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TRADE WORKS
U.S.-Korea Free Trade Agreement
Business Success Stories
TRADE WORKS
U.S.-Korea Free Trade Agreement
Business Success Stories
www.uskoreaconnect.org
R E P U B L I C
O F
KO R E A
Since its March 15, 2012, implementation, we have committed ourselves to the task of ensuring that the
U.S.-Korea Free Trade Agreement (KORUS FTA) is the success we said it would be. This book shares a
number of success stories of the KORUS FTA and showcases our commitment to maintaining the momentum
moving forward. The case studies collected here, which were gathered during the first nine months of the
KORUS FTA (between March and November 2012), illustrate many different ways in which American organizations,
spanning a wide range of industries from agriculture to pharmaceuticals, have taken advantage of the agreement
to grow their businesses and create jobs.
Y.J. Choi
Ambassador of the Republic
of Korea to the United States
In addition to the new opportunities presented by the KORUS FTA, the World Bank recently ranked Korea
eighth in the world in its ease of doing business index and second in ease of enforcing contracts. It is an ideal
time for U.S. businesses to take advantage of new market access opportunities in Korea’s dynamic trillion dollar
economy. We are pleased to share this first report with you and look forward to updating you with more information
as the number of success stories grows. To stay connected, please visit our website at uskoreaconnect.org,
where you can find answers to many common questions about the KORUS FTA, learn about state-by-state
benefits, gain access to resources, and connect with other participating businesses.
Sincerely,
Y.J. Choi
Ambassador of the Republic of Korea to the United States
Table of Contents
Albemarle Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Allied Potato Northwest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
American Hardwood Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Analytical Graphics, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Anderson Hay & Grain Co., Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Andrew Will Winery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Associated Aircraft Manufacturing & Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Astro-Med, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Baker Sales, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Blue Diamond Growers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Boeing Defense, Space & Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Brammo, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Bristol Compressors International, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Brown-Forman Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
CJ BIO America, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Communications-Applied Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Cleary Gottlieb Steen & Hamilton LLP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Correct Craft, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Crown Hardwood Co., Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Cutters Edge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Dexter Laundry, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
DiSTI Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Drexel Metals, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Fentress Architects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
FURminator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Glanbia Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
GT Advanced Technologies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Hawaii Exports International, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Hope Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Justi Group, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Kent Nutrition Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Kia Motors Manufacturing Georgia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Kiswel Co., Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Mark Rite Lines Equipment Company, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 34
MATCOR, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
MauiGrown Coffee Distributors, LLC.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Metaldyne, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Morgan Thermal Ceramics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Northwest River Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Optimum Spring Solutions, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Oxford Bioscience Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
PakSense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Pelican Products, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Phillips Syrup LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Profile Products LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Quality Float Works, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Reynolds Polymer Technology, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Ropes & Gray LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
SAS Automation.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
S.I. Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Sharpe Mixers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Smithfield Foods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Spika Welding and Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Texas Instruments Incorporated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Tradewinds Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Universal Display Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Universal Weather and Aviation, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Volpi Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
VP Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
W R Systems, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Welch Foods Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Wente Family Estates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Winix America and Winix Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Worldwide Protective Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Name of Company
City, State
Overview
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orci tellus, tempus nec iaculis in, vehicula in lacus. Maecenas sollicitudin, dui non gravida egestas,
urna ligula ultrices nisl, vel egestas est lacus in risus. Ut vitae mauris et nisl adipiscing imperdiet id et
erat. Pellentesque semper luctus felis at placerat. Nam eget libero vel est semper aliquet in ut sapien.
Duis cursus augue arcu, vitae auctor urna. In luctus sollicitudin rhoncus. Cras cursus massa quis leo
blandit imperdiet. Cras congue tempor nulla et euismod.
Exports
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sem quis risus mattis interdum. Proin viverra rhoncus luctus. Nullam rhoncus imperdiet felis at lobortis. Vivamus pharetra ante sollicitudin sapien dapibus id rhoncus lectus imperdiet. Pellentesque eget
tempus magna. Phasellus elementum malesuada neque porta elementum. Nullam molestie turpis a
tortor aliquet adipiscing. In hac habitasse platea dictumst. Maecenas mollis sapien nec dui vestibulum
quis dapibus leo vulputate. Integer magna odio, molestie ac scelerisque euismod, egestas volutpat
quam.
“If a small business was interested in
expanding internationally, I would say
first look at trading with Korea. Korean
businesspeople are honest, transparent
and overall, good partners. Korea is a
safe place to do business, but one with
significant opportunities. Just make
sure that you like kimchi!”
Growth
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lectus. Vestibulum malesuada gravida vestibulum. Pellentesque ut feugiat ante. Donec a odio eu dui
hendrerit consequat eu a libero. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Mauris sem sapien, ullamcorper eu sodales et, ullamcorper quis nisi.
Ut feugiat suscipit lorem et rutrum. In scelerisque vehicula quam at tincidunt. Sed interdum rhoncus
enim, eu blandit magna mollis at. Phasellus et diam et massa placerat placerat. Nunc eget erat quis
magna auctor fermentum et ut massa. Donec dapibus elit tristique nisi facilisis venenatis. Aliquam
congue magna et turpis luctus eu tempor est fringilla. Fusce ultrices aliquam ligula vel tempus.
Steve Drury, Vice President, Sharpe Mixers
F
Albemarle Corporation
Baton Rouge, Louisiana
Profile
Albemarle Corporation, established in 1994, is a leading global developer, manufacturer and marketer
of specialty chemicals for consumer electronics, petroleum refining, utilities, construction, automotive,
pharmaceuticals and agriculture. The company, which has 4,100 employees in more than 30
locations around the world, has three basic business segments - Catalysts, Polymer Solutions and
Fine Chemistry. In 2011, its revenue was almost $2.9 billion.
Trade
For Albemarle, deciding to trade with Korea was a logical choice. Many of its Polymer Solutions
products are used by consumer electronics manufacturers, including Korean industry leaders like
LG and Samsung. Today, Albemarle supplies a number of products to companies in Korea, including
polymers for flame retardants and catalysts for refining. Over the past few years, Albemarle’s sales
in the Korean marketplace have grown at an annual rate of almost 20 percent. The company also
purchases raw materials and basic chemicals from Korea. In 2003, Albemarle established a
presence in Seoul after acquiring Taerim International Corporation.
Growth
Later this year, Albemarle plans to begin operations at its newly-built research and development
laboratory and manufacturing facilities in Yeosu, Korea. Among other products, the facilities will
manufacture single site catalysts for polymer production. For Albemarle, the implementation of the
U.S.-Korea Free Trade Agreement (KORUS FTA) creates an environment for better business and
enhanced cooperation. The agreement also contains strong intellectual property provisions, which
will help protect Albemarle.
Trading Advice
Before beginning to trade with Korea, Albemarle advises reaching out to organizations like U.S. trade
groups and the Korean Embassy to learn more about the Korean landscape and how to operate
there. Also, when trading with Korea, Albemarle recommends thinking globally and acting locally.
“It would be irresponsible, and
nearly impossible, to ignore Korea in
our space. Korea is an area of great
innovation and an advanced economy with
growing affluence and well-established
leading industries. There is certainly
value to trading with Korea.”
Steve LeVan, Vice President, Advocacy
Albemarle Corporation
1
Allied Potato Northwest
Pasco, Washington
Profile
Allied Potato Northwest grows potatoes for processing into potato chips and fresh cut french fries.
Established in 2010, the company has about 35 employees and operations in Washington and
Oregon.
Exports
Allied Potato Northwest has been exporting to Korea since its establishment. In the beginning, the
company was approached by a Korean buyer, who asked it to become a supplier. Since then, its
trade with Korea has increased as its name has become associated with a quality product. Today,
the company’s largest exports to Korea are chipping and table potatoes, which are sold to snack
food manufacturers, as well as wholesale and retail markets.
Growth
Over the past few years, the company has seen consistent growth ranging from 10 to 20 percent in
its trade with Korea. Following implementation of the U.S.-Korea Free Trade Agreement (KORUS
FTA), Allied Potato Northwest expects to be able to sell more potatoes to Korea. The tariffs on its
products, which were as high as 304 percent, will be reduced or eliminated up to specified quotas
during certain times of the year. This will save its buyers money, a reduction that is likely to be passed
on to consumers.
“For Korean buyers interested in
potatoes, the American market is a
great option. The two countries get
along well in business, have a strong
trade relationship and establish
excellent partnerships.”
Jason Davenport, President and CEO
Allied Potato Northwest
Market Changes
The KORUS FTA established duty-free quotas for 3,000 metric tons of table potatoes. Importing
companies in Korea will need to bid on this quota. In 2013, the duty-free quota will grow by 3 percent
to 3,090 metric tons. These changes will cause some fluctuations in the market, as companies
determine which organizations will be able to take advantage of the quota. Chipping potatoes will
also be able to enter the Korean marketplace duty-free at certain times of the year. As the market
adjusts, Allied Potato Northwest expects to export more of its product to Korea and target those
companies with quotas available.
Benefits of Trading with Korea
Korea has helped Allied Potato Northwest improve its quality processes and made it a better
supplier. Korea has strict quality requirements, and by working with buyers there, the company has
consistently focused on improving its supply programs to meet their needs.
2
American Hardwood Industries
Waynesboro, Virginia
Profile
American Hardwood Industries (AHI) is one of the leading producers and suppliers of North American
hardwood logs, lumber and flooring. The company, established in 1955, includes three subsidiaries:
Augusta Lumber (Virginia), Blue Triangle Hardwoods (Pennsylvania) and Graham Lumber (Tennessee).
With 650 employees in four states, it manufactures more than 110 million board feet annually. AHI
produces all major American hardwood species grown in the eastern United States in many grades
and specifications.
Trade
AHI exports about 6,000 containers per year to customers around the world, amounting to about 75
percent of its business. The company began exporting to Korea more than 50 years ago. Today, AHI
considers Korea a major market. Its customers there include importers, distributors and manufacturers. In some cases, these manufacturers export furniture and other products to the United States and
other countries.
Growth
For the past five years, Korea has remained a stable market for AHI. Now, with the implementation of
the U.S.-Korea Free Trade Agreement (KORUS FTA), AHI plans to increase its focus on the Korean
market in 2013 to continue to build its business. By eliminating tariffs, the free trade agreement lowers
the price of AHI’s products and makes them more attractive than hardwood from competitors in Africa,
South America, Europe and Southeast Asia.
Traveling to Korea
Representatives from AHI travel to Korea regularly to meet with distributors and customers, both
current and potential. These trips help the company keep a pulse on the Korean market and strengthen
its business relationships. They are also an opportunity to promote AHI, as well as American hardwood
products in general.
“Traveling to Korea is one of the best
ways to really learn about our customers
and the market in which they operate.
By taking the time to meet in person, we
have found that we have a much better
chance of securing a long-term, successful
relationship.”
Ron Artz, Director of Sales -— Greater China, Japan, Korea
American Hardwood Industries
3
Analytical Graphics, Inc.
Exton, Pennsylvania
Profile
Founded in 1989, Analytical Graphics, Inc. (AGI) provides commercial modeling and analysis
software and tools for the development and deployment of aerospace, defense, intelligence and
cyberspace missions. A small-to-mid-sized business, the company has about 265 employees
located at its headquarters in Pennsylvania and eight field sales offices around the world.
Trade
Through a hybrid of direct sales and an international reseller partner network, AGI currently trades
with 35 countries. In 2006, AGI secured its first sale to a Korean client, the Korea Aerospace
Research Institute (KARI). Two years later, the company established a formal partnership with KCEI,
a software reseller with whom AGI continues to work. Today, its top Korean customers include the
Agency for Defense Development (ADD); Korea Aerospace Research Institute; LIG Nex1 Co., Ltd.;
Korea Aerospace Industries, Ltd.; Samsung Thales; Korea Astronomy and Space Science Institute;
and World Industries Ace, Inc.
Growth
Over the past five years, AGI’s annual sales to Korea have more than tripled, growing to approximately $500,000. To continue building its business there, AGI is participating in trade shows and
events in Korea and working with U.S. Department of Commerce Export Assistance Centers (USEAC).
Additionally, AGI has established educational alliance programs with INHA University
and Korea Aerospace University.
“When we first started looking at
international markets, Korea was exactly
the type of country we wanted to trade
with. It had a strong alliance with the
United States in defense, intelligence and
space and an interest in American
products. We were hopeful that our
products could help Korean businesses
and agencies strengthen their space and
defense programs, while also allowing
AGI to grow.”
Matt Glenn, Manager, International Operations
Analytical Graphics, Inc.
Benefits of the U.S.-Korea Free Trade Agreement (KORUS FTA)
While AGI does not benefit from tariff reductions, the company enjoys the intellectual property
protections included in the KORUS FTA. While AGI has not had an issue in Korea previously, it feels
that the protections provide extra assurance.
Trading Advice
When beginning to trade with Korea, AGI stresses the importance of choosing the right international
partners. To select its own partners, AGI worked with the U.S. Commerce Department through the
Gold Key Matching Service. For AGI, the program made the process easy and efficient by screening
candidates, making recommendations and setting up meetings.
4
Anderson Hay & Grain Co., Inc.
Ellensburg, Washington
Profile
Anderson Hay & Grain Co., Inc., established in 1960, is a leading U.S. exporter of hay and straw
products for racehorses and dairy and beef cattle. With a staff of 300-350 employees, Anderson has
a presence throughout the western United States, maintaining processing facilities and a network of
family-owned farms in Washington, Oregon and California.
Exports
Through numerous shipping line contracts and business partnerships, Anderson is able to service
customers throughout the world with U.S. forage products. The company currently exports to approximately 20 countries in Asia, the Middle East and Europe. Anderson began exporting to Korea in 1985
as a natural progression from its growing business with Japan. Exports to Korea have grown steadily
since then, with the company now exporting between 5,000 and 10,000 containers to Korea per year.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) reduces tariffs of 2 to 3 percent on Anderson’s
forage products and will slowly phase out an import quota on its products into Korea. To capitalize on
opportunities to expand its trade with Korea, the company is aggressively pursuing business and new
customers there. Recently, Anderson opened a new facility in Wilmington, California, that has
packaging options to readily supply the Korean market.
Trading Advice
As in all markets, Anderson believes the key to success is finding good, reliable partners to work with
and building on these relationships. Regular communication with business partners and trips to
conduct meetings in person are integral parts of establishing successful trading relationships and
learning the marketplace. In addition, Anderson advises that companies invest in the market for the
long term and work with customers who match your business plan.
Traveling to Korea
Representatives from Anderson make regular trips to Korea. A varied group within the company
travels there each year, so its salespeople, farming team, procurement staff and management are
all linked to the Korean market.
“Korea gives us a great opportunity to
diversify our business. Over the years,
we have been very fortunate to have
been able to establish long-term
customers and a great network of
reliable partners in Korea. We have
confidence that we will be able to move
product each year from our farms and
growers to the steady market in Korea.”
