New strategy for Hyundai’s plants in India, Turkey

For Hyundai Motor Group Chairman Chung Mong-koo, this year’s Chuseok was just like any other day of work.

While most Koreans went to their hometowns to see relatives and friends, Chung was out of the country, visiting Hyundai Motor’s plants in India and Turkey to check whether the company’s production and sales strategy for its small cars is on the right track.

“Chung’s business trip to India and Turkey is to check the quality of their localized models following the strategic role changes of two plants,” the company said in a statement.

“The India plant, which was the forefront export base to Europe, has changed its role to focus on the domestic market, while the Turkey plant has reinforced its role as a European mini car production base.”

Hyundai has been implementing a two-track localized strategy centered on its plants in India and Turkey. Both make i10 and i20 city cars, but although the vehicles share the same body and design their sizes and various interior features differ. And according to Hyundai, the changes on the new i20 will make them even more distinct.

The world’s fifth-largest automaker said its plant in Chennai, India, stopped shipping to Europe about two months ago. The region used to be Hyundai Motor India’s largest market, with 40 percent of its exports shipped there.

“The best competitiveness comes from thorough localization,” said Chung, who left for India on Saturday. “We also need to secure emerging markets like the Middle East and Africa with the Indian and Turkish plants serving as an axis of localization.”

For the first part of his schedule, Chung visited the production line of the India plant on Sunday to check the quality of the new Elite i20, which began mass production just last month. It was his first time to India since 2010.

Chung said that the Chennai plant should focus on supplying a “market-dominating product” for India in order to expand Hyundai’s presence there.

“The Indian market recently started to recover,” said Chung. “The new i20 is the first product from the India plant with its changed role, and with a localized sales strategy we should secure a clear advantage in this market.”

Expecting economic growth from India’s large population, Hyundai set up a production base there in 1998, churning out models like the Santro, EON, i10 and i20, and becoming the country’s second-largest automaker.

The Indian passenger car market last year suffered a decline for the first time in 11 years because of expensive gas prices, and high interest and currency rates. According to data from the Society of Indian Automobile Manufacturers, passenger car sales dropped 9.6 percent year-on-year to 1.8 million units.

But with the new Indian government extending consumption tax deductions until the end of this year, Hyundai expects that India’s entire auto market will grow by 2.7 percent.

Korea’s largest automaker has had success so far this year after selling 269,025 units in the first eight months, up 7.1 percent from a year ago - far above the industry average of 1.4 percent growth.

After India, Chung visited Hyundai’s Turkish plant in Izmit yesterday, emphasizing that the production base established there in 1997 has been given a more important role. It is now regarded as Hyundai’s forefront production base along with its plant in the Czech Republic.

The automaker invested more than $600 million to double the plant’s annual capacity to 200,000 units last year. The plant is set to roll out a new i20 localized for Europeans next month.

“In order to make the Turkish-made i20 lead the European market, we should put our best effort forward to have premium production quality,” Chung said.

The European-style i20 is scheduled to be revealed at the Paris Motor Show next month. Hyundai said that it will be more “luxurious” than the Indian-made i20. Hyundai is hoping for the new i20 to boost its sales in Europe. The automaker has been struggling in the continent, selling 219,617 vehicles in the first half, down 2.4 percent from a year ago according to European Automobile Manufacturers’ Association data.

“This year, both the plants in India and Turkey are expected to deliver performances better than our original annual goal,” the spokesman from Hyundai said.

“With exports from Korea struggling because of industrial action from the union, expanding sales from overseas will play an important to role in achieving the company’s global sales goal.”

source;korea joongang Ilbo

Korean Language Teachers Training Course Korean Cultural Centre India

For the first time Korean Cultural Centre India is organizing Korean language teachers training course.
Those who are interested may contact the centre. 

