Wednesday, August 21, 2013

[KMTI] Executive Summary

Message From The Chairman

Creative Innovation Blooming New Manufacturing Economy

As machine tools are rightly called mother machines, machine tool producers have a significant role to play in helping the global economy escape the current tunnel of hardship, providing the leverage to enhance productivity in every manufacturing sector.

‘12 Korean & Global Machine Tool Industry

Korea Joins Big-Four League in Production

In 2012, Korea passed Italy to become the world’s fourth largest machine tool producing nation, trailing only China, Japan and Germany.

2012 Scoreboard

Registering Record High Exports & Trade Surplus

Despite the overall recession at home and abroad, Korea registered record highs in machine tool exports and trade balance, reflecting the success of the nation’s global outreach initiatives.
- Production Increases Thin 1.0% to 6.4 Trillion Won
- Order Receipts Fall Sharply
- Imports Tumble 16.87%, Registering US$1.49 Billion
- Exports Surge 10.4% to US$2.55 Billion

2013 Outlook

Gradual, Mild Recovery Looms

- Production Projected for 5.1% Rise to 6.75 Trillion Won
- Near Double-Digit Increase Forecast for Imports at US$1.69 Billion
- Exports Expected to Top US$27 Billion with 8.3% Expansion
- Consumption Predicted to Rise 5.8% to 5.6 Trillion Won

End-User Industries

Beyond Constraints, Recovery Picking Up Steam Across the Board

- Automobile Exports Expected to Bounce Back with 3.3% Rise
- Shipbuilding Creating New Blue-Ocean with Offshore Platforms
- Machinery Production Scaled at 454 Trillion Won in 2013
- Steel Sees Demand Increase at Home & Abroad
- 2013 Petrochemical Investment Projected at 6.3 Trillion Won
- IT Remains Growth Engine for Creative Korea
- Convergence Creating New Opportunities in Next-Gen Growth Engines
- Highlights of Korean Industrial Policies in 2013


Success Partner for Machine Tool Industry at Home & Abroad

Since it was established in 1979, the Korea Machine Tool Manufacturers' Association(KOMMA) has played a pivotal role in the dynamic development of the Korean machine tool industry.

KOMMA Members

Your Prospective Business Partners

Introducing the more than 182 member companies of KOMMA with a focus on products and contact points to increase your leverage in Korea and at the hub of Asia.

Statistics and More
Introducing 17 statistical references and valuable information to fuel your advance into Korea’s manufacturing markets.


Generator of New Opportunities & SMILE

With the goal of being a business angel for exhibitors, buyers and visitors, SIMTOS 2014 organizers are determined to faithfully fulfill the mission of being Your Sales Dept. 2.

[KMTI] ‘12 Korean & Global Machine Tool Industry

[KMTI] 2012 Scoreboard : Production

Record-High Export & Trade Surplus
Despite the overall recession at home and abroad, Korea registered record highs in machine tool exports and trade balance, reflecting the success of the nation’s global outreach initiatives.

Production Increases Thin 1.0% to 6.4 Trillion Won
The Korean production of machine tools in 2012 grew a meager 1.0% year-on-year to about 6.42 trillion won due to the combination of domestic and overseas economic slowdowns, following the European financial crisis and decline in facility investment related to new vehicles.

Regarding domestic demand in 2012, as economic instability factors impacted domestic manufacturing industries and the number of new vehicle model introductions declined significantly compared with the preceding year, facility investment by automotive manufacturers and business sentiment weakened remarkably. In contrast, exports grew in 2012, owing to good performance of manufacturing businesses in the United States and increases in exports to newly emerging countries like India, Turkey and Southeast Asia. The export growth contributed to maintaining the 201l level of domestic machine tool production.

[KMTI] 2012 Scoreboard : Orders

Order Receipt Down 19%

Domestic receipt of orders for machine tools by KOMMA member companies recorded about 3.50 trillion won in 2012, down 19% year-on-year, reporting less than 4 trillion won for the first time in two years.

Domestic demand orders in 2012 fell 27.8% year-on-year to about 1.73 trillion won and their ratio in total orders also declined to 49.3% from 50% a year earlier.

Also by month, domestic demand orders fell for the 15th consecutive month since October 2011 due to a contraction of domestic manufacturing facility investment and base effects from the previous year's results.

