Korea Importers Association Chairman Kim Byung-kwan speaks during an interview with The Korea Times at his office in Seoul, May 9. Korea Times photo by Choi Won-suk

KOIMA seeks supply chain diversification amid rising protectionism

By Park Jae-hyuk

The newly launched Yoon Suk-yeol administration should overcome Korea's five decades of perception that imports are harmful to the national economy, paying more attention to the role of importers amid the global supply chain crisis, according to the head of the business lobby group for 8,000 importers here.

Korea Importers Association (KOIMA) Chairman Kim Byung-kwan, who is also the CEO of Bronte Family, importing cashmere from China, emphasized that now is the right moment to take advantage of the buying power of importers and let other countries know that export-reliant Korea is also the world's ninth-largest importer, which has made efforts for balanced trade.

The chairman noted that the U.S. has been able to exercise its influence over global trade because of its status as the world's largest importer.

"Trade protectionism has spread from the U.S. to the whole world, making it more difficult for businesses to export their products," he said in a recent interview with The Korea Times. "For Korea to grow into the world's fifth-largest trader, the government should pursue policies promoting the country's imports for balanced trade, rather than maintaining policies focusing on exports."

Korea's previous administrations, however, have apparently remained indifferent to importers, despite their growing importance and the fact that 87 percent of the country's imports are raw materials and capital goods for exporters.

"KOIMA has been recognized by foreign ambassadors to Korea, who regard the association as their trade partner," Kim said. "However, the government's awareness of KOIMA has fallen short of their expectations."

When KOIMA held its chairman's inauguration ceremony in March, ambassadors from 49 countries attended the event, but the Korean government did not send any senior officials.

"I think it was a diplomatic discourtesy," Kim said. "Given that Korea has had surpluses in its trade with most countries, the government should have treated the ambassadors as its customers. However, it has remained indifferent to the events they attend."

Korea Importers Association (KOIMA) Chairman Kim Byung-kwan, front row center, poses with foreign ambassadors to Korea, during his inauguration ceremony at the Westin Josun Seoul in this March 21 file photo. Courtesy of KOIMA

According to KOIMA, commercial attaches to Korea picked the association as the most necessary business lobby group in a survey conducted several years ago, as it was viewed as the most effective route for foreign businesses to export their products to Korea.

Foreign embassies have also not been hesitant to pay for access to KOIMA's database on the imports of 140,000 Korean companies.

In addition, foreign ambassadors have been highly eager to meet the KOIMA chairman.

Just within 40 days after Kim took the office, diplomats from seven different countries, including the ambassadors from Portugal, Nicaragua and Oman, visited the KOIMA headquarters to ask for delegations to their countries.

"Diplomats visiting our office want us to send delegations that can match their exporters with Korean importers," Kim said. "I plan to meet all 114 ambassadors to Korea at least once in my three-year term."

Following the government's moves to transition to managing COVID-19 as endemic, KOIMA has prepared to resume sending delegations to other countries this year, expecting them to diversify the global supply chain.

"KOIMA will suggest cooperation with the government and relevant organizations, communicating with foreign embassies in Korea and institutions related to trade," Kim said.

Amid the growing importance of the global supply chain after the COVID-19 pandemic and Russia's invasion of Ukraine, the association has collaborated with international trade professors to study better ways to stabilize the supply of raw materials.

In June, it will also host the Import Goods Fair for foreign exporters to introduce their products and Korean buyers to source import goods without going abroad.

"We will offer booths for free to foreign embassies participating in our event," the KOIMA chairman said. "We hope they will take advantage of our event to promote their countries' industries and products."

Korea Importers Association (KOIMA) Chairman Kim Byung-kwan, right, poses with Ukrainian Ambassador to Korea Dmytro Ponomarenko at the KOIMA headquarters in Seoul, April 13, after the association donated 41.8 million won ($33,000) to aid the war-torn country. Courtesy of KOIMA

Contribution to association's members

Since his inauguration, the KOIMA chairman has also reorganized the association to contribute better to supporting its members.

"During my three-year term, I will enable the association to become practically helpful for its members," he said. "Based on cooperation with the government and relevant organizations, I will focus on solving difficulties facing the members."

KOIMA has already provided its members with information on foreign markets, through its networking with foreign embassies and institutions related to international trade.

In addition to the service, Kim has allowed KOIMA members to accompany him on his meeting with foreign ambassadors to Korea.

"In the past, the chairman had solely met with foreign ambassadors, but I have given our members opportunities to meet ambassadors when they visit the association's office," he said. "Members who participated in meetings with the Portuguese and the Nicaraguan ambassadors were satisfied with the opportunities, expressing gratitude to the association. The ambassadors were also satisfied with their meeting with Korean importers interested in their countries' products."

The KOIMA chairman mentioned the launch of the new press center as the association's other effort for its members.

"Through the press center, I will enhance public relations, globalizing KOIMA as a brand like the Korean wave," he said. "I am convinced that it will create enormous added value for our members, making foreign suppliers have a positive perception of their Korean partners."