Raw material, land resources: 50 CEOs of South Korean companies to arrive in October

A high powered South Korean business delegation comprising at least 50 Chief Executive Officers (CEO) of various companies is likely to visit Pakistan in October 2012, seeking joint ventures and investment opportunities here.
Korean firms which are facing shortage of raw materials and land resources are willing to spread business outlets in other parts of the region on the basis of 50 percent partnership and joint ventures with Pakistani companies, said an official of visiting Korean Company while exclusively talking to Business Recorder.
According to Myung Seung Jin Chief Executive Officer of IKP Korea Co Limited, Korean Companies in China are facing stiff competition amidst the increasing cost of business there especially the cost of labours. Many of the affected companies are willing spread their business outlets in other countries like Pakistan to have reduced cost of business.
Pakistan which is enriched with raw material and land resources could be charming area for Korean firms, he believes. A considerable numbers of around 138 Korean companies that have branches in China were facing the stiff competition with local companies where the host country has been rapidly narrowing the technological gap with South Korea in most areas. Competitive prices and rapid technological improvement are behind the Chinese companies' swift ascent.
According to Suhail Nisar Churra Chairman Pakistan-Korea Business Council of FPCCI, arrangements have been completed for the visit of Korean delegation. Pakistani embassy in Seoul has successfully convinced foreign firms to visit Islamabad and tap business and investment opportunities here. The visit is aimed to have positive implications on bilateral trade which has been increased to around $1.7 billion in 2011-2012. However, the bilateral trade was largely in favour of the foreign country.
At least 25 leading companies from 10 to 12 sectors are expected to be included in the delegation. Energy and construction companies were more interested to do business here. Besides, separate groups/delegations from Korea were also expected to come here by the end of this month and September, 2012.
Talking about the issues hindering bilateral trade, he said that the absence of direct flights between Islamabad and Seoul besides banking facilities were the main hurdles in improving trade ties with Korea. However, there was visa facility for businessmen on both sides were available without any hindrance. There were at least 10,000 Pakistanis working in different companies of Korea while the number was also increasing.
According to sources at least 80 percent of Pakistan's export to South Korea, was based on raw material like Naphtha, Unrefined Copper, indentured Ethyl Alcohol and Cotton yarn. Recently, Korea has allowed import of mango from Pakistan, which could be the first fruit being exported from Pakistan. Pakistani mandarin and grapefruit were also on the waiting list to be proceeded further after mango. The Philippines had long been the exclusive exporter of mango to Korea. The value of imports of mango can be increased manifold once Pakistani mangoes enter the Korean market.