In particular, domestic orders in December 2012 posted 99.9 billion won, less than the 100 billion-won level, the most sluggish performance since August 2009.

Export orders in 2012 decreased 8.1% year-on-year to about 1.78 trillion won and their ratio in total orders accounted for 50.7%. Owing to orders from the United States and China and project-type overseas orders won by some companies, however, the rate of decline stayed at a single digit level.

By item, orders in 2012 decreased year-on-year for NC cutting machines (2.85 trillion won, -22.2%) and general-purpose cutting machines (169 billion. won, -10.9%), but a slight increase was witnessed for forming machines (483.5 bilion won, 2.5%).

Among the NC cutting machines, orders fell for both NC lathes (1.13 trillion won, -33.2%) and machining centers (1.29 trillion won, -5.3%). Orders for NC lathes, in particular, decreased remarkably due to a slowdown in both overseas orders and domestic demand.

[KMTI] 2012 Scoreboard : Imports

Imports Drop 14% to US$1.54 Billion

Machine tool imports in 2012 decreased 14% year-on-year to US$1.54 billion amid a declining trend in domestic facility investment and the strength of the Japanese yen currency. Due to a domestic automobile-related facility investment slowdown and the effect of poor economic indicators on domestic manufacturers as well as the after-effects of the Lehman Brothers' crisis, imports have converted to a declining trend since 2009. By region, imports from Asia, Europe and North America all declined. Imports from Japan, Korea's largest supplier, declined the most due to the effect of the strong yen currency.

By item, imports of all machine tools, including grinding machines (-20.8%), NC lathes and presses, declined year-on-year. The import ratio of major import items like NC lathes, machining centers, presses and NC grinding machines from Japan accounted for over 50%. In addition, imports of boring machines (inclusive of NC) and imports of milling machines (inclusive of NC) and general lathes also fell year-on-year.

By region, over double-digit year-on-year declines were witnessed in all the imports from Asia (US$991 million, -17.7%), Europe (US$446 million, -13.7%), North America (US$52 million, -18.1%). In Asia, despite over double-digit declines in the imports from Japan (US$736 million, -23.8%) and Taiwan (US$92.6 million, -11.3%), the nation's imports from China (US$95.7 million, 25.0%). In Europe, imports dropped from Germany (US$195 million, -21.5%) and Switzerland (US$111 million, -6.6%), but increased from Italy (US$84 million, 19.4%).

[KMTI] 2012 Scoreboard : Exports

Exports Surge 10.8% to US$2.55 Billion

Exports in 2012 hit a historic high of US$2.55 billion, up 10.8% year-on-year, despite additional unstable factors in the global economy caused by the European financial crisis. Notwithstanding export declines to Europe due to the persistent eurozone financial crisis from beginning of the year, exports set a historic high record for the second consecutive year, thanks to machine tool facility investment growth by U.S. manufacturing businesses and maintenance of the previous year's level for exports of machine tools to China.

By year, exports realized over double-digit growth year-on-year for the third consecutive year since 2009, registering more than US$2 million for two straight years. By quarter, exports continued year-on-year growth for nine quarters until the second quarter of 2012, but declined since the third quarter.

In terms of items, exports in 2012 increased year-on-year for NC cutting machines (US$1.63 billion, 17.1%) and general-purpose cutting machines (US$175 million, 8.6%), but decreased for forming machines (US$742 million, -0.3%). Regarding the export of NC lathes (US$772 million, 11.6%), exports to the United States (US$272 million) accounted for 35.2% of the total and for machining centers (US$662 million, 37.3%), China (US$294 million) posted the highest ratio of 48.5%.

By region, over double-digit growth rates were achieved in exports to Asia (US$1.3 billion, 10.8%) and North America (US$494 million, 40.9%). However, exports declined to Europe (US$590 million, -7.0%) and Latin America (US$119 million, -22.4%).

In Asia, exports to China stayed at the previous year's level (US$738 million, 1.1%), but exports to Southeast Asia's newly emerging markets booked comparatively higher growth rates - India (US$204mil., 21,8%), Thailand (US$82.6 million, 43.5%), Vietnam (US$82.4 million, 159.5%) and Indonesia (US$54.8 million, 111.1%).