Brian Thompson, Sales Manager
Anderson Hay & Grain Co., Inc.
5
Andrew Will Winery
Yakima, Washington
Profile
Andrew Will Winery, established in 1989, is a family-owned winery on Vashon Island. The winery,
named after the founder’s son and nephew, is best known for its Bordeaux style red blends. With
grapes from three vineyards in Washington, the winery produces almost 5,000 cases per year.
Exports
Andrew Will Winery, which started exporting to Asia more than 10 years ago, now distributes its wines
to 12 countries around the world. The winery began exporting to Korea two years ago after receiving interest from importer Inquen Lee of Wine 2U Korea. In the past two years, Wine 2U Korea has
imported 150 cases of Andrew Will wines.
Growth
Following the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), Andrew Will
Winery has taken steps to expand its presence in Korea. Winery owner Chris Camarda and Robin
Pollard, former director of the Washington State Wine Commission, recently traveled to Seoul to meet
with key customers, retailers and restaurateurs and to become more familiar with the Korean market.
With cost reductions from the KORUS FTA and increased interest in Washington wines, the winery
sees opportunities to grow its business there.
“I was struck by the prominence of
coffee in Seoul. The rapid growth and
success of the coffee market there is
encouraging, because it shows the
potential for a product to grow. Once
consumers became educated about
coffee, they embraced it. We see the
opportunity to repeat this with wine.”
Robin Pollard
Andrew Will Winery
Entering Korea
When representatives from Andrew Will Winery traveled to Korea, they saw great potential to expand
the presence of Washington wines there. Currently, the Korean market is fairly young in terms of wine
being a part of its culture and food experiences. Because wine is a small percentage of Korea’s
overall liquor sales, competition is fierce. The implementation of the KORUS FTA creates an
opportunity for Washington wines by increasing awareness of American products and lowering costs.
Importance of the Korean Market
For U.S. wine producers like Andrew Will Winery, it is important to have a presence in different
countries. These wine producers need to be involved in markets around the world in order to remain
stable and succeed. For Andrew Will Winery, being in several international markets, including Korea,
helps the company diversify and enhance its global image.
6
Associated Aircraft Manufacturing & Sales
Fort Lauderdale, Florida
Profile
Associated Aircraft Manufacturing & Sales (AAMSI) was established in 1953. The company, which
employs around 80 people, supports American-made military aircraft, ships and products with
services including manufacturing, modification, maintenance, service and repair.
Exports
AAMSI, which currently exports to 50 countries, began trading with Korea about 10 years ago. The
company decided to enter the market when it saw an opportunity to fill a need by offering potential
customers lower costs for aircraft maintenance and operations. The company’s trade with Korea has
grown steadily since then, increasing to about $5.5 million a year.
Growth
In June 2012, AAMSI was awarded a $1 million contract to provide electronic Identification Friend or
Foe (IFF) systems to three new Republic of Korea Navy ships. The company worked with the Navy
to determine system requirements, develop solutions and create customized products to meet its
needs. AAMSI is also pursuing opportunities to help Korean aircraft and ships update their military
systems in order to stay in line with new government mandates.
Lessons Learned
When trading with Korea, AAMSI has learned that business agreements take more time than
Americans expect. It is important that companies entering the market allow time for Korean customers
to understand who they are and what they are offering. First, a relationship must be built, and then a
company can secure business. It takes time and effort, and a company must be willing to put in those
resources.
“We see great potential for AAMSI in
the Korean market, especially with its
growing high-tech industries. Some of
the new products and technologies we
are developing – with both military and
telecommunications applications – will
fit well into the future needs of this
market.”
Frank A. Lannon, CEO
Associated Aircraft Manufacturing & Sales
7
Astro-Med, Inc.
West Warwick, Rhode Island
Profile
Astro-Med, Inc. develops and manufactures specialty printers and data acquisition systems. Its
products are used around the world in a wide range of aerospace, automotive, communications,
chemical, food and beverage, medical, military, industrial and packaging applications.
Exports
Astro-Med has been exporting to Korea for more than 25 years, growing its business there to
approximately $1 million per year. All four of the company’s product groups are sold to Korean
customers, including Samsung, the Seoul Metropolitan Subway, POSCO and major hospitals.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) will reduce or eliminate tariffs on many of
Astro-Med’s products, giving the company some price advantages over its competitors. With the
combination of its new products designed with the Asian market in mind and the KORUS FTA, the
company expects to be increasingly successful in Korea.
“Korea has always been an important
market for us and our number one
market in Asia. The U.S.-Korea Free
Trade Agreement will be the frosting
on the cake, helping us to be even more
successful in the coming years.”
Eric Menke, International Sales Manager
Astro-Med, Inc.
8
Baker Sales, Inc.
Slidell, Louisiana
Profile
Baker Sales, Inc. is the leading regional “Mill Depot” distributor for a complete range of steel pipe
and fence products. The company, which has been in business for 34 years, supplies steel pipe and
fence products to both domestic and international customers. It anticipates doing about $5 million in
sales in 2012.
Trade
Baker Sales, Inc. imports steel pipe from countries around the world. Korea has been a favored, longterm trading partner of the company, which has had consistently positive experiences ordering from
Korean steel suppliers.
Growth
Overall, Baker Sales, Inc. expects the U.S.-Korea Free Trade Agreement (KORUS FTA) to greatly
strengthen the relationship and opportunities between the United States and Korea. In the future,
Baker Sales, Inc. would like to expand its business with Korea. The company is looking into
developing a long-term relationship with a Korean pipe mill and potentially establishing partial
ownership. This would help the mill expand its business and create an opportunity to expand sales
in the United States, Central America, South America and Caribbean countries.
Trading Advice
According to Baker Sales, Inc., some American companies are aggressive in business and want
immediate results. Koreans are more likely to first want to get to know their trading partners and
better understand the companies with whom they are going to do business. By taking time to build
a relationship, American companies can develop stronger ties with their Korean partners and find
opportunities they did not know existed previously.
“Korea is one of my favorite trading
partners. I’ve always found our Korean
suppliers to be one of the most
honorable groups to do business with.”
Robert A. Baker, President
Baker Sales, Inc.
9
Blue Diamond Growers
Sacramento, California
Profile
Blue Diamond Growers, founded in 1910, is the world’s largest tree nut processing and marketing
company. It operates as a cooperative for about 3,000 almond growers in California and represents
more than 50 percent of all California almond growers. Blue Diamond markets its crop to all 50 states
and more than 90 countries. It has been instrumental over the years in opening many export markets
and introducing California almonds to consumers worldwide.
Exports
Blue Diamond has been exporting almonds to Korea for more than 30 years and was one of the first
companies to sell California almonds there. The company exports both manufactured and raw
almonds to consumers, retailers and major Korean food companies. Blue Diamond has found that
Korea is a constantly expanding market for almonds. The California almond industry exports millions
of pounds of almonds to Korea each year, and exports increased 28 percent in the last growing
season.
Growth
Now that the U.S.-Korea Free Trade Agreement (KORUS FTA) has been implemented, almond tariffs
as high as 32.6 cents/kg will be eliminated over the next five years. The elimination of tariffs will open
more applications for California’s almonds in Korea by making the nut more affordable, more
accessible and more competitive against other tree nuts.
“Korea is an affluent and sophisticated
market, and there are great opportunities
to educate consumers there about the
benefits of incorporating almonds into
their diets. By making California
almonds more affordable, more
accessible and more competitive
against other tree nuts through the
KORUS FTA, we can continue to grow
our exports there.”
Warren Cohen, Director, Worldwide Industrial Sales
Blue Diamond Growers
10
Boeing Defense, Space & Security
St. Louis, Missouri
Profile
The Boeing Company is the world’s leading aerospace company and the largest manufacturer of
commercial jetliners and military aircraft combined. Boeing has a strong history of cooperation with
the Republic of Korea, going back a half century. Boeing shares productive partnerships with Korea
in the commercial and defense aerospace markets and is committed to fostering long-term industrial
growth for Korea through high-technology solutions that create jobs. The company employs nearly
190 highly skilled workers in Seoul, Busan, Gimpo, Sacheon, Seosan and Daegu. Today, Boeing
works with nearly 20 Korean companies and spent more than $250 million with them in 2011,
maintaining Korea’s position in the top quartile of nations with which Boeing does business.
Boeing Defense, Space & Security
A unit of The Boeing Company, Boeing Defense, Space & Security (BDS) specializes in innovative
and capabilities-driven solutions for defense, space and security customers. Headquartered in
St. Louis, BDS is a $32 billion business with 61,000 employees worldwide. In April 2012, Boeing
delivered the final two of 61 Republic of Korea Air Force F-15K Slam Eagles. In October 2012, the
company delivered its fourth and final 737 Airborne Early Warning & Control Peace Eye aircraft.
Growth
As Boeing expands its global defense business, exports like these are essential to growing the
business and sustaining a talented work force in the current environment. Boeing is looking ahead
to new opportunities in Korea as it provides Performance Based Logistics support for the F-15K
fleet. The company is offering the Silent Eagle, an evolved derivative of the F-15K, in Korea’s F-X
competition for 60 multi-role fighters. The AH-64D Apache also is a contender in the AH-X competition
for 36 combat helicopters for the Republic of Korea Army.
11
Brammo, Inc.
Ashland, Oregon
Profile
Brammo, Inc. is an automobile manufacturer specializing in electric motorcycles. Brammo’s vehicles
are engineered specifically for use in congested urban areas.
Exports
Brammo plans to take advantage of expanded opportunities created by the U.S.-Korea Free Trade
Agreement (KORUS FTA), which immediately cuts the 8 percent tariff on electric motor vehicles in
half and eliminates it within four years. The elimination of the tariff will increase Brammo’s competitiveness in Asian markets and give the company greater opportunities to grow its business through
exports.
Growth
Buyers of electric motor vehicles in Korea can receive tax breaks as high as $3,500, an incentive
put in place to promote sales of energy-saving vehicles. The combination of such incentives and
lower prices as a result of the lower tariffs make Brammo’s electric motorcycles an attractive option
for Koreans. Additionally, Korea’s capital city of Seoul alone increases Brammo’s potential market
of consumers by more than 10 million.
“I am very happy with the insight and
perspective the United States’ expanded
economic ties with Korea bring. We
believe it helps with the opportunity to
expand Brammo to Asia.”
Craig Bramscher, CEO/Chairman
Brammo, Inc.
12
Bristol Compressors International, Inc.
Bristol, Virginia
Profile
Established in 1974, Bristol Compressors International, Inc. manufactures a full line of compressors
that are used in air conditioning, heat pump and refrigeration applications. The company, with 750
employees, supplies products to original equipment manufacturers and wholesale distributors
including Carrier, York, Goodman and Rheem.
Exports
Bristol, which exports about half of its products, supplies compressors to customers in more than 50
countries around the world. It began exporting to Korea in the mid-1980s, partnering with a distributor
who continues to represent the company today. Bristol does approximately $4 million to $5 million
in business annually with Korea, a number that has remained steady over the past five years. Its
Korean customers include original equipment manufacturers like LG Electronics and Samsung.
Growth
Under the U.S.-Korea Free Trade Agreement (KORUS FTA), an 8 percent tariff on Bristol’s products
was reduced. This makes the U.S. manufacturer more competitive in the Korean market. To take
advantage of the opportunities under the KORUS FTA, the company is placing a renewed focus on
the refrigeration segment of the Korean market. Bristol is doing product field trials with a large
well-known producer in Korea to secure new business. If successful, the business will significantly
increase Bristol’s sales in Korea.
Trading Advice
When pursuing business in Korea, Bristol recommends showing an interest in Korean culture and
current affairs. Staying informed about Korean news demonstrates respect for both your business
partners and their country. And, of course, you must eat kimchi.
“At Bristol, we have found that once
we meet with our Korean customers in
person, communication is enhanced,
and we can relate to one another
better. These face-to-face relationships
are extremely important in international
business. Traveling to Korea also shows
our sincerity in supporting the market.”
Chris Robinson, Director of International Sales
and Marketing, Bristol Compressors International, Inc.
13
Brown-Forman Corporation
Louisville, Kentucky
Profile
Brown-Forman Corporation is one of the largest wine and spirits companies in the world. The
company was founded in 1870 when pharmaceutical salesman George Garvin Brown began selling
medicinal whiskey in glass bottles. Today, the company employs more than 4,100 people and owns
world-famous brands such as Jack Daniel’s, Southern Comfort, Finlandia Vodka and Old Forester
Straight Bourbon Whiskey, the original whiskey sold by George Garvin Brown.
Exports
Brown-Forman’s products are exported to more than 135 countries throughout the world. In 1998,
the company opened an office in Korea and began exporting there for the first time. Today, BrownForman exports many different brands of spirits to Korea, including Jack Daniel’s Whiskey, one of the
country’s top five imported spirit brands. Brown-Forman’s presence continues to grow in Korea, and
it sees great opportunities ahead under the U.S.-Korea Free Trade Agreement (KORUS FTA).
Growth
As a result of the KORUS FTA, there has been a spike in media coverage of American spirit brands,
and whiskey brands in particular. This increased awareness, paired with the FTA’s establishment of
a level playing field with European brands, provides a boost to Brown-Forman and other American
spirit companies.
“Korean consumers understand and
enjoy American brands. Establishing
the propitious partnerships and
leveraging the attributes that make
American brands unique and desirable
in the eyes of the Korean consumers
will enable a company to be successful
in the market.”
Michael McShane, Senior Vice President and
Managing Director, Asia Pacific
Brown-Forman Corporation
Importance of the Korean Market
Korea is an advanced market with a growing economy, open markets and an intelligent consumer
base that enjoys American brands. For Brown-Forman, the decision to do business in Korea was an
easy one. It views Korea as a key market for any company hoping to globalize its business.
Trading Advice
If a company is not properly prepared, the channels of the Korean market can be difficult to navigate.
According to Brown-Forman, before beginning to export to Korea, it is important to develop a deep
understanding of the market and the segments in which you will be operating. It can be a good idea
for a company unfamiliar with the market to partner with local companies that understand the ins and
outs of the marketplace.
14
CJ BIO America, Inc.
Fort Dodge, Iowa
Profile
CJ BIO America, Inc., part of the Korean conglomerate CJ Cheiljedang, produces Lysine, an amino acid
that is used in feed for poultry and swine. CJ BIO America is currently constructing its first American
facility in Fort Dodge, a community of 25,000 in central Iowa. The $320 million factory is expected to
produce more than 100,000 metric tons of amino acids per year.
Investing in Fort Dodge
CJ BIO America chose to partner with Fort Dodge because it offers the greatest opportunity for the
company’s success in the United States. Cargill, the company’s supplier of corn starch (the largest
quantity raw material used in the production process), is located immediately south of the CJ BIO
America facility, allowing the factory to quickly and cost-effectively receive the corn byproducts
needed for Lysine production. CJ BIO America is confident in the community’s workforce, which has
flooded the company with job applications since the announcement of the factory.
