WEBINAR TRADE CONFLICT BETWEEN KOREA + JAPAN - A chance for Swiss exporters? 20.05.2020 - Switzerland Global ...
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WEBINAR TRADE CONFLICT BETWEEN KOREA + JAPAN A chance for Swiss exporters? 20.05.2020
INTRODUCTION
JACQUELINE TSCHUMI CONSULTANT JAPAN + SOUTH KOREA SWITZERLAND GLOBAL ENTERPRISE
Partners
A very warm «Thank you»
to our partner
4
Agenda 5
WELCOME BY SWISSMEM
CHRISTOPH BLÄTTLER SECRETARY GENERAL SWISS MACHINE TOOL MANUFATURERS SWISSMEM
Downturn –
chase opportunities !
Christoph Blättler
Secretary SMTM, Head Korea Desk
8 | Korea: opportunities for Swiss exporters
Current direction of MEM-Business 9 | Korea: opportunities for Swiss exporters
Monthly Purchasing Managers Index (industry)
Red = contraction of business
April
Source: FuW, 05.05.2020
https://www.fuw.ch/article/schwindende-hoffnung-fuer-die-konjunktur/
Ineichen Research & Management, Bloomberg, Markit/Grafik: FuW
10 | Korea: opportunities for Swiss exportersSwiss MEM-Industry exports Jan to Mar 2020
Share of total MEM exports Change to same period of perceding year
EU* (56.0%) -10.4%
Asien (17.4%) -7.0%
USA (14.1%) -6.0%
Deutschland (25.6%) -11.6%
China (5.6%) -10.0%
Frankreich (5.1%) -18.0%
Grossbritannien (4.0%) -4.8%
Italien (4.0%) -19.5%
Japan (2.2%) 0.6%
Polen (1.9%) -11.1%
Spanien (1.5%) -13.7%
Indien (1.1%) -12.5%
* Without Great Britain
Russland (1.1%) 18.6%
Brasilien (0.6%) -2.3%
11 | Korea: opportunities for Swiss exportersSITUATION IN KOREA: CURRENT OPPORTUNITIES + THREATS
ROGER ZBINDEN HEAD SWISS BUSINESS HUB KOREA
Keyword COVID-19 in Korea
Update on Korea’s dealing with COVID-19
Status (as of May 18)
• Status May 18
• 11’065 total infections (+15)
• 263 deceased (+1)
• 753’211 total tests conducted
• No lockdown
• Strict testing, tracking and isolating
specific clusters to avoid second wave
16Economic Outlook Post-Covid19 (IMF April 2020) Country 2020 (%) 2021 (%) World -3.0 5.8 USA -5.9 4.7 China 1.2 9.2 Euro Area -7.4 4.7 Germany -7.0 5.2 Italy -9.1 4.8 UK -6.5 4.0 France -7.2 4.5 Japan -5.2 3.0 Korea -1.2 3.4 17
Restriction of Movement of People
Korea Immigration Service Available Flights and useful information (status
18 May)
Offers information on the entry to Korea and
status on suspension of visa-free entry: Airlines are flying directly from Incheon airport to
Europe at the moment:
- All incoming Koreans and foreign nationals are
subject to 14-day mandatory quarantine - Asiana (Frankfurt)
- British Airways (London): from 1 July, 2020
- If tested positive, they will be sent to either a - Korean Air (London/Paris/Amsterdam/Frankfurt)
hospital or treatment center - KLM (Amsterdam)
- LOT Polish Airlines (Budapest/Warsaw): from 2
- If tested negative, short-term staying travelers June, 2020
quarantine at facility for 14 days. Long-term - Lufthansa (FFM, MUC) from 1 June, 2020
staying travelers (including Koreans) must be in - Qatar Airways: via DOHA to most of the
self-quarantine, either in their own residence or European cities
in a designated facility
http://www.immigration.go.kr/immigration_eng/index.do https://www.eda.admin.ch/countries/korea-
republic/en/home/representations/embassy.html
Please be aware that this information can change at any time !
