‘Xiaomi is Internet firm, not hardware maker’ Chief of rising Chinese smartphone-maker underlines software, Internet content

Top management of Xiaomi, a rising star in the consumer electronics world, said the Chinese smartphone-maker could differentiate itself from its top two global competitors ― Samsung and Apple ― by seamlessly integrating its software and Internet content with hardware. 

“From the beginning, Xiaomi has considered the mobile phone to be a converged gadget of software, Internet services and hardware, not just as a simple device (for communication),” Xiaomi CEO Lei Jun said in a meeting with South Korean ICT Minister Choi Yang-hee, who visited the firm’s headquarters in Beijing Friday. 

Lei, who founded Xiaomi ― often called “the Apple of Asia” ― with eight software experts from Google and Microsoft in 2010, led the tech firm to the top spot in the Chinese smartphone market and to third place in terms of global smartphone shipments in the first quarter of this year. 

“Developing hardware is just a part of Xiaomi’s businesses, and the driving forces behind those devices are its software and Internet content,’’ he said.

Xiaomi has its own operating system, MIUI, for mobile and home appliances such as TVs. It also runs an app store and the online payment solution Alipay.

“Xiaomi’s smartphone and TV operating system MIUI, which supports 27 languages, now has 85 million users,” the CEO said.

ICT Minister Choi Yang-hee (right) and Lei Jun, chief executive of Chinese smartphone maker Xiaomi, have a discussion session at the Chinese firm’s head office in Beijing, Friday. (ICT Ministry)

Aiming to beef up its software capacity, Lei hired a slew of software and tech experts including Hugo Barra, a former vice president of Google.

Having shipped 26 million smartphone units in the first half, the Chinese smartphone-maker is aiming to sell 60 million this year. 

The Mi2, the firm’s second flagship model and a hit product, helped catapult the Chinese smartphone-maker into the world’s top three, with more than 17 million units sold worldwide since its release in 2012. 

Actively reflecting customers’ voices and needs in product development and services was a contributing factor for Xiaomi’s explosive growth during the past years, Lei added. 

Even though Xiaomi is working closely with Korea’s electronic parts suppliers such as LG Display and Samsung, he said the company has no plans to partner with Korean firms to create a new OS ecosystem.

Global electronics-makers Samsung and LG Electronics are currently devoted to making their own operating systems, Tizen and Web 2.0, respectively, to wean themselves off Google’s Android.

For those Korean firms aiming to tap the Chinese market, he advised that they should first find local partners who are familiar with the Chinese market environment.

By Kim Young-won (wone0102@heraldcorp.com)

S. Korea, New Zealand initial bilateral FTA

South Korea and New Zealand on Monday initialed their free trade agreement (FTA), concluded last month, that will eliminate import tariffs on more than 90 percent of goods traded between them.

The FTA was initialed in Wellington by South Korean Deputy Trade Minister Choi Kyong-lim and New Zealand Deputy Secretary of Foreign Affairs and Trade David Walker, the Ministry of Trade, Industry and Energy said.

Initialing of a free trade pact means that the two parties confirm every word on each page is final and will not be subject to changes before the official signing, according to the ministry.

The English version of the FTA, whose negotiations were concluded Nov. 15, was made public immediately after the initialing ceremony at www.fta.go.kr.

The ministry said the two countries have agreed to officially sign the agreement within the first half of next year. It will then be sent to the respective legislatures for approval before it can go into effect.

Under the pact, New Zealand will eliminate its import tariffs on 92 percent of all shipments from South Korea, in terms of their value, immediately after its implementation, and completely remove all tariffs on South Korean products within seven years.

South Korea will reciprocate by removing tariffs on 96.4 percent of shipments from New Zealand over a 15-year period following the implementation of the deal. The two sides have agreed to exclude some products from the deal, mostly agricultural goods, such as rice, that are considered most sensitive in South Korea.