Impact on the Community
The community of Fort Dodge believes that the addition of CJ BIO America will help solidify the area
as a regional hub of economic development. The factory will create 1,200 temporary construction
jobs and as many as 180 full-time positions once it is completed in 2014. The community has been
quick to embrace the new factory, which is expected to provide a boost to the local retail industry and
school system, in addition to potentially attracting more businesses to Fort Dodge.
Working Together
Officials from Fort Dodge and CJ BIO America have already built a solid foundation of cooperation.
CJ Cheiljedang hosted community leaders from Fort Dodge to tour its headquarters in Korea and
view a factory in China similar to the one being constructed in Fort Dodge. In return, the community
hosted many Koreans for the Fort Dodge facility’s groundbreaking ceremony.
Cultural Connection
CJ BIO America already extends itself into the community by participating in charity drives and
supporting the Greater Fort Dodge Growth Alliance, an economic development organization. Within
the company, CJ BIO America believes that an open exchange of culture and ideas will lead to
success and a positive work environment.
15
“Fort Dodge and CJ BIO America will
be very successful in combining their
two cultures. Traditional Midwest
values of hard work, respect for elders
and an honest day’s pay for an honest
day’s work are the same values that are
learned in Korea.”
Lucas Palmer, General Affairs Manager
CJ BIO America, Inc.
Communications-Applied Technology
Reston, Virginia
Profile
Since 1982, Communications-Applied Technology (C-AT) has designed and manufactured
communications equipment for civilian and military first responders. Its radio systems, intercoms
and interoperability equipment are built to withstand use in the most hazardous environments, from
natural disasters to terrorism sites. The veteran-owned company, which currently has 13 employees,
works with other small businesses across the United States to manufacture its products.
Trade
C-AT exports to about 18 countries, including Korea. Its trade there began in 2008, when the
company was approached by a Korean distributor. The distributor facilitated a deal for C-AT to
develop a customized communications system for the Korean Coast Guard. The system included
65 interoperability units that allowed communications between different types of devices (e.g. from
a telephone to a two-way radio).
Growth
C-AT is continuing to work with its distributor in Korea to secure new business with police and military
agencies. In the next few years, the company expects that the Korean government will move forward
with buying and setting up emergency communications equipment. C-AT plans to pursue that
business.
“Korea is a sophisticated and
technologically-advanced market, with
a variety of complex communications
equipment. Because of its solid
infrastructure and need for rapid and
reliable communications, we see great
opportunities to expand our business
there.”
Trading Advice
For a company starting to trade internationally, C-AT offers some practical advice: become familiar
with the culture of the country you are trading with, especially its holidays and vacation practices.
These schedules are important to prevent communication difficulties and frustrations.
Technology Advances
According to C-AT, one of the most outstanding things that has happened in international business
is the improved ease of having conversations. With the help of online translation services, it is
possible to have simple, real-time discussions with partners and clients, without spending a great
deal of money or having long delays.
Seth Leyman, Founder and President
Communications-Applied Technology
16
Cleary Gottlieb Steen & Hamilton LLP
New York, New York
Profile
Cleary Gottlieb Steen & Hamilton LLP (Cleary Gottlieb) is a leading international law firm with 16 offices
on four different continents. Founded in 1946, Cleary Gottlieb employs approximately 1,200 lawyers
worldwide, representing clients across an array of industries. The firm has been recognized for its
practice in the areas of corporate governance, capital markets, financial institutions, antitrust, mergers
and acquisitions, private equity, tax, regulatory, and litigation and arbitration, among many others.
International Business
Cleary Gottlieb began working with Korean clients in the early 1990s as Korean companies began
expanding internationally with debt and equity offerings in the United States. The firm later represented
the Korean government as it restructured the debt of its banking sector and offered bonds internationally
for the first time during the Asian financial crisis of the late 1990s. Today, Cleary Gottlieb practices
many different areas of law for large Korean corporations including POSCO, Lotte and Samsung.
Growth
With all but two of its offices located outside the United States, Cleary Gottlieb’s global reach is
unparalleled. Following the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA),
it moved quickly to open an office in Seoul. The office officially opened on October 15, 2012. Cleary
Gottlieb has 10 associates in its Korean practice and expects its office to grow significantly over the
next few years.
Benefits of Opening an Office in Korea
By establishing an office in Seoul, Cleary Gottlieb can serve both its Korea-based clients, as well
as clients outside the region doing business there, more efficiently and effectively. The firm can also
utilize its presence on the ground to broaden its relationships in the region and cultivate new clients.
Additionally, the office gives Cleary Gottlieb an advantage over law firms without a presence in Korea
when it pursues new business.
“It is certainly an exciting time to be
practicing in Korea. A lot of Korean
companies have been entering into
sophisticated international transactions
over the past few years, offering many
great opportunities for our law firm.”
Impact of the KORUS FTA
By promoting trade between the United States and Korea, the KORUS FTA also increases the need
for legal services for resulting business transactions. While Cleary Gottlieb expects increased business
opportunities for all law firms practicing in Korea, it plans to capitalize further on the agreement by
also pursuing synergistic opportunities among its practices throughout the Asian region, as well as in
the United States.
Yong G. Lee, Partner
Cleary Gottlieb Steen & Hamilton LLP
17
Correct Craft, Inc.
Orlando, Florida
Profile
For almost 90 years, Correct Craft, Inc. has manufactured boats designed for waterskiing and other
tow-oriented water sports. Today, Correct Craft’s Nautique powerboats are the official towboats of
many water sport tournaments around the world.
Exports
Correct Craft has been exporting boats to Korea for 20 years, where wakeboarding continues to gain
popularity. This year, Nautique powerboats were the exclusive towboats at the IWWF Asian
Australasian & Oceanian Waterski & Wakeboard Championships in Chuncheon, Korea.
Growth
With the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), the 8 percent
tariff on Nautique powerboats will be eliminated over the next three years, creating significant
opportunities for Correct Craft in Korea. First, the agreement will allow Correct Craft to be more cost
competitive in doing business with local distributors. It will also decrease the amount of time that it
takes Correct Craft to get its boats to customers, a major advantage with a seasonal product.
Additionally, the KORUS FTA raises awareness of U.S. products in Korea, making them a more
attractive option.
“We have just scratched the surface
of what we can do in Korea. With the
benefits of the KORUS FTA, plus our
long history of providing innovative
and high-quality products, we look
forward to continuing to grow our
relationships with Korean consumers.”
Bill Yeargin, President and CEO
Correct Craft, Inc.
18
Crown Hardwood Co., Inc.
West Grove, Pennsylvania
Profile
In 1846, Carl Wilhelm Franz Schlobach started sawing veneer at the Thomas Mill in Leipzig, Germany.
Five generations later, his family business continues in West Grove, Pennsylvania, as Crown
Hardwood Co., Inc. and Crown Veneer Corp. With four large operations in the United States, Crown
Hardwood annually exports about 24,000 tons of veneer and lumber logs from many U.S. species,
including walnut, white and red oak, cherry and ash. Crown Veneer Corp imports architectural
veneer from around the world and produces maple, cherry and walnut veneers in the United States
for export.
Exports
Crown entered the Korean market in 1980 when Korea had a robust plywood-manufacturing industry.
In recent years, however, the Korean market has evolved to demand higher-grade woods. Today,
Crown sells logs to Korean furniture, tabletop and reconstituted veneer manufacturers.
Growth
The reduction of tariffs by the U.S.-Korea Free Trade Agreement (KORUS FTA) allows consumers to
more easily afford high-quality wood furniture and tabletops manufactured in Korea. Often, Americans
are more attracted to wood that was grown in the United States, enabling Crown’s hardwood and
veneer businesses to benefit from Korean manufacturers capitalizing on trade under the KORUS FTA.
Importance of the Korean Market
Many international markets have seen a decline in demand for furniture since the U.S. housing
bubble burst in 2008. While the American housing market continues to rebound, many Korean
manufacturers find increased business opportunities at home in their domestic market. Korea’s
economy has remained strong, creating an increased demand for high-quality furniture, panels,
flooring and tabletops among its growing middle class.
Doing Business in Korea
Crown admires the savvy of its Korean clients. According to the company, Korean clients are
extremely focused on buying the highest-grade wood so that they can provide the greatest possible
value to their consumers.
19
“The differences among various grades
of wood remind me of a jewelry store.
You find glass pearls in one division
and diamonds in another. The Korean
market is a very sophisticated one.
Right now, the Koreans want diamonds,
and that is Crown’s specialty.”
Peter Schlobach, Owner
Crown Hardwood Co., Inc.
Cutters Edge
Baker City, Oregon
Profile
Cutters Edge manufactures chainsaws engineered for use in fires or collapsed buildings. Its saws are
designed to withstand some of the most extreme conditions. Fire departments all over the world use
Cutters Edge saws to conduct rescues.
Exports
Cutters Edge exports internationally to distributers across North America, Europe and Asia. The
elimination of the 8 percent tariff on chainsaws will provide Cutters Edge with new opportunities and
incentives to export to Korea.
Growth
Now, through outreach efforts to distributors, manufacturers and local governments, Cutters Edge is
researching the possibilities to expand operations by entering the $1.7 million Korean market with its
chainsaws.
20
Dexter Laundry, Inc.
Fairfield, Iowa
Profile
Dexter Laundry, Inc. has manufactured laundry equipment since 1894. For the past 50 years, the
company has specialized in manufacturing washers and dryers for self-service laundries (laundromats),
as well as non-coin-operated industrial strength washers and dryers for hospitals, hotels and other
institutions that have large on-site laundry needs. For more than a quarter of a century, the
company has been 100 percent employee owned through an employee stock ownership plan.
Exports
After entering the Korean market in 2002, Dexter Laundry has steadily grown its business and now
considers the country one of its important international markets. The company’s business in Korea
comes from sales of washers and dryers both in self-service coin-op laundries and on-premise
laundry such as hotel and hospitality markets.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) eliminates tariffs on Dexter Laundry’s exports
to Korea, leveling the playing field with its European competitors who already benefit from a free
trade agreement with Korea. The company looks forward to building positive momentum through
the KORUS FTA. As trade barriers are reduced, Dexter Laundry is developing additional top-quality
products for the Korean market.
Importance of the Korean Market
Dexter Laundry has grown steadily over the past decade in the Korean market. Although Korea
is a country that has traditionally relied on hang drying its clothes, as the middle class grows and
machines become more affordable, Dexter Laundry sees a great opportunity to help shape a new
culture for laundry consumers.
Lessons Learned
After spending time in the Korean market, Dexter Laundry has tailored its marketing to fit the specific
needs and desires of Korean consumers. In Korea, it markets its products for their durability, reliability
and energy efficiency. Dexter Laundry also pursues business in Korea via various marketing
channels such as trade shows, social media and seminars, conducted as much as possible in the
Korean language.
21
“The KORUS FTA benefits everyone.
For Dexter Laundry, this means that
our products are now more competitive
with products manufactured elsewhere
around the world. This provides coin-op
laundry equipment purchasers in
Korea with a greater range of products
at the most competitive prices.”
Daniel Chen, International Sales Manager
Dexter Laundry, Inc.
DiSTI Corporation
Orlando, Florida
Profile
DiSTI Corporation, established in 1994, is a global leader in the development of Human Machine
Interface software and technologies for businesses, governments and the military. Its products enable
programmers and developers to build high-fidelity graphics, 3D simulations and fully interactive
controls and displays for the aerospace, defense, medical and automotive industries.
Exports
DiSTI, which has about 3,000 end users in 40 countries, exports its software to Korea for use in the
military and commercial training and simulation markets. Its customers include the Korean Agency for
Defense Development, Korea Aerospace Industries Ltd., DNSK and Korean Air. While the company
began trading with Korea about eight years ago, it has seen significant growth in the last few years,
growing its business there by more than 30 percent between 2009 and 2011.
Growth
DiSTI has started to explore uses for its products in the Korean automotive market. With the U.S.Korea Free Trade Agreement (KORUS FTA) in place, there are more Korean automobiles entering
the U.S. market and, as a result, greater opportunities with Korean automotive manufacturers.
Currently, DiSTI is working to gain more visibility in the market and open negotiations with Korean
automotive companies.
“For DiSTI, Korea is the next big growth
area in Asia. We have seen significant
growth there in the last few years and
are working to further increase our
presence. Korea is a technologically
advanced and friendly country with
the United States, and we have found it
an easy and pleasurable place to do
business.”
Christopher P. Giordano, Director, Global Sales & Support
DiSTI Corporation
Trading Advice
For companies looking to trade with Korea, DiSTI recommends learning more about the business
culture there. For example, Korea has a hierarchical business structure, where appropriately interacting
with people at different levels in the organization can require sensitivities not readily apparent to
Western businesses.
Insight into the Korean Market
According to DiSTI, it is important to find companies and partners in Korea willing to take a risk and
introduce a new technology to the market. If a product is not currently being used by the Korean
market, companies need to demonstrate through detailed analysis how it is manufactured, how it
can be used, its expected return on investment, etc. Once a product has been accepted, however,
a company can start to do a significant amount of business in Korea.
22
Drexel Metals, Inc.
Louisville, Kentucky
Profile
Drexel Metals, Inc., established in 1985, is a provider of equipment, materials, engineering and
warranties for the production of standing seam metal roofing systems in military buildings. The
company, which has 65 employees at five locations around the United States, sells its products and
services to the construction industry and to the United States Department of Defense (DOD).
Exports
Drexel Metals currently exports to six countries directly or through its customers. The company
began trading with Korea in 2012, completing its first shipment of equipment to a client working with
the DOD to manufacture roof panels for U.S. military buildings in Korea. Drexel Metals also conducted on-site equipment trainings in Korea and plans to perform inspections of finished buildings.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) lowered the overall cost of Drexel Metals’
equipment going into Korea, making the company more competitive. As a next step to capitalize on
opportunities there, Drexel Metals will provide support and information to its Korean partner as it bids
on new contracts. For new projects secured by its partner, Drexel Metals will conduct inspections and
potentially sell more equipment.
Importance of the Korean Market
As a close ally of the United States, Korea has a substantial U.S. military presence in need of
facilities, housing, offices, etc. Because construction activity must be done to U.S. specifications,
Drexel Metals’ expertise positioned it well to enter the market. Drexel Metals believes that Korea will
become a significant market for the company.
Traveling to Korea
Representatives from Drexel Metals have traveled to Korea several times since the company began
pursuing business there. The trips have been conducted to explore opportunities in Korea and meet
with potential partners. Most recently, representatives from Drexel Metals traveled to Korea to
follow-up on equipment sales and conduct on-site trainings.
“Our recently-retired company founder
wanted to utilize our experience in the
United States creating roofing systems
for military buildings. After looking at
prospects around the world, Korea was
identified as a market worth pursuing
and one where there were significant
opportunities for us to grow.”
