Embassy of Spain

On May 16th Mr. José García from the Spain Embassy vitited our class. Mr García is Commercial Attaché and explained us the trade between Korea and Spain.

Why Spain in South Korea?

Because currently the 15^th World economy with aits GDP per capita of 26,000$ and its leadership in sectors as consumer electronics, telecoms, automotives, make possible the success of Spanish companies that are developed in those fields. The geographic position of the country is also important when developing relationships with China and Japan.  
Moreover, the number of alliances between Spain and Korea is increasing more and more. Mainly because Spain, as the graphic shows has not many relationship in trades and the % of  exports and imports is quite small.

Spanish objectives in Korea.

Spanish Commerce Chamber in Korea develops actions in order to get some objectives as improving the image of Spain and Spanish products, promoting our quality food products, increasing sectors considered as a priority in South Korea or supplying both-side investment.

Opportunity sectors in Korea

There are some sectors recommended to be in by the Spanish companies. Traditional sectors as wine, education and naval construction; and new sectors as renewable energetic sector (where spain is highly developed), automotives and complementary devices and nanotechnology. 

Spanish Companies in Korea

Automobile Component 
In this field, Spanish companies are sucessful because there are many special components that are really complex to design or need a qualify when building, and  Japan and China are not able to make them. Companies like Galol, S.A., Gestamp, Grupo Antolin, Ap-plus Idiada are some examples if this.

Industrial Electronics

Fagor it’s one of the most important Electronics companies in Spain, and their industrial or domestical products are slightly getting into Korea’s companies and homes.

Industrial Software

This is a really particular sector in which a company like Lantek has a particular success. They build software for iron-working machinery, and we have to say that they already have more than 1000 clients just in South Korea, companies like Hyundai, Daewoo or Mirae are using their products.

Aeronautical Engineering

EADS-CASA it’s an Spanish aeronautical company that is introducing their aircraft models into South Korean army. One example of it is the C-295M aircraft as you can see it below.

Medical Instruments Industry

Because of South Korean hospitals politics, Werfen Medical IL LTD positioned as an important reference with their surgical and medical instruments.

Textile Industry

As you can find it all around the world, INDITEX, S.A. have establish in Korea with many of its brands. Zara, Mango, Adolfo Dominguez and a long etcetera can be seen around Seoul, Busan, and almost any other big city in Korea.

Banks

This is a curious point because, BBVA bank has been the first bank who opens a branch in South Korea after the international crisis, which is an important move for Spain, cause shows to the world that we are going further, step by step.

Spanish Traditional food

As we all know, our traditional food it’s well-known all around the world, because of its quality and its amazing taste. Some companies like Grupo Vegajardin, S.A. has been homologated as Korea and Japan’s Spanish food official importer, which is more than an honor to this companies. Now, Serrano ham, lomo or Spanish cheese are possible to be found in eastern Asian markets.

Spanish Wine

There is a special mention to our wines, because, it’s more than a tradition, it is a way of thinking and even an art. There are thousands of Spanish wines and each one tastes different. There are tasting courses for learning about them, and each one has its own meal to accompany with. Next 10^th of June, there will be a Spanish wine exposition in Seoul for those that are interested on it and they want to taste it.

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South Korea to Spain.

 Spain is an attractive country. Its first economic sector is the tourism. Spain receives a lot of tourists every year.

 Spain is an attractive market as well, that´s why many companies decide to invert in Spain. Why is so interesting?

Spain population is around 47 million of people, so there are many consumers who are going to demand products.

GDP per capita, current prices (euros, 2009) = 22.889 euros

(31.930 USD, USD / EURO 2009 = 1,395), that means its domestic market has a high purchasing power.

Imports/GDP = 19,8% → almost 20% of GDP is cause by imports, that means Spain is a good example of open economy, so Spanish economy has  increased strongly its demand and production.

1- Industrial technology is the first one. South Korea inverts a lot of money in investigation, growth and innovation. Spain imports a lot of industrial technology from South Korea.

2- Information and telecommunications technology is the second one. Samsung or LG are the best examples of how Korean companies have been introduced in Spanish life.

3- Chemical industry is the third one.

Hyundai in Spain

When Hyundai was consolidated in many counties, started on March 1, 1992, with the opening of 18 dealers its bussines in Spain successfully.

They adapted really quickly and well to the Spanish market, one evidence of this: Models i30 and i35 have been selected as Best Car of the Year in Spain in 2008 and 2011.

Offers and promotions adapted to the Spanish market, they let you buy a car and start to pay one year after you buy it.

HANJING SHIPPING

Hanjin Shipping is Korea’s largest and one of the world’s top ten container carriers that operates some 60 liner and tramper services around the globe transporting over 100 million ton of cargo annually and has its own subsidiaries dedicated to ocean transportation, terminal operation, ship management, ship repair…

Actually working in the most important port in the south of Europe: Algeciras.

As you can see in the map Algeciras is very close to Africa, only 14 kilometers, and situated in very good strategic point in the middle of the Mediterranean sea and the Atlantic ocean.

Hanjin Shipping paid 374 million Euros for stay in Algeciras port.

They have their own terminal for work freely.

They choose Algeciras port because is the main gateway to entry to Europe from Africa.

Now that they are in Europe they are trying to create a eco-friendly image  because in the European union exist some laws (not enough in my opinion) that protects the natural environment.

Their own terminal in Algeciras has every year millions of benefits and due to the success of this company in Spain the last news that we have is that there are another Koreans companies trying to go to Algeciras and stay there.