18Covid-19 Factsheet Korea
Download available on
https://www.s-ge.com/en/overview/covid-19-
information-smes
19Keyword Opportunities from the Trade Conflict with Japan in the MEM industries
Trade conflict between Korea and Japan
Situation Action Japan
• Looming historic and political grievances
between the neighboring countries swapped • Japan imposes strict export control
over last summer to the economic and trade measures on 1’194 items (“restricted items”)
sphere
Countermeasure Korea Impact Study
• Korea defines Hundred Key Items (increase
to 338 on 11 May 2020) and additional MEM • Quantitative research identifies 66 specific
items (total 4’708) where dependence from MEM items with market opportunities for
Japanese manufacturers have to be reduced Swiss MEM manufacturers
(“key items”)
21Data model applied in report
Group 1 – 13 Items Group 2 – 12 Items
Restricted key items with a Restricted key items with a
total import ratio of at least total import ratio of at least
Group 5 – 20 Items
50% of which more than 50% of which imports from
50% is imported from Japan. Japan value at least 30m
Additional (mostly non-
US$.
restricted non-key) MEM
items where Japanese
manufacturers are ranked in
Group 3 – 7 Items Group 4 – 14 Items the top 3 and Swiss imports
are at least 5 million US$ on
Restricted key items with a Non-restricted key items with average in 2017-2019
total import ratio of less than a total import ratio of more (Chapter 4 of report).
50% of which imports from than 50% of which imports
Japan value at least 50m from Japan value at least
US$. 40m US$ and show a high
increase.
22PRESENTATION OF THE REPORT: OPPORTUNITIES FOR THE SWISS MEM INDUSTRY
MIN-SEO KANG TRADE OFFICER SWISS BUSINESS HUB KOREA
How to use the report
Phase I Identify your product
Phase II
Look for Strategy
Phase III Elaborate your Strategy
25How to use the report
FOCUS REPORT
MEM Opportunities in Korea
Phase:
Identify your product Look for Strategy Elaborate your Strategy
Desc: • All items are indicated in HS • In chapter 5 the report indicates • Gain additional information for an
Codes informed decision how to enter
➢ Several generic market entry
the market or how to improve
• For all of the 66 items we and market expansion your market activity in Korea with
strategies
tried to give S-GE and SBHK
➢ Short case studies
➢ Market flash (product
description, size, statistics)
➢ Names of Japanese and
global competitors to Swiss
MEM manufacturers (where
available)
26Example 1
f 8545110000
Market Flash
Description
• Carbon electrodes, carbon brushes, lamp carbons, battery carbons and
other articles of graphite or other carbon, with or without metal, of a kind
used for electrical purposes
Market Flash • The global market for Ceramin Matrix Composite is estimated to grow
from 2019 to 2029 at a rate of 9.5% CAGR. The market volume in 2019
was $9,400M and is expected to grow to $23,300M. Growth in this
category is led by the aerospace and defense market.
Import Imports Mil. $ Country (2018) Balance (M.$) Export (M.$) Import (M.$)
Japan (231.6) 0.0 231.6
2017 144.5
China (154.6) 1.5 156.1
2018 470.9 India (43.4) 0.0 43.4
Spain (23.1) 0.0 23.1
2019(3Q) 391.3
France (16.4) 0.0 16.4
27Example 2
f 9022192000
Market Flash
Description • Apparatus based on the use of X-rays or of alpha, beta or gamma
radiations, whether or not for medical, surgical, dental or veterinary
uses, incl. radiography or radiotherapy apparatus, X-ray tubes and other
X-ray generators, high tension generators, control panels and desks,
screens, examination or treatment tables, chairs etc.
Market Flash
• The size of the X-ray apparatus system market in 2016 was $545M.
The market is expected to grow between 2017 and 2023 at a rate of
6.51% CAGR to a value of $868M.
