Towards a great bilateral relationship

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n recent years bilateral ties between Korea and India have witnessed an upward swing. H.E. talks about the increasing warmth between the two countries and the future prospects

Today global relations are being guided by economic linkages.

How are India-Korean relations moving in this direction?

I would say that trade and investment are the driving

force of overall Korea-India relations. Over the past one decade trade and investment ties between the two countries have grown exponentially, taking the bilateral relations to a new high. De- spite the current economic slowdown in global markets, the bilateral trade volume grew from 11.2 billion USD in 2007 to 15.6 billion USD in 2008, marking an increase of 39% Korean investment in India is also on the rise. There are approximately 400 Korean companies which are doing business in India with the total investment of about 1.5 billion USD as on 31st De- cember 2008. And, if we add up 12 billion USD estimated investment by Korea's steel giant POSCO in its Orissa project by 2016, Korea will emerge as one of the top investors in India.

POSCO's investment in Orissa represents the single largest foreign investment ever made in India until now. In addition, Hyundai Motors India in Chennai produces about 600,000 units of cars annually with roughly half the production being exported overseas, mainly to the European markets, making a significant contribution to India's total export. Hyundai Motors India is the only foreign car manufacturing company which exports to the third country more than it sells in the Indian car market.

Not only it has brought in the latest technology but provided jobs to 10,000 workers across India, while two other Korean companies, Samsung Electronics India and LG Electronics In- dia, have also created 19,000 and 12,500 jobs respectively, with their new recruitment plans of 3,600 workers altogether

Towards a great bilateral relationship

H.E. Y

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oday, when things are looking a bit gloomy the world over, with its im- pact spilling over to India due to the global recession, one can take in- spiration by looking at the Korean example.

Korea has been the worst victim of the economic recession that threatened to blow away the South East Asian nations in 1997.

Because of its superior technological know how, the Korean Government's strong re- solve for reform and the never say die spirit of its energetic people, Korea was one nation that made the fastest recovery and in a less than a decade became one of the world's most developed country. This is rather com-

plimentary given the fact that just 40 years ago Korea was one of the poorest agrarian societies in the world but with an outward- oriented economic development strategy, which used exports as an engine of growth, contributed greatly to the radical economic transformation of Korea. In 2007 the Nation's GDP growth stood at a staggering US$ 970 billion.

In such a scenario, Korea promises to be a preferred destination for India when it comes to investing and India is eyeing Ko- rea as one of the most reliable trade partner.

The importance of India in world affairs is also being noticed by the Korean Govern-

ment and multinationals. India has emerged as a hub for Korean corporates with top names such as Samsung, LG and Hyundai setting up manufacturing bases in India.

Though trade ties between the two nations gained momentum with the opening up of the Indian economy in 1991, it was in the 2000s the one of the fastest growths in bilateral trade was witnessed.

Compared with 2001 when total bilateral trade turnover was US$ 2.52 billion (Indian exports to ROK were US$ 1.11illion and In- dian imports from ROK were US$1.41bil- lion), the total trade has increased by nearly four times since then and stands at US$

11.22 billion at the end of 2007. During the last three years the trade between the two countries has shown increase of more than 100 percent. During 2007, the bilateral trade crossed the land mark of US$10billion, well ahead the target set to be achieved by two countries in 2008. The total trade with ROK's export to India worth US$6.6billion and Im- ports from India worth US$4.62 during 2007 was reasonably balanced, though mar- ginally in favour of Republic of Korea. Ac- cording to the latest trade statistics pub- lished by Korean authorities, during the period from Jan-November, 2008 the bilateral trade between India and ROK has

INDO - KOREAN RELATIONS

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INTERNATIONAL REPORT

THE FINANCIAL EXPRESS (ALL EDITIONS) JUNE 15, 2009

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amsung India is relying on premium technology, innovative products to drive its growth in In- dia this Year. The Company is looking at a 25-27% growth in sales this Year on a sales turnover of US$1.7 Billion that it achieved in the Year 2008.

The Company has launched innovative, leading technology products in the Consumer Electronics , Mobile and the IT product categories which will be the growth drivers for the Company in this Year .In terms of the Colour television category , the Company has recently announced the launch of LED TVs in the In- dian market , where LED represents the next generation in terms of LCD technology .Samsung India is the first Company to introduce and manufacture LED TVs in India. Samsung LED televisions redefine the standards for design, viewing experience and energy-efficiency in Colour televisions . And, by introducing LED TVs in India and globally ,Samsung is leading this turning point in TV evolution. "We are ex- pecting our LED TV Volumes to be 10%

of our Flat Panel TV volumes this Year"

states Mr J S Shin , President & CEO , Samsung South West Asia HQ.

Samsung India has announced the introduction of three LED TV Series - 6, 7 and 8 in the Indian market. While the Series 6 and 7 are being launched in 40" and 46"

screen sizes, Series 8 is being made available in 55" screen size. These cutting-edge TVs use LEDs as their primary light source, rather than traditional Cold Cathode Flu- orescent Lamps (CCFL). Benefits of using LEDs include ultra-high contrast ratios, slim depths that allow for more artful de- signs, plus increased energy savings.

MEGA PICTURE CLARITY : Each of the three Samsung LED HDTV Series for 2009 boast Mega contrast ratios , com- plements of Samsung's ground breaking LED TV Engine.

Compared to a traditional CCFL, LEDs produce darker blacks that appear end- lessly deep to the eye. Whites also remain crisp and bright with vivid colors. The result is picture clarity that measures up to the natural beauty of life. All the three series boast Samsung's acclaimed Auto Mo-

tion Plus™ frame interpolation technology to ensure crisp, easy viewing of sports, video games and movies.

RAZOR SLIMNESS : Samsung's new LED HDTVs offer not only a lifelike viewing experience but break free from the conventional limits of integrating a television into a room's décor. By using Edge LED technology, Samsung has been able to shave all three series down to ultra-thin depths. At just over an inch thick (1.16 inch or 29.9 mm thickness), the sets remain trim without cutting back on connectiv- ity options and include a built in tuner.

To further complement the svelte design of the new LED HDTVs, Samsung created an ultra-slim wall-mount solution - reducing the gap between the TV and the wall to around 0.6 inches, down from the two inches of bulkier solutions. The ultra-thin LED HDTV depth coupled with the new wall-mount solution allows for a simple installation akin to hanging a picture frame.

CONVENIENCE : Samsung's LED HDTVs can connect to a variety of other devices and content with ease. The USB 2.0 movie feature makes viewing videos and photos from a camcorder, playing music from a media player or accessing multimedia files from a portable drive simple. The DLNA Wireless feature in the Series 7 and 8 lets the user seamlessly watch content from the PC without any wires or cables. The Samsung LED TVs come with a built in Content Library Flash which includes pre loaded content and lets users enjoy all cultural experiences including galleries, Games, cooking to yoga.

ECO FRIENDLY : Energy consump- tion in the Samsung LED TVs is reduced by 40%+ versus traditional LCD HDTVs of similar size. LED TVs are mercury-free and lead free, which adds another degree of environmental friendliness and safety compared with other currently available backlight technologies.