In Europe, exports fell year-on-year to Germany (US$127 million, -28.5%), Italy (US$72 million, -16.3%) and Russia (US$33.7 million, -8.4%), but comparatively significant growth rates were posted for exports to the U.K. (US$66.5 million, 24.9%) and newly emerging markets in Eastern Europe, including Turkey (US$97.2 million, 82.0%).

[KMTI] 2013 Outlook : Mild but Steady Recovery Looming

Production.. 5.1% Rise Seen to 6.75 Trillion Won
Owing to domestic facility investment expansion and increased exports to major markets, including the United States and China, as well as emerging markets, production in 2013 is projected at 6.75 trillion won, up 5.1% from 2012.
Domestic facility investment expansion, expected to reach 5.3% in 2013, economic stimulus effects following the launch of new governments in China, USA, etc. and growth in emerging markets, including India, Turkey and Brazil, are factors projected to contribute to the growth of Korea's machine tool exports and production.
Facility investment, although external uncertainties are limiting improvement in investment sentiment, is expected to increase 5.3% from 0% growth in 2012, implying a 'low in the 1st half and high in the 2nd half' growth phenomenon at 2.2% and 10.8%, respectively.
By business type, while facility investment continues to expand in non-IT sectors like automobiles and machinery, mobile equipment-related facility investment may increase again, so machine tool demand is expected to pick up in 2013.
In contrast, since a low 3% level of domestic economic growth is projected for 2013, coupled with weaker domestic demand for development of new vehicles, the machine tool industry is expected to register only single-digit growth.
According to a questionnaire survey regarding the 2013 business outlook conducted by KOMMA in December last year on a total 31 member companies, most of the respondents established sales growth targets at about 9.1% (-2.8% in 1st half and 24.8% in 2nd half). Among them, manufacturers of complete machines set sales growth goals at about 8.8% (-0.6% in 1st half and 24.3% in 2nd half).

Exports.. Seen to top US$2.75 Billion With 8.3% Rise
Machine tool exports in 2013 are forecasted to realize US$2.75 billion, up 8.3% year-on-year, owing to continuous growth of exports to the nation's largest export markets, China and the USA, and through reinforcement of marketing strategies for emerging markets, including BRICs and Southeast Asia.
However, fierce competition with major exporters, such as Japan, Germany and Taiwan, and rapid growth of Chinese companies combined with weakening of export competitiveness caused by unfavorable foreign exchange rates and low global economic growth are likely to serve as factors that limit export expansion.

Imports.. Near Double-Digit Increase Expected
Machine tool imports in 2013 are expected to increase 9.7% year-on-year to US$1.69 billion due to the base effect of import results in 2012, facility investment growth, foreign exchange rate appreciation and other factors.
Affected by low domestic economic growth and limited demand for development of new vehicles, significant import growth is unlikely. However, imports of Japanese machine tools may increase due to mitigation of the strong yen currency.
Under such conditions, overseas companies in Germany, Switzerland and Italy are expected to utilize the Korea-EU FTA more actively with a focus on comparatively high-end products and process-intensive-type models, including complex and automation-related machine tools.

Consumption.. Projected to Rise 7.2% to 5.6 Trillion Won
As production, exports and imports are all projected to post single-digit growth, machine tool consumption in 2013 is expected to increase 7.2% year-on-year to about 5.6 trillion won. Although consumption will grow for the first time in two years, the rate is likely to be in the single digits.

[KMTI] Navigating Major End-User Industries : Automobiles

Korea's Automobile Sales Down at Home; Up Abroad in '12

Sale of Korean automakers in 2012 slightly decreased in the domestic market as a result of reduced production due to a shrinkage of consumption sentiment and delayed settlement of wage and CBA (Collective Bargaining Agreement) negotiations.

In contrast, exports increased slightly, recording 3,169,689 units in 2012 compared with 3,51,708 in 2011.

This year, domestic automobile demand is seen to remain bearish, staying in the neighborhood of 1.4 million units, while exports are expected to rise to 3.3 million units, a 3.1% increase over last year.

According to the 'Automobile Industry Trends in 2012' announced on January 10 by the Ministry of Trade, Industry & Energy (MOTIE), automobile production and domestic demand totaled 4,558,160 units and 1,541,715 units, respectively, down 2.1% and 2.4% year-on-year.