Import Imports Mil. $ Country (2018) Balance (M.$) Export (M.$) Import (M.$)
Japan (52.9) 0.6 53.5
2017 104.5
USA (19.8) 0.7 20.5
2018 105.1 Germany (12.1) 0.4 12.5
Israel (6.7) 0.0 6.7
2019(3Q) 52.7
UK (5.4) 0.0 5.4
28Example 3
f 8456
Market Flash
Description • Machine-tools for working any material by removal of material, by laser
or other light or photon beam, ultrasonic, electro-discharge, electro-
chemical, electron beam, ionic-beam or plasma arc processes; water-jet
cutting machines
Market Size • Domestic production: 574,202 96
Market Size: Manufacturers
• Exports: 240,999
671,020
• Imports: 337,817 9 Importers
Unit: 1000 USD
Import RANK Import country Imp. value (2017) Imp. value (2018) Imp. value (J-N 2019)
1 Japan 109,549 124,415 80,338 (▼)
2 China 40,646 53,993 65,997(▲)
3 Switzerland 74,334 60,193 31,848 (▼)
4 Germany 43,337 36,390 18,384(▼)
5 Thailand 12,019 12,347 7,655(▼)
Total 380,478 337,817 236,130 (▼)
29Example 4
f 850110
Market Flash
Description • Motors of an output not exceeding 37.5W
(Low Capacity Motors)
Market Size • Domestic production: 1,988,211 85
Market Size: Manufacturers
• Exports: 352,383
2,394,117
• Imports: 758,289 27 Importers
Unit: 1000 USD
Import RANK Import country Imp. value (2017) Imp. value (2018) Imp. value (J-N 2019)
1 China 565,721 424,399 360,856 (▼)
2 Philippines 109,313 110,307 68,269(▼)
3 Vietnam 68,749 80,901 58,161(▼)
4 Japan 113,015 50,391 42,134 (▼)
5 Switzerland 10,403 15,068 18,471 (▲)
Total 939,874 758,289 611,657(▼)
Unit: %
Monthly Statistics (%) Country/Month 4 5 6 7 8 9 10 11 12 1-3
Apr 2019 – Jan-Mar 2020 Switzerland 50.1 39.1 -0.9 -10.1 76.1 76.1 45.4 52.6 61.0 37.7
Japan 121.0 -31.0 58.6 26.5 -39.3 6.2 -5.2 -39.2 -43.7 -43.9
30Example 5
f 902780
Market Flash
Description • Instruments and apparatus for physical or chemical analysis, or for
measuring or checking viscosity, porosity, expansion, surface tension or
the like, or for measuring or checking quantities of heat, sound or light,
n.e.s.
Market Size • Domestic production: 774,950 163
Market Size: Manufacturers
• Exports: 651,368
814,888
• Imports: 691,306 24 Importers
Unit: 1000 USD
Import RANK Import country Imp. value (2017) Imp. value (2018) Imp. value (J-N 2019)
1 Japan 320,053 327,341 309,965(▼)
2 USA 131,367 142,420 158,774(▲)
3 Germany 53,641 60,718 56,297(▼)
4 China 16,549 31,108 27,716(▼)
5 United Kingdom 25,839 35,993 23,166(▼)
7 Switzerland 23,000 17,992 17,878(▼)
Total 651,368 691,306(▲) 685,361(▼)
31How to use the report
FOCUS REPORT
MEM Opportunities in Korea
Phase:
Identify your product Look for Strategy Elaborate your Strategy
Desc: • All items are indicated in HS • Chapter 5 of the report • Gain additional information
Codes indicates for an informed decision how
• For all of the 66 items we tried to to enter the market or how
➢ Several generic market
give to improve your market
entry and market expansion
➢ Market flash (product description, activity in Korea with S-GE
strategies
size, stats) and SBHK
➢ Short case studies
➢ Names of Japanese and global
competitors to Swiss MEM
producers (where available)
32FROM THE PERSPECTIVE OF A SWISS COMPANY
ROGER MARTI SENIOR MILLING MANAGER ASIA GF MACHINING SOLUTIONS, SOUTH KOREA
Georg Fischer Corporation
All about you
We are industrial
pioneers
Founded +200 years ago
On the Swiss Stock Exchange
Johann Conrad Fischer Georg Fischer I Georg Fischer II Georg Fischer III
since 1931 1773-1854 1804-1888 1834-1887 1864-1925Worldwide for our customers
To get a balanced global footprint that supports its growth, GF invests in new markets in
Asia, the Americas and the rest of the World.