Steve Spragale, Director of Government and
International Programs, Drexel Metals, Inc.
23
Fentress Architects
Denver, Colorado
Profile
Fentress Architects is a global design firm focused on the creation of sustainable and iconic
architecture. Founded in 1980, the firm has designed $26 billion of architectural projects worldwide
that are visited by more than 300 million people each year. In addition to its headquarters in Denver,
Fentress has studios in California, Washington, D.C., and London. The firm will be opening a studio in
China in late 2012.
Exports
Fentress first entered Korea in the early 1990s in a partnership with a consortium of four Korean
architecture firms in a design competition for Incheon International Airport in Seoul. Fentress and the
consortium were unanimously selected to design the airport, with Fentress serving as prime designer.
The airport opened for business in 2001. Since then, Incheon International Airport has been voted the
“World’s Best Airport” seven years in a row by the Airports Council International.
Growth
In anticipation of implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA),
representatives from Fentress made numerous trips to Korea to meet with contractors on possible
projects. Among other benefits, the FTA’s strong provisions regarding intellectual property rights
make Korea an increasingly attractive market. By protecting both Fentress and Korean companies,
there are more opportunities to partner and pursue design projects there.
“The KORUS FTA’s intellectual property
provisions not only protect us, but also
make Korean companies more open to
partnering with us. This makes Korea
an even more attractive market and
helps us to pursue projects there with
more vigor.”
Curtis Fentress, Principal-in-Charge of Design
Fentress Architects
24
FURminator
Fenton, Missouri
Profile
FURminator was started almost 10 years ago with the development of the FURminator® deShedding
Tool to safely, efficiently and comfortably remove a pet’s loose undercoat and reduce shedding.
Since then, the company has expanded the tool into a full product line of deShedding tools, grooming
tools, hair care products, and pet bathing and hygiene solutions. Since its founding, the company has
grown to more than 30 employees doing approximately $40 million per year in business.
Exports
FURminator currently exports to about 60 countries around the world. The company began exporting
to Korea in 2010, after determining that Korea had a strong market for premium pet products. With
the help of a Korean distributor, FURminator began selling its products to pet stores, veterinary clinics
and grooming salons there. Since then, the company has developed Asia-specific packaging and
grown its sales to Korea by more than 100 percent each year.
Growth
The implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA) has allowed FURminator to lower its prices for its customers, helping it better compete in the Korean market. The company
is continuing to grow its business there and plans to roll out new video merchandising displays for
Korean retailers.
Insight into the Korean Market
After traveling to Korea, FURminator employees realized that pet stores in the country were significantly smaller than those in the United States. To adapt to the needs of the market, FURminator created different sizes of its displays to better accommodate stores in Korea.
Trading Advice
For companies interested in trading with Korea, FURminator recommends traveling to the country
to meet prospective partners in person. This allows companies to experience the market firsthand,
select the best partners and develop localized materials.
“As a global pet brand, we serve pet
parents around the world. Korea is a
key market for us and one that we are
committed to growing. The KORUS
FTA helps us better compete and
makes our products more affordable
to consumers.”
Aaron Witt, Director of International Sales
FURminator
25
Glanbia Foods, Inc.
Twin Falls, Idaho
Profile
Glanbia Foods, Inc. is one of the world’s largest producers of cheese and whey protein. The company
has production facilities in Twin Falls, Gooding and Richfield, Idaho, as well as a joint venture in Clovis,
New Mexico. Together, these facilities produce about 830 million pounds of cheese per year, including
American, Cheddar, Colby, Colby Jack, Pepper Jack and Monterey Jack varieties.
Exports
After exporting whey proteins and lactose to Asian markets since the early 1990s, Glanbia Foods
expanded its exports to include cheese in 2007. That year, Korea imported nearly 20 million pounds
of cheese from the United States. In 2012, Glanbia Foods expects Korea’s cheese import market to be
as high as 80 million pounds. The company’s most popular cheese export to Korea is Cheddar, which
is often used as an ingredient in the manufacture of foods and other cheeses.
Growth
Before the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), cheeses such as
Cheddar had tariffs higher than 30 percent. Under the agreement, those tariffs are being incrementally
reduced until they are eliminated completely in 2021. The cost reduction will make Glanbia Foods’
products more attractive in the Korean market. The KORUS FTA also gives Glanbia Foods a competitive edge over non-free trade countries including New Zealand, which has been the predominant
exporter of cheese to Korea for many years.
“We could never have grown as
successfully as a company if we had
not begun trading outside of the
United States. In Asia, Korea is a
cornerstone market. The KORUS FTA
opens opportunities for us to grow
throughout that part of the world.”
Dave Snyder, Vice President, Global Business
Development, Glanbia Foods, Inc.
Importance of the Korean Market
For Glanbia Foods, Korea is a mature trading market with significant growth potential. As a global
company, it was essential for Glanbia Foods to establish itself in Korea. Now, thanks to the KORUS
FTA, its strong presence in the Korean market gives Glanbia Foods a competitive advantage in Asia.
Trading Advice
According to Glanbia Foods, the Korean marketplace is fast paced, so it is important for American
companies trading with Korea to move quickly. While Korean businesses often take time at the
beginning to establish a relationship, they expect products and services quickly once a partnership
is in place.
26
GT Advanced Technologies
Nashua, New Hampshire
Profile
GT Advanced Technologies, founded in 1994, designs technologies that serve the solar photovoltaic
(PV) and LED industries by improving quality while reducing cost. With nearly 650 employees worldwide, GT specializes in Directional Solidification System (DSS) technology, which is used to produce
materials for solar panels. GT also designs crystal growth technology to produce materials used in
LED chips.
Exports
From its beginning, GT made a strategic effort to enter Asian markets including Korea, where its
industries of focus were quickly growing. Today, GT has sales offices in Seoul, Taipei and Shanghai.
GT’s products serve both PV manufacturers in Korea, as well as large corporations that utilize the
company’s LED technologies.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) gives companies such as GT a competitive
edge in the global market. Still in its youth, the global solar industry remains more expensive than
traditional grid power and requires continued innovation to position itself as a sustainable energy
source. By promoting the exchange of technology and goods through the elimination of tariffs, the
KORUS FTA not only benefits GT, but the solar industries in Korea and the United States.
Importance of the Korean Market
GT considers Korea a mature manufacturing country that offers immense opportunities for the
company’s technologies. While the solar PV and LED industries have been steadily growing in Asia
for years, Korea has recently emerged as one of the region’s preeminent markets for high-quality
projects and innovation.
Doing Business in Korea
GT admires the respect and hospitality that company representatives are given by Korean partners
on business trips. Additionally, GT views Koreans as sophisticated manufacturers, ideal for establishing long-lasting partnerships.
“In addition to being a mature
manufacturing nation, Korea is one
of the most innovative countries in the
world with regards to solar energy.
The openness created by free trade
with Korea is a boon not only for this
company, but for the advancement of
the industry.”
Jeff Nestel-Patt, Director of Marketing
Communications, GT Advanced Technologies
27
Hawaii Exports International, Inc.
Honolulu, Hawaii
Profile
Hawaii Exports International, Inc. (HEI), established in 2009, helps Hawaiian companies and products
enter international markets. The company works primarily with small- to medium-sized organizations
interested in exporting for the first time. HEI assists with all aspects of exporting, including developing
an export business plan, finding in-country partners, attending trade shows and advertising.
Trade
Through its clients, HEI exports Hawaiian consumer goods including macadamia nuts, coffee, tea,
sea salts and Spirulina nutraceutical products to eight countries. It started trading with Korea in 2010,
when it connected a participant from a Korean trade mission to Hawaii with Kona and KA’U coffees.
Growth
For HEI, the U.S.-Korea Free Trade Agreement (KORUS FTA) lifts tariffs on many of the products that
it exports to Korea. To capitalize on opportunities for its clients, HEI is currently talking with a major
retailer interested in selling and marketing Hawaiian coffee and nut products throughout Korea.
HEI also began collaborating with the Hawaii Department of Agriculture, the U.S. Commercial Service,
the Western United States Agricultural Trade Association and the Korean Chamber of Commerce in
Hawaii to identify new tools and opportunities to expand its clients’ business in Korea.
“The KORUS FTA will lift tariffs on
many Hawaiian products and help us
facilitate more business with Korea
for our clients. The agreement has
helped us feel reinvigorated about
trading with Korea.”
Michael Rakieten, Managing Director
Hawaii Exports International, Inc.
Korean Consumers
Koreans are one of the largest tourism groups visiting the Hawaiian islands. During their visits, many
of these tourists gain knowledge of Hawaiian products and brands. They represent a significant opportunity for HEI to capitalize on consumers who are already aware of, and interested in, Hawaiian
products.
Insight into the Korean Market
When it first began exporting Hawaiian coffee to Korea, HEI was impressed by the sophistication
of the Korean market. The interest in coffee, especially specialty products, in Korea spans all age
groups and demographics. The extensive coffee market in Korea represents significant opportunities
for HEI’s clients.
28
Hope Global
Cumberland, Rhode Island
Profile
Hope Global, founded in 1883, develops and manufactures engineered textile solutions for
automotive, commercial and industrial uses. Today, about 70 percent of the company’s business is
automotive related in North America, South America, Europe and now, Asia. The company has also
begun exporting its braided products to Asia.
Exports
Over the past several years, Hope Global has concentrated on growing its trade with Asia, especially
as its customers with global footprints were increasingly doing business there. Recently, Hope Global
hired a business development director for Asia and secured a significant client in Korea.
Growth
With the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), tariffs on Hope
Global’s products are eliminated or reduced. This makes the company more competitive in Korea
by giving its customers, as well as potential customers, an immediate price cut. This is especially
important in the automotive market, where companies are continually looking for ways to decrease
costs. Since the implementation of the agreement, Hope Global has visited Korea to meet with
companies and groups there to discuss future business opportunities.
“As our customers have increasingly
gone global, we have done the same
and strengthened our focus on
international trade, especially in the
Asian markets. The KORUS FTA not
only provides immediate benefits to
our customers in Korea, but also makes
us more competitive when pursuing
potential customers.”
Jack Waksman, Senior Vice President,
Business Development, Hope Global
29
Justi Group, Inc.
Berwyn, Pennsylvania
Profile
Justi Group, Inc. (JGI) is a privately owned holding company with roots dating back to 1865. Today,
subsidiaries of JGI include Esschem, California Chemical Specialties, Esstech, Specialty Glass and
EssPac. These manufacturing companies create highly specialized chemicals and other materials for
use in dental, cosmetic, audiology, medical, pharmaceutical and related applications. The company,
which currently has 150 employees, has seen five generations of leadership by the same family.
Exports
JGI sells to small- and medium-sized companies in more than 120 countries worldwide. It has been
doing business in Korea for more than 20 years, through direct orders and a regional sales associate
stationed in Asia. Before the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA),
JGI’s products faced tariffs of 3 to 10 percent, which were reduced by the agreement.
Growth
Over the past year, JGI has seen significant growth of its business in Korea and throughout Asia.
Company representatives have regularly traveled to Korea for tradeshows like Cosmobeauty Seoul
and meetings with potential customers. The company has also invited many of its customers to visit
its facilities in Pennsylvania.
“Korea is an especially easy place for
American companies to do business.
We have fairly similar business
cultures; there is a high-level of
consumer sophistication in Korea;
we have the benefits of a free trade
agreement; and we have a strong and
longstanding relationship.”
American Products in Korea
In many of the industries that JGI serves, American companies are considered the most advanced.
This helps JGI because Korean companies often look to emulate their American brand name
counterparts. They are interested in what American companies are doing and want to make sure
that they are keeping pace with American brand names.
Henry D. Justi, Director of International Sales
Justi Group, Inc.
30
Kent Nutrition Group
Muscatine, Iowa
Profile
Kent Nutrition Group is a family-run business that has manufactured nutrition-focused animal feed
since 1927. The company has about 500 employees at 17 manufacturing sites across the United
States. Kent has expanded its business from cattle feed to include feed production for dairy, swine,
sheep, horses, goats and poultry. It has even produced product offerings for alpacas, llamas and zoo
animals. Today, products are marketed under the Kent Feeds and Blue Seal brands.
Exports
In recent years, the company has increased its focus on international trade. Kent began working with a
Korean distributor in 2003 to export specialized products for the swine industry and quickly expanded
to include beef and dairy products. Demand for its dairy cow product, a hard molasses substance that
provides nutrition as cows lick it, has been growing in Korea since its introduction there in 2008. The
company currently exports more than 300 tons a year of its dairy product offerings to Korea.
Growth
Kent is interested in taking advantage of the simplification of conducting business in Korea under the
U.S.-Korea Free Trade Agreement (KORUS FTA). Recently, Kent has instituted internal programs to
prepare employees for the logistical challenges of trading in overseas markets.
Marketing in Korea
Kent adapts the package size of its products to fit the needs of its Korean consumers. When exporting to Korea, the company offers smaller containers since many Korean pastures are not as large as
those in the United States.
Trading Advice
Kent recommends that companies trading perishable goods have a comprehensive understanding
of any necessary paperwork. If a company with time-sensitive shipments does not have a thorough
understanding of the rules and regulations, its shipments can be delayed or ruined.
31
“Our Korean distributor operates
with consistency, and our relationship
continues to grow more and more
positive over time. Korea has been a
great partner for our business.”
John Thorpe, President
Kent Nutrition Group, Feed Division
Kia Motors Manufacturing Georgia
West Point, Georgia
Profile
Kia Motors, a Korean-based automobile company and the fastest growing car company in the
United States, opened its first North American manufacturing facility in West Point, Georgia, in 2009.
Kia Motors opened the $1.1 billion plant, Kia Motors Manufacturing Georgia (KMMG), to build a
stronger relationship with the United States, one of its most important markets.
Growth
The Georgia facility, which manufactures the Kia Sorento, Kia Optima and Hyundai Santa Fe,
currently employs about 3,000 team members. Together with on-site and local suppliers, the facility
has been responsible for the creation of more than 10,000 jobs around West Point. In September
2011, KMMG increased its production capability to 360,000 vehicles per year. With the expansion,
nearly half of the Kia vehicles sold in the United States in the first six months of 2012 were built in
Georgia.
Relationship Between United States and Korea
KMMG and Kia Motors headquarters in Korea maintain a close working relationship. Kia Motors
offers KMMG employees the opportunity to train at the company’s research and development
center in Namyang, Korea. The training helps the company’s employees connect with one another
and share their cultures and ideas. More than 1,400 KMMG employees have participated in the
program.
Community Involvement
KMMG has established itself as a respected corporate citizen in Georgia. In 2011, the facility donated
$1.5 million to the American Red Cross for its tornado relief efforts in the state. Additionally, KMMG,
whose economic impact on the region is estimated to be $4 billion per year, was recently named
“Large Manufacturer of the Year” in Georgia.
32
Kiswel Co., Ltd.