In 2013, bilateral trade between the two countries came to US$2.8 billion, making New Zealand South Korea's 44th-largest trading partner and South Korea New Zealand's 41st, according to the ministry. (Yonhap)

New shopping trend pushes Korean shoppers to splurge on Black Friday

South Korean shoppers joined the Black Friday shopping craze this year as local shoppers eagerly embraced the growing shopping trend of buying directly from overseas retailers, a poll showed Thursday.

Some 55 percent of 1,000 Koreans who opted for overseas direct shopping during Black Friday season said they spent more than the US$200 duty-free ceiling, according to the survey by global cashback operator EBATES. 

The figure marks a sharp rise from the first-half result where only 2 percent of the respondents said their purchases have exceeded the $200 threshold, the company said. Comparable results from last year's Black Friday season were not available.

Black Friday, which falls on the day following U.S. Thanksgiving, is considered the official start of the holiday shopping season and offers a myriad of discounts. The sales period includes Cyber Monday three days later.

More than 75 percent of the shoppers said they were willing to pay additional tariffs for overseas direct buying, while a whopping 99 percent said they plan to continue the shopping habit even after Black Friday.

Under local customs regulation, shoppers who order from U.S.bretailers are mandated to pay a tariff rate of roughly 5 to 13 percent for fashion, cosmetics and food products that exceed the

$200 limit. A higher tariff is fixed for luxury products such as mobile phones, golf clubs and watches.

The data also showed that Black Friday shopping has settled down as a common shopping habit, with 41 percent of the respondents saying their Black Friday shopping amount accounted for more than half of their overall online spending last month.

The poll comes as overseas direct buying, or "jikgu" in Korean, is gaining popularity as a way to save money. A growing number of people are putting cost over the multi-shopping process and the longer shipping period after finding out they can buy imported products and even those by South Korean household names, such as Samsung and LG, at a lower cost.

The trend has also reshaped the local retail industry. While South Korea does not celebrate U.S. Thanksgiving, key retailers such as Lotte and Shinsegae introduced special promotions themed under Black Friday and Cyber Monday as part of efforts to capture shoppers breaking away.

South Korea's imports made via jikgu ballooned nearly five-fold between 2009 and 2013, according to the customs office. The amount reached $718 million in the first half, forecast to break last year's $1 billion record. (Yonhap)

Korean retailers offer bargains to compete with Amazon on Black Friday

South Korean retailers are offering Black Friday bargains to lure local consumers who are buying Samsung TVs and foreign goods overseas with just the click of a mouse.

Local department stores and e-commerce sites have launched sales ― with up to 60 percent off ― ahead of U.S. retail sales on Friday, challenged by the increasing popularity of direct-buying at foreign e-commerce sites. 

“Many retailers are afraid of losing young consumers, who go to U.S. websites to buy Samsung and LG’s electronic devices and luxury goods, which are also sold at Seoul department stores,” said Lee Ki-won, a marketing manager at Hyundai Home Shopping. 

With Black Friday and Cyber Monday approaching, they were growing even more worried. 

An increasing number of people here have been posting online about deals they have gotten on expensive appliances. Buying the products overseas allows them to dodge local retailers’ high markups.

They claim that they can pay much less for the same or similar products at foreign websites, as South Korean electronics-makers charge higher prices on their home turf. 

Adding to the fever, U.S. online retailers, such as Amazon.com, are expected to steal a march on local stores, as they have been offering a week of discounts in the runup to the biggest shopping days of the year. 

Samsung’s 55-inch Smart LED TV, for example, is currently being sold for $797.99 on Amazon through a Black Friday promotion, including free shipping and 30-day tech support service. 

At home, the lowest price for the same model was 1.23 million won ($1,112) on Thursday, though the price was falling as Black Friday grew nearer.

The same was the case with LG Electronics’ products. LG’s 84-inch Cinema 3-D 4K Ultra HDTV was being sold for $6,199 on Amazon, while the cheapest price here was $9,602. 

