The need to raise Korea's public image is the focus of a new report released by the Federation of Korean Industries New York Office (FKI) and the Korean Chamber of Commerce and Industry in USA, Inc. (KOCHAM). The report was prepared by KWR International, Inc. (KWR). It measures the opinions and perceptions of more than 200 U.S. opinion leaders on a wide range of issues concerning Korea, its products and its corporations.

"Korea's real GNP has tripled over each of the last three decades, while public awareness has remained low," stated Young Man Kim, Chairman of KOCHAM. "The gap between achievements and awareness has become critical and needs to be addressed. This survey was designed to help us to more effectively communicate Korea's capabilities and achievements in the U.S., our largest and most important overseas market."

The FKI/KOCHAM opinion-leader survey draws upon quantitative data developed from an in-depth survey of more than 200 U.S. opinion-leaders, who were grouped into three categories, including: a) Business, Government and Academia, b) Trade and Industry and c) General Public and Media. KWR also monitored relevant media coverage and conducted over 50 interviews to develop conclusions, themes and activities to assist Korea-oriented organizations in enhancing relations with targeted groups.

"Ultimately, the success of our government's segyehwa (globalization) initiative will be measured by our ability to develop a private sector that possesses the skills, capabilities and flexibility needed to compete on a global scale," Kook-Hyun Chang, Executive Director of the FKI's New York Office noted. "Our office co-sponsored this survey to promote the essential dialogue that will assist in this task."

SURVEY OVERVIEW

Korea's cohesive culture proved to be a tremendous asset in the development of a strong export-oriented capacity. After becoming a major force in light industry in the 1960-70s, Korea underwent a painful restructuring to develop heavy industry during the 1970-80s. Korea is now seeking to maintain growth through the development of a global economy. Globalization requires that Korean managers will spend less time dealing with production and technical issues and more time managing abstract issues such as marketing and management concerns. Further steps are necessary to move beyond export growth in order to develop the skills and expanded public profile that Korea's economic achievements now demand.

PERCEPTIONS OF KOREA LAG FAR BEHIND REALITY

Korea remains an enigma in the eyes of most opinion-leaders surveyed. Few individuals, including those who had extensive dealings with Korea, expressed confidence in their awareness of Korea-related issues. Knowledge of the business sector was particularly low. Perceptions of Korea lag far behind reality. In question after question, the audience did not realize Korea's full economic potential.

The Korean Nation

The image of Korea revolves around its economic capabilities. Korea's economic prospects were ranked higher than other emerging and developed economies. Many respondents were unaware that the U.S. has a trade surplus with Korea and that Korea is the fifth-largest trading partner of the United States.

The Korean Business Community

Opinion leaders perceived a need for Koreans to upgrade their management practices to meet the needs of a more service-oriented economy. While Korean firms are seen as highly competitive, they were viewed as more competitive in production and operations than in marketing and services. U.S. opinion leaders found it difficult to connect with -- and to relate to -- Korean businessmen. Opinion-leaders rated Korean firms higher in their ability to act as export platforms and manufacturers than as potential partners in R&D and marketing. Similarly, Koreans were seen to be strong competitors in emerging markets, though opinion leaders were divided on whether partnerships are feasible between Korean and U.S. firms. Despite these problem areas, there was considerable interest in expanding relations and increasing interactions between Korean and U.S. firms.

The Korean People

Opinion leaders expressed a strong admiration for the Korean people. The audience was almost unanimous in their characterization of Koreans as an industrious, hard-working people. However, Koreans were not seen as easy-going or open, and several respondents thought that Koreans need to loosen-up and to be more flexible. Most personal relationships with Koreans were formed through business.

AUDIENCE CHARACTERISTICS

Business, Government & Academia (BGA) were the most informed when addressing macro-oriented questions. They were more optimistic about Korea's future and the Korean people than other audience components. At the same time, they were less informed about issues dealing with Korean companies and products. BGA's impressions of the Korean business community appeared to be slightly dated, suggesting the need to better inform U.S. policy-makers of current developments in Korea's economy.

Trade & Industry (TI) respondents were the most informed overall, especially about business issues. Their views, however were mixed, combining admiration for Korea's achievements with professional experiences that tempered their optimism. In particular, TI identified a lack of trust between U.S. businessmen and Korean firms. Yet, TI was the most interested in learning more about Korea, through a combination of sources that emphasized both personal interactions and written sources.

The General Public & Media (GP) possessed the least awareness and lacked even a basic familiarity with Korea-related issues. Their limited knowledge often translated into the lowest assessments and the largest number of unanswered responses. Having the least contact with Koreans, the GP tended to form opinions through the media, rather than from personal relationships.

KOREA NEEDS TO CONFRONT ITS PUBLIC IMAGE

The dramatic difference between Korea's economic achievements and the awareness of these achievements by overseas audiences has led to the existence of a growing perception deficit. This deficit is increasingly problematic given Korea's continuing economic growth. All audience components surveyed showed far less awareness than expected, even those who had extensive interactions with the country. Korean institutions, particularly those in the private sector, must pay greater attention to encouraging activities and programs that will address this problem and help to build the skills and awareness that Korea will need to maintain its competitiveness in the global economy.

"Raising Korea's public image will require effective planning and the identification of evolving priorities over the long-term," noted Keith W. Rabin, President of KWR. "The survey identified a real interest in Korea among all audience components, particularly in expanding interactions on the personal level. To assist in this task, KWR developed themes and recommended activities which FKI, KOCHAM and other Korea-oriented organizations and firms can utilize as they expand their outreach activities in the United States."

Chairman Kim stated, "Korean firms have changed dramatically over the past decade. Several years ago they were export-focused and primarily concerned with import regulations and distribution issues. Today they are actively developing global strategies and working to become better managers and good corporate citizens. The opinion-leader survey continues our efforts to promote a better mutual understanding and to raise awareness of the positive contribution which Korean firms have been making."

PARTICIPATING ORGANIZATIONS

The Federation of Korean Industries (FKI): Founded in 1961, FKI is a private, non-profit organization pursuing Korea's economic development and international cooperation based on the principles of free enterprise. Representing Korea's largest businesses and business groups such as Hyundai, Samsung, Daewoo, LG and Sunkyong, it has emerged as the central forum and the most influential voice of the private business community in Korea.

The Korean Chamber of Commerce and Industry in USA, Inc. (KOCHAM): KOCHAM is comprised of 700 of Korea's leading firms throughout the United States operating in sectors ranging from import-export, banking, transportation, securities, insurance and construction companies.

KWR International, Inc. (KWR): KWR is a specialized consultancy firm that combines expertise in research, communications and consulting services in order to introduce a strategic perspective into the public relations process.

For additional information on the FKI/KOCHAM opinion-leader survey, please contact Keith W. Rabin of KWR International at 212-799-4294, fax 212-799-0517.

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