Florence, Kentucky
Profile
Founded in 1969, Kiswel Co., Ltd. is a welding, engineering and chemical company headquartered in
Seoul, Korea. In 2007, Kiswel opened a manufacturing plant in Kentucky. With more than 50 employees,
the Kentucky manufacturing plant produces welding consumables and welding wires used
in construction, shipbuilding, automobiles and railroads.
Growth
Kiswel opened a plant in the United States to be closer to its customers and to capitalize on opportunities in the U.S. welding industry. Today, the Kentucky manufacturing plant plays a significant role in
Kiswel’s North and South American operations. During the last three years, Kiswel’s Kentucky facility
has seen a growth in exports and has been able to expand its workforce.
Relationship Between United States and Korea
The Kentucky facility maintains close ties with Kiswel’s headquarters in Seoul. Representatives from
both the Korea headquarters and the Kentucky manufacturing plant regularly travel to the other
location to meet with team members. Kiswel conducts these visits to keep everyone in the company
in close and harmonized communication.
Trading Advice
According to Kiswel, companies interested in expanding into Korea should do adequate research to
ensure they fully understand the marketplace. In addition, developing relationships with people familiar
with the Korean market is important. Finally, Kiswel advises companies to consider the strong
emphasis that Koreans place on respect, especially when meeting with clients.
33
Mark Rite Lines Equipment Company, Inc.
Billings, Montana
Profile
Mark Rite Lines Equipment Company, Inc. (MRL) began as a small, family-owned contracting company
in 1976, growing to become the largest manufacturer of truck-mounted road-marking machines in the
United States. The company, which makes high-quality, high-output road-marking equipment for both
private organizations and government agencies, has about 120 employees in its manufacturing and
contracting divisions.
Exports
Overall, MRL exports 18 to 20 percent of its annual sales to countries including Korea, Australia,
Turkey, Chile, Canada, Mexico and Saudi Arabia. MRL has exported to Korea since 2006, when it
sold its first truck to Dae Dong Safety Company Ltd. Since then, MRL has sold additional trucks, parts
and onsite support. Now, MRL is designing and manufacturing 12 custom equipment sets for Dae
Dong, a $1.5 million sale that will take almost a year to complete.
Growth
MRL has seen an increase in demand for its equipment both around the world and in Korea. MRL
recently received inquiries from other groups in Korea, as the U.S.-Korea Free Trade Agreement
(KORUS FTA) has promoted international trade between the two countries and made American
products more competitive.
“The KORUS FTA actually is an
incentive for our customers to buy
from us because it lowers the tariff on
the product that they’re importing into
their country. It’s a win-win for both
of us, helping us keep jobs in Montana
and Montanans employed here.”
Jim Spielman, President
Mark Rite Lines Equipment Company, Inc.
Marketing its Products
When MRL sold its first truck to Dae Dong, it was a design commonly sold in the United States. When
Dae Dong ordered more trucks, it requested modifications to make the equipment more suitable for
the Korean market. Now, with any new inquires, MRL has the insight and knowledge to customize its
products to better meet the needs of Korean customers.
Trading Advice
According to MRL, when trading with Korea, it is imperative that companies have face-to-face contact
with potential customers and start to establish a relationship based on mutual trust and respect.
When MRL was first approached by Dae Dong, a company representative traveled to tour its Billings
facility and met with the MRL team in person before ordering any equipment. MRL’s representatives
and technicians have since made numerous visits to Korea to support Dae Dong’s operations and
discuss new equipment purchases.
34
MATCOR, Inc.
Doylestown, Pennsylvania
Profile
MATCOR, Inc. designs, engineers and provides systems and services that prevent the corrosion
of metals. Since 1975, the company has sold products using cathodic protection, an electrical
process to protect metals, to customers in the oil and gas, electric utility, transportation and construction
industries. With about 50 employees, the company has manufacturing facilities in Doylestown,
Pennsylvania, and an engineering and field service office in Houston, Texas.
Trade
MATCOR manufactures all of its products in the United States, selling to customers around the world.
It began exporting to Korea about 10 years ago, after being approached by a Korean customer.
Through its in-country representative, MATCOR has provided products and services for major
projects including the Sihwa Lake Tidal Power Station, one of the world’s largest tidal power plants,
and the Busan-Geoje Fixed Link, a bridge-tunnel that connects the Korean city of Busan to Geoje
Island. Recently, the company began selling linear anode products to Korea for plants, pipelines and
storage tanks.
Growth
Over the years, MATCOR’s business with Korea has remained steady, keeping the country as one of
its top five export markets. Korean companies do a significant amount of engineering business worldwide, so MATCOR has continued to pursue sales with organizations working on engineering projects
both in Korea and internationally.
Importance of International Trade
Approximately 15 percent of MATCOR’s business is generated from international sales. For a
company in a niche market like MATCOR, a diversified client base, with customers around the world,
is extremely important.
Trading Advice
According to MATCOR, Koreans are pragmatic businesspeople. One of the keys to successfully
conducting business in Korea is to be upfront, explain your strengths and position a product or service
properly.
35
“Korea is a productive country with
many sophisticated buyers who want
to know why their clients would be
interested in a specific product. If a
company’s products have competed
successfully in the global market,
Koreans will value that. ”
Ted Huck, Vice President
MATCOR, Inc.
MauiGrown Coffee Distributors, LLC
Lahaina, Hawaii
Profile
With its first harvest in 2004, MauiGrown Coffee Distributors, LLC became the only coffee grower
native to the island of Maui. With 15 employees and about 420 acres, MauiGrown Coffee currently
grows between 300,000 and 500,000 pounds of coffee per year, consisting of four varieties: Yellow
Caturra, Red Catuai, Guatemalan Typica and its signature variety, Maui Mokka.
Exports
MauiGrown Coffee started exporting to Asia through a broker in Japan, where its coffee has
consistently grown in popularity over the past several years. Hoping to expand its reach throughout
the region, MauiGrown Coffee placed its first direct sale to Korea on August 1, 2012, for nine bags
(900 pounds). MauiGrown Coffee expects its orders from Korea to increase to between 50 to 100
bags after its next harvest.
Growth
MauiGrown Coffee plans to establish itself in Korea by gradually increasing its sales to potentially as
high as 500 bags (50,000 pounds). MauiGrown Coffee is optimistic about its venture into Korea and
believes that the U.S.-Korea Free Trade Agreement (KORUS FTA) will simplify the export process.
“The efficiency and attention to quality
in Korea astounds me. We are very
excited to build and expand upon our
great relationships in Korea.”
James ‘Kimo’ Falconer, President
MauiGrown Coffee Distributors, LLC
Importance of the Korean Market
As a fairly young company, MauiGrown Coffee is excited to be selling to the Korean market for the
first time. Korea is not only a center of trade in Asia, but also a large cultural influence in the region.
By being successful in Korea, MauiGrown Coffee believes it can continue to expand its business.
Korean Coffee Preferences
After researching the Korean market, MauiGrown Coffee found that Korean coffee drinkers enjoy
exotic and exclusive coffees. Because Maui Mokka is both high quality and somewhat low in supply,
MauiGrown Coffee thinks that it can find a successful niche market in Korea.
Showing in Korea
Taking advantage of the open trade between the United States and Korea, MauiGrown Coffee is
attending coffee trade shows in Korea. The company hopes to raise awareness of its products and
identify local distributors and business partners. Additionally, MauiGrown Coffee is excited to learn
more about Korean coffee culture and techniques. The lessons it learns will help MauiGrown Coffee
adjust its marketing efforts to better resonate locally.
36
Metaldyne, LLC
Plymouth, Michigan
Profile
Metaldyne, LLC, is a leading global designer and supplier of metal-formed components and assemblies
principally for powertrain applications in the automotive and light truck markets. Metaldyne has more
than $1 billion in annual revenue and 25 locations across 13 countries.
Trade
The Asian market is a key part of Metaldyne’s global strategy. Since 2004, Metaldyne has had a
manufacturing presence in Korea at its plant in Pyeongtaek. The facility produces balance shaft
modules, which are supplied to the local Korean market and exported to Hyundai’s engine plant in
Alabama. Metaldyne also imports raw materials from many businesses in Korea to its U.S. operations. In fact, Metaldyne imports more of its materials from Korea than any other country. The
U.S.-Korea Free Trade Agreement (KORUS FTA) encourages such trade.
Growth
The KORUS FTA provides Metaldyne an incentive to continue growing its business in Korea. Since
Metaldyne opened its manufacturing facility in 2004, the sales of the plant have grown significantly
and are expected to continue growing in the future.
Importance of the Korean Market
Korea is an important part of Metaldyne’s global footprint, and the company continues to invest in
the region to support its customers. The KORUS FTA helps facilitate Metaldyne’s relationship with
Hyundai, one of the company’s most valued customers.
Doing Business in Korea
Metaldyne values its relationship with all of its Korean business partners and its team members at
the Metaldyne manufacturing plant in Pyeongtaek, Korea. The Metaldyne Pyeongtaek team has an
excellent safety and quality record, and the company looks forward to many years of continued
success in Korea.
“The Republic of Korea is one of
Metaldyne’s most important regions
for our global business. The free trade
agreement between the United States
and Korea offers additional incentive
for Metaldyne to invest in the region
and further support our customers in
North America.”
Thomas Amato, President and CEO
Metaldyne, LLC
37
Morgan Thermal Ceramics
Augusta, Georgia
Profile
Morgan Thermal Ceramics serves a broad spectrum of industrial and commercial markets with
insulation requirements from 500°C to 1600°C. Its high temperature insulating fibre, bricks and
monolithics enable users to optimize thermal efficiency, reduce energy costs and improve environmental performance through reduced CO2 emissions. Its engineering teams design specialized insulation
systems for petrochemical, iron and steel, and primary aluminum plants around the world.
Trade
Korea has been an important trading partner for Morgan Thermal Ceramics for more than 20 years.
Its main exports include fire insulating brick and blankets, as well as insulated paper. The company
also imports materials from Korea. The growth of its trade led the company to open an office in Seoul
and a manufacturing plant in Daegu. These operations, called Morgan Thermal Ceramics Korea
(MTCK), are now one of the company’s largest manufacturers and distributors in Asia.
Growth
The opportunities for Morgan Thermal Ceramics are twofold under the U.S.-Korea Free Trade
Agreement (KORUS FTA). As a company that both exports to and imports from Korea, many of
Thermal Ceramics’ products will become duty-free for its customers, while it experiences similar
price breaks on its own imports.
“We have found that in many cases,
Koreans have needs and wants similar
to our American consumers. Over the
years, Korea has been a great trading
partner. Now with the KORUS FTA in
place, Korea is just as easy to export to
as Europe.”
Importance of the Korean Market
Korea has become one of Morgan Thermal Ceramics’ most attractive overseas markets. Morgan
Thermal Ceramics’ business with Korea has made a significant impact on the company’s international
sales. MTCK now employs more than 75 full-time employees and offers a wide range of products.
Arthur Griffin, Export Analyst
Morgan Thermal Ceramics
38
Northwest River Supplies
Moscow, Idaho
Profile
About 40 years ago, a college business professor with a passion for paddling started Northwest River
Supplies (NRS) to provide products for the niche market of whitewater rafting and kayaking. Today,
the company manufactures thousands of products from oars to lifejackets for paddling enthusiasts all
over the world.
Trade
NRS exports to approximately 60 countries. It began trading with Korea about six years ago by
importing inflatable watercraft for use in river running applications. About a year later, NRS began
exporting to Korea as kayaking and whitewater rafting started to gain in popularity. Today, NRS’
exports include life jackets and helmets for military use and search and rescue applications.
Growth
As a two-way trader with Korea, NRS benefits from reduced tariffs and simplified trading for both
its exports and imports. Since the U.S.-Korea Free Trade Agreement (KORUS FTA) was enacted,
NRS has already secured new business with a retail partner for a multitude of products including life
jackets, dry suits and spray skirts.
Trading Advice
According to NRS, the key to successful business is knowing where the market for your product
exists. A company looking to export to Korea must research the market and find its niche. Once
a company finds the correct market segment, it can move forward aggressively and proactively
seek new clients.
39
Optimum Spring Solutions, Inc.
Ponte Vedra, Florida
Profile
Optimum Spring Solutions, Inc. manufactures high quality custom springs used in industries including
military, aerospace, medical equipment and many others. The company concentrates on hightemperature and specialty alloys like Inconel X750, 718, Monel, Elgiloy and other materials by
request.
Exports
In 2008, Optimum Spring Solutions was contacted by Hy-Lok, a Korean instrument valve and fitting company. Hy-Lok became the company’s first customer in Korea. Since then, Optimum Spring
Solutions has added another Korean customer and more than doubled its exports to the country. The
U.S.-Korea Free Trade Agreement (KORUS FTA) has helped to strengthen its business relationships
with these customers.
Growth
For Optimum Spring Solutions, Korea is an important market that helps bring stability to its business.
The company, which is now exporting to several countries including Australia, Argentina, Brazil,
Canada, China, Colombia, Israel, New Zealand, South Africa and Turkey, has plans to travel to Korea
and expand its business there.
“We enjoy trading with Korea. The
expectations for quality are high, the
people are friendly and professional,
and communication is extraordinarily
clear. Korean companies set a brilliant
example on how international trade
should be handled.”
Trading Advice
According to Optimum Spring Solutions, it is extremely important to maintain consistent communications with customers in Korea. Whether it is sharing a project’s status or a major update, Korean
customers appreciate clear and regular communication.
Marco Fortini, International Sales Specialist
Optimum Spring Solutions, Inc.
40
Oxford Bioscience Partners
Boston, Massachusetts
Profile
Oxford Bioscience Partners is a mid-size, multi-stage venture capital firm. It provides equity financing
and management support to early-to-late stage life sciences companies. Since its founding in 1992,
Oxford has invested in almost 150 companies in the life science, energy and healthcare sectors.
Business in Korea
In early 2011, Oxford formed the Korea-Seoul Life Science Fund (KSLSF), a cross-Pacific venture
capital fund dedicated to investing in emerging companies in Korea and in the United States. Since
its creation, KSLSF has invested in six companies with a presence in Korea, ranging from a hearing
restoration device manufacturer to a developer of antibody drugs for cancer. Within the next two years,
Oxford expects the fund to support investments in as many as 10 to 13 companies in Korea and the
United States.
Growth
The implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA) created new opportunities
to invest in the life science industry in Korea. The Korean government also recently labeled life
sciences a “New Growth Engine Industry” for the country, leading to increased enthusiasm, funding
and business opportunities. In addition, the KORUS FTA allows Oxford to more easily help Korean
companies enter the U.S. market and U.S. companies find partners in Korea, which is an important
value-added aspect of KSLSF.
Importance of the Korean Market
According to Oxford, Korea is a strategic location for life science companies. As the healthcare industry
continues to globalize, the Asian market will keep expanding. An emerging market strategy is now a
top priority within the life science industry globally. Korea holds significant potential for the industry,
partly due to strong government support and an innovative and science-driven society.