While the Series 6 Samsung LED Full High Definition TVs are priced in the range between Rs 1,25,000/-(40") to Rs 150,000/- (46") , Series 7 LED TVs are priced in the range between Rs.140,000/- To Rs180,000/- .Series 8 LED TV available in 55" screen size is priced at Rs.350,000

Samsung has also recently launched 23 new models of LCD TVs and is looking at retaining its leadership in this segment with a 40% market share.

TOUCHSCREEN PHONES Following the successful introduction of Samsung UltraTOUCH and Samsung Pixon, its 8 MP Full touch screen wonders in the month of April , Samsung is living up to its philosophy of 'A touch for every lifestyle' by launching its affordable , feature rich , full touch screen phones Sam- sung Star and Samsung Star 3G in the In- dian market in the month of May'09 . Boasting compact design and intuitive usability, the products answer today's cus- tomer needs for full touch phones at more affordable price points. Samsung Star, which leads the Company's affordable touch screen portfolio, represents the first touch screen phone, that the Company is manufacturing at its state of the art, manufacturing facility at Noida.

"Samsung Star and Samsung Star 3G are significant additions to our full-touch screen mobile portfolio, featuring all the essential functions in one single device.

At Samsung , our effort is to deliver various full touch products for every consumer lifestyle," states Mr Sunil Dutt , Country Head , Samsung Mobile Division . Accordingly, Samsung has also announced the launch of its innovative , music phone with touch screen functionality , Samsung BEATDJ in the Indian market ."Our full touch screen handset range is getting a strong consumer acceptance based on its large full touch screen display, stylish form factor as well as the precision and ease with which the touch applica- tions work on the phones." states Mr Dutt.

With the launch of the three new touch screen phones , Samsung now has a portfolio of seven , feature rich , touch screen phones , ranging from Samsung Star to its flagship touch screen phone , Samsung Ul- traTOUCH , which is the world's first 8MP Camera phone with AMOLED screen. The

other touch screen phones in the Com- pany's portfolio include Samsung Touch- Wiz (F480), Samsung OMNIA (I900) and Samsung Pixon (M8800). The Samsung touch screen portfolio is priced in the range between Rs.11,100/- to Rs.32,200/-.

MINI NOTEBOOKS & NOTE- BOOKS

This is a new business area within IT and the Company has recently launched a new range of Mini Notebooks and Notebooks to strengthen its IT business. The Company has announced the launch of 4 new, stylish and lightweight models of Mini Note- books under its N series and 3 new , advanced R series of Notebooks in the Indian market. With the launch of its new models , Samsung has emerged as a full range player in the Indian market with a comprehensive lineup of Mini notebooks , tar- geting both the home user as well as the enterprise segment .

We are looking at the Mini notebook segment as a clear growth driver for our Mobile computing business going forward." states Mr Ranjit Yadav , Director- IT Business , Samsung India Electronics Ltd.

Samsung has announced the launch of N110, NC 20, N120, and N 310 mini notebooks in the Indian market. "The new range of Mini Notebooks and Notebooks comes with differentiated features like LED backlit displays in all models for brighter pictures and lower power con- sumption and powered USB , Samsung utility softwares , Spill-Proof Keyboard , SRS Surround sound solutions in select models." states Mr Yadav. The comprehensive Notebook range reflects Sam- sung's design and manufacturing leadership, with up to 75% of the components going into the Notebooks, being manufactured by Samsung.

All Samsung Mini notebooks and notebooks come with an anti-bacterial keyboard that is coated with a special finish making it almost impossible for bacteria to live and breed. Using the latest medical technology, virtually all bacteria are successfully eliminated and the notebooks re- mains clean, creating a healthier working environment.

With the launch of the new range , Samsung now has a comprehensive range of 12 Mini notebooks and notebooks priced in the range between Rs 23,639/- to Rs.115000/-.

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amsung needs no introduction. With superior technology and technological innovation, Samsung has today become a household name in India. In an interaction with The Financial Express MMrr.. JJuunngg SSoooo SShhiinn, President & CEO, Samsung talks about the company's future plans for the Indian market.

Samsung Electronics has been in the Indian market for many years; please tell us how has been the journey so far?

I would say that the consumer acceptance of the Samsung brand has been very heartening and Samsung today has become a household name in India. Our aim is to lead the market with our innovative technology products and emerge as the Top Electron- ics Company in India.

We are present in the Indian market with our Consumer Elec- tronics, IT and Telecom products and have world class manufacturing and R&D operations to support our businesses.

Going forward , we will continue to develop and fuel the growth of the electronics market in India by launching new technologies, as we have done in the case of our recently introduced LED TVs , which represent the next generation in terms of LCD televisions.

Positioned as cutting edge technology driver in this sector how do you see the Sam- sung bring better experience vis a vis the competition in the Indian market? How do you think consumers relate to Samsung?

Over the years, Samsung has been consistently introducing top quality, consumer friendly products with advanced features in the Indian market .Eg , we are the first Company to have introduced Star rated refrigerators in the Indian market and today we have the largest range of 5 star rated refrigerators in our line up.

We have also customized our products for the Indian market by introducing technologies/features that have been developed for the Indian market. Thus , we have stabilizer free refrigerators, Cool pack feature in the freezer and refrigerator that ensures cooling in the freezer and refrigerator in spite of power cuts, crys- tal glass shelves in refrigerators that can withstand 150 kgs of weight ; Silver Nano technology in both Fully automatic and semi automatic washing machines as well as Easy View technology in our Flat/Slim colour televisions.

Thus, our effort is in the direction of innovative technology that are customized to better meet the needs of Indian consumers.

Samsung is today a leader in a variety of products.

What will be your area of focus for the years 2009-10?

In the Year 2009, new technologies like LED TVs , business segments like mobile phones and net books /notebooks will be the growth drivers for the Company in India.

Samsung has launched mobile handsets which are based on extremely advanced technological base;

how are you catching up vis a vis the competitions in terms of the acceptance?

What are the expectations which will truly define the Samsung in this category?

Today, we are the second largest mobile handset player, globally as well as in the Indian market. We are trying to reach out to customers across different segments with mobiles for every lifestyle. We have a portfolio of over 50 handsets across the essential, multimedia, touch screen, dual sim and business phone segments .True to our 'Next is What ?' philosophy, we want to provide our consumers with the next level of mobile experience, be it in the entry level Guru series or our touch screen phones.

The overall approach is to give our consumers differentiated products in every segment and an enhanced user experience. Eg., as far as our touch screen phones are concerned, we currently have the largest touch screen portfolio , ranging from the affordable, recently introduced Samsung Star to our all-in-one full touch wonder, Samsung OMNIA. Today, we have a range of 7 full touch screen , phones in the price range between Rs 11,100/- to Rs.

32,200/- , while our complete handset range is priced between Rs 1649/- to Rs. 34,500/-.

How much investment are you planning to make in the R & D set up in this year?

The Indian R&D teams at Delhi and Bangalore work on global projects , thus it is a little difficult to demarcate India R&D spends.

However Samsung Electronics spends 8-9% of its Global Sales on R&D every year, and this is what enables us to introduce innovative technology products in the Indian and global markets.

The company has recently maintained that it is eyeing 30% growth in sales revenues to reach $2-billion in 2009. What is the reason behind this optimism?

