Samsung Will Invest W28 Tril. This Year

          In addition to current three free economix zones, the government of Korea has chosen three more sites to be additional free economic zones today. Of course, the major objective for taking such a decision is to attract and bring more foreign investments.

          The three new economic free zones are illustrated in the picture, they are; Pyeongtaek, Gyonggi Province and Dangjin, South Chungcheong Province, and West Sea Area. The government selected these sites as strategic hubs hoping to revitalize the economy.

          Each site has its purpose to be selected as free economic zones. First of all, as Daegu is not on the coastal side whereas all the other sites, the governmemt will specialize the site in IT, textile industry, and machinery parts production, according to the article. The Gunsan area will be under cultivation in order to attract future business and tourism. Furthermore, the West Sea Area will be targeted as "center for global cooperation to compete with eastern Chinese economics districts" (Koreatimes)

          Other three already existing economic free zones are Incheon, Jinhae in Busan. and Gwangyang whici is in South Jeolla Province. Since these free economic zones are under a lot of ciriticism and having some problems among Korean investors, such as lobbying or illegal transactions, many experts are raising doubts for having additional free economic zones.

          We have talked about this free economic zones (AKA FEZs) in Korea for several times in Korea, and noticed that there are some questions to be solved in order for Korea to fully benefit from these areas by "...drawing foreign interests, capitalizing on their eligibility for building foreign facilities such as schools and hospitals, prior to nationwide deregulation" (KoreaTimes). Also, I personally think Korean investors should stand back from these zones for the national interests. What have been the problems in existing FEZs is that instead of attracting foreign investments, Koreans are the ones who are buying out all the real-estates and blocking foreign investors to put money in those free economic zones. We always have to see a big picture, and if we do so, I blieve we would have more chances in the future with successes in the FEZs for having abundant foreign investments.

Reference;
http://koreatimes.co.kr/www/news/biz/2008/04/123_23131.html

20601008 - 7th Entry

In CEO Succession, Stakeholder Matter

I read a journal about potential successor of CEO position. When you leave the management position, there are many problem the candidate may face in the relationships with board members. Even though, the candidates are great in his or her career and can do well in the CEO position, it is useless if he can't get trust from board members. Accordingly, it is important that the former CEO must mediate between the potential successor and board members. The writer said that the relationship problems are very critical to the success of potential candidates. It may look so tiny that you can ignore the factors of relationships.

And also other stakeholders are very important. The most important factor is relationships with peers. If you are the CEO and you may think 'It's is all about my decision' , and can ignore the opinions from your subordinates. But the positive relationships between potential successors and peers are very important to the success of the company. If the successor have positive relationship with board members, he may think that ' that's all about relationship'. But the former CEO have to teach the successor that the positive relationship with peer groups are also very critical to his success.

And finally, relationship with customers are very important. The common mistakes that new CEO can commit are neglect the customers. He is very talented and effective person and he can focus only his tasks and ignore the problems that customers may have. I think this problem can be solved by some market researchs and the imformation from the former CEO.

The key stakeholders have great influences to the success of new CEO and the former CEO has to try to solve the relation problems that the potential successor can collide. I am not a CEO yet, but I think it is very important to know the methods successfully transfer my position to another person. In Korea, many of big companies are ruled by the family of founder. This is called a clan management. Many developed companies are now employing CEO from outer sides of their companies. But in korea, there are short of management specialists. Samsung, for example, there are very few managers from outer of the Samsung family. The chairman Lee Geon Hee, now excuting some succession process to his son Lee Jae Yong. But I think this is not good for the future of Samsung, and there must be a specialist of management. The remodeling task is very important because many of corruptions are came from these clan management. Now, Korea face a economy limit and there must be an innovative ways, and I strongly recommend the employment of specialists.

reference: http://www.businessweek.com/managing/content/apr2008/ca2008048_044214.htm?chan=careers_managing+your+company+page_top+stories

