In-Market Insights - Republic of Korea June 2020
In-Market Insights is a series of videos presented by Global Victoria's team members from across its international network of 22 Victorian Government Trade and Investment offices (VGTIs). The series sheds light on the current state of play in key global markets and sectors.
Episode three features Global Victoria’s Executive Business Advisor, Haesook Chung. Based in our VGTI office in Seoul, South Korea, Haesook shares her expert knowledge about emerging opportunities in the region for Victorian businesses.
VIDEO: Global Victoria's In-market Insights - KOREA June 2020
In-Market Insgights - JAPAN June 2020
Episode four features Global Victoria’s Trade Development Manager, Grahame King from our Tokyo VGTI office in Japan. Grahame shares his expert knowledge on the emerging opportunities in Japan for Victorian businesses.
VIDEO: Global Victoria's In-market Insights - JAPAN June 2020
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The delegation was an initiative to build on the growing trade between Victoria and Korea, particularly in the food sector. Victoria’s food and fibre exports to Korea registered 31 per cent growth on the previous year to a value of $479 million in 2018-19.
Victoria was the largest food and fibre exporter from Australia with 27 per cent of the value of exports from just 3 per cent of Australia’s land mass. Total food and fibre exports from Victoria were $7,257 million
South Korea is the fourth largest economy in Asia with a population of over 50 million. Increasing demand for high quality goods and services, together with a reduction in trade barriers, has provided key export opportunities for Victorian businesses. Export opportunities for Victorian agribusinesses continue to emerge for high-quality beef, dairy, horticulture and healthy functional foods.
Global Victoria's all-women's inbound summit, GVw 2020
Global Victoria was privileged to host a business roundtable on 27 February featuring a panel of Victorian women in the life sciences and medical technology sector who are undertaking business in Japan and/or South Korea.
This event was part of a wider, inaugural program called GVw 2020 that focussed on celebrating women in international business and supporting Victorian business leaders to develop global relationships with their international counterparts.
Guest speakers at the roundtable included prominent and highly successful business women:
- Dr Jackie Fairley, CEO, Starpharma Holdings Limited
- Angela Luttick, Executive Vice President Business Development, 360biolabs
- Dr Anne- Laure Puaux, Head Biotechnology and Commercialisation, The Walter and Eliza Hall Institute of Medical Research (WEHI).
Each speaker shared their experiences and valuable insights about developing business in Japan and Korea. Some of the key messages and advice shared included:
- the benefit of government led trade missions to ease barriers for access to Japanese and Korean government and research facilities
- the requirement for translators and interpreters for both the business/social aspects but also for specialist technical translations
- the need for patience in business negotiations.
Our thanks to all the delegates that participated and to our guest speakers for the generosity of their time and insights.
As the COVID-19 outbreak continues to spread around the world, it highlights that commitment to continued collaboration in transnational research is paramount.
There are increasing opportunities for Victorian engagement with Japan and Korea in areas of digital health, early stage clinical trials and participation in open innovation programs for new drug discovery.
Summer 2019 Update
Major South Korean airline, Asiana is launching direct flights between Melbourne and Seoul in a move that will strengthen ties with one of Victoria’s key trading partners and attract more tourists and more investment.
The Victorian Government is partnering with Visit Victoria, Melbourne Airport, the City of Melbourne, and the Consul-General of the Republic of Korea to support Asiana as it launches a seasonal service from 26 December to 21 February 2020, with weekly flights.
If this season is successful, there is the potential for Asiana to establish ongoing flights, opening up new connections with South Korea for tourists, investors and international students.
South Korea is a key trading partner with Victoria, with two-way trade worth more than $3.1 billion in 2018/19. Direct flights will help more major Korean businesses join those already in Victoria, which include dietary supplement manufacturer Nutribiotech, Kumho Tyres and major conglomerate Hanwha.
South Korea is a major source of tourists to Victoria, with more than 55,800 Korean visitors spending $134 million in Victoria in the year ending 2018. It is also one of our fastest growing markets for international students, with numbers up 25 per cent in the last five years.
Annual Australia Japan Joint Business Conference – Osaka, Japan
The 57th Annual Australia Japan Joint Business Conference (AAJJBC) was held in Osaka in early October. The conference attended by more than 350 leaders from industry and government from Japan and Australia was themed ‘New Partnership for the Future’.
The conference afforded delegates an invaluable platform to discuss critical issues in the global political and economic environment and opportunities for collaboration in areas including trade, infrastructure, energy and innovation.