We are optimistic about our growth based on the good acceptance that we are seeing in the market for our new product ranges that have been introduced in the market , be it our LED/LCD televisions , mobile handsets or our notebook business. In addition to our new products , we are also strength- ening our channel for all the product groups to enhance our reach in different markets. Apart from factors that we are taking care off within the Company to generate demand, I think the relative low penetration of Con- sumer Electronics products in the country and the fact that Indian consumers are showing a positive acceptance of latest , new technology products are factors that give me confidence on our growth projections.

Please comment on the role of Samsung in promoting the India -Korean bilateral economic ties.

As one of the few Companies that entered India early, I think we have shaped the Indian per- ception on Korean Companies and products to a fair extent .Having made an entry into In- dia way back in 1995 with our Consumer Electronics business, our operations have grown con- siderably over the years to include IT and Telecom businesses .We are not only selling our products but have strong manufacturing and R&D operations to support our products. We are continuously working with our Indian vendors to enhance their quality and competitiveness , with the Vision of making our manufacturing facilities in India a Global Manufacturing base in the future.

The name India trusts

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Samsung for this year. I think that those cases are good model

cases for win-win results for both countries. Even though there has been impressive growth in the economic and commercial ties between the two countries, there is still immense scope for further expansion and augmentation of our relations. I believe that with the Korea-India Comprehensive Economic Partnership Agreement (CEPA) coming into effect within this year, the bilateral cooperation in trade and investment will be further upgraded.

Besides, the two countries have also been engaged in a series of negotiations on taxation treaties, avi- ation and maritime transport sectors, which well reflects the eagerness of both countries to expand their cooperation beyond the existing areas.

What is the present situation and expected effects of CEPA between India and South Ko- rea?

Since the first round of Korea-India CEPA negotiations was launched in March 2006, it took about 3 years for both sides to initial the CEPA text and now the official signing is due. I am well aware of high expectations from the businesspeople in both countries for CEPA and the fact that they are keen to see CEPA signed at the earliest time, which they firmly believe help themselves grasp new business opportunities in the wake of the current global economic meltdown. I expect that the two countries will sign it soon after India's new government takes office. The Agreement will come into effect this year itself. Once the CEPA, covering trade in goods, investment and services is enforced, I firmly believe that bilateral trade and investment between Korea and India will surely get a boost. I also believe in this unprecedented situation of global economic downturn the Agreement will be con- ducive for the early economic recovery of both Ko- rea and India by providing them with chances to mutually expand exports and investments. And at the same time, the early singing of the Korea-In- dia CEPA will be an example for the rest of world not to take any more protectionist measures but sub- scribe to free trade policies.

Korea has emerged as a leading trade partner of India. What is Korea's share in the

overall trade and what measures are you undertaking to further promote trade between the two countries?

According to the Export Import Data Bank of the Department of Commerce, India during the period March 2008 and December 2008, Indian import from Korea recorded 6,537 million USD, 2.78% of total import, while Indian export to Ko- rea amounted to 2,618 million USD, 2.00% of total export. Korea moved one notch up from 13th place during 2007-2008 to become 12th largest trade partner of India during the period of March 2008 and December. As I already stated that our two countries are due to sign the CEPA soon.

Once CEPA is in place, the trade between the two countries will increase manifold. Besides, Korea and India are closely cooperating in the global talks like G-20 to ensure that the global economy re- mains open.

What are the Korean economic measures taken to recover from the global economic crisis and introduce about 'low carbon, green growth' policy led by new government in Korea.

Since the financial crisis of the U.S. hit global economy last year, countries around the world have announced a stimulus package including tax- relief and fiscal expansion. Korea's stimulus plan, however, attracts global attention because it fo- cuses on Green Growth.

At the expanded G-8 Summit held in July last year, Korean President H.E. Mr. Lee Myung-bak declared that Korea would make leading contri- butions to efforts to respond to climate change by launching the 'East Asia Climate Partnership'.

Korean government has presented a vision for 'Low Carbon, Green Growth' as a new paradigm for national development. Since early this year in order to give shape to such a vision, the Korean government has set forth a Green New Deal Pol- icy worth 200 million US dollars during the next 5-year period, announced measures to support R&D projects, put forth medium and long-term policies for new growth engines, and launched a pan-government agency to accomplish these purposes. In the face of the global challenge of climate change, Korea aims to faithfully play a bridging role between developing and developed countries.

I believe that only when all countries in the world join the efforts, can they create a green big

bang, a new world order, under which economic growth can be pursued in harmony with environmental pro- tection.

We share strong cultural ties. Tell about cultural exchange pro- grams highlight- ing the mutual awareness and prospects for tourism between the two countries?

Since the signing of Culture Exchange Agreement between South Korea and India in 1974, the two countries have interacted worthy of close attention in various fields of culture, arts, media, sports and youth exchanges. Today there is a growing interest among Indians about Korean traditional culture, arts and performances, foods, drama, movies and Taekwondo. Similarly the Korean people have found a new love in Indian culture, arts, yoga, meditation, foods, jewelry, etc. Despite this growing interest among our people about each other's culture, the cultural relations between our two countries are still at early stage. This situation can be corrected by intensifying mutual cultural exchanges. To promote Korean culture and enhance the image of Korea in South Asian region, Korean government plans to open a Korean Cul- tural Center in New Delhi within a few years, where you will be able to enjoy Korean arts ex- hibitions, movies and performances and can also learn Korean language.

The number of tourists visiting the two countries is also on rise. The number of tourists visited Korea and India was recorded at 140,000 during 2008, an 8 % increase over 2007. When it comes to tourism, Korea is one of the world's premier destinations and has a lot of attractions to offer to the visitors with its scenic beauty and unique cultural and historical heritage. With a unique tourism branding slogan "Korea, Sparkling", Korea boasts of picturesque natural landscape, a diversity of tangible and intangible cultural heritages designated by UNESCO and a variety of mega-events and world-famous festivals with unmatched standard of hospitality and service.

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reached to US$14.78 billion with a growth of 44.81 percent over the last year during the same period. During the period, the Indian exports to ROK registered a growth of 50 percent with export value of US$ 6.3 billion, whereas In- dian imports from ROK were recorded at US$8.4 billion with an annual increase of 41.2 percent.

WIDENING THE TRADE BASKET India's export basket to Korea comprises mainly of petro- leum oils (mainly naphtha), cotton yarn, zinc ores and con- centrates, waste and scrape of precious metal, ores and min- erals, oil-cake, solid residues resulting from extraction of Soya-bean, Ferro-alloys, iron ores, primary and semi-fin- ished iron & steel to name a few.

Major items of India's import from Korea are auto- parts and accessories of the motor vehicles, machines and me- chanical appliances, flat-rolled product of iron or non-alloy steel, monitors& projectors

and their parts, steam boilers, telephone set, including telephone for cellular network, among others.

KOREAN INVESTMENTS IN INDIA As per the Department of In- dustrial Policy and Promotion, ROK is the 16th largest investor in India in terms of actual inflow of FDI into India. During the period from April, 2000- July, 2008 the total inflow of FDI from Republic of Korea was Rs.17,642.73 million equiva- lent to US$ 403.94 million.