1. Period: 14th October 2014 (Tuesday) ~ 19th February 2015 (Thursday)
2. Time: Tues, Thurs (4pm~6pm), Saturday (2pm~5pm)
3. Venue: Korean Cultural Centre India
4. Fees: 15,000Rs.
5. Instructor
 Vyjayanti Raghavan (Dean of Korean Language Department, JNU)
 Vaishna Narang (Dean of Linguistic Department, JNU)
 Kim Do-young (Visiting Professor, University of Delhi)
 Lee Hyun-Kyung (Visiting Professor, JNU)
 Kwak Mira (Instructor recruited by Korea government, King Sejong Institute, Korean Cultural Centre India)
6. Eligibility
 Indian: Bachelor Degree with TOPIK more than level 4.
 Korean: Bachelor Degree with experienced of teaching Korean language,
Bachelor Degree with experienced of Korean language teaching course.
7. Contents:
- Korean Language, Linguistics, Korean Language education as a foreign language,
Korean Culture, Korean Language teaching practice, etc.
8. Merits of the course
- Will be certified by Korean Cultural Centre India.
- Will be recruited to King Sejong Institute as a language Instructor
or to a Korean company, etc.

▶Orientation
 Day/Time: 14th October 2014 (Tues) at 3pm.
 Venue: Auditorium, Korean Cultural Centre India.

▶ For more information please visit our homepage
and registration form can be downloaded 

http://india.korean-culture.org/navigator.do?menuCode=201301150044&action=VIEW&seq=56150
Contact Details: 011-43345000/5041/5046

New Japanese map shows S. Korea as owner of Dokdo

A map made by the Japanese government that recognizes South Korea’s ownership of its easternmost islets of Dokdo was unveiled on Sunday, in a clear piece of evidence refuting Japan’s repeated claim to the territory.

The map indicates that Japan’s continued territorial claim to the Dokdo islets is wrongfully made as the Japanese government used the map to mark its own territory when it clinched a peace treaty with Allied forces in September 1951 following its defeat in World War II.

The Dokdo islets, which lie closer to South Korea than Japan in waters between the two countries, have been a thorny issue in the countries’ relations. South Korea keeps a small police detachment on the islets.

A map made by the Japanese government that recognizes South Korea’s ownership of its easternmost islets of Dokdo was unveiled on Sunday, in a clear piece of evidence refuting Japan’s repeated claim to the territory. (Yonhap)

Chung Tae-man, a researcher on Dokdo, recently unveiled a scanned file of the map, drawn by the Japanese government in August 1951, which clearly excludes Dokdo from Tokyo’s territory, according to the Northeast Asian History Foundation.

Conservative groups in Japan have insisted that the Dokdo islets were included as its territory on the map, but Japanese researchers have not yet revealed the document.

“Japan has claimed that its peace treaty with allied forces did not state that Dokdo is South Korean territory,” Chung said. “But the map shows that Japan and allied forces had recognized South Korea’s ownership of Dokdo at that time.”

Chung said that he found the scan of the map on a website operated by a conservative Japanese who said the map was obtained from Japan’s National Diet Library.

South Korea has denounced Japan’s repeated claim to Dokdo, calling it an “unjustifiable” move that will do nothing to help improve already chilly bilateral relations.

South Korea has rejected Japan’s claim as nonsense because the country regained its independence from Japanese colonial rule in 1945 and reclaimed sovereignty over its territories, including Dokdo and many other islands around the Korean Peninsula.
source:(Yonhap) 

As the West Exits, Japan and Korea Seize Opportunity in India

 Since independence in 1947 Indians have looked mostly to the West for economic inspiration. The country has sent millions of expats to the US and Britain, and has developed ties with Western companies eager to tap into the huge Indian market.

But things are changing.Already, Prime Minister Narendra Modi, who took office in May, has built a strong relationship with Japan’s Shinzo Abe — riding a huge influx of interest from the East Asian nation’s entrepreneurs and executives.

Andre Penner / AP

Indian Prime Minister Narendra Modi has built a strong relationship with Japan’s Shinzo Abe — riding a huge influx of interest from the East Asian nation’s entrepreneurs and executiv

Despite a high-profile exodus of Western companies from India, a GlobalPost analysis reveals that Japanese, Korean and Singaporean applications for business visas have shot up in the last year. American and British applications have remained flat.
Western firms have been cautious about India’s economic prospects since things slowed down in 2012.
But figures released by the Indian government show that Asia’s economic powerhouses are much more enthusiastic.