The ministry analyzed that domestic demand slowdown and occurrence of partial strikes caused by unrest in labor-management relationships had affected a delay in supply and led to the production decrease in 2012.

In fact, production in the 3rd quarter of 2012 fell to 935,520 units, down 13.9% from 1,205,440 units in the 2nd quarter, serving as a key factor in the annual total production contraction. Domestic sales were converted into a declining trend in four years since 2008 due to consumption sentiment shrinkage following the high oil prices and household debt increase amid domestic economic depression.

Despite export decreases to certain regions, including the EU, however, however, exports increased 0.4% to 3,165,689 units centering on the United States and emerging countries and maintained the previous year's level. Exports to the U.S. market, notwithstanding the fiscal cliff threat in the country, increased 18.4% owing to a steady recovery of demand for automobiles and enhanced quality competitiveness of Korean cars.

In December last year, meanwhile, production and exports of the Korean automobile industry decreased year-on-year, while domestic sales increased. Exports fell 10.3% to 270,336 units due to a decrease in the supply volume responding to the volume for domestic demand, etc

[KMTI] Navigating Major End-User Industries : Shipbuilding

Creating Blue Ocean With Offshore Platforms

Riding the wave of offshore supremacy, the order volume secured by Korean shipbuilders in 2012 reached about US$30 billion, according to Clarkson's data. 

Korean shipyards reconfirmed their global competitiveness particularly in the fields of offshore plants and high value-added ships by winning 73% of the world's LNG carrier orders (24 ships, about US$4.9 billion) and 67% of drillship orders (26 ships, about US$9.3 billion).

Among the two units each of LNG-FPSO and FPSO (about US$770 million/unit) ordered throughout the world in 2012, Korean shipbuilders clinched one of each and also won all four units of LNG-FSRUs (about US$1.2 billion) ordered last year.

The market scale of the global offshore equipment industry exceeded US$150 billion in 2012 and is projected to continue strong annual average growth of 7% for the next 20 years.

This year, Korea’s enthusiasm for the offshore sector is expected to heat up even further as major shipyards, including Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME), have established a combined order-securing target of US$58.8 billion in which the offshore sector has taken the lion’s share.

Under this changing industrial landscape, domestic marine equipment companies are turning increasingly to production of equipment and materials for offshore plants. A survey conducted by the Leading Industry Development Support Corps for Southeastern Economic Region in June last year on 1,000 marine equipment companies based in the region found that about 300 companies (30%) were manufacturing and supplying single-product-type or module-type offshore plant equipment and materials, although the scales differed.

[KMTI] Navigating Major End-User Industries : Machinery

Production Scaled at 454 Trillion Won in 2013

Korean production in five major machinery sectors, i.e, general machinery, precision machinery, electric machinery, fabricated metalwork and transportation machinery, except shipbuilding, is expected to reach 454 trillion won in 2013, up 5.1% year-on-year, according to the Korea Association of Machinery Industry (KOAMI).

KOAMI also projected exports at US$194.6 billion (up 8.9%) and imports at US$104.7 billion (up 9.0%) for 2013, meaning that the nation would achieve a trade surplus of US$89.9 billion.

In its '2012 Machinery Industry Trends and Prospects for 2013' released on Dec. 28 last year, the association estimated that in 2012, general machinery production, exports, imports and trade surplus would post 112.9 trillion won, US$47.6 billion, US$38.3 billion and US$9.3 billion, respectively.

The association forecast that in 2013, export profitability may worsen due to sharp declines in the won-U.S. dollar exchange rate, etc. and that domestic production would shrink.
In the second half of the year, however, the industry is projected to recover slightly thanks to the Chinese government's economic stimulus policy and recovery of U.S. housing and construction investments.

In 2013, production of machine tools is expected to brisk, while production of construction & mining machinery, molds and heavy electrical machinery are projected to maintain 2012 levels. Exports of machine tools, molds and heavy electrical machinery are likely to post good performances. Meanwhile, business conditions for textile machinery and bearings are feared to worsen in 2013.

[KMTI] Navigating Major End-User Industries : Steel

'12 Exports Up 4.6%; Domestic Demand Seen to Rise in '13

In 2012, steel production stayed at the previous year's level due to stagnation of domestic demand following the economic recession.