GF Piping Systems
GF Casting Solutions
GF Machining Solutions
33 140 15’027 4’572million (CHF) sales in 2018
33
countries
142
companies
14’678 3’720
employees million (CHF) sales in 2019
GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020GF Machining Solutions
1'066
million (CHF) sales* 2018
972
million (CHF) sales* 2019
3’394
employees*
3’358
employees*
Countries Sales Companies Production plants Centers of Competence
+50 33 8 20
GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020Our Technology Brands
AgieCharmilles Mikron Mill Microlution
Wire-cutting, die-sinking and hole- High-speed, high-performance and Specialized in five-axis Milling,
drilling EDM solutions, Additive high-efficiency Milling technologies femtosecond Laser for hole-drilling
Manufacturing and Laser texturing and micro-cutting in a wide range of
industries
Liechti Step-Tec System 3R
Leader in five-axis airfoil machining High-end motor Spindles and Productivity-boosting Automation,
solutions for the turbine industry subassemblies Tooling and Software systemsMarket Segmentation Aerospace ICT Automotive Medical Electronics Energy GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020
From agent to sales & service
organisation in Korea
1972 Sales agreement with agent for Mikron milling machines
2001 Foundation of AgieCharmilles Sales organisation
2016 Integration of Mikron milling machines into AgieCharmilles Sales
organisation and rename into GF Machining Solutions Korea
Termination of cooperation with agent for Korean market
2019 Reinforce sales, application and service team for milling machines
GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020Korea during past 20 years
500 10
450 9
400 8
350 7
300 6
250 5
200 4
150 3
100 2
50 1
0 0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Million pcs. Samsung Mobile LG Mobile Hyundai KIA
GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020Trade conflict Korea-Japan The conflict between both countries is a good opportunity to enter or re-enter into this market! Historically both countries have similarities in culture and tradition, but also different memories about past. Comparable with Europe and Germany, however Europe and Germany strongly worked on common history and rehabilitation. Important, big companies decided not to invest in Japanese technology and goods anymore, due to recent disagreements. Sub suppliers tend to follow big companies GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020
Why and how enter into Korean market - Constant market presence increase chances to sell - Work with local employees together helps HQ and locals for a better common understanding and communication - Support on site strengthen knowledge of products for a higher professional approach to customers - Products with high quality and precision are demanded - Special technology and niche products are always welcome GFMS Korea for Swiss Business Hub Korea and Swissmem | Mai 2020
Q&A
Click + connect with us!
Jacqueline Tschumi
Consultant Japan + South Korea
jtschumi@s-ge.com
Switzerland Global Enterprise
Roger Zbinden
Head
roger.zbinden@eda.admin.ch
Swiss Business Hub Korea
45Stay informed COVID-19 information and upcoming webinars COVID-19 information for SMEs Upcoming webinars The number of cases of coronavirus infection is increasing We regularly offer webinars with COVID-19 insights but also worldwide, and with it also uncertainty. What do exporters need besides the Corona topic. See if there is something that interests to be aware of and where can they get financial assistance in the you! In case you are missing a topic, feel free to contact us and event of liquidity troubles? This continuously updated overview share your ideas and needs with us. offers orientation and assistance. READ MORE HERE READ MORE HERE 46
THANK YOU VERY MUCH FOR YOUR PARTICIPATION
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