“Now I would say that about 50 to 55 percent of assignments come from Asia"

In 2012, India issued a total of 26,869 business visas from its consulates in Japan. In the first ten months of 2013 (the most recent available stats) the number had jumped to 40,960, an 80 percent annualized increase.
There was a similar jump for South Korean business visas. A total of 18,044 visas were granted in 2012, and by October 2013, India had issued 20,985 visas for the year. That’s an estimated 40 percent increase annually.
Singapore business visas also jumped by about 50 percent, from 15,871 in 2012 to 20,059 in the first ten months of 2013.
In contrast, business visas issued to American and British applicants remained largely static. India handed out 55,629 business visas to Americans and 58,051 to Britons, and by October last year those figures looked likely to be repeated for 2013.

DIVYAKANT SOLANKI / EPA

Indian commuters wait on an over-crowded platform to board a local train at a suburb railway station in Mumbai, on July 10, 2014. Japanese brokerage Nomura said in a note last month that Japan’s government is targeting high-speed rail and power generation in India as areas for growth.

The people who help expats settle in India have noticed the growing number of East Asian businesses.
Komal Smriti, of Sterling Relocation, said around 80 percent of her clients used to be from Europe or America.
“Now I would say that about 50 to 55 percent of assignments come from Asia,” she said. “Primarily these are large manufacturing base companies that are coming.”
Japanese brokerage Nomura said in a note in July that Japan’s government is targeting high-speed rail and power generation as areas for growth. Many Asian companies are involved in infrastructure developments between Delhi and Mumbai. Nomura predicted that if Modi is successful in cutting red tape, investment could rise by up to 15 percent.

“When a Western company comes here, they might send four or five expatriates. But when you deal with a Japanese or Korean company, the number of people coming is three or four times more"

India signed a trade deal with Japan in 2011, and there are now around 1,000 Japanese businesses operating in India, part of Delhi’s so-called “Look East” strategy.
The new government in Delhi looks to be propelling the trend forward.
Modi and Abe appear to have good personal chemistry, having met and stayed in contact long before either gained power. Both are wary of their larger, shared neighbor, China.
Yet total trade has not risen in line with the growth in business ties so far. In 2011-12, India’s trade with Japan was $18.3 billion. That grew only slightly, to $18.5 billion, by 2012-13.
Although the rise in business visas is partly due to more Asian companies investing in India, other factors also come into play, Sterling's Smriti said.

PIB / AFP - Getty Images

President and CEO of Japan's Mitsubishi Corporation Ken Kebayashi (L) sits with Indian Prime Minister Narendra Modi ahead of a meeting in New Delhi on July 29, 2014. India signed a trade deal with Japan in 2011, and there are now around 1,000 Japanese businesses operating in India, part of Delhi’s so-called “Look East” strategy.

“When a Western company comes here, they might send four or five expatriates. But when you deal with a Japanese or Korean company, the number of people coming is three or four times more. They don’t just send the senior level management — also the middle level management come out.”
Western firms are sending more short-term assignees instead, she said.
For Indians, dealing with people from East Asia is not as straightforward as Westerners might believe.
Smriti said their requirements could be hard for relocation agencies to fulfil. No Asian expat will take a property without a bath, she said, which often involves re-plumbing the hot water system.
“Bathrooms are something they have very specific requirements for,” Smriti said. “Some of the clients have spent a great deal of money on a toilet seat cover. A padded one, or ones which are heated. They are not easy to get. We had to search through all the hardware stores to find where we could get one.”
India’s frequent power outages are not borne lightly either. Most families require both an oil-fueled electricity generator and a battery back-up.
“An assignee from the US or England would never say ‘Even though I have a generator, I still need a Uninterruptible Power Supply unit,” Smriti said.

