures of printing materials export are similar to those of other products
as specified as follows: First of all a contract is signed after transaction terms and conditions are agreed on. Afterwards printing contents is received; nowadays usually by CD. Some companies with large LAN capacity get a digitalized copy through the Internet and proceed to make printing plate. When everything is confirmed on press proof, printing work will be proceeded in the same way as local printing and order processing procedures do.
Then payment will be settled, if possible, with some amount in advance and the balance through bank channels after shipment. Payment terms will be decided according to credit and trust between buyers and sellers.
In connection with printing export, finally I would like to mention the quality of printing materials. Even a minor defect, negligible in the local market, can be a cause for a lawsuit in international business. The care should be taken not only in printing and bookbinding, but also in packing and transportation to satisfy buyers and continue successful exporting.
Trends of Printing Import Countries
The main import country of printing materials, like other products, is U.S.. Total printing material value in U.S.A. is known about one hundred and thirty billion US Dollars (US$130,000,000,000) of which import portion is about three billion US Dollars (US$3,000,000,000). Import from Korea is about fifty million US Dollars (US$50,000,000) which accounts for 1.6 % of total import amount. The United States imports chiefly from Britain and Canada, countries which are geographically near to American market, especially Canada. Main export region of Canada is industrially developed eastern area, and it is known that western Canada imports certain items of printing materials off shore. Korea exports mainly to the western part of the United States. Main export items are various, i.e. calendars, postcards, books and catalogues. We will take a look at the import details of HS code 4901 which deals printed books, booklets and leaflets - Korea's primary export items to America.
Import Status of Printed Books in the United States(unit:US$ in million)
| | | | | |
|---|
| No. | Country | Year 1999 | 2000 | 2001 |
|---|
| 1 | Canada | 271 | 285 | 331 |
| 2 | U.K. | 291 | 332 | 311 |
| 3 | Hong Kong | 236 | 230 | 235 |
| 4 | China | 144 | 221 | 269 |
| 5 | Singapore | 91 | 89 | 98 |
| 6 | Japan | 74 | 63 | 55 |
| 7 | Korea | 32 | 32 | 38 |
| 8 | Others | 420 | 448 | 424 |
| | Total | 1,559 | 1,700 | 1,761 |
As shown in the above table, the amount of printing material export to U.S.A. from Korea is much less than those of Hong Kong, China and Singapore.
Let's take a look at the case of Japan. The total Japanese printing market is valued at around seventy billion US Dollars (US$70,000,000,000). The Japan imports about eight hundred million US Dollars (US$800,000,000) worth of books, newspapers, magazines, and brochures among other printed items. Books and brochures account for 31.7% of these imports. Imports are mainly from U.S., U.K., Germany and Singapore in order of amount, and import amount from Korea is about ten million US Dollars (US$10,000,000) worth of printing materials, accounting only for 1.2% of total Japanese import market.
It is difficult to understand such a small sum of transaction is made, if we look at the trade volumes between two countries as well as close geographical and cultural relations. I suggest more efforts to increase printing materials trade by searching for cooperative ways and mutual understanding.
Conclusions (Searching for Cooperation among FAGAT Member Countries)
There is no short cut to achieve successful export for printing industry. What is required for printing export are securing qualified personnel. Improving print quality and global thinking, organizing Print Trade Mission, and permanent exhibition centers are a good beginning. These projects are not easy, and furthermore cannot be achieved in a short period of time. Top management or decision makers must feel the necessity of printing export and must make decisions accordingly. In addition to our concern about the investment into printing equipment, now it's the time to actively invest in education and training of manpower for developing world printing market. The export of Korean printing will be more accelerated when the gap between Korea and advanced countries become narrower by exerting our efforts to improve our structural weakness as well as to understand good characteristics of the advanced countries and to catch up with their levels.
Finally I would like to make a conclusion sharing with you how to cooperate among FAGAT member countries in connection with printing export and import. Occasionally, export stops when local production is difficult or the profit is not expected. In such cases, we can think about re-ordering to other FAGAT member countries. For mutual benefits we may need to change our ideas that we expand production areas rather than give up the orders making our buyers disappointed. For instance we can introduce printing companies capable of exporting, and have them supply printing materials through representative organizations of FAGAT member countries . However in order to process orders and delivery of printing materials among countries in a convenient and quick manner, smooth communications are pre-requisites. Also standardization of printing processes and printing quality must be established among member countries to guarantee printing quality and packing method as well as to maintain consistent quality.
I hope that in the future information reports on printing exports will be presented by FAGAT member countries to pave the way for sharing information, thereby making cooperation.
2003/04/10 00:00:00
