By Don Southerton, BCW Editor
With work
that centers on Korea-facing business, I have some deep insights into the
extent and the role that South Korean companies play as top foreign investors
in the United States. The many Korean brands with significant US investment
include the familiar Hyundai, Kia, Samsung, and LG, along with Hankook and
Hyosung (both car tire related), Doosan (Bobcat), Translead (trailers), Rotem
(trains) MOBIS (auto parts), Innocean (marketing) and Forever 21 (apparel).
Surprising
to many is that ever increasingly my “Korea work” takes place here in
America and globally, not in Seoul. I then explain that along with thousands of
others I have benefited from the growing popularity of Korean brands. I expect
this trend to increase with the EU and KORUS FTA (Free Trade Agreements).
Candidly,
I feel the true impact of South Korea interests in the U.S. is overlooked when
considering the magnitude of Foreign Direct Investment, employment
opportunities, and product appeal across America—although the job side is most
often promoted. By this I mean what is usually missed is “why” Korean firms continue to
invest billions of dollars in facilities, people, and marketing in the
U.S.
Why? It’s a win-win. Frankly, Korean products sell. In other words,
Korean brands have invested heavily in the U.S. market and continue to expand
because they see significant opportunities for growth. Meanwhile, the American
consumer finds products of high value and quality along with a trendy design.
And as a
closing thought, I have seen Korean brands build upon themselves. By this I
mean a Kia car owner might shop at Forever 21, while toting a Samsung Galaxy
smartphone with plans for a K BBQ lunch.
Not to mention "Liking" Gangnam Style on TubeTube, and if a golfer and using Titleist balls, the brand in now owned by a Korean company.
Questions,
Comments, Feedback? I'd be interested in
your thoughts. Just email me.
As
always, if you or your company has need for my consultancy, please let me
know.
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