As per the data from the Ex- port-Import Bank of Korea, the following is the total amount of FDI approved and actually invested into India by Korea till September, 2008:

The prospective area of investment for Korean investment to India are shipping and port development, infrastruc- ture development, tourism and hospitality industries, agro food industries in addition to auto, communication and IT industries which already have their presence in India.

ROKs investments in India have largely taken place in the Transportation Industry, Fuels

(power and oil refinery), Elec- trical Equipments (including computer software & electronics), Chemicals (other than fer- tilizer), Commercial, Office &

House-hold Equipments, Met- allurgical Industries, and in Food Processing Industries.

Major ROK companies active in India include Hyundai Mo- tor, Samsung Electronics, LG, Lotte Group, and Doosan Heavy Industries. Now major ROK companies like Samsung, Hyundai and LG are expanding production facilities in India and smaller companies are focusing on technical collaborations. Apart from major business companies, there are more than 100 Korean companies who set up their business in In- dia.

As per the data from the Ex- port-Import Bank of Korea, total amount of FDI approved into India by Korea till Sep- tember, 2008 was US$ 1.46 billion.

INDIAN INVESTMENTS IN KOREA Novelis Inc., a subsidiary of Hindalco Industries Limited the flagship company of the Aditya Birla Group, acquired Alcan Taihan Aluminum Limited in January 2005.

Novelis Inc. holds 68% of total capital investment of US$ 600 million of Novelis Korea Limited.

Novelis Korea is the Asia's number one manufacturer of aluminum rolled products with state of art production facilities in Yeongju and Ulsan and employs more than 1,200 employees.

As per Korean statistics, the total trade turnover between India and Republic of Korea is as follows:

(in millions of USD)

Year Exports to India Imports from India Total turnover Growth (%)

2003 2,853 1,232 4,085 55.2

2004 3,632 1,850 5,482 34.2

2005 4,597 2,112 6,709 22.4

2006 5,532 3,640 9,172 38.4

2007 6,600 4,624 11,224 22.35

2008

(Upto NOV) 8,454 6,332 14,786 44.81

Source: Korea International Trade Association (KITA)

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CAPITAL Seoul

OFFICIAL LANGUAGES Korean

CURRENCY Won

POPULATION ESTIMATE 48.46 million

MAJOR CITIES Seoul, Busan, Daegu, Gwangju

MAJOR INDUSTRIAL PRODUCTS

semiconductors, automo- biles, ships, consumer electronics, mobile

telecommunication equip- ment, steel and chemicals GDP (PPP)

2008 ESTIMATE

G Total $ 957 Billion (13th)

G Per capita $27,646 (32nd)

GDP (NOMINAL) 2008 ESTIMATE

G Total $947 billion (15th)

G Per capita $19,504 (36th)

FACT FILE

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yundai Motor India Ltd. is today one of the most respected companies in India. The company has paid special attention to design, quality and innovation and has launched in the market products which have earned them laurels even from their competitors.

Says, Mr. H.S. Lheem, MD & CEO, Hyundai Motor India Ltd., "Hyundai has recently completed its 10 glorious years of tenure in India. At present Hyundai has positioned itself as In- dia's largest automobile exporter, second largest automobile manufacturer, and the world's 5th largest automotive group. Even in today's difficult financial scenario, Hyundai has registered total sales of 489,328 vehicles in the cal- endar year (CY) 2008."

Over the years Hyundai Motor India Ltd. has launched well engineered vehicles such as Getz, Santro, Accent, Verna and is today the second largest car manufacturer and the largest passenger car exporter from India,

presently marketing 33 variants of passenger cars across segments. Now with the recent launch of i10 and i20, the company has scripted another success story. Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from the leading automotive maga- zines and TV channels like BS Motoring, CNBC-TV18 AutoCar, NDTV Profit Car

& Bike India and Overdrive magazine. Cutting across international boundaries, the vehicle has received favourable reviews in the European markets.

"In the domestic market it has attained a growth of 22.4 percent with 245,397 units, while overseas sales grew by 92.5 percent, with exports of 243,931 units", adds Mr. Lheem HMIL's fully integrated state-of-

the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country.

HMIL commissioned its second plant in February 2008 which produces an additional 300,000 units per annum, raising HMIL's total production capacity to 600,000 units per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for compact cars. Apart from the expansion of production capacity, HMIL currently has 251 strong dealer network across In- dia, which will be further bolstered in 2009.

Like 2008, the year 2007 had also been a significant year for HMIL. It achieved a significant

milestone by rolling out the fastest 400,000th export car. Hyundai exported to over 95 countries globally; even as it plans to continue its thrust in existing export markets, it is gear- ing up to step up its foray into new markets.

Commenting on the support shownby the In- dian people Mr. Lheem says, "The commitment and unwavering support shown by our customers towards the brand has motivated us and provided us the drive to support the In- dian automobile Industry even in the current scenario. After witnessing such a strong positive re- sponse I am confident that Hyundai as an organization will emerge much stronger to lead the auto industry into the coming years".

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anufacturer of some of the finest cars the company has over the years awed the In- dian public with its breathtaking innovations Mr. Steve S. Yang head of Global Business Division, Hyundai Motor Company talks about the company's expansion plans in India

How is Hyundai Positioned globally?

Hyundai-Kia automotive group is ranked as the 5th largest automotive manufacturer in the world and it has moved to this position from the sixth position in 2007.

Hyundai has become a household name in India. How has the journey been so far?

The journey so far has been absolutely fantastic. We started out in India in 1996 and rolled out the first car - the Santro in September 1998. We set up a factory in Sriperumbudur outside Chennai with a manufacturing capacity of over 100,000 units at that point but by 2007 we were producing over 300,000 units from there by capacity expansion and running it full capacity with 3 shift operations. We expanded the operations by adding another manufacturing unit there in February 2008 and this factory too has a capacity of 300,000 unit taking the total capacity to 600,000 units per annum.

We, today offer a full range of cars in India start- ing from the Santro. i10, i20, Getz, Accent, Verna, Sonata and the SUV Tucson which is imported from here(Korea). Hyundai Motor India Ltd is today the second largest passenger car manufacturer in India and the largest car exporter from India. We have also designated India as the small car hub which means the small cars of Hyundai brand like the Santro, i10 and i20 will be manufactured only in India and exported from there.

And what is your opinion of the business climate in India?

The business climate so far has been very good but with the economic slowdown even the Indian market is affected to an extent although it is not as badly hit as say the American market but we hope that in the next few months things will get back to normal.

We had growth rates of 22% in 2006 and around 14.5% in 2007 ad it was only in 2008 that we saw growth rate drop to a single digit figure but in the long run we expect the Indian market to grow at a healthy pace and in double digits. The government too had been responsive and announced two stimulus packages immediately after the slowdown took place which reduced the interest rates and made fi- nancing of cars even cheaper.

Since your started operations in India how has your growth been? What kind of growth are you looking forward to in 2009-10?

HMI has been replacing the record in Indian automotive history. Recently HMI achieved the fastest 2million unit sales in September 2008 and fastest 700,000 units of export in Dec 2008. And HMI has grown its market share continuously in Indian market.

Even in 2008 we grew our market share by 3.4%

from 17% in 2007 to 20.4% in 2008 and in 2009 we expect this to grow to around 23%. We have been growing both the volumes and the market steadily.