“The more I know about the benefits of buying products overseas, the more I feel like I was a fool in the past, paying twice as much for the same thing,” said Jason Moon, 34, a local consumer. 

Samsung and LG explained that the higher prices at domestic stores include delivery and installation fees, as well as taxes. 

“It also has to do with culture. When buying a product, South Korean consumers think they’re buying service along with it. They expect to receive top quality after-sales service and free installation services,” an LG Electronics spokesman said. 

“It’s inevitable that the pricing differs in each region and each country.” 

By Suk Gee-hyun (monicasuk@heraldcorp.com)

Detekt: New tool against government surveillance – Questions and Answers

Detekt is a free tool that scans your computer for traces of known surveillance spyware.

© Aiham Dib / Demotix

DETEKT

What is Detekt and how does it work?

Detekt is a free tool that scans your computer for traces of known surveillance spyware used by governments to target and monitor human rights defenders and journalists around the world. By alerting them to the fact that they are being spied on, they will have the opportunity to take precautions.

It was developed by security researchers and has been used to assist in Citizen Lab's investigations into government use of spyware against human rights defenders, journalists and activists as well as by security trainers to educate on the nature of targeted surveillance.

Amnesty International is partnering with Privacy International, Digitale Gesellschaft and the Electronic Frontier Foundation to release Detekt to the public for the first time.

Why are you launching Detekt now?

The increasing use of intrusive surveillance has had a dramatic impact on the right to privacy and other human rights like freedom of association and freedom of expression.

The latest technologies enable governments to track, monitor and spy on people’s activities like never before. Through the use of these technologies, governments can read private correspondence and even turn on the camera and microphone of a computer without its owner knowing it.

By increasing people’s awareness of these issues we hope they will be able to take practical steps to protect themselves.

We also hope that by knowing more about the dangers of these technologies more people will join Amnesty International in calling for stricter controls on their international trade to stop their use in violation of the right to privacy, freedom of expression and other human rights.

Our ultimate aim is for human rights defenders, journalists and civil society groups to be able to carry out their legitimate work without fear of surveillance, harassment, intimidation, arrest or torture.

Has anyone used Detekt successfully to know if they were being spied on? 

Detekt was developed by researchers affiliated with the Citizen Lab, who used a preliminary version of the tool during the course of their investigations into the use of unlawful surveillance equipment against human rights defenders in various countries around the world.

For example, according to research carried out by Citizen Lab and information published by Wikileaks, FinSpy – a spyware developed by FinFisher, a German firm that used to be part of UK-based Gamma International-- was used to spy on prominent human rights lawyers and activists in Bahrain.

How effective is this tool against technologies developed by powerful companies? 

Detekt is a very useful tool that can uncover the presence of some commonly used spyware on a computer, however it cannot detect all surveillance software. In addition, companies that develop the spyware will probably react fast to update their products to ensure they avoid detection.

This is why we are encouraging security researchers in the open-source community to help the organizations behind this project to identify additional spyware or new versions to help Detekt keep up to date. Contact information is available here.

It is important to underline that if Detekt does not find trace of spyware on a computer, it does not necessarily mean that none is present. Rather than provide a conclusive guarantee to activists that their computer is infected, our hope is that Detekt will help raise awareness of the use of such spyware by governments and will make activists more vigilant to this threat.

In addition, by raising awareness with governments and the public, we will be increasing pressure for more stringent export controls to ensure that such spyware is not sold to governments who are known to use these technologies to commit human rights violations.

SURVEILLANCE

How widely do governments use surveillance technology?

Governments are increasingly using surveillance technology, and targeted surveillance in particular, to monitor the legitimate activities of human rights activists and journalists.

Powerful software developed by companies allows governments and intelligence agencies to read personal emails, listen-in on Skype conversations or even remotely turn on a computers camera and microphone without its owner knowing about it.

In many cases, the information they gather through those means is used to detain, imprison and even torture activists into confessing to crimes.