20700067 entry # 7

Seoul, Beijing, Tokyo Eye Joint ATM Network

I read about an article about integrating bank systems in three countries(Korea, China and Japan). South Korea has proposed China and Japan to make a joint ATM machines to enable travelers to withdraw cash at low costs from any where. The (BOK)Bank of Korea is planning to set up a joint electronic payment system controlling cash machines that are available to use in three countries.
The Central banks of South Korea, China and Japan agreed to discuss the idea and are conducting fesibility studies. The Bank of Korea suggested that countries should clear various obstacles to link ATMS (including cash machines). They said three countries need to stadardize related systems and design new cards to work by all ATMs in the If three countries decide to set up the joint network, soon they will launch a pilot system in a year of two. Korean, Japanese and Chinese travelers in Korea are currently using Visa or Master cards to withdraw cash in Tokyo, Beijing and seoul which they pay high fess for using currency exchange services and the card firm’s international network. People of Korea, China and Japan can save money under the new system of using cash machines in each others country. Also, they can use the same cash card in all the countries. The newly designed card will became a popular item for travelers because of Seoul, Beijing and Tokyo making efforts to promote cultural exchanges. The South Korean credit card spending in overseas had reached a new high of $6.37 billion in 2007. The number of travelers overseas has increased 13.3million which is twice the number of inbound travelers at 6.4. Most foreign tourist paid for goods and services in cash rather than with credit cards because of the won’t appreciation against major currencies.
In my opinion, implementing this system is a good way to improve customer service. Also, three country’s central bank will operate their system in an effective and efficient way because of integrating their bank systems. I am optimistic of this attempt in integrating three banks. The reason is that this will not only influence bank systems to consumers, but this will be an opportunity to share cultures and languages among countries so that they will improve both economic and political ways in the future.

http://koreatimes.co.kr/www/news/biz/2008/04/123_23115.html

20620042 entry - #7

Menswear get skinnier, slimmer

I recently read an article which gave me information about the recent trend of menswear. It narrated that these days men are wearing more and more skinnier and slimmer clothes. It may be good news to some people who can manage to wear skinnier jeans and such. On the other hand, people who are not that skinny won’t welcome this kind of trend. Nevertheless, if the trend is becoming like that, people – suppliers, customer – should be ready to follow the trend.

The trends of men’s/women’s clothes are always changing. They don’t stay still. There are various reasons why the trends keep changing. It may be because of the customers who want to try new type of clothes, and it may be because of the designers who keep making new kinds of cloth designs. However, the most important issue on this subject is that the companies which are making clothes, shoes and such are the ones who make and lead the trend. Simply, they keep promoting new ones to attract customers. For example, if a mobile phone company has sold 100 phones to 100 customers, the customers won’t need any new phones. In this situation, if the company wants to go on making profits, they have to launch new phones with high-tech and better design using various ways – R&D, Invention, Innovation. If they do, even though most of customers will still use the old ones, they’ll be able to sell at least 30~40 new phones to the previous customers. But if they don’t, they won’t be able to survive. Like this, companies making clothes keep promoting new ones to attract customers. Jeans and shirts and all those stuffs are the ones that last at least half a year. But if the customers don’t buy new clothes for about half a year, the cloth making companies won’t survive. They need to persuade the customers to buy new clothes. Therefore, they make new clothes and they promote them by advertisements and such. This is a simple truth that most people do know but don’t try to do something about it.

Now that both constituents of the simple truth do know about it, there are things for them to do. For the companies, there is a critical need for them to recognize that making new clothes isn’t the ultimate goal. Simply, one company isn’t the only one who makes new clothes. There are lots of competitors. In this situation, the company should develop two ways. First, it should compete with other companies by advertisements and sales promotions and such. It has to persuade the potential customers to acknowledge the fact that its clothes are better than other companies’ in designs and practical uses. Second, they have to innovate their own clothes style. Just competing with others to take more place in the market won’t bring them much profit. They have to invent something that cannot be replaced by anything. Nike basketball shoes featuring Michael Jordan is an example. People buy the shoes at anytime and anywhere. There is no trend. This kind of product lasts somewhat longer than other ones which have to keep following the market trends. Companies should recognize this fact. They have to make some invaluable products that cannot be replaced by anything and cannot be regarded as old style by the recent trend.

The customers also have to find a way to be economical. If they just keep buying new clothes not to fall behind in changing trends, they will not find themselves satisfied and won’t be able to be frugal. They have to recognize the fact that companies make somewhat long-lasting products. They have to find these jeans, shirts and shoes. They have to keep this in mind unless they’re millionaires.



Reference : http://news.naver.com/main/read.nhn?mode=LS2D&mid=sec&sid1=108&sid2=210&oid=044&aid=0000072060


20700273 – Entry 7