PARIVARTAN SHARMA / Reuters

Tangled overhead electric power cables are pictured at a residential area as children stand on the roof of a house in Noida on the outskirts of New Delhi . India’s frequent power outages are not borne lightly by expatriates. Most families require both an oil-fueled electricity generator and a battery back-up.

source:nbc news

Envoy touts 'educated India' for investors

Indian Ambassador Vishnu Prakash, left, and Ajay Kanwal, president and CEO of Standard Chartered Bank Korea and regional CEO of Northeast Asia, pose for a photo at the Indian Embassy in Seoul, Thursday, after a news briefing on a business seminar on infrastructure and manufacturing in India slated for Aug. 29. / Korea Times

Indian Ambassador Vishnu Prakash encouraged investors to search for business opportunities in his country, calling India "a young, educated nation" with a sufficient number of high-skilled workers to work with Korean companies.

During a news conference at the Embassy of India in Seoul Thursday, the envoy said Prime Minister Narendra Modi, who has been in office since May, has pushed for silent but decisive reform to remove bureaucracy and attract more foreign investors.

"The Indian prime minister's message to the nation is less government and more governance," Prakash told reporters. "It's true that we have bureaucratic bottlenecks. These bottlenecks, however, will be removed. The labor law has been simplified."

The embassy invited reporters to the news conference to preview what to expect during a business seminar slated for August 29 co-hosted by the Indian Chamber of Commerce in Korea, Standard Chartered Bank Korea, the Korea Society and the Indian multinational corporation Mahindra Group.

Approximately 100 Indian business executives from the infrastructure and manufacturing sectors will participate to talk about the investment environment of the country.

It will be the biggest event the Indian Embassy has ever held in Korea.

Ambassador Prakash gave one example illustrating the strong will of the Modi government to remove barriers hindering foreign investment to his country.

"Every industrial unit had to file annual returns on labor, which used to be 80 pages in the past. It was reduced to five pages. This is one example of the streamlined labor laws. Land acquisition procedures also have been simplified. Compensation procedures have been reviewed and deadlines are being introduced to make decisions to respond to queries from investors."

He called India a young country, saying two thirds of its population are 25 years old or younger.

The envoy talked about India's business-friendly environment when asked to answer concerns among some Korean investors who were familiar with the delay of a POSCO steel plant construction project in the southern region of Odisha.

The project was delayed for years as local residents, in collaboration with environmentalists, opposed the related land acquisition because of the project's potential impact on the region's ecosystem.

Ambassador Prakash noted that, nevertheless, the construction of the steel plant is almost complete and steel production will start from November.

Ajay Kanwal, president and CEO of Standard Chartered Bank Korea and regional CEO of Northeast Asia, noted that India is a key destination for Korean investors, and the bank will provide full support especially for medium-sized companies seeking investment in the country.

Kanwal said specialists in the areas of financial services, trade and commodities will provide technical assistance for Korean investors pursuing business opportunities in India.

"Bankers of Standard Chartered in India will handle all the process. What we really do is, based on their experiences with us, we provide their history to the bank in India so that it becomes very comfortable for them to operate there," he said.

Kanwal said Standard Chartered Bank in India hired two Korean staff members and they work full-time helping Korean investors solve any problems they face.

source: korea times

South Korea looks forward to more success stories in India

•  

Lee Joon-gyu (60 yrs) is a seasoned diplomat. Immediately after he completed his Masters in Law from Seoul National University, Korea, in February 1979, Joon-gyu passed his High Diplomatic Service Examination and joined the Ministry of Foreign Affairs (MOFA) in his country. Thereafter, he has represented Korea at the United Nations, Malaysia, Japan, China and New Zealand. In August 2012 he assumed charge as his country's Ambassador to India. During his career he was also director, international trade, MOFA.
As a diplomat, he is only too aware that his role is to strengthen diplomatic ties between South Korea and India, but also ensure that these are buttressed by cultural and business ties.And during the past decade, Korea has notched up some significant successes in India, even though it has seen some of its projects (Posco in Odisha is one example) plagued by delays.He agreed to an exclusive interview by R.N.Bhaskar, and given below are the edited excerpts:

It was heartening to see that one of the most sophisticated thermal power projects in India, set up by Tata Power at Mundra (Gujarat), opted for Korean (Doosan) turbines and generators. Do you expect Korea to play an increasingly successful role in the rest of India's power industry?