It's impossible, however, to give an accurate estimate of how many people are affected by this surveillance spyware. This is because the companies that build and sell such software market themselves on their ability to hide it from users.

Recent research has shown that known spyware has been found present in dozens of countries, covering all regions of the world.

Detekt is the first public tool that will assist activists, journalists and civil society groups to scan their computers for spyware.

How big is the unregulated trade in surveillance equipment? What are the main companies and countries involved? 

The global surveillance industry is estimated to be worth approximately US$5 billion a year – with profits growing 20 per cent every year.

European and American companies have been quietly selling surveillance equipment and software to countries across the world that persistently commit serious human rights violations.

Industry self-regulation has failed, and government oversight has now become an urgent necessity.

Privacy International has extensively documented the development, sale and export of surveillance technologies by private companies to regimes around the world. Recipient countries include: Bahrain, Bangladesh, Egypt, Ethiopia, Libya, Morocco, South Africa, Syria and Turkmenistan.

Isn't publicizing the existence of this tool giving governments a heads up about how they can avoid being caught (by adapting new equipment which avoids detection)?

The technologies that allow governments to efficiently and covertly monitor the digital communications of their citizens are continuously improving. This is happening across the world.

The growing trend in indiscriminate mass surveillance on a global scale was laid bare by the Edward Snowden disclosures. Following the lead of the USA and other industrialized countries, governments everywhere now justify the use of such surveillance. This has a chilling effect on the rights to freedom of expression and peaceful assembly in countries across the world.

In addition to mass surveillance technologies, many governments are using sophisticated tools to target specific human rights defenders and journalists who work to uncover abuses and injustice.

The new spyware being developed and used is powerful and dangerous and putting many human rights activists and journalists at risk of abuse.

As surveillance technologies develop in sophistication, it is vital that civil society groups learn how to protect their digital communications. No one tool or intervention will be enough to do this. We hope Detekt will become a new approach for investigating surveillance while sensitizing people to the threats.

However, long term we must also demand that governments live up to their existing commitments to human rights and that they and companies put in place stronger protections to ensure that new technologies are not used to violate human rights.

Surveillance is also used to carry out legitimate criminal investigations, why are you against it? 

Targeted surveillance is only justifiable when it occurs based on reasonable suspicion, in accordance with the law, is strictly necessary to meet a legitimate aim (such as protecting national security or combatting serious crime and is conducted in a manner that is proportionate to that aim and non-discriminatory.

Indiscriminate mass surveillance – the widespread and bulk interception of communication data that is not targeted or based on reasonable suspicion – is never justifiable. It interferes with a range of human rights, particularly the rights to privacy and freedom of expression. 

More Sharing ServicesShare

• Print

The U.S. Navy's First Laser Cannon Is Now Deployed in the Persian Gulf

After seven years and $40 million of development, the US Navy has finally sent its prototype laser weapon, one capable of blowing holes clean through UAVs, on patrol throughout the disputed Persian Gulf.

Watch a Navy Laser Gun Blast a Drone Right Out of the Sky

It may sound like sci-fi, but lasers are definitely the future of war. As are drones. So what could …Read more

The Laser Weapon System (LaWS) prototype has been affixed to the bow of the USS Ponce, an amphibious transport ship, since August. Its 30kW beam, generated by focusing the apertures of six solid-state commercial welding lasers onto a single point, is multi-functional—equally capable of dazzling approaching ships and burning UAVs clean out of the sky—and only costs about a dollar a shot, John Miller, the 5th Fleet commander, told Bloomberg News in an e-mail statement last Friday.

The LaWS is expected to remain aboard the Ponce for the next year or so, not so much to counter Iran's continued saber rattling regarding the Straight of Hormuz, but to field test the new technology and ensure that it can actually handle the rigors of life aboard a naval vessel.

"How does it operate in that environment — heat, humidity, dust and at sea," Chief of Naval Operations Admiral Jonathan Greenert said in a Bloomberg interview earlier this year. "It's got to roll, move around, how much power does it take to sustain it?"