We sold around 489,329 units last year ( December, 2008) and registered a cumulative growth of around 49.6% and 22.5% in the domestic market by volume last year over 2008 and this year too we should continue to grow although the current economic condi- tions have made it difficult to predict exact numbers.

Five years from now where do you see major change of the direction in Indian Automo- bile sector? What is Hyundai's plan with re- gard to fresh investments?

We have just invested around US $1 billion in the Indian market for expansion of our manufacturing facility and opening a new R & D center and we will continue to invest in India. We expect the Indian market to grow steadily in the long run and obviously Hyundai will be a major player in the Indian domestic market and serve as a hub for all our small car exports. We do not see any major directional changes and believe that the compact segment will continue to bring volumes for any manufacturer and it will be the main- stay of the Indian market

What are the major market where Hyundai In- dia exporting to?

Around 100 countries as diverse as Columbia in South America to Vietnam and

soon we will add Australia to the list. Our major market is of course the European Union that take 50%

or more of our total export but we sell in South Africa, Egypt and the Middle East also.

The auto sector thrives on constant innovation and state-of-the-art R&D. How much emphasis do you place on R&D and what new innovations are you coming up with?

We are setting up a new R & D center in Hyderabad at a cost of around US $40 million which will em- ploy around 800 - 1000 people and will help us with CAD and back end support. We of course have four R & D centres globally with Namyang here being the largest one and this is a complete facility which per- mits us to test each and every vehicle that is developed to the full extent.

The launch of the Tata's Nano was being ea- gerly awaited by the common man who was looking forward to a car at such cheap rates.

What challenges is this going to pose to your India operations as you too are leaders in the mid car segment? Are you planning to come out with a similar version to counter Nano's challenge?

No, we have made it clear that we will not enter the Nano segment. We will make a smaller car than the Santro sometimes in the future but that will not be priced in the Nano range. What the launch of the Nano will do is to grow the car market in India because a lot of first time car buyers will buy the Nano.

This is good because later when they move to bigger and more powerful cars then some of them will also come in to the Hyundai showrooms and hope- fully buy our cars. So if the size of the market grows then everyone benefits and this is what the launch of the Nano will do.

What has been Hyundai’s contribution to boost the bilateral ties between the two growing nations?

We try to promote both India and Korea because we believe we are equal partners in this and so far we have received tremendous support and enthusiasm from our Indian counterparts and both the Govern- ment's at the centre and the state of Tamil Nadu have been very helpful and supportive. Without their help it wouldn't have been possibly and I would like to take this opportunity to thank them once again.

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Head of Global Business Division

Hyundai Motor Company

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o promote South Korea as an ideal travel destination, the Korea Tourism Organization (KTO) set up a full-fledged office at New Delhi in In- dia in May 2008. In the initial months, we were busy setting up our office in New Delhi, building important contacts in the travel and tourism sector and acquiring understanding and knowledge of the In- dian tourism market. It was from October-Novem- ber onwards last year that the KTO, New Delhi began its marketing activities in collaboration with the media - print & electronic - to generate awareness about Korea among Indian travelers. A lot needs to be done, but we are happy with our progress in In- dia till date. Korea is the ideal travel destination for those Indians who have saturated their holidays to the usual destinations like Thailand, Malaysia and Singapore.

As a result of the aggressive marketing initiated by KTO, New Delhi, the figure of Indians travelling to Korea touched 73,200 in the year 2008, notch- ing up 7% growth over the previous year. The KTO aims to increase the percentage of leisure travelers to Korea in the coming months and has set its goal at bringing 100,000 Indians in 2010.

The tourism sector of the Korean economy has been doing very well despite the recession, which adversely impacted economies all over the world in 2008. The depreciation of the Korean currency (won) by 25 % in the past six months has sharply reduced the cost of touring Korea and this has greatly en- couraged potential visitors from all over the world.

Consequently, this helped the Korean economy generate good revenues from the tourism sector. Incase of India too, the favorable exchange rate of the In- dian rupee against the Korean won makes the present time very ideal for travelling to Korea.

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ant to get closer to na-

ture? Then book your flight, pack your bags and head straight to this cool southeastern nation. And with Korea's spring coin- ciding with Indian summer, Korea of- fers a refreshing break for those who are planning to beat the Indian heat and chill out in the far away cool beaches, lush green forests and natural wild parks of the Nation, do not forget to explore the fantastic cities, known for their vibrant night life and majestic shopping arcades. We assure you Korea is one nation where you will forget what boredom really is. So join us as we take you on a whirlwind tour of Korea.

SEOUL

The Capital of South Korea, Seoul is one of the most popular tourist attractions. Known for its night life and shopping experience, Seoul is a combination of tradition and modernity. The city is also the centre for business, education, and modern culture. With the rich history behind it, Seoul was an early fortress and a trade centre during the Paekche Kingdom, more than 1,500 years ago, today Seoul has grown into a cosmopolitan city replete with a va-

riety of modern facilities and world renowned shopping areas such as Nam- daemun Market, Dongdaemun Market, Itaewon and Insa-dong.

The nightlife is brilliant. You can dance away in the nightclubs till wee hours, try your luck at gambling in the casinos or just go shop. As Korea is alive 24X7, you can go sightseeing in daytime and spend the late evenings and the nights shopping or attending cultural programmes.

For a quiet and romantic evening, one can take the ferry cruise on the Han River passing through the heart of the city. The night view of Seoul and the soft breeze create a very dreamy effect. Fol- low this up with dinner on any of the various restaurants lining the Han River.

BUSAN

Busan, Korea's second largest city is the country's biggest trading port. Busan is an important city and has hosted many international events such as the 2002 14th Asian Games, the final match of the Korea/Japan World Cup, and since 1995 has annually hosted the Pusan International Film Festival. Over the years the city has also emerged as an important shopping centre and over the

years many shopping complexes have come up all over the city.

The abundant natural beauty makes it a perfect tourist destination. Seashore sightseeing includes such sights as the beach areas, islands, and Hae Ahn Park.

While interior land sightseeing includes such sights as downtown Busan, historical ruins and sites, Dongnae Shrine, Busan World Cup Stadium, and Bexco Exhibition and Convention Center.

The southeastern beach areas have amazing views of the fantastically shaped rocks and islands, which are a must see. The famous beaches of Hae- undae, Gwangalli, and Songjeong are enjoyed by many. Boating, jet skies, and banana boats are just among a few of the water recreation activities visitors can take advantage of. Amnam Park, Igi- dae, and Haean Park offer views of na- ture's masterpieces. The natural beau- ties of Busan can also be taken in by riding the cruise boats in the harbor.

YEOSU

A visit to yeosu can be a rather enrich- ing experience. Candidate city for the 2012 universal exposition along with Tangier and Worclow in Poland, Yeosu is a city with a glorious naval past. For travelers there are many worth visiting sites in the city.

One of the most impressive build- ings in Korea, Jinnamgwan is the biggest single story wooden structure situated in Yeosu.

The Yeosu Stone Man, the magnificent sculptures, played a significant role in protecting Yeosu during the Japanese invasion (1592-98) by scar- ing away the Japanese soldiers. Origi- nally there were seven of them, but only this one has survived to this day.

Perched on a small mountain, Hansansa temple has a great view over the city and the bay. Hansansa is a small intimate temple, colorful and quiet, surrounded by the sweet apricot smell of fragrant olives.