Joon-gyu: In addition to what you correctly mentioned, Doosan Heavy Industries & Construction also won a $520 million contract in 2012 to build the steam generator and boiler for the NTPC-Lara power plant at Chhattisgarh. Doosan is a globally well-known company for its expertise and performance in the power industry. KEPCO Plant Services & Engineering also recently won a $180 million order to operate and repair a thermal power plant in Bhavnagar, Gujarat, and plans to actively expand its business further. I expect Korean companies, including Doosan and KEPCO KPS, to contribute a great deal in developing electricity infrastructure and improving the power sector in India.

Do you think that the recent environmental clearances announced by the central government for Korean and other units will encourage more Korean companies to invest in India?

It surely is a positive development. But we cannot be sure that with only that measure, delayed projects can now go on stream. Many other hurdles – including never-ending complaints and law-suits raised by various NGOs – still remain. My suggestion is that the success of mega projects like POSCO's would have a great positive impact. They should be monitored directly by the PMO (prime minister's office)


Some of the key industries/sectors that have been flagged as priority projects by the Indian government are shipbuilding and ports, airports, railways, and new cities. Which are the segments that you think Korea could be interested in?
I think they are interested in almost all these segments. During the phone conversation with President Park (of Korea) in July this year, the Indian Prime Minister sought Korean investment in India's infrastructure projects. I believe that there is enormous scope for cooperation in all these areas. I am encouraging Korean companies to be more proactive in this sector. We have a proposal pending for building eight minesweepers for India in the defence and shipping sectors. We are waiting for the final green signal. We would like to build big Korean ships in India as well.


What are the things you think should be done to make Koreans more interested in India?
I believe that strong economic reforms, infrastructure development and business friendly policies pursued by the new government have already spurred some positive effects. But they are not enough. Koreans want to see things really move. They want to see real outcomes. They want success stories in India.
The manufacturing sector was the first major engine of growth for Korea during the 1970s and the 1980s helping Korea industrialise rapidly. The (new) Indian government's policy of boosting the manufacturing sector is quite right, and timely. Korean companies can play a substantial role in helping India achieve these goals. We are now concentrating on bringing Korean manufacturing SMEs (small & medium enterprises) into India. As I said before, they all are looking forward to hearing success stories of Korean majors in India. The more the success stories, the keener will be their desire to come to India.

source:dnaindia.com 

South Korean minister uses sacred sapling to show Sushma Swaraj growth in bilateral ties

• Getty Images

In an unique way to symbolise the rapid rise in bilateral ties, South Korean Foreign Minister Yun Byung-se today showed his counterpart Sushma Swaraj pictures showing the growth of a sacred Maha Bodhi sapling which was gifted to his country by India in March. In a meeting with Swaraj on the sidelines of the 47th ASEAN Foreign Ministers Meeting, the South Korean Foreign Minister brought photographs comparing the sapling that has grown four times that size in the last four months.

He told Swaraj that the sapling was 30 CMs tall when it was gifted but now it is 130 CMs in length. "He wanted to show this as a reflection and symbol of rapid growth in India-Korea relationship. This was a very interesting manner of symbolising the relationship," External Affairs Ministry Spokesperson Syed Akbaruddin said. He said a range of issues of bilateral interests were discussed.

South Korea has around 50 million Buddhist population and the sacred Bodhi Tree from India's Bodh Gaya was given to South Korea as a special gesture of friendship. South Korean President Park Geun-hye had visited India in January this year during which both the countries had decided to intensify cooperation in a range of key sectors including trade, investment and defence.

Nine pacts covering wide-ranging areas including cyber space cooperation were also signed between the two countries during the South Korean President's visit. The relationship between India and South Korea is on an upswing. Korean President Park Geun-Hye had congratulated Prime Minister Narendra Modi on his victory in the general elections and recalled with appreciation his association with Korea as chief minister of Gujarat. President Park invited the Prime Minister to pay an early visit to Korea, which was accepted by him.

source:dna india.com