The Korea Iron & Steel Association (KOSA) said that the domestic production of steel products recorded 72.91 million tons in 2012, a mere 0.9% year-on-year growth. Crude steel production also stood at 69.40 million tons, up 1.3%.

Exports of steel products in 2012 increased 4.6% year-on-year to 34.30 million tons owing to expanded demand in the United States, ASEAN and the Middle East. In contrast, imports decreased 10.2% to 20.76 million tons due to a slowdown of domestic demand and excess supply in the domestic market.

KOSA projected crude steel production at 71.21 million tons (up 2.6%) and steel goods production at 74.06 million tons (up 1.6%).

[KMTI] Navigating Major End-User Industries : Petrochemicals

Investment Projected at 6.3 Trillion Won in 2013

The Korean petrochemical industry's investment and exports in 2013 are likely to increase slightly from 2012 - investment to 6.5 trillion won from 6.3 trillion won and exports to US$46.6 billion from US$45.8 billion.

Chinese demand for Korean petrochemical products has led the growth of related enterprises. However, the industry may find it hard to sustain quantitative growth, which has depended on the growth of the Chinese market, in the future and market conditions are not stable either due to rapid expansion of facilities for non-petroleum base materials. Therefore, there is a high possibility that long-term and average profitabilities may decline.

China's per-capita consumption of general purpose plastics is 39kgs, exceeding the world's average of 26kgs by 50%. China's per-capita GDP had continued rapid growth until reaching he US$3,000 level, but after crossing US$4,000, the rate of consumption growth of plastics vs. economic growth slowed remarkably, so consumption is expected to slow continuously in the future. Meanwhile, the Korea Petrochemical Industry Association (KPIA) revealed that in 2013, the industry will see investment of 6.5 trillion won, up 200 billion won from 2012, and achieve US$46.6 billion in exports.

[KMTI] Navigating Major End-User Industries : IT Industry

Engine for Korea's New Economic Take-off

Korea's Internet economy accounted for 7.3% of the nation's GDP in 2012, providing a growth engine for the robust Korean economy. During the first two months of 2012, the IT industry registered a US$12.46 billion trade surplus. The figure represented five times the nation's total trade surplus during the same period.

As of the end of 2012, Korea ranked first in the UN's e-government appraisal list, dominating global IT markets. Illustratively, Korean companies achieved world-first ranking in mobile and smart phones for the sixth consecutive quarter (2Q '11 ~ 3Q '12).

Korea has a global market share of over 60% in the DRAM sector and also over a 45% share in NAN flash.

This year, Korea is moving to accelerate the development of new IT-related sectors with the cultivation of the SW industry, spread of IT convergence, development of 10 core IT technologies, nurturing of creative high-quality manpower and regionally specialized IT industries.

Moreover, Korea plans to invest further with a focus on 10 future-leading-type IT core technology tasks - next-generation devices, big data & artificial intelligence, hybrid storage, core IT materials, wired & wireless integrated network, terahertz & quantum information communication, unmanned platform, bio sensor, life-care robot and power semiconductors.

The nation also plans to support the cultivation of specialized and differentiated professional manpower and expand support significantly for the IT industry, considering regional characteristics.

Of particular note, the government said it would strengthen IT core capabilities further through new projects, such as support for Giga Korea, SW policy research and establishment of an IT startup forum.

The government plans to support 10.3 billion won this year alone for Giga Korea, an R&D project to build giga-class wireless environment by 2020, while investing a total of 550.1 billion won until 2020. It also plans to expand SW policy research functions and strengthen SE monitoring businesses, support the technology commercialization of SMEs and mid-tier enterprises and enhance regional SW industries.

In addition, it intends to dedicate budget to the activation of youth start-ups and creation of an IT venture growth ecosystem, designation of new collegiate IT research centers, support for the growth of domestic Wibro-related SMEs and mid-tier enterprises and establishment of e-document distribution centers.

To prepare a foothold for Korea's takeoff toward a world-leading IT country, it intends to invest 24.8 billion won in newly promoting R&D in 10 IT core technology fields, including smart equipment, source technologies for IT core materials and big data & artificial-intelligence SW technologies.