Nested on a cliff overlooking the clear blue seas of the South Sea, Hyangilam hermitage will require you to burn a few calories if you want to enjoy its dramatic views.

Hyangilam, meaning 'hermitage fac- ing toward the sun', is a popular spot for sunset watchers. It is also one of the most prized locations from which to enjoy the New Year sunrise. The great priest Wonhyo founded it in 644.

GYEONGSANGBUK-DO

The Buddhist culture of the Silla King- dom and the Confucian culture of the Joseon Dynasty are well preserved in Gyeongsangbuk-do. Among a wide variety of tourist attractions, Gyeongju, the capital of the Silla Kingdom, and An-

dong Hahoe Village are most cele- brated. Mt. Juwangsan National Park, the fine beaches, and the natural springs provide excellent tourist destinations.

THE JEJU ISLAND - A UNESCO WORLD HERITAGE

Located 64 kms south of the Korean peninsula, the Jeju Island was made a UNESCO World Heritage in 2007 for its natural beauty. Tourists can enjoy each season in Jeju, which is Korea's biggest island, with a particular splash of color.

The bright yellow rapeseed flowers covering the landscape during Spring, the

golden beaches and sea vistas in summer, the Eulalia's light brown wispy reeds flowing in the autumn winds and the lovely snow flowers of Mt. Hallasan in winter are all must-sees of Jeju.

Tourists can stay at the island's most lux- urious resort 'Jungmun', go hiking, bike riding, paragliding, scuba diving, wind- surfing, swimming or sightseeing. Ac- commodation facilities in all range from economical to premium are available at Jeju. Those wanting to explore the cultural aspects can visit the Jeju Folk Village Museum. Jeju Island in Ko- rea is a 'must-visit', especially for hon- eymooners and couples.

MUSEUMS AND THEATERS

Korea abounds in cultural facilities that offer an on-the-spot glimpse into the cultural and artistic achievements of Kore- ans. There are 358 museums in Korea, with 31 being funded and operated by the central Government. In addition, there are more than 155 private museums that have been established by private citizens, religious organizations and business en- terprises. Museums with unusual collec- tions have appeared including a museum specializing in Kimchi, Korea's trademark pickled cabbage and radish.

Korea has about 80 multi-purpose theaters. The National Theater, founded in 1950 has today four resident companies who stage some 35 regular productions annually. The National Museum of Con- temporary Art features an extensive col- lection of Korean and Western art works of the 20th century. One of Korea's largest multi-purpose theaters is the Sejong Cen- ter for the Performing Arts, located in the center of Seoul.

DRAMAS AND MOVIES

Korean drama has its origins in prehistoric religious rites. A good example of this classical theatrical form is the masked dance San- daenori, a combination of dance, song and narrative punctuated with satire and humor. It enjoyed remarkable popularity among rural people up to the early 20th century. Modern drama began to take firm root in the 1910s after the first Western-style theater was opened in Seoul in 1908. The Korean Culture and Arts Foundation has been sponsoring an annual drama festival to encourage local theatrical performances.

The first Korean-made film was shown to the public in 1919 entitled "Righteous Revenge". The first feature film "Oath Un- der the Moon" was screened in 1923. Since the 80s the Korean film industry has seen some remarkable success and many movies have earned recognition at international festivals including Cannes, Chicago, Berlin, Venice, London, Tokyo, Moscow and other cities.

MUSIC AND DANCE

Music and dance has been very popular in Korea and was a means of religious wor- ship during the time of the Three Kingdoms period. During the Joseon Dynasty, music was respected as an important element of rituals and ceremonies. Folk dances, including the farmers' dance, shaman dance and monk dance, became popular in the

latter days of Joseon, along with the mask dance known as Sandaenori and a puppet dance. A large number of traditional dances withered away during Japan's colonial rule, as well as the rapid industrial- ization and urbanization of Korea in the 1960s and 1970s. It was in the 1980s that people began to think about reviving these long-forgotten dances. Of the 56 original court dances, only a few are well-known today.

The development of modern dance in Korea was due largely to such pioneers as Jo Taek-won and Choe Seung-hui who were active during the Japanese colonial period. Following liberation, the Seoul Ballet Company was founded in 1946 to become the first organization that staged performances of ballet.

An increasing number of Korean musi- cians are performing outside Korea these days, winning acclaim from concert audi- ences and awards at prestigious international competitions. Among the most no- table performers are the Chung Trio conductor-pianist Chung Myung-whun, cellist Chung Myung-wha and violinist Chung Kyung-wha.

Among singers, sopranos Jo Su-mi, Shin Young-ok and Hong Hye-gyong have all established an impressive presence in the international community of music. They have performed leading roles in productions at New York's Met- ropolitan Opera and other famed stages in addition to recording for world-famous music companies.

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EXPLORE THE MOUNTAINS OF SOUTH KOREA

Mountains, covering almost 70 per cent of the Korean peninsula, serve as an ideal retreat from the hum-drum of city life. Their beautiful and tranquil atmosphere frequently draws a lot of locals and tourists. Here you can in- dulge in mountain climbing, trekking, biking, paragliding and other such ad- venture activities. Skiing and snowboarding are popular during winters when Korea is enveloped in snow.

There are 13 ski resorts in Korea and they continuouslysss keep upgrading their facilities for safer and more ex- citing skiing and snowboarding experience. Mountains in Korea are also abode to many famous Buddhist tem- ples, such as the Bulguksa Temple and Seokguram Grotto (famous Buddhist shrine) on Mt. Tohamsan and Gak- weonsa Temple on Mt. Taejosan in Gyeongju.

KOREAN CUISINE

Korean cuisine is well known throughout the world. The most popular food in Korea is 'Kimchi', a side-dish which is commonly had with rice. It is said that over 200 varieties of the Kimchi exist in Korea. Some other famous Ko- rean delicacies include rice cakes, bibimbap (rice with seasoned vegeta- bles, raw / fried egg & sliced meat), Ji- jim (fried pancake) and Jjajangmyeon (wheat noodles in thick sauce of soy- abean paste). With a long coastline, a diverse variety of seafood is also available in Korea. Seafood lovers can visit the Jagalchi fish market in Busan which is Korea's biggest seafood market.

EVERLAND, SEOUL LAND & LOTTE WORLD - KOREA'S 3 MOST LOVED AMUSEMENT PARKS

Your visit to Korea will be incomplete without visiting Everland, Lotte World and Seoul Land, South Korea's three much loved theme/amusement parks.

They rank amongst the World's Top 10 and offer facilities such as various thrilling rides, botanical garden, zoo, shopping center, restaurants, ice skat- ing ring - these theme / amusement parks are a one-stop shop for enter- tainment in all its forms. Everland is the largest and houses dozens of rides along with a truly magnificent garden, where a floral festival is held each season. Lotte World, a world-class indoor theme park, stands alongside the Lotte Hotel and Lotte Department Store, creating a complete resort-type feel. Seoul Land, when compared to Everland or Lotte World, is a more family-oriented theme park. There are many rides de- signed for children, and the various themes throughout the park make for a diverse assortment of attractions.

