South Korea will seek to become the world's seventh-largest trader in 2015 by boosting its exports and getting the right price for its products, the government said Tuesday.
The move comes as South Korean products are often undervalued and underpriced in the international market compared to their foreign
competitors.
Currently, South Korean goods have an average value of 93 when the price of their competitors from more advanced or well-known nations are set at 100, a study by the Korea International Trade Association (KITA) showed.
However, the actual price of South Korean products is set only at 87 in the international market because of what KITA vice chairman Oh Young-ho called the "Korea discount."
"Our quality products are not getting what they deserve just because they have a label of 'made in Korea,'" Oh said in a ceremony marking the country's Trade Day.
He said the country now has a chance to turn the tide following its successful hosting of the G-20 Seoul summit earlier this month.
"I believe the image and status of our country were significantly improved by our successful hosting of the G-20 summit and that we now have a
chance to turn the 'Korea discount' into the 'Korea premium.'"
To this end, the government will work to increase its support for small and medium enterprises (SMEs) as the KITA study showed the products of SMEs are underpriced by an average of seven points from their actual value while
those of large corporations only showed a three-point difference between their actual value and price.
"The government will establish a new system to support and encourage cooperation between large and small businesses in the global market," the
Ministry of Knowledge Economy said.
In addition, South Korea will increase its support for developing countries in Africa and the Middle East as part of efforts to help its businesses explore new markets there.
The country's exports are expected to jump over 28 percent this year to a record high of over US$460 billion and more than 11 percent next year to reach $520 billion, the ministry said.
South Korea will also see a 14 percent increase in imports to some $480 billion in 2011, becoming the world's only ninth country to join the so-called $1 trillion trade club, it added.
The country is already expected to become the world's seventh-largest exporter this year, and it will become the world's seventh-largest trading nation in 2015 when all its goals are realized, the ministry said.