[KMTI] Navigating Major End-User Industries : 17 New Growth Engines in 3 Fields

[KMTI] Navigating Major End-User Industries : Highlights of Korean Industrial Policies in 2013

Nexus of Convergence, Creativity & Connectively

In pursuit of blossoming a Creative Economy, the Ministry of Trade, Industry & Energy (MOTIE) has unveiled an industrial policy package focusing on convergence, creativity & connectively.

The package focuses on three major areas - cultivation of leading-type new industries, structural advancement of key industries through convergence, and renovation of labor-intensive traditional industries - each with supporting tasks.

Under the ministry's program to cultivate leading-type new industries there are three tasks.

The first is to foster new convergence industries for people's happiness - safety, health, convenience, and culture - enhancing quality of life and creating high-quality jobs.

The plan calls for cultivation of 'Four New Convergence Industries" through organization of an inter-ministerial cooperation & convergence policy committee by September.

The first of the four convergence industries is safety. In this sector, the projects include disaster & calamity monitoring and lifesaving robots. The second industry, health, will develop smart medical equipment. Convenience, the third convergence industry, will feature smart electrical home appliances and home control service. The final industry in the program, Culture, will concentrate on 3D holography tech grafting digital performance & fashion, etc.

In support of the cultivation of leading-type industries, the ministry will pursue the establishment and promotion of 'Pan-Ministerial Improvement Methods Targeting Hardships & Restrictions Related to Convergence' to identify and improve 'partition-type' restrictions that undermine the creation of new convergence industries. This project will fall under the Industrial Convergence Development Committee to be set up in the first half of this year.

The final task under this program is to nurture creative & convergence-type core talents who can take the lead in convergence at industrial sites, including identification and planning of new convergence businesses and market exploration.

Under the program to achieve structural advancement of key industries through convergence, MOTIE identified two tasks.

The first task is to spread IT convergence through next-generation mainstay products, such as smart cars and offshore plants. This task will seek to develop green ships and build related infrastructures, preoccupy smart car technologies, develop technologies to enhance green car functions, and develop and commercialize core IT-converged offshore plant equipment & parts.

The second task is to expand investment in intelligent-type materials & parts and embedded software, the core of convergence competitiveness, and grow related industries. Here the focus will be on preparing 'First-Mover-Type Materials & Parts Development Strategies' by the end of 2013, promote 'Embedded SW-So-HW' linked-type convergence R&DB, and establish a 'Semiconductor 4.0 Strategy.'

Under the program to renovate labor-intensive traditional industries, the ministry has laid out two tasks.

The initial task is to nurture formerly labor-intensive traditional industries, like footwear, apparel, etc., into urban-type industries and promote convergence of living goods, including hanji (Korean paper), porcelain and jewelry, into famous brands. Under this task, MOTIE will work to identify projects for exchange and cooperation in footwear and textile industries by July, promote R&D of non-sewing footwear manufacturing processes & new materials and build urban-type, high-tech production facilities. The final task under this program is to improve the working environments of root enterprises, upgrade processes through IT convergence, promote automation projects and designate specialized industrial sites for establishment of jointly-utilized infrastructures like sewage & wastewater treatment facilities.

Monday, August 19, 2013

[Matchmakin4U with Korean Buyers] Overview

Generate practical one-on-one discussions that will lead to actual sales results and more
- Korean & foreign exhibitors at SIMTOS 2014
- Korean buyers
Key Events
- Application for Participation: February 2013 ~
- Review of Qualifications of Exhibitors: After application
- Pre-meetings Between Buyers and Exhibitors : April 2013 ~
- Meetings at SIMTOS 2014: April 2014

Creative Value Network With Cream of Korean
Manufacturing Industry & Beyond

Translating the slogan “We are ready to be your Sales Dept. 2,” into reality, the SIMTOS Secretariat is organizing the Matchmaking4U with Korean Buyers program to help both foreign and Korean exhibitors find new customers as well as to match buyers with ideal suppliers. The program is intended to generate new business prosperity for all participants, responding to the era of the Asia-Pacific economy and to the new manufacturing economy.

Korea – A Dynamic Market for the New Manufacturing Economy

Korea – A Dynamic Market for the New Manufacturing Economy

[Matchmaking4U] Strength of Matchmaking4U

Combining Past Experience & Future Insight
The Matchmaking4U with Korean Buyers program focuses on meeting client demand, maximizing efficiency and practical results. In this effort, SIMTOS organizers employ a wide range of measures, combining previous experience and innovative insights.