UNESCO WORLD HERITAGE SITES IN KOREA

Gyeongju, a city often referred to as the Museum Without Walls, is full of rem- nants belonging to the Silla Kingdom as well as relics pertaining to Bud- dhism. Especially worth visiting are Seokguram Grotto and Bulguksa Tem- ple. World Heritage listed Changdeok- gung Palace in Seoul was built as the 'Palace of Illustrious Virtue' in the fifth year (1405) of the reign of King Tae- jong of the Joseon Dynasty. The palace complex is still largely furnished and a fascinating place to visit. This shine is dedicated to the spirits of Joseon Dynasty's kings and queens. Of the many Dolmen sites in existence, the sites in Gochang, Hwasun and Ganghwa have been honoured with designations such as UNESCO World Cultural Heritage Sites.

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amsung has today become a well known name in India. Over the year the Company has provided the Indian market with some top quality products. Hyundae Choi - Executive Vice President of Samsung Engineering talks about the India market and Sam- sung's future plans.

Your views on the Indian market- First of all, I think that India is a very good market, especially since it has maintained a very strong local demand. Even there are some economic problems (global downturn) but India has a very strong domestic demand and is not as impacted compared to other countries such as China. Also, In- dia has one of the biggest populations which means that the Indian market is growing continuously. In the future, In- dian companies will build the plants

more easily than before. They can speed up their investment to some energy industries, like oil/gas or chemical. In my opinion, the Indian market is very bright.

Your views on the business climate/profit margin in India compared to other countries- You know there are not that many local contractors/competitors in other countries, especially the Middle East. In the past, Western engineering companies provided technology and service for the development of M.E. countries.

But India has also always had a lot of engineers. Also they have a lot of construction and engineering companies.

This means that in the India market, we are competing against domestic EPC contractors.

Views on growth pattern of the company and growth figures for year 2009 and 2010-

Not only Samsung Engineering but many engineering companies in Korea started to pursue overseas markets in the mid-1990s after gaining experience in the construction of plants in our domestic market. From 2003 our company really started its growth. Our major strong point is the hydrocarbon business, by concentrating on plant construction. After completing our hydrocarbon plant successfully, our reputation began to be widely recognized.

Then onwards many clients invited us

and our growth prospects grew in M.E.

countries. We entered the India market in 1997. We started off with two projects for IPCL in 1997, which includes the low-low-density polyethylene (LLDPE) project in Maharashtra and a C2/C3 Recovery plant in Gujarat. And then we got our next project from In- dian Oil Corporation. After IOCL, our reputation spread to other Indian clients. The IOCL Baurani expansion project was at a site in a very remote area which means we had to overcome a lot of difficulties. Which we did and we received a lot of positive recognition for this Baurani project

What is the growth?

The revenue has grown 30% since last year and the year before that and our aim is to continue that growth figure.

Besides Hydrocarbon and environmental, what is the future area you are focusing on to diversifying your portfolio or doing research?

Our major portfolio is hydrocarbon, industrial and environmental. But within those 3 business units, we will expand our services. We are also looking into offshore, pipelines and oil/gas exploration. We want to expand also to renewable energy, such as bio-fuel, etc.

We know many engineering companies that have knowledge about renewable energies in India we can join with these local companies and com- bine our knowledge.

H

YUNDAE

C

HOI

Executive Vice President, Samsung Engineering Co., Ltd.

SS

amsung Engineering considers In- dia as an important market and has made elaborate plans for the India market. Managing Director, Mr. Seok Beom Jo talks about Samsung Engi- neering's India operations.

Your opinion of the Indian market- India has emerged as a very strong economy in the world by registering GDP @ 7.1% for the last fiscal year. This is indeed great in this period of downturn and global meltdown. Indian Government pro-active approach and reformative stimulus action based decisions have facilitated the country to be least affected.

Indian engineers are considered a part of valuable talent worldwide besides India being one of the largest producers of engineering students every year. The command on English which is Interna-

tional language to do business globally, no-geographical restrictions and having exposed to working with large renowned global corporations have put them in the league of most sought after commodity worldwide.

Growth pattern of the company Samsung Engineering has registered 30% growth in the last year at global level. India, is a new venture and we are focusing on development and execution simultaneously. In less than 3 years of operation in India, we are already more than 300 people strong company and involved in 2 projects completely including MEG at IOCL, Panipat besides few others where partly support to H.O.

Services offered by the company- Besides quite strong in Hydrocarbon field, company is planning to diversify into Steel and Water business in India as well. Competitiveness in India is very high. If we enhance the capabilities of our people further vis-à-vis project management / execution, the diversification may prove easy transformation.

We are currently focused on execution of OPaL, Dahej project for the next more than 3 years. We need more projects and quite hopeful for the tangible results within this year. For India office, we may plan for smalll - mid size project as well to bid & execute independently.

Unlike many other companies, Samsung Engineering India is established to be-

come very soon full fledged EPC organization par with H.O. where the people as capable and independent as in H.O.

What is new on your agenda for the Year 2009-10?

G GGlloobbaall MMaarrkkeettiinngg EExxppaannssiioonn :: We ba- sically consider global economic slowdown an opportunity with some amount of risk. Our major focus would be to expand our operations globally.

G SSuuppeerr ccoommppeettiittiivveenneessss :: This is some- thing we consistently work on. Chal- lenges are great and competition is tough. We always define our differ- entiation strategies vis-à-vis Schedule, Quality, Cost etc. to have a certain edge over other competitors and reg- ister better success rate.

Best projects in India and the world?

Difficult to pick one. However, LAB project for IOCL, Baroda may be considered as the best. Linear Alkyl Benzene (LAB) plant (120,000/BPSD) in 2004 was completed in 24 months, a record for the fastest delivery of LAB project of that size.

Currently, we are executing MEG project for IOCL, Panipat. In that expansion petrochemical complex, there are total 12 projects are under progress, but Sam- sung Engineering is the only one who are on schedule and consistently being re- garded as No. 1 project in the complex.

Eyeing new horizons

S. B. JO,

MD, Samsung Engineering

India Pvt. Ltd.

O

ne of the largest steel makers in the world, Posco is eyeing India in a big way and is making elaborate plans to widen its network. Says, Mr.

Lee, Dong Hee, President, POSCO

“With a proposed investment of USD 12 billion, POSCO-India seeks to construct a world-class, fully integrated steel plant in the 4000 acre land of Jagasinghpur Dis- trict, Orissa, 10 km south from Paradip with annual production capacity of 12 million tones”. The project will include iron ore mine development over 30 years (total 600 million tones) at captive mines located in the Keonjhar districts of Orissa, as well as development of related infra- structure such as port and power plant etc.

Posco is also seeking opportunity in the construction and engineering business.

POSCO E&C concluded the contract for the supply of a large blast furnace fro the crude steel production expansion project of IISCO Steelworks under SAIL.

The company is also involved in various CSR activites. POSCO-India has provided the technical education for local vil- lagers (about 100 persons have been benefited), and has initiated educational support program to award scholarships for local students and bright college students. 28 students have been benefited from "POSCO-TJ Park Foundation.

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Growing stronger

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he LG Group is today one of the most recognized companies world wide, operating in over 130 countries with a revenue of US$

93 billion. The company is today a world leader in home appliances and computer related products and now has identified Life Sciences as one of the future 5 core businesses. LG Life Sciences started its activity as a 100% subsidiary in India by the name of LG Life Sciences India Pvt. Ltd. (LGLSI) in 2002.