"I have to take it out and get it wet, and the Arabian Gulf's a pretty tough environment," he continued.

Should the LaWS pass this upcoming sea trial, the data generated from the test will be utilized by the likes of BAE Systems, Northrop Grumman, and Raytheon to build an even bigger, more powerful class of lasers that should set sail by 2021. And combined with the recent advancements of the terrestrial HEL MD, which is already up to 50kW, we're closer than ever to having GI Joe-style laser battles. [Bloomberg via GCapt - FAS]

Multitasking: No more than a mirage? Studies find the idea of performing several tasks at once to be a myth

To members of modern society, swamped with chores and bombarded with distractions, the ability to do multiple tasks simultaneously has been touted as an essential skill. But recent research has challenged the idea of multitasking, even going so far as to claim that it is a myth.

A popular theory, touted in the majority of these studies, is that a person’s brain has a limited capacity for attention, and can only focus on one task at a time to operate effectively. When people engage in what they believe to be multitasking, they are probably skimming through most of the projects without much thought.

Psychologist Daniel Goleman, author of “Focus: The Hidden Driver of Excellence,” says that from the viewpoint of cognitive science, multitasking is a “complete fiction” and that it is impossible for humans to focus on two things at once. 

Goleman says the mind cannot hold more than one task at a time in its “working memory” ― the storage of transitory information in the mind while it is being manipulated. He says that every time a person breaks focus to do something else, it takes several minutes to return to what one was working on before.

According to Goleman, one needs to be fully focused and free of interruptions in order to work effectively on a problem. While focusing on a single task, scientists can observe a neurological signal that creative ideas are being developed.

Because of this limitation, some scientists say that effective multitasking is impossible. 

A joint team of researchers from Tokyo University and Oxford University conducted a study on how well people can simultaneously perform two tasks. They found that doing two things at once often led to dual-task interference, with the result that both the tasks were poorly performed. 

Researchers looked at single-neuron activity in monkeys’ lateral prefrontal cortexes while the animals performed tasks that required both spatial attention and memory. The monkeys were stimulated visually, and then were distracted with another task while processing the visual information. 

The study showed that the strain of doing multiple task impaired the brain’s ability to hold on to information related to the tasks. Due to dual-task interference, researchers said, it is virtually impossible to carry out two tasks at once with any proficiency.

Believers in multitasking have claimed that some people are just hardwired to be good at multitasking, but the findings of Stanford communications professor Clifford Nass suggest otherwise.

Nass had 262 college students participate in experiments that involved both multiple and single tasks. Contrary to popular belief, students who were frequent multitaskers did considerably worse than the nonmultitaskers in both solitary activities and multitasking, suggesting that frequent multitaskers do not use their brains effectively. 

Some scholars say that not only is multitasking inefficient, it is actually harmful to the brain as encountering enormous amounts of data without processing it can blunt one’s mental sharpness.

Bouncing between several projects while being bombarded with information can cause a 10-point fall in a person’s IQ, according to a study at Kings College London. The effects of multitasking were double the 5-point drop that resulted from smoking marijuana, researchers found.

Psychiatrist Glenn Wilson, who conducted the study, said that multitasking “can be incredibly stressful on the brain,” impairing short-term memory and concentration.

Of course, it is also possible that what people often call multitasking is not multitasking at all. For most people, multitasking is paying attention to information from several different sources at the same time. For instance, one can constantly check email while monitoring the TV for breaking news and working on a separate project.

But this is a different process called “continuous partial attention,” or CPA ― being mindful of several sources of incoming information at a superficial level ― according to writer and consultant Linda Stone, who coined the term.

Stone, formerly an executive at Apple and Microsoft, said that CPA and multitasking are based on different motivations. The former is pushed by the urge to be more productive and efficient. It also pairs an automated activity ― such as stirring a stew, which involves very little thinking ― with another that requires more cognition.