Minister for Jobs, Innovation and Trade, Martin Pakula attended the conference and met with senior leaders from Japanese industry to further promote and enhance the already robust Japan-Victoria business relationship.
Spring 2019 Update
Victoria is one of the world’s leading life sciences hubs, including medical technology, biotechnology and pharmaceutical industries, supported by 16 major medical research institutes, 11 teaching hospitals and nine universities.
The commercial sector employs more than 31,000 people in 1,600 firms, generates over $21.4 billion in revenue and contributes over $1.7 billion in exports to the Victorian economy.
The Victorian Government, in partnership with the sector continues to promote the State as a world-leading location to develop products, engage world leading clinicians and researchers, conduct clinical trials and manufacture high value products.
Northeast Asia is a region which is emerging as offering strategic opportunities for the Victorian biotech industry and the Victorian Government is supporting a number of initiatives over the next several months to assist Victorian companies and organisations develop connections and investigate opportunities.
In October the Victorian Government will support a delegation to Yokohama to participate in BioJapan 2019, which is Asia’s premier partnering event for the biotechnology industry. In late October, the AusBiotech Conference and Australia Biotech Invest 2019 will be held in Melbourne, where we are expecting delegates from Japan and South Korea.
With the Korean government announcing in May 2019, a Bio-Health Industry Innovation Strategy, it is timely for Victorian companies to seek partnership and collaboration opportunities with South Korean industry in areas such as clinical trials, digital health and regenerative medicine.
Participation in the AusBiotech Conference and also a proposed Victorian Government supported delegation to BioKorea in April 2020 will provide the platform for Victorian organisations to further investigate trade and partnership opportunities.
Want to know more?
For further information and to enquire about Victorian participation in BioJapan, AusBiotech or BioKorea, contact our Senior Trade Manager, Health Medical Technologies and Pharmaceuticals, Libby O’Connor by sending her an email.
Spring 2018 Update
A recent report from the Australia Bureau of Statistics on International trade in goods listed over A$2 billion of exports to Japan from Victoria for the financial year 2017-18.
This not only represents a 35 per cent increase on the previous year but is also the largest value of Victorian exports to Japan in over ten years.
Exports that have traditionally done well for Victoria showed strong growth including dairy, meat, liquefied propane and aluminium but it was also encouraging to see in the last financial year that value add goods such edible products and preparations, transmission parts and shafts, medicaments, and rotating electric plant and parts recorded good increases.
Fruit and nuts performed well for the same period growing 29 per cent to $54m.
Since agreement was reached on protocols for exporting table grapes in 2014, the Victorian Government has been supporting industry promotions of Australian table grapes in Japan. Exports grew from 16 containers in 2014 to 679 in 2018. The Victorian Government also continues to support the promotion of citrus through the Taste of Australia program.
While the growth trend in exports to Japan is good news for Victoria, the EU-Japan Economic Partnership Agreement, which is likely to come into force during 2019, will increase competition as tariffs come down on EU cheese, wine and meat. It is also not out of the question that pressure from the US will ultimately lead to some bilateral concessions on trade from the Japanese.
In view of this, the time is not right to take the pedal off promoting Victorian exports to Japan. The Victorian Government is continuing to support exporters through participation in industry programs delivered by Meat and Livestock Australia, Dairy Australia and Horticulture Innovation Australia. The Victorian Government will again lead a trade mission to Japan’s largest trade show, Foodex, in March 2019.
In other sectors, the Victorian Government will continue to work closely with Austrade in areas such as the life sciences and international education.
Competition in Japan is fierce and the Japanese are very exacting in their requirements but for export ready companies who have a unique offering and are prepared to do the hard yards, the time is right and Japan can be a rewarding market.
Winter 2018 Update
For a region that is often overlooked in the media, the Korean peninsula is suddenly very much in the spotlight. Few people will not have seen the footage of President Moon Jae-In crossing the demarcation line into North Korea at the invitation of President Kim Jong-Un in April. And fewer will have missed the meeting between President Trump and President Kim in Singapore in June.
Flying under the radar however were the local elections in June across South Korea which gave President Moon’s Minjoo party a landslide victory over the conservative opposition. Whether everyone’s wish for a unified and denuclearised Korea is realistic or not, after a long period of political instability under the previous President, Moon’s policy of appeasement with the North, and a shoring up of his support base, augurs well for a period of consolidation and continued economic growth in the South.