The Indian biotech and Pharma sector holds major implications for the global Pharma industry. It has demonstrated its know-how to produce innovative as well as generic drugs and vaccines at much lower costs compared to its western counterparts.

Stable political situation coupled with competent,

English speaking workforce make India an attrac- tive investment destination especially for pharmaceutical Industry.

Further with the advancement in R&D capabilities, technical expertise, and excess capacities for contract manufacturing in accredited plants. With alignment to WTO charter Indian pharmaceutical industry has reached the centre stage of Global business. To sum up India shall play critical role in success of a company in global pharmaceutical arena.

The Company wants to leverage these strengths of Indian industry for the growth of LG Life Sciences India and to support LG Life Sciences' ambition to achieve newer heights.

LG Life Sciences India was first few of MNC's to have applied and granted with 100% subsidiary sta- tus. LGLSI has attempted to contribute in its own way to India's burgeoning pharmaceutical industry.

It entered Indian market at a time when Indian bio- pharmaceutical industry was still in its nascent stage with its high quality products, manufactured in world class facilities thereby raising the quality bar along with "affordability".

The Company works in the therapeutic segments like nephrology, in-vitro fertilization (IVF) and en- docrinology. The quest to bring the best for the In- dian patients led it into segments like critical care and medical devices, by tying up with international players of repute. LGLSI not only works with the spe- cialists but also with the patients and their families, educate and counsel them about the disease and drugs also that's a key differentiator for the company.

LGLSI could not have traversed this far without having taken steps and action that measure upto "LG Way" our credo, ethical management principles, that envisions "No.1 LG". Further, LG Way directs creating values that its customers can easily recognize and truly appreciate through honesty and innovation.

With HR systems well in place LG Life Sciences India encourage and recognize performers who contribute to organization's growth. HR lays a lot of emphasis on continuous training and development, with individual career planning. With trans- parent and objective compensation system attract- ing best of the talent is not a challenge for LG Life Sciences India.

LGLSI is a highly ambitious and motivated team with eyes trained at nothing but the top. So far it has been growing organically and with few strate- gic tie ups with other multinationals. To achieve critical mass rapidly, LGLSI is not even averse to take inorganic route. LG Life Sciences aspires to take its journey with more than 30% CAGR up to year 2015.

L

LGG LLiiffee Sciences, Ltd.

is cruising on its way to become a leading global life sciences company. The Year 2010 will be important for LGLS wherein it will further strengthen and expand its horizons in emerging global markets.

LG is predominantly known as an electronics company in India, If you could please elaborate about your foray in Life Sciences business.

Though, LG is predominately known as Electronics Company in India, but LG started as a Chemical Company in 1947 and eventually diversified in various businesses.

With chemical background, company yearned to move up in the value chain and graduate to Pharma business. This led to the laying of foundation for life sciences business way back in 1981, with setting up of genetic engineering research centre. We took three years for commercialization since incep- tion of division with laying of the roadmap for future.

In long history of LG, we are rel- atively a young outfit brimming with youthful energy to achieve what many may even mock as im- probable. Only this spirit has helped us achieve the drug discovery, US FDA, EMEA and WHO approvals, R&D and marketing al- liance with who's who of industry.

To have enhanced focus in domain a division was transformed into a full fledged company, and that's how we, "LG Life Sciences, Ltd.,"

came into being.

Kindly share with us the inher- ent advantages India enjoys that led you to set up your operations here. Do you plan to establish India as your hub for SAARC countries & Middle East region?

India is one of the biggest pharmaceutical markets in the developing world. Competent, English

speaking personnel, R&D facilities, clinical research, excess capacities for contract manufacturing in US FDA /UK MHRA approved plants are its high points.

We see a bigger role for our In- dian arm much beyond SAARC countries & Middle East region.

There are diverse roles that we seek from LG Life Sciences India. It can augment our R&D efforts, generic sourcing and clinical trials. We can further avail Indian technical expertise in area of regulatory sub- missions world over.

This all means and entail increased investments in India that we are committed to in phased manner as various projects shape up.

The Indian healthcare sector has witnessed rapid expansion during the last few years leading to a number of foreign healthcare firms venturing into India, how do you plan to repli- cate your success worldwide in India.

I reiterate all the points explained above to be the reasons for expansion in healthcare sector and entry of various MNC's in India. About us quality with affordability has always been our "mantra" that in short span of time has helped us develop into a formidable force to re- con with.

So far we relied on our in-house developed products. However, we are opening to other opportunities and considering bio-generics, branded generics, healthcare &

healthcare services actively.

To reach a sizeable structure meet and exceed our aggressive growth targets we are examining both, organic & inorganic routes.

It seems R&D is at the heart of LG Life Sciences growth engine and huge investments have been made on R&D structure in the past years. Kindly share with us about LG Life Sciences

R&D division and how successful it has been in conduct- ing some break through de- velopments?

Yes, R&D is lifeblood of our organization with biotechnology being its core focus. We boast of biggest pharmaceutical R&D in Korea, that is situated in Daejeon, about 180 kms from Seoul, employing more than 350 scientists, our quest to pursue R&D efforts are relentless.

We philosophize deliverance, as we want to take the life sciences business beyond drugs to wellness and towards "health & youth".

Our R&D capabilities are proven and well recognized even by Pharma majors. Gilead Sciences Inc., USA and Daejeon Pharma- ceutical Co. Ltd, Japan recently col- laborated with us for new drug discovery. Our R&D efforts led to discovery of FACTIVE™, a new drug, ushered in US FDA, EMEA and WHO approvals, R&D and marketing collaborations. This places us in league with best in pharmaceutical industry worldwide.

All these accomplishments have not been by chance but by design as company plough up to 20% of its turnover in R&D.

What is new on your agenda for the year 2009-10 and your vision for the group?

We envision ourselves to be a leading global life sciences company.

Year 2010 is important for us as we want to further strengthen and expand our horizons in emerging global markets.

2010 to 2015 would be a major growth phase for us, as we would be launching a slew of products from our maturing pipeline.

Our launches shall include innovative sustained release form of hu- man Growth Hormone (SR-hGH) preparation that requires only

"once a week" injection against conventional therapy that requires to be "injected every day", when translated in terms of benefit it will save a child from 6 painful pricks every week. Metabolic disorders are the other research area that would be fructifying, as we shall be commercializing treatments for "di- abetes" and "obesity". Caspase In- hibitor, a novel drug for treatment of various Hepatitis infections and liver disorders.

We expect this surge of new products would be rewarding for our company not only in terms of top line and bottom line but also further strengthen our position amongst roll of innovators in pharmaceutical world.

Quintessentially we have seen evolution and concentration of pharmaceutical industry in the Eu- rope and America, gradually Asia is rising and we want to be in the forefront to lead this change.

Aiming for a bigger role for Indian arm

LG Life Sciences has been contributing to the

Indian pharma industry by coming up with high quality biopharmaceuticals and new therapy options. In an interaction with W.S. Kim, MD, LG Life Sciences India talks about the importance of the Indian market and the Company's future plans Dr. I.C. Kim , CEO