CPA, on the other hand, is motivated by the desire to be constantly on alert for new information, according to Stone. This creates an artificial sense of crisis that triggers the fight-or-flight mechanism, which has its upsides but also induces problems such as overstimulation and lack of fulfillment. 

Stone says that the fight-or-flight response releases a barrage of stress hormones that leave modern-day people on edge. 

By Yoon Min-sik (minsikyoon@heraldcorp.com)

Samsung Gear VR to hit U.S. market next month

Top handset maker Samsung Electronics said Thursday it plans to roll out its first virtual reality headset in the U.S. market in December, gradually expanding into other countries.

The device, first showcased in August, provides 360 degree rotating view, creating a lifelike experience for users. It is currently linked to the Galaxy Note 4 through a micro-USB. 

“Not only will Gear VR provide a vivid entertainment experience for users, it can also be applied to automobile or aircraft simulations, health care and interactive education, bringing innovative services in the business-to-business sectors,” Samsung said. 

While Samsung has not yet disclosed the price, industry watchers expect it to be around $199 in the U.S. It will come in one color, white.

The virtual reality business is coveted as the next promising IT business. The top social network service provider Facebook in March acquired virtual reality headset maker Oculus VR for $2.3 billion. 

Samsung has been working with Marvel, DreamWorks, Vevo and other entertainment firms to produce contents that can be enjoyed through the latest device.

The South Korean tech firm has also showcased a test version of “Project Beyond,” a 3-D 360 degree camera that can be used with the headset. (Yonhap)

(LEAD) S. Korea-China FTA to create largest economic bloc in Asia

SEJONG, Nov. 10 (Yonhap) -- The bilateral free trade agreement (FTA) between South Korea and China is expected to greatly help boost the countries' economic development while creating the largest economic bloc in the region, experts and government officials said Monday.

The countries declared a de facto conclusion of their FTA negotiations earlier in the day.

Once implemented, the Korea-China FTA will significantly boost bilateral trade between China, the world's second-largest economy, and South Korea, the fourth-largest in Asia, they said.

The newly concluded FTA with China will mark the 13th of its kind signed by South Korea, but the experts and government officials here said it will be, by far, the largest.

Already, China is South Korea's largest trading partner, accounting for 26.05 percent of South Korea's overall exports in 2013, according to latest customs data.

The United States, by comparison, imported US$62.1 billion worth of South Korean products, accounting for 11.09 percent of South Korea's total exports in the same year. South Korea implemented its bilateral FTA with the U.S. in March 2012.

"The reason an FTA with China will be more significant than the one with the United States is China's physical proximity to South Korea, which means the countries' bilateral trade has so much more potential to grow following the implementation of the FTA," an official from the Ministry of Trade, Industry and Energy said, asking not to be identified.

If implemented early next year, the Korea-China FTA is expected to help boost the countries' annual bilateral trade to US$300 billion in 2015, according to the ministry. This will mark a 39.5 percent hike from $215.1 billion in 2012.

South Korea's trade territory, represented by the combined gross domestic product of countries with which South Korea has a free trade pact, will be expanded from the current 61 percent to 73 percent.

"This basically means the same portion of the global population will have access to South Korean products under free trade agreements," another ministry official said.

"It also means all South Korean products that benefit from the country's existing FTAs will be such an advantage for 73 percent of the world's population."

   Under the proposed FTA, South Korea and China have agreed to eliminate their import tariffs on over 90 percent of all products traded between them, making it the highest-level FTA signed by China.

Woo Tae-hee, South Korea's deputy trade minister, later noted the political impact of the Korea-China FTA may be as great as its economic impact.

"It is not a matter of which side will benefit more from the FTA because I believe the agreement will have a political impact on the entire Northeast Asian region and the Korean Peninsula. I believe the FTA will also help secure peace and stability in the Northeast Asian region," he told a press briefing.