For Victoria, South Korea is a particularly important market for our agribusiness, education and tourism exports. Less well known is the fact that Korea is also a growing market for our beauty and personal care products.
In 2017 South Korea’s beauty and personal care industry was estimated to be valued at approximately USD12.6 billion. (Source: Beauty and Personal Care in South Korea, Euromonitor International, May 2018). Koreans are not only huge consumers of personal care and beauty products, they are interested in products perceived to be natural, including organics, and those originating from countries with a clean and green reputation, such as Australia.
South Korea has a rapidly growing e-commerce market with online purchases from foreign retail sites reaching USD1.6 billion in 2016. (Source: E-Commerce in Korea, Austrade, August 2017). This comes as no surprise given South Korea has some of the world’s fastest internet connection speeds and very high levels of mobile adoption, internet and social media usage. E-commerce is creating opportunities for Victorian companies that manufacture beauty products and in 2017, perfumery and cosmetics represented Victoria’s ninth largest merchandise exports to South Korea. (Source: Australian Bureau of Statistics)
South Korea is also well known for its leadership in Information and Communications Technology (ICT) products, particularly semiconductors, displays, mobile devices and computers. As the country moves forward, South Korea is also looking to build capabilities in the Internet of Things (IoT), artificial and augmented reality (AR/VR), big data management, 3D printing and cloud computing, creating opportunities for Victorian companies with innovative products and ideas.
Other technology related focus areas for South Korea, with potential opportunities for trade or collaborations with Victoria, include digital health, cyber security and fintech.
Autumn 2018 Update
On 8 March the Comprehensive Progressive Agreement for Trans Pacific Partnership (TPP-11) was signed in Santiago by the governments of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The TPP-11 will enter into force once the signatories have notified completion of their domestic legal procedures.
The election result gives Prime Minister Abe a fresh mandate to continue the government’s bold monetary, fiscal and structural changes which have helped break the deflationary cycle in Japan and created six
The TPP-11 is good news for Victorian exporters to Japan, building on some of the existing terms under the Japan Australia Economic Partnership Agreement (JAEPA). While the US is yet to sign on and has no bilateral trade agreement with Japan, this agreement continues to give Australia a competitive advantage over one of Japan’s other key trading partners.
Food exporters, in particular, are expected to benefit under TPP-11. Accelerated reduction of tariffs on beef, a reduction in tariffs on pork cuts, increased quotas for wheat and barley, elimination of tariffs on certain cheese products and tariff reductions and new quota allocations for others, an extended period for lower "out of season" tariffs on oranges, and elimination of tariffs on fruit juices within 10 years, are just some of the benefits to Victorian exporters.
Victorian government continues to support food exporters to Japan through a number of initiatives including the recent Trade Mission to Foodex (Japan’s largest trade fair for the food and beverage industry), support for Meat and Livestock Australia’s programs promoting grass fed beef and lamb, and promotion of horticultural products through the ‘Taste of Australia’ program.
Information on tariffs and useful information on market size can be found at DFAT’s FTA portal.
Summer 2018 update
On 22 October, the Japanese went to the polls and delivered a resounding victory for Prime Minister Abe and his ruling LDP/Komeito coalition. Following the election, Prime Minister Abe was quick to reaffirm it was business as usual which is good news for Victoria for a number reasons.
The election result gives Prime Minister Abe a fresh mandate to continue the government’s bold monetary, fiscal and structural changes which have helped break the deflationary cycle in Japan and created six quarters of growth. Prime Minister Abe is also expected to continue promoting his strong international agenda which includes supporting trade liberalisation, promoting global skills development, increasing defence cooperation, building tourism, hosting major sporting events, and creating opportunities for increased collaboration on research and development.
Victorian exporters should benefit from the current government’s international policy agenda through:
- Reduced trade barriers under the Japan Australia Economic Partnership Agreement (JAEPA). Japan, along with the other remaining signatories to the Trans Pacific Partnership is also a key supporter of the revised agreement, TPP11, which would further reduce trade barriers for our exporters to both Japan and the other nine signatory countries should it proceed;
- Increased student numbers through Japan’s study abroad programs and increased opportunities for institution to institution partnerships as Japan prioritises global literacy as a key to economic growth;
- Continued demand for quality food and beverage to meet the needs of Japan’s growing tourism sector, particularly in the lead up to the Olympic Games in 2020;
- Growing opportunities for research and development collaboration with Japan;
- Deregulation which is driving increased interest in investment in offshore funds.