[ Trade & Products > Chamber Alley ]

  he Australia New Zealand Chamber of Commerce (ANZCCK) is the new kid on the block among Korea¡¯s foreign chambers. The chamber came into being as recently as 2001 from the (separate) New Zealand and Australian business groups to provide their members with a vital window through which to make business contacts.
  ¡°The idea to combine the groups and become a chamber of commerce made a lot of sense because there is a need to provide a network for Aussie and Kiwi business-people,¡± said ANZCCK chair Les Edwards, who serves as vice president of local advertising agency joint venture, Lee & DDB Inc. ¡°We have social drinks every month plus a breakfast forum to give our members an opportunity under an umbrella grouping to come together, make friends and pursue common interests.¡±

  In terms of bilateral trade, the chamber has a powerful raison d¡¯etre. Bilateral trade between Korea and Australia/New Zealand is important for all parties. For Australia, Korea is the third-largest export market, and fourth-largest trading partner. Australia is Korea¡¯s fifthlargest supplier and eight-largest trading partner. For New Zealand, Korea is its fifth-largest import market, bilateral trading partner and source of tourists, as well as its thirdlargest source of foreign students.

  COMMODITY BASED, NICHE ORIENTED
Bilateral trade is strongly characterized by commodities. Meat & Livestock Australia (MLA) now claims 30 percent of the Korean beef market while BHP (Broken Hill Properties) Billiton has its chief iron ore customer in top Korean steel maker, POSCO.
  Agricultural items have traditionally been the most important elements of New Zealand¡¯s export trade, but today they are increasingly valueadded. Wine is a case in point, as is the highly successful Zespri licensed brand of kiwi fruit, while the success of The Lord of the Rings has boosted the country¡¯s post-production industry and its position as a tourist destination. Investment, however, is relatively small and niche-oriented. It may surprise some readers to learn that the local Coca-Cola bottler, Coca-Cola Bottlers Korea is Australian owned (Amatil), as is the fast-growing ice cream franchise, New Zealand Natural Ice Cream, (now with 18 retail outlets) together with the Busan Aquarium (Oceanis Australia Group). Meanwhile, Macquarie, Australia New Zealand Bank and National Australia Bank maintain a robust presence in the financial sector.

  IT'S THE TRADE SHOWS THAT COUNT When it comes to promoting Australian/New Zealand products, the chamber finds the best most effective way is through the many trade shows organized in Korea. ¡°The recent Food and Hotel Korea¡¯ really was useful for the Australia/New Zealand wine industry to talk to agents/distributors and put together trade deals,¡± said Mr. Edwards. ¡°Then at the consumer/retail end KOTRA¡¯s Seoul Food was a huge success, most importantly for Meat & Livestock Australia.¡± He said that because MLA¡¯s ¡°Australian, Clean & Safe¡± brand of beef is relatively cheap there is a perception by consumers that it must be inferior, prompting MLA to get people to actually sample it. ¡°So, at the show KOTRA put together, you had Outback Steakhouse there with MLA cooking up beef, offering samples and building up brand awareness. As to what kind of promotions help, trade and consumer shows really do help.¡±

  While promoting the opportunity to network among members is a priority, establishing links in a similar fashion throughout the Korean government is one of the chamber¡¯s chief goals of the organization for 2003. ¡°Because we don¡¯t have the level of direct investment that say the European Union or American chamber members have, there¡¯s not a lot we can be doing to demand change by the government on behalf of our companies,¡± explains Mr. Edwards. ¡°If our focus then is facilitating business opportunities for Australian and New Zealand companies in Korea, then the key thing that we have to do is to create a network of Korean friends of Australia and New Zealand,¡± explained Mr. Edwards.

  LAUCHING DIALOG Among the chamber¡¯s important contacts, Mr. Edwards includes Korea Chamber of Commerce and Industry (KCCI) president, vice chair and CEO, Hyo-Sung Kim, and Investment Ombudsman, Dr. Wan-Soo Kim, whom he describes as a ¡°true friend of Australia and New Zealand.¡±
  Mr. Edwards continued, ¡°What we want is to get to point where we truly consider all our contacts as friends who understand the depth and breadth of Australian/New Zealand business here in Korea so that if any of our people come to us with a concern, we can introduce them to a Dr. Kim or a Mr. Hyo-Song Kim and start a dialog. So obviously we¡¯re trying to build our Korean contacts and build the profile of the chamber.¡±
  The chamber also strives to improve the business climate, and in January submitted a list of recommendations to the new administration based on an e-mail survey its to members. Topping the list was resolution of the nuclear issue on the peninsula, followed by further deregulation of the marketplace (to make it easier for foreign companies to compete against the chaebol). Greater corporate transparency, heightened commitment to implementation of WTO requirements and fostering a ¡°business-friendly mindset¡± among government organizations were also high on the list.

  Describing ANZCCK as a ¡°fledgling¡± chamber in terms of its age and what it can do on behalf of business, Mr. Edwards envisions that as Australia/New Zealand investment increases it will become more of an advocating body for its members. ¡° My vision for the chamber is that in two to three years the most appropriate chair would be the head of an Australian/New Zealand company investing in Korea,¡± Mr. Edwards said.