"The Korea-China FTA is expected to become a chance for the country to act as a linchpin between countries in the region as they move to boost their economic cooperation and form an economic bloc in the Asia-Pacific region," he added.

The countries are expected to initial the agreement after the proposed deal undergoes a legal review, called legal scrubbing, that could take up to three months, according to officials.

The FTA needs to be formally signed before it can be sent to the countries' respective legislatures for ratification.

bdk@yna.co.kr

Expo charts new design territory

A small booth in the shape of a bus was packed with people browsing through purses and handbags made with old issues of The Korea Herald, used plastic plates, discarded parachutes and other recyclable materials at an exhibition hall in KINTEX, Ilsan, Gyeonggi Province.

The goods were a part of 2014 Design Korea, which kicked off Thursday for a five-day run.

“I don’t think many people could tell that the pieces used to be just trash,” 24-year-old design student Kim Sul-hee told The Korea Herald. “Now they have been given a new life. I really can see that upcycling has truly become a major trend,” she said, paying for a wallet on display. 

This year’s Design Korea was held under the theme of “Design Flowers the Creative Economy.”

VIP participants of the 2014 Design Korea event held at KINTEX in Ilsan, Gyeonggi Province, look at the exhibited design items on Thursday. (Park Hyun-koo/The Korea Herald)

Notable upcycling brands such as Freitag from Switzerland and Globe Hope from Finland, as well as homegrown houses including Eco Party Mearry showed off the latest trend of upcycling alongside products that have been hailed at international award festivals including Japan’s Good Design, Germany’s Red Dot and Korea’s GD Award. 

People were able to touch, draw and ride the products on display, and learn about various forms of services that have been upgraded in terms of value, thanks to design. Fashion design, kitchenware and 3-D printing were also exhibited at the event. 

“The public notion for design is mainly about sketching and beautifying, but at this year’s Design Korea, they will be able to understand that design can apply to anything, even health care services and emergency rescue efforts,” said Lee Hyang-eun, a professor at Sungshin Women’s University who served as a docent for the VIP tour of the event. 

“The concept of design is expanding and the public will be able to witness it here.” 

Design Korea is housing exhibitions for more than 2,000 industrial design products from 180 companies, workshops and concerts. It is also holding other activities to draw the public closer to the concept of design and establish itself as a key design exhibition in Asia, the organizers said. 

Apart from programs for the general public, forums on tips for doing business in China, establishing foreign retail networks and opening start-ups overseas will be held while trade shows with more than 150 overseas buyers will bridge small and mid-sized design firms with overseas markets. 

By Bae Ji-sook (baejisook@heraldcorp.com)

Foreign brands likely to claim 27% of car market by 2020

Foreign-brand cars will see their combined market share surge to 27 percent in Korea by 2020, Marketing Insight, an automotive market research firm, said Tuesday in a report. 

The report predicted that foreign brands would continue to expand their market share in the coming years to claim 20 percent by 2016 and 27 percent by 2020. 

“Considering the outlook is based on conservative conditions, it is also likely that the 27 percent market share could be reached earlier than expected,” the report added. 

Foreign carmakers, led by German brands such as BMW and Mercedes-Benz, have more than doubled their sales over the past five years. In 2013, their combined sales in Korea exceeded 150,000 vehicles. 

Their market share reached a record 14 percent over the past nine months. During the same period, the figure for the powerful Korean duo Hyundai Motor and Kia Motors fell to a record low of 65.2 percent. 

The report was based on an annual survey that the local research firm carried out between 2005 and 2014 on the car replacement periods and new car purchases of about 100,000 car owners here, said Marketing Insight. 

The data showed that the repurchase rate for Korea brand cars declined from 99 percent to 88 percent during that period, while foreign brands saw their repurchase rate surge from 46 percent to 68 percent.

“Customers are fast moving from Korean-made cars to foreign brands. Local carmakers need to make more efforts to elevate customer loyalty and improve product quality,” the report said. 

By Lee Ji-yoon (jylee@heraldcorp.com)