Beyond Time
Full-Cycle Marketing Platform Before, During & After SIMTOS 2014
The Matchmaking4U with Korean Buyers program, consisting of three phases – pre-show, during the exhibition and post-show, reaches beyond time limitations to provide SIMTOS 2014 participants with maximized opportunities for success under the slogan “We will be your Sales Dept. 2.”

Beyond Machine Tools
Creative response to New Manufacturing Era
Under the show’s slogan “Convergence of Manufacturing Technologies and Machine Tools,” the SIMTOS-style matchmaking program embraces a broader scope in the emerging Manufacturing Economy Era. In addition to sales consultations, the organizers envision matchmaking that encompasses technical ties, licensing agreements, partnerships, agent relationships, investment, M&A, etc.

Beyond Organizers
An Event of the Clients, By the Clients and For the Clients
Under its client-first guiding principle, SIMTOS intends to allow the exhibitors and buyers themselves to decide their matchmaking partners after providing sufficient information from the exhibition’s extensive database. This innovative matchmaking program is further strengthened with the specialized experience, know-how and track record of SIMTOS personnel.

[Matchmaking4U] Details

SIMTOS organizers believe that matchmaking is the highest priority for the world-top-four machine tool exhibition in terms of scale. To maximize the potential and opportunities provided under the Matchmaking4U with Korean Buyers program, they have thoroughly analyzed previous performance and benchmarked the most successful exhibitions worldwide - identifying SIMTOS strengths and weaknesses collectively and strategically rethinking, redesigning and rebuilding the program in the spirit of ever-onward innovation for the best service to valued customers around the world.

Leveraging Valuable Assets – 942 Buyers & 90,000-Plus Membership Database
SIMTOS organizers continuously update the membership database and buyers' list, which represent valuable assets for successful matchmaking between SIMTOS exhibitors and buyers.

Reinforced Publicity & Advertising Support
To achieve successful matchmaking results, SIMTOS organizers are reinforcing publicity and advertising activities featuring exhibitors’ products/services in particular. Leveraging all channels to attract potential buyers, they are utilizing new media extensively, including blogs, Facebook and social network services, to maximize and broaden the publicity effect. Furthermore, organizers are e-mailing information relevant to specific exhibitors seeking market access in Korea to main contacts identified in its membership database and buyers’ list.

Securing Skilled Specialized Staff
To implement the matchmaking program and realize its full potential, the SIMTOS secretariat is beefing up its pool of specialized manpower in key areas. Its specialists are well versed in industrial knowledge, marketing and communication fields to complement matchmaking with the development strategic approaches for new markets in manufacturing, services, hardware, software, etc.

[Matchmaking4U] Brief Infomation about Korean Machine Tool & End-User Industries

Korea's machine tool consumption is expected to increase to 5.6 trillion won this year from 5.3 trillion won in 2012. Rising from fifth place to forth in terms of global machine tool production in 2012, domestic production is projected to jump 5.1% in 2013 to more than 6.7 trillion won. Korea's exports and imports of machine tools this year are forecast to reach US$2.75 billion and US$1.7 billion respectively, representing increases of 5.7% and 9.7% year-on-year.

[Matchmaking4U] Overview of Korean Economy

The 30 largest Korean business groups plan to invest a total of 149 trillion won in 2013 and increase employment scale 1.5%, up 7.7% and 1.5% year-on-year, respectively.

The planned investment is designed to focus on facilities having a high economic stimulus effect and R&D to secure long-term growth engines.

While promising to implement their investment and employment plans, the 30 groups recommended that the Ministry of Trade, Industry and Energy (MOTIE) deregulate restrictions on factory locations to resolve related difficulties and expand taxational, financial and manpower support. And the ministry has decided to actively examine the recommendations.

The key recommendations filed by the 30 groups include alleviation of restrictions on locations for expansion of factory and research institute facilities and faster processing of related permits and approvals; tax exemptions for energy-saving facility investment and expansion of tax exemption scope for employment creation-type investment; increase in support for ship financing; easing of restrictions on the acquisition of equity from holding companies; support for securing of manpower by research institutes in local provinces; cultivation of specialized manpower for plants, etc.