“Korea boasts high-quality science and
engineering and a strong workforce.
The people are pro-Western and keen
to adapt and play by standards that are
accepted globally. It is a very fast-paced,
yet friendly, place to do business.”
B. Chris Kim, Managing Director
Korea-Seoul Life Science Fund
Oxford Bioscience Partners
41
PakSense
Boise, Idaho
Profile
Founded in 2004, PakSense manufactures intelligent packing labels that monitor perishable goods
during distribution and storage. PakSense labels, which are about the size of a sugar packet,
monitor and store data on the condition and temperature of packaged goods. They can even issue
a warning if the temperature of a package gets too hot or cold. Today, the labels are used to monitor
seafood, meat, juice, chemicals, pharmaceuticals and other products.
Exports
More than 75 different countries use PakSense labels. The company began exporting labels to
Korea in 2009, specifically to monitor Korea’s indigenous King Oyster mushrooms during the
distribution process. Today, with more U.S. beef producers exporting to Korea under the U.S.-Korea
Free Trade Agreement (KORUS FTA), PakSense labels are also used to monitor both frozen and
fresh beef products being shipped to Korea.
Growth
The KORUS FTA allows PakSense to grow its business on multiple fronts. First, tariff reductions
make it cheaper for Korean customers to purchase PakSense labels and protect their
perishables. Second, as the KORUS FTA expands trade volume between the United States and
Korea, there are more potential customers who can use PakSense’s labels. Since the KORUS FTA’s
implementation, PakSense has already noticed an uptick in trade volume.
Importance of the Korean Market
Korea is known for producing high-end agricultural products that need to be carefully monitored as
they are shipped all over the world. As Korea continues to engage in the international exchange of
perishable goods, PakSense can expand its business as well. With the KORUS FTA now in place,
Korea has become an especially important international market for PakSense.
Trading Advice
According to PakSense, it is important to always show respect and interest in the local customs and
culture. When introduced to new cuisine, for example, keep an open mind and a willingness to move
outside your comfort zone. It is not important that you find everything delicious, but it is important that
you are willing to try.
42
Pelican Products, Inc.
Torrance, California
Profile
Pelican Products, Inc. manufactures American-made cases and portable lighting equipment designed
for maximum durability and performance in hazardous environments. Its products are used by
industries that include aerospace, emergency response, military, and oil and gas.
Exports
Pelican Products has exported to Korea for more than 15 years. Business with Korea has grown
by an average of 15 to 20 percent per year. In 2011, Pelican Products opened an office in Seoul.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) eliminates an 8 percent tariff and streamlines
the customs clearance process for Pelican Products’ exports. By allowing the company to lower its
prices and provide goods to its customers more quickly, the agreement gives the company a competitive advantage in the Korean market. Already, the tariff elimination has helped Pelican Products
become a front-runner for a new project large enough to equal half of its total Korean business in 2011.
“At Pelican Products, we have always
considered Korea a growth market and
have increased our business there
consistently for several years. Now,
with the implementation of the KORUS
FTA, we can be more competitive and
grow even more quickly. I am truly
excited for the possibilities for us in
Korea.”
Scott Ermeti, Vice President of International Business
Pelican Products, Inc.
43
Phillips Syrup LLC
Westlake, Ohio
Profile
Phillips Syrup LLC, established in 1921, develops and manufactures a full line of gourmet sauces,
syrups and toppings for the food service, restaurant, ice cream and coffee markets. Because of the
seasonal nature of ice cream, in 2004, Phillips Syrup expanded into manufacturing gourmet sauces
for coffee drinks that it sells to both domestic and international distributors. The company’s products
are sold under the Phillips Syrup label, as well as under private labels.
Exports
Phillips Syrup exports to markets around the world, including Korea. The company has been exporting gourmet sauces and syrups under a private label since 2006. Two years ago, Phillips Syrup
partnered with SOM International, a domestic and international food ingredient supplier, and
successfully launched the Phillips Syrup brand in the Korean market. Currently, SOM International
distributes the Phillips Syrup brand of gourmet sauces and pancake syrup.
Growth
Since entering the market, Phillips Syrup’s business in Korea has expanded from pancake syrup
into gourmet sauces used in coffees and desserts, including chocolate and caramel, for restaurants
and coffee shops. Phillips Syrup is currently looking at opportunities, including participating in trade
missions to Korea, to continue to grow its business there.
“In Korea and many other international
markets, doing business is more than
just taking an order and fulfilling it; it
is about relationship building. Over the
past few years, we have been able to
combine SOM’s market expertise and
our product development knowledge
and have developed a sweet, successful
partnership.”
Trading Advice
According to Phillips Syrup, a willingness to customize products to local preferences is part of being
successful in international markets. Phillips Syrup frequently customizes its products, including
flavors and label designs, to better suit local tastes.
Linda Kanner, Vice President
Phillips Syrup LLC
44
Profile Products LLC
Buffalo Grove, Illinois
Profile
Established 25 years ago, Profile Products LLC is a leading manufacturer of organic and inorganic
soil products. The company, which has 200 employees, creates erosion, sediment control, turf
establishment and soil amendment products for a variety of industries including agriculture,
construction, mining, energy, golf and sports fields.
Exports
Profile Products considers international business critical to its growth. The company currently exports
to between 80 and 90 countries on six continents. It started trading with Korea more than 10 years
ago, supporting the planning, construction and maintenance of golf courses. Over the past five years,
Profile Products’ business in Korea has grown to include infrastructure projects like highway
construction and riverbank work.
Growth
Before the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), Profile Products
faced tariffs ranging from 6 to 14 percent. The elimination of these tariffs has better positioned the
company to compete in Korea. Today, it is encouraging its Korean partners to more aggressively
pursue aspects of the business that may not have been possible before the KORUS FTA.
Entering the Korean Market
Profile Products originally entered the Korean market to support the country’s rapidly growing interest
in golf and expansion in the golf industry. Although the construction of golf courses has begun to slow
in Korea, it remains a major market for Profile Products.
Trading Advice
According to Profile Products, it is important to remember that you cannot do business with
strangers. When entering any international market, companies should meet with business partners
face-to-face whenever possible. Profile Products believes that the best way to do business internationally is by making a commitment to invest the time, people and resources needed to support local
markets and partners.
“The elimination of tariffs makes our
products more affordable in Korea.
It gives our Korean partners more
opportunities to reinvest back into
their businesses and gain share within
their market. In addition, the KORUS
FTA has improved the enforcement of
intellectual property rights and will
protect our company as we export
products to Korea.”
John Schoch, President
Profile Products LLC
45
Quality Float Works, Inc.
Chicago, Illinois
Profile
Established in 1915, Quality Float Works, Inc. manufactures float balls and assemblies used to level
liquid controls. The third and fourth generation family-owned company, which makes all of its products
in the United States, has become the premier manufacturer of floats and assemblies used in gas, oil,
plumbing and agricultural applications worldwide. Quality Float Works’ customers, including DuPont,
Ford, General Dynamics, Grainger, the U.S. Department of the Navy and Walt Disney, use the floats
as vital components in their equipment.
Trade
Quality Float Works, which currently has 26 employees, began exporting in the 1950s and currently
trades with almost 40 countries. In 2003, the company’s Float Valve division initiated its presence in
the European and growing Asian markets. Over the past decade, Quality Float Works’ international
sales have grown from 3 to 30 percent.
Growth
Since the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), representatives
from Quality Float Works are planning visits to Korea to meet with potential distributors and customers.
The company is focusing its efforts on the marine and agriculture industries. The elimination of tariffs
of up to 8 percent on its products will help the company be more competitive in the Korean market.
“The elimination of the tariffs on our
products under the KORUS FTA helps
us be more competitive in the Korean
market. For small companies like ours,
free trade agreements level the playing field and allow us to compete more
fairly in the global marketplace. We
are very excited for the opportunity to
build new relationships with Korean
businesses.”
Positioning in the Korea Market
When marketing products in Korea, Quality Float Works focuses on their high quality, reliability and
customizing capabilities to meet the needs of its customers. These aspects help differentiate the
company from other international competitors.
Jason Speer, Vice President and General Manager
Quality Float Works, Inc.
46
Reynolds Polymer Technology, Inc.
Grand Junction, Colorado
Profile
Reynolds Polymer Technology, Inc. is an acrylic manufacturer that makes viewing windows for large
aquariums, like those you might see at SeaWorld, Walt Disney World or major resorts. Operating for
more than 25 years, Reynolds has provided materials for aquariums around the world. The company
has pioneered advancements including underwater dome rooms, underwater restaurants, windows
that curve in two directions at once and gigantic freestanding aquariums that have elevators travel
through them.
Exports
Reynolds has been exporting materials to Korea for more than seven years, with the volume picking
up substantially over the past three years. Reynolds is currently preparing to sign two new contracts
and is bidding on another. Most recently, Reynolds provided the materials for an aquarium, underwater dome room and viewing windows for an exhibit at the 2012 International Expo being held in
Yeosu, Korea.
Growth
By eliminating tariffs, the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA)
allows Reynolds to offer more competitive pricing and sell its products to a broader range of Korean
customers. It also opens the door for Reynolds to pursue smaller projects that may have not been
possible in the past due to high tariffs. For example, the KORUS FTA makes it possible for Reynolds
to sell pool windows, scientific and medical applications using acrylic, and decorative architectural
sheets to Korea, items that are typically purchased in smaller quantities.
Capitalizing on the KORUS FTA
In the immediate future, Reynolds expects to visit both potential and existing customers in Korea
more frequently. In the long term, the company anticipates that its Korean representatives will pursue
more jobs and contracts as they can pass along more attractive pricing to their customers.
Trading Advice
According to Reynolds, it is very important to build a personal relationship with any potential
customers in Korea. It is much easier to do business once you have established a level of trust
through social interaction, in-person meetings and dinners.
47
“One of our international business goals
is increasing the number of projects we
are working on or have completed in
Asia. The KORUS FTA will make
us more cost competitive, allow us to
pursue a wider range of projects, and
help to grow our business in a dynamic
and important market.”
Peter DiGrazia, President
Reynolds Polymer Technology, Inc.
Ropes & Gray LLP
Boston, Massachusetts
Profile
Ropes & Gray LLP is one of the world’s leading international law firms. Founded in 1865, Ropes &
Gray has more than 1,100 lawyers across 11 office locations worldwide. The firm’s major areas of
practice include intellectual property, mergers and acquisitions, private equity and business litigation,
among many others.
International Business
Ropes & Gray has clients from all over the world. The firm represents large Korean international
brands such as Samsung, LG, Hyundai and Kia. It also works with smaller Korean companies doing
business in the United States, as well as American companies doing business in Korea. Now, with
the implementation of the U.S.-Korea Free Trade Agreement (KORUS FTA), Ropes & Gray is able to
open an office in Korea and be closer to its Korean clients.
Growth
After decades of serving international clients, Ropes & Gray began expanding physically in 2007.
Over the past five years, the law firm has opened offices in London, Hong Kong, Tokyo and Shanghai.
In addition to its steadily growing Asian presence, Ropes & Gray became the first foreign law firm to
be permitted by Korea’s Ministry of Justice to open an office in Seoul on July 15, 2012. The Seoul office of Ropes & Gray is led by partners William Yongkyun Kim and David Chun.
“We take great pride in being the first
foreign firm to be permitted to practice
law in Korea. It shows our dedication,
affection and commitment to Korea
and our Korean clients.”
William Yongkyun Kim, Partner
Ropes & Gray LLP
Impact of the KORUS FTA
By providing Ropes & Gray with the ability to practice law in Korea, the KORUS FTA allows the firm
to expand its services in the Korean marketplace. Under the KORUS FTA, Ropes & Gray can begin
collaborating with Korean law firms as early as 2014 and can practice law independently in Korea
by 2017.
Opening an Office in Korea
An office in Seoul erases the 12-hour time difference between Ropes & Gray and its Korean clients.
The firm can be more effective, more accessible and provide face-to-face interaction on a regular
basis. In addition to improved service for its clients, Ropes & Gray will also no longer have to strain
its employees with constant travel to and from Korea.
48
SAS Automation
Xenia, Ohio
Profile
SAS Automation manufactures robotic end-of-arm tooling and automation technology. Established
in 1996, the company supplies robotic grippers for industries including automotive, food, plastics and
metal. With about 40 employees, the company has its headquarters in Xenia, Ohio, and branches in
Germany and Hong Kong.
Exports
SAS Automation exports almost 30 percent of its products to 16 countries around the world. It is
currently working to enter the Korean market by locating a partner there. To move forward, SAS
Automation has begun reaching out to business groups, looking into traveling to Korea and identifying
possible Korean trade shows to attend.
Growth
For SAS Automation, Korea is a market with significant potential; Korea is one of the lead areas in
Asia for robotic applications, based on the number of robots sold and installed there annually. As it
enters the Korea market, SAS Automation expects to be more competitive with the elimination of
tariffs under the U.S.-Korea Free Trade Agreement (KORUS FTA). The company also plans to
establish Korea as a hub for moving into other Asian markets.
Entering the Korean Market
SAS Automation is looking to secure a partner in Korea to support the company as it pursues sales
there. For a small company like SAS Automation, an in-country partner would allow it to have a
presence in the market, while maximizing its resources.
“Korea is an important market for SAS
Automation. Korea leads the market in
Asian robotic applications (second only
to Japan), and robotic grippers are very
much utilized there.”
Trent Fisher, President, Owner
SAS Automation
49
S.I. Tech, Inc.
Batavia, Illinois
Profile
S.I. Tech, Inc. established in 1984, was one of the first fiber optic manufacturing companies. Today, it
manufactures a vast array of fiber optic communications equipment for interconnectivity applications.
Its products are used by militaries, original equipment manufacturers, factories and other businesses.
Trade
S.I. Tech ships its products to more than 40 countries worldwide. The company started exporting
to Korea in 1995 when Samsung Heavy Industries approached it about creating fiber optic motor
controls for cranes used to build and load ships. Many of its current customers in Korea, including
EreTech Co., Vito Company and Joowon Industries, buy its products for use in cell phone electromagnetic interference, electromagnetic compatibility and radio frequency interference testing, as well as
other control and instrumentation applications.
Growth
Over the past five years, S.I. Tech has seen significant growth of its business with Korea. The company
is now looking for a distributor or agent in Korea to help it continue to expand. The U.S.-Korea Free
Trade Agreement (KORUS FTA), which includes intellectual property protections, also helps to protect
S.I. Tech’s products and makes Korea an increasingly attractive market.
“Korea is an important market for us
as we continue to grow our business.
The sophistication of the market,
combined with Koreans’ appreciation
for high-quality and specialized
products, create significant
opportunities for us there.”
Ramesh Sheth, President
S.I. Tech, Inc.
50
Sharpe Mixers
Seattle, Washington
Profile
Sharpe Mixers, founded in 1953, is an industrial mixer manufacturer. The company, which currently
has about 40 employees, makes liquid mixing handling equipment for a variety of industries, including pharmaceuticals, chemicals, mining and waste treatment.
Exports
Sharpe Mixers currently exports to countries in North and South America, Europe, Asia and New
Zealand. The company started exporting its mixers to Korea more than 20 years ago. Over the past
few years, Sharpe Mixers has exported parts to Korea to maintain and repair its large industrial mixers already in use there.
Growth
Sharpe Mixers is currently pursuing several projects for, and with, Korean companies. It is bidding
on a multi-million dollar, in-country project for a Korean customer and working with several Korean
engineering firms pursuing projects around the world. Members of the Sharpe Mixers’ team recently
traveled to Korea to meet with these potential business partners.
Importance of Trading with Korea
Although the market for Korean in-country projects is small for Sharpe Mixers, Korean companies
frequently export their services and technology to other countries. There is significant opportunity for
Sharpe Mixers to partner with these companies and work with them to secure business around the
world.
Trading Advice
When looking to start trading with Korea, Sharpe Mixers recommends first hiring an agent in the
United States and setting up financing. There are many groups, like the Export Finance Assistance
Center of Washington, that can be a resource for companies looking to trade internationally.
“If a small business was interested in
expanding internationally, I would say
first look at trading with Korea. Korean
businesspeople are honest, transparent
and overall, good partners. Korea is a
safe place to do business, but one with
significant opportunities. Just make
sure that you like kimchi!”
Steve Drury, Vice President
Sharpe Mixers
51
Smithfield Foods
Smithfield, Virginia
Profile
Smithfield Foods is a global food company and the world’s largest producer and processor of pork.
Through its wholly-owned operating companies and joint ventures, Smithfield Foods produces more
than 50 brands of pork products and 200 gourmet foods, employing more than 52,400 individuals
globally.
Exports
Smithfield Foods International Group (SFIG) is the international sales and marketing arm for the
Smithfield Foods Pork Division, which encompasses Smithfield Packing, Farmland Foods and John
Morrell/Armour Swift Eckrich. SFIG, currently exports to more than 40 countries and has been
working with Korea for over 15 years. Smithfield Foods has the ability to meet all customer needs
in the retail, foodservice and processing segments.
Growth
Smithfield Foods continues to focus on growing business within its key markets, such as Korea.
With the U.S.-Korea Free Trade Agreement (KORUS FTA), expectations are for business opportunities
to continue to develop and grow.
“With the approval of the KORUS FTA,
we see the potential for great long-term
growth in Korea, as we continue to
focus on providing a safe, wholesome
and competitively priced product.
For the U.S. agricultural industry,
we expect the agreement to further
strengthen the relationship between
the United States and Korea.”
Traveling to Korea
Representatives from Smithfield Foods International routinely travel to Korea. These visits include
attending trade shows and meeting with customers. Smithfield Foods also invites its Korean
customers and business partners to visit company plants and production facilities.
Trading Advice
For companies looking to trade with Korea, SFIG recommends visiting the country to learn more
about the products, services and customer expectations.
Jason Webb, Export Sales — Korea
Smithfield Foods International Group
52
Spika Welding and Manufacturing
Lewistown, Montana
Profile
Spika Welding and Manufacturing designs and manufactures industry-leading aviation maintenance
stands for military and commercial maintenance facilities. Spika work stands and maintenance
equipment also serve the access and safety needs of the manufacturing, general aerospace,
agriculture and railroad industries.
Exports
In recent years, Spika has earned recognition in global markets, securing sales in Japan, Australia,
Israel, Canada, Sweden and many others. Spika sees great potential and is currently pursuing sales
in Korea because of its large military.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) makes Spika products more competitive in
Korea and gives the company greater access to the government procurement market. To capitalize
on this opportunity, the company plans to first introduce its products to purchasing entities within the
Korean defense department and then establish an in-country distributor to pursue general commercial and industrial sales there. Initially, Spika plans to do between $500,000 and $1 million in sales
with Korea, but expects that to grow to $5 million to $8 million annually within a few years.
Trading Advice
When starting to trade with another country like Korea, Spika recommends investing time learning
about the other culture and what they value and expect in terms of both products and business
interactions. Attitudes, business relationships and ways of communicating can vary greatly from
country to country. Americans may need to learn more about the expectations, business etiquette
and cultural norms of the country that they are interacting with to be successful.
“No matter what culture you are
working with, cost is always a factor.
By opening trade between the countries
and lowering the costs of our products,
the KORUS FTA will make our products
more competitive and more attractive
to Korean organizations.”
Tom Spika, President, General Manager
Spika Welding and Manufacturing
53
Texas Instruments Incorporated
Dallas, Texas
Profile
Although it may be most commonly recognized by consumers for having invented the handheld
calculator, Texas Instruments Incorporated (TI) is the third largest manufacturer of semiconductors in
the world. Founded in 1930 as a geophysical exploration company, TI produced the first commercial
silicon transistor in 1954 and the first integrated circuit in 1958. Today, TI’s semiconductor technologies
are used in everything from portable ultrasound equipment to e-books.
Exports
TI was the first semiconductor company to begin exporting internationally and now exports about
90 percent of its products. TI started exporting semiconductors to Korea in the 1980s, establishing
TI Korea in 1988. The company has since expanded its Korean operations to include an Analog IC
Design Center and a Micro Controller Education Center.
Growth
There is robust competition for technology, electronics and telecommunications in Korea. This
competition, spurred by the free flow of products resulting from the U.S.-Korea Free Trade
Agreement (KORUS FTA), increases the demand for semiconductors as companies work to provide
better products and services. The KORUS FTA also reduces tariffs for these companies, allowing
them to do more business. These factors benefit TI’s business and help it continue to grow its
presence in Korea.
“Free trade does more than just bring
down the consumer cost on products;
it promotes the evolution of start-up
companies and new technologies driven
by an enthusiastic and technologically
savvy Korean population. In addition,
Korean and American business
cultures fit well together as they both
value directness and innovation. These
factors make Korea an ideal place for TI
to do business.”
Cynthia Johnson, Director of Government Affairs
Texas Instruments Incorporated
TI’s Products in Korea
TI connects with its customers through its sales and design teams, but also contributes to university
programs so that new engineers can understand its technology. To reach this audience, TI has
established labs in leading engineering schools, including the TIMC (Texas Instruments Micro Controller)
Official Education Center at Hanlim University in Chuncheon, Korea. TI collaborates with universities’
engineering programs to help develop advanced curricula and build familiarity of TI’s products among
students.
Insight into the Korean Market
Over the past 20 years, Asia has become home to many of the world’s largest consumer electronics
manufacturers. Korea, like many countries in the region, has grown rapidly over the past several
decades and now boasts a strong middle class, an innovative and competitive population, and
expansive telecommunication systems.
54
Tradewinds Global
Honolulu, Hawaii
Profile
Tradewinds Global helps American companies enter Asian markets and grow their business overseas.
The four-employee company, which was founded in 2005, serves manufacturers in the pet, children,
food and beverage, and health and beauty industries. Tradewinds Global offers distribution, negotiation, international marketing, account management, translation and other services necessary for
American companies to succeed in international markets.
Exports
Tradewinds Global has been helping clients export their products to Korea since 2007. The company
currently works with six clients in Korea, including children’s products, pet products, and health and
beauty companies that sell American products there. Tradewinds Global has seen its business in
Korea grow over the past several years as the country’s economy has remained strong despite a
global downward trend.
Growth
Under the U.S.-Korea Free Trade Agreement (KORUS FTA), Tradewinds Global has seen more
American companies put Korea on their radar, search for ways to enter the robust market, take
advantage of reduced tariffs and grow their business in Asia. The KORUS FTA has also increased
many Korean companies’ interest in pursuing business relationships with American manufacturers.
Overall, Tradewinds Global expects to see its business in Korea expand by as much as 15 to 20
percent over the next six months.
Lessons Learned
Tradewinds Global has found that companies are most successful expanding internationally when
they customize their efforts to target each market individually. For example, in some Asian
countries, Tradewinds Global has success marketing its dog food products as “grain-free;” in Korea,
however, consumers are more interested in products labeled as organic or protein-rich.
Trading Advice
With trust being so important in successful business relationships, Tradewinds Global recommends
that companies familiarize themselves with the Korean language. The ability to communicate directly
with business partners gives companies a distinct advantage. According to Tradewinds Global, even
being able to read or decipher a Korean website can go a long way.
55
“I expect to see the KORUS FTA have
a direct and positive impact on trade
between Korea and the United States.
Korean companies are more willing
and eager to work with American
companies who are turning their
attention to opportunities in Korea
as well.”
Kevin Kraft, President
Tradewinds Global
Universal Display Corporation
Ewing, New Jersey
Profile
Founded in 1994, Universal Display Corporation is a leading developer of organic light-emitting diode
(OLED) technology and materials. OLED materials produced by Universal Display are used in the
making of OLED displays, similar to LCDs, but provide sharper images, use less electricity and are
more versatile (e.g., OLEDs can be made on flexible screens). Universal Display’s customers use its
OLED materials to create digital displays for use in a variety of devices such as cell phones and other
small format display products for consumer, automotive and medical applications. Manufacturers are
also using Universal Display’s OLED materials in the development of televisions and other large-format applications.
Exports
With many electronics-producing companies in the region, Universal Display conducts much of its
international business in Asia. Universal Display started working with companies in Korea in 2000.
In 2001, the company also began exporting its OLED materials to Korea; in 2005, it entered into commercial agreements. Universal Display’s current Korean business partners include large technology
companies like LG and Samsung.
“The Korean people are smart, hard
working and embrace the capitalist
culture. Koreans and Americans get
along very well together, and we have
found Koreans to be delightful to do
business with.”
Janice Mahon
Vice President of Technology Commercialization
Universal Display Corporation
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) benefits Universal Display’s already strong
business in Korea. In addition to possibly eliminating tariffs on Universal Display’s materials, the
KORUS FTA may also provide additional intellectual property protections that help ensure all of the
company’s technologies remain proprietary.
Importance of the Korean Market
Korea is one of Universal Display’s most important international markets. Universal Display’s OLED
materials and technology are currently used in Samsung’s increasingly popular Galaxy S series of
smart phones. As consumer demand grows for devices with technologically advanced display
systems from companies like Samsung and LG, Universal Display’s business in Korea is expected to
grow as well.
Investment in Korea
In 2010, Universal Display opened an office in Seoul. By having an office in Korea, Universal Display
can more effectively respond to its business partners’ needs. Currently employing three people, the
Seoul office helps with customer requests and provides technical support.
56
Universal Weather and Aviation, Inc.
Houston, Texas
Profile
Universal Weather and Aviation, Inc. (Universal) has more than 52 years of experience helping its
clients, the operators of business aircraft, navigate a complex world and achieve their shared
purpose: successful trips. The company coordinates all aspects of business aviation trip management,
including flight planning, clearances, weather, jet fuel and aircraft ground support. Universal is an
international company with more than 40 locations in over 20 countries, including multiple offices in
the Asia-Pacific region.
Trade
Since the late 1970s, Universal has handled logistics for companies around the world traveling to
Korea. Since 1996, it has also coordinated global business aviation travel for major Korean
corporations in the electronics, telecommunications, automobile and chemical industries. Over the
past five years, the company has focused additional resources on growing its business in Asia in
response to increased demand for its products and services.
Growth
In fiscal year 2012, Universal coordinated 485 flights into and out of Korea, a 40 percent increase
from fiscal year 2008. Now, as the Korean market continues to grow, there are significant opportunities
for Universal to continue to increase its business. The U.S.-Korea Free Trade Agreement (KORUS
FTA) is expected to further increase business and trade between the United States and Korea. This
can mean an increase in corporate travel and a greater need for Universal’s services, both from
Korean companies utilizing business aircraft for travel and from international companies traveling
to Korea.
Entering the Korean Market
Universal entered the Korean market when it saw a need for its services. The company began by
facilitating travel for current clients into Korea, which allowed it to start establishing relationships and
getting to know the market. Over time, Korean companies started increasingly embracing business
aviation. Universal’s business in Korea has evolved to support U.S. and Korean companies traveling
into and out of the country.
“When working with international
markets, it is all about human
relationships. To be true partners
to our clients, we take the time to
understand the cultural differences
between the United States and Korea
and focus our communications to
ensure that both parties are aligned to
our shared purpose of successful trips.”
Lex Den Herder, Vice President of Government and
Industry Affairs, Universal Weather and Aviation, Inc.
57
Volpi Foods, Inc.
St. Louis, Missouri
Profile
Volpi Foods, Inc., a family-owned, global food corporation, manufactures handcrafted, authentic Italian
meat products. Volpi was established in 1902 by an Italian immigrant who recreated the cured meats
of his home country with fresh Midwestern pork and beef and the finest spices and seasonings.
Currently run by the third generation of salumieri, Volpi combines Italian traditions with American
innovation to produce premium Italian meats.
Exports
Volpi began exporting to Korea almost 10 years ago, after being approached by a Korean distributor
during a trade show. The company now exports a wide variety of its products to Korea, including
pre-sliced meats and prosciutto. Over the past few years, Volpi’s business to Korea has grown about
15 percent.
Growth
Korea is an important market for Volpi, helping it to expand its brand and increase awareness of
its products around the world. The U.S.-Korea Free Trade Agreement (KORUS FTA) will help Volpi
strengthen its presence in Korea and maintain its prices against fluctuations in the meat market.
“Being in the Korean market shows
that we have a quality product and can
meet its safety and quality standards.
For Volpi, Korea is an important step
in expanding our premium Italian meat
product offerings throughout the world
and gaining global recognition of the
brand.”
Trading Advice
Volpi recommends that companies looking to export to Korea choose partners and distributors wisely.
The best distributors will understand the product and the message that the company wants conveyed
to retailers.
Product Marketing
In Korea, products are often smaller than in the American market. To adapt to the Korean market,
Volpi customized many of its products to be smaller, which helps the company with pricing and freight
costs. Volpi also modifies certain ingredients in the products that it exports to Korea. For example,
Volpi’s research has shown that many Koreans do not like the taste of basil, so that ingredient is
replaced with a more familiar local herb.
Daniela Depke, International Sales
Volpi Foods, Inc.
58
VP Records
Queens, New York
Profile
VP Records is a family-owned music label. The company, which started in the 1950s as a record
store in Kingston, Jamaica, has evolved into the largest independent reggae music label in the world.
Today, VP Records works with more than 30 artists. In recent years, the label has ventured into
publishing and merchandise, familiarizing the world with Jamaica’s culture as well as its music.
Exports
Over the past 15 years, VP Records has expanded internationally, opening marketing offices in
the United Kingdom and Japan. Although reggae originates from a land halfway around the world,
Koreans are no strangers to the rhythmic music, which is popular in many Korean vacation
destinations. VP Records hopes to continue its expansion into Korea, capitalizing on its success
in other international markets.
Growth
In September 2012, representatives from VP Records traveled to Korea as part of an international
trade mission to identify promising markets, Korean reggae bands and potential record store
partners. By supporting the exchange of both goods and ideas between Korea and the United
States, the U.S.-Korea Free Trade Agreement (KORUS FTA) makes Korea one of VP Records’ most
important new markets.
Importance of the Korean Market
Since the rise of the Internet, the music industry has been in transition, adapting and searching for
new avenues of growth. As a result of its open market and embrace of technology, Korea is at the
forefront of the digital music era. VP Records views Korea as an essential next step in the globalization of its business.
Lessons Learned
VP Records believes that first spending time in Korea will reap benefits in the long term. Music differs
greatly around the world, and even the same genre of music will evolve from region to region to reflect
traditional cultural influences. VP Records learned from its expansion into the United Kingdom and
Japan that seeking out and understanding Korea’s own take on reggae music will be essential to its
success in the region.
59
W R Systems, Ltd.
Fairfax, Virginia
Profile
W R Systems, Ltd. (WRSystems), founded in 1983, is a systems engineering product development and
support services firm. The company, which currently has 335 employees, supports both government
and commercial contracts through offices in Fairfax and Norfolk, Virginia.
Trade
In the past, WRSystems has worked with the Korean Navy to supply products and conduct training
sessions through a U.S. government program. Now, the company is focused on growing its commercial
maritime business in Korea and becoming a supplier to the shipbuilding industry. As one of the top
shipbuilding countries in the world, Korea has the potential to be a major market for the company.
Growth
WRSystems is selling an emissions monitoring system to Korean shipbuilding companies through an
in-country agent. The company currently has 30 to 40 active proposals in the Korean market and has
been named a qualified bidder for Korean shipbuilders including Hyundai Heavy Industries,
Samsung Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and others. WRSystems
also recently attended Kormarine: International Shipbuilding & Marine Equipment Exhibition in Korea.
“As one of the largest and most
respected shipbuilding nations, Korea
has tremendous influence on what
other fleet owners around the world
do. Having our products and services
selected by the Korean shipbuilding
industry is critical to our success
internationally.”
Trading Advice
When starting to trade with Korea, WRSystems recommends finding a respected in-country agent
familiar with American business culture to support the company. An agent can help a company do
business in the Korean market, including staying informed about marketing trends and assisting with
translations.
Traveling to Korea
Representatives from WRSystems regularly travel to Korea to meet with the company’s agent and
potential business partners. In Korea, relationships are very important, so WRSystems wants to
consistently show its willingness to get to know its contacts there and gain an appreciation for how
they want to do business.
David K. Edwards, President
W R Systems, Ltd.
60
Welch Foods Inc.
Concord, Massachusetts
Profile
In 1869, Thomas Bramwell Welch created the first-ever batch of Welch’s grape juice as a nonalcoholic wine. Now, more than 140 years later, Welch’s is one of the most recognizable juice brands
in the world. It has also expanded to produce jams, jellies, fruit cocktails, fruit snacks and carbonated
beverages.
Exports
Welch’s began exporting to Korea in 1994. Since then, the company’s business has soared in
Korea, growing by more than 500 percent between 2002 and 2010. Prior to the U.S.-Korea Free
Trade Agreement (KORUS FTA), the tariff on grape concentrate was 45 percent, higher than any
other country where Welch’s does business. The high tariff increased the cost for its business
partner, Nong Shim, which raised the price for consumers.
Growth
With the tariff eliminated immediately by the KORUS FTA, Korean consumers can now enjoy Welch’s
products at a lower price. With this benefit, Welch’s expects to continue to grow its business and be
more competitive in Korea.
Working with a Korean Partner
Nong Shim, one of Korea’s largest food companies and Welch’s partner since 2002, purchases grape
concentrate from Welch’s and bottles and distributes its grape juice in Korea. The two companies
have a longstanding relationship and travel frequently to meet and discuss future plans and trade
insights.
Importance of Trade with Korea
The Korean market is considered exciting territory for Welch’s. It views Korea as one of the world’s
most competitive and fastest growing marketplaces. Korea has a strong middle class, educated
consumers and an appreciation for American products that make it a particularly attractive market.
“Over the years, Welch’s has had
consistent positive experiences doing
business in Korea. Koreans work hard
and have an excellent drive to
succeed. They want to have a fair
relationship with each other and with
their overseas business partners.”
Bill Hewins, Vice President, International
Welch Foods Inc.
61
Wente Family Estates
Livermore, California
Profile
Wente Family Estates, founded in 1883, is the country’s oldest continually operated, family-owned
winery. The winery draws from approximately 3,000 acres of estate grown, sustainably farmed
vineyards to create its portfolio of wines. Today, clones taken from the original Wente chardonnay
grape vines are used by many of the wineries throughout California.
Exports
Wente Vineyards wines are available in more than 70 countries around the world and have earned
a strong brand presence throughout Asia. Wente Vineyards wines have been exported to Korea for
more than 15 years, and today Korea is one of the winery’s fastest growing markets. At the same
time, American wines also face tough international competition in Korea, where wines from France,
Chile, Italy and Japan have captured the majority of the market.
Growth
The U.S.-Korea Free Trade Agreement (KORUS FTA) increases the awareness and availability of
Wente Vineyards and other California wines for Korean consumers, helping to make them more
competitive with wines that already benefit from free trade agreements with Korea. The benefits are
already being seen as Wente’s Beyer Ranch Zinfandel was recently recognized in an international
taste competition as the top wine to pair with Korean barbeque.
“The implementation of the KORUS
FTA has created a lot of buzz around
California wines, and it is a great
opportunity for us to increase our
popularity among Korean wine drinkers.
We consider it a major victory for Wente
Family Estates, and other California
wineries, looking to increase their
market share in Korea.”
Michael Parr, Vice President
International Sales & Marketing
Wente Family Estates
62
Winix America and Winix Inc.
East Dundee, Illinois
Profile
Winix America and Winix Inc. are privately-owned partner companies, headquartered in Illinois and
Korea, respectively. The companies manufacture air cleaners, dehumidifiers, water purifiers and
dispensers, and components for cooling and refrigeration. In addition to selling products under the
Winix brand, the companies also supply products to other organizations for sale under private labels.
History
Winix Inc. was founded 38 years ago as a supplier for Samsung, making components for its refrigerators and air conditioners. About 10 years ago, the company expanded into manufacturing and selling
products under its own brand name. In 2004, the company established Winix America to serve as a
sales and marketing group for North and Latin America.
Trade
Today, Winix Inc. has six factories in Asia that handle all product manufacturing. The company ships
products to Winix America, which is responsible for sales, marketing and distribution in the United
States. Under the U.S.-Korea Free Trade Agreement (KORUS FTA), the companies are benefiting
from a tariff reduction on importing products into the United States.
Growth
Today, Winix America sells products to major international brands, including Kenmore, Electrolux and
Fellowes. It also sells Winix brand name products to retailers such as Costco, Bed Bath & Beyond,
Lowes, Target and Amazon. On average, Winix America has seen about 70 percent growth per year.
Trading Advice
According to Winix America, when working with a partner in Korea, relationships are more important
than contracts. By entering a business deal from a position of trust and making sure to look after your
partner, a Korean partner will return the courtesy and look after you.
Differences Between the Markets
The Korean market is more heavily focused on quality, according to Winix America, while the U.S.
market is often more price sensitive. While this is not universal, Korean companies and consumers
generally appreciate higher-quality items, even when they come with higher costs.
63
“In working with a Korean partner, my
biggest adventure has been combining
the best of our respective cultures. We
each have our own way of doing things,
but we have both worked to understand
one another’s strengths and integrate
these into the companies from both
sides of the ocean.”
Tony Kircher, President
Winix America
Worldwide Protective Products
Orchard Park, New York
Profile
Worldwide Protective Products, which was formed in 2004, is a partnership of Manzella Knitting and
Worldwide Glove and Supply. With 200 employees, Worldwide Protective manufactures protective
gloves for industrial, manufacturing, food processing, military and law enforcement uses.
Imports
Since the mid-2000s, Worldwide Protective has partnered with Korean suppliers for production of
its flat dip gloves, gloves that have polymer coatings such as rubber on the palms. Worldwide
Protective sends knit gloves to its Korean suppliers, who dip the gloves in polymer before sending
the finished product back to Worldwide Protective for sale.
Growth
Worldwide Protective and its Korean suppliers see significant opportunities under the U.S.-Korea
Free Trade Agreement (KORUS FTA). The free trade agreement eliminates tariffs and expedites the
customs process, allowing Worldwide Protective to conduct its business in Korea more efficiently.
Doing Business in Korea
Worldwide Protective has been impressed by the English-speaking abilities of its Korean business
partners. The ability to communicate clearly, and often without the need for interpreters, gives
Worldwide Protective more confidence as it conducts international business.
“We see tremendous opportunity in
Korea, and we like the people we do
business with there. They are very
honest and stand behind their work.”
Trading Advice
Worldwide Protective recommends that companies considering doing business in Korea visit the
country and meet with prospective partners. In addition to providing an opportunity to meet and get
to know partners in person, the company says that visiting Korea is an enlightening experience.
Matthew Piotrowski, Research & Development Manager
Worldwide Protective Products
64
Case Studies by State
CALIFORNIA
IOWA
NEW YORK
Blue Diamond Growers. . . . . . . . . . . . . . . . . . . . . 10
Pelican Products, Inc.. . . . . . . . . . . . . . . . . . . . . . 43
Wente Family Estates. . . . . . . . . . . . . . . . . . . . . . 62
CJ BIO America, Inc.. . . . . . . . . . . . . . . . . . . . . . 15
Dexter Laundry, Inc. . . . . . . . . . . . . . . . . . . . . . . . 21
Kent Nutrition Group. . . . . . . . . . . . . . . . . . . . . . . 31
Cleary Gottlieb Steen & Hamilton LLP. . . . . . . . . 17
VP Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Worldwide Protective Products. . . . . . . . . . . . . . . 64
COLORADO
KENTUCKY
OHIO
Fentress Architects. . . . . . . . . . . . . . . . . . . . . . . . 24
Reynolds Polymer Technology, Inc.. . . . . . . . . . . 47
Brown-Forman Corporation . . . . . . . . . . . . . . . . . 14
Drexel Metals, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 23
Kiswel Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Phillips Syrup LLC. . . . . . . . . . . . . . . . . . . . . . . . . 44
SAS Automation. . . . . . . . . . . . . . . . . . . . . . . . . . 49
Associated Aircraft Manufacturing & Sales. . . . . . . 7
Correct Craft, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 18
DiSTI Corporation. . . . . . . . . . . . . . . . . . . . . . . . . 22
Optimum Spring Solutions, Inc. . . . . . . . . . . . . . . 40
LOUISIANA
Brammo, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Cutters Edge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
GEORGIA
Kia Motors Manufacturing Georgia. . . . . . . . . . . . 32
Morgan Thermal Ceramics. . . . . . . . . . . . . . . . . . 38
Oxford Bioscience Partners. . . . . . . . . . . . . . . . . 41
Ropes & Gray LLP . . . . . . . . . . . . . . . . . . . . . . . . 48
Welch Foods Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 61
Analytical Graphics, Inc.. . . . . . . . . . . . . . . . . . . . . 4
Crown Hardwood Co., Inc.. . . . . . . . . . . . . . . . . . 19
Justi Group, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 30
MATCOR, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
HAWAII
MICHIGAN
RHODE ISLAND
Hawaii Exports International, Inc.. . . . . . . . . . . . . 28
MauiGrown Coffee Distributors, LLC. . . . . . . . . . 36
Tradewinds Global . . . . . . . . . . . . . . . . . . . . . . . . 55
Metaldyne, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Astro-Med, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Hope Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
FLORIDA
IDAHO
Glanbia Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 26
Northwest River Supplies. . . . . . . . . . . . . . . . . . . 39
PakSense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
ILLINOIS
Profile Products LLC. . . . . . . . . . . . . . . . . . . . . . .
Quality Float Works, Inc.. . . . . . . . . . . . . . . . . . . .
S.I. Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Winix America and Winix Inc.. . . . . . . . . . . . . . . .
45
46
50
63
Albemarle Corporation. . . . . . . . . . . . . . . . . . . . . . 1
Baker Sales, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
MASSACHUSETTS
MISSOURI
OREGON
PENNSYLVANIA
Boeing Defense, Space & Security. . . . . . . . . . . . 11
FURminator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Volpi Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 58
TEXAS
MONTANA
VIRGINIA
Mark Rite Lines Equipment Company, Inc. . . . . . 34
Spika Welding and Manufacturing . . . . . . . . . . . . 53
Texas Instruments Incorporated. . . . . . . . . . . . . . 54
Universal Weather and Aviation, Inc. . . . . . . . . . . 57
GT Advanced Technologies. . . . . . . . . . . . . . . . . 27
American Hardwood Industries. . . . . . . . . . . . . . . . 3
Bristol Compressors International, Inc.. . . . . . . . . 13
Communications-Applied Technology. . . . . . . . . 16
Smithfield Foods. . . . . . . . . . . . . . . . . . . . . . . . . . 52
W R Systems, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . 60
NEW JERSEY
WASHINGTON
NEW HAMPSHIRE
Universal Display Corporation . . . . . . . . . . . . . . . 56
66
Allied Potato Northwest. . . . . . . . . . . . . . . . . . . . . . 2
Anderson Hay & Grain Co., Inc.. . . . . . . . . . . . . . . 5
Andrew Will Winery. . . . . . . . . . . . . . . . . . . . . . . . . 6
Sharpe Mixers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Case Studies by Industry
FOOD/AGRICULTURE
MANUFACTURING
SERVICES
Allied Potato Northwest. . . . . . . . . . . . . . . . . . . . . . 2
Anderson Hay & Grain Co., Inc.. . . . . . . . . . . . . . . 5
Andrew Will Winery. . . . . . . . . . . . . . . . . . . . . . . . . 6
Blue Diamond Growers. . . . . . . . . . . . . . . . . . . . . 10
Brown-Forman Corporation . . . . . . . . . . . . . . . . . 14
Glanbia Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 26
Kent Nutrition Group. . . . . . . . . . . . . . . . . . . . . . . 31
MauiGrown Coffee Distributors, LLC. . . . . . . . . . 36
Phillips Syrup LLC. . . . . . . . . . . . . . . . . . . . . . . . . 44
Smithfield Foods. . . . . . . . . . . . . . . . . . . . . . . . . . 52
Volpi Foods, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 58
Welch Foods Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 61
Wente Family Estates. . . . . . . . . . . . . . . . . . . . . . 62
Albemarle Corporation. . . . . . . . . . . . . . . . . . . . . . 1
American Hardwood Industries. . . . . . . . . . . . . . . . 3
Associated Aircraft Manufacturing & Sales. . . . . . . 7
Astro-Med, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Baker Sales, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Boeing Defense, Space & Security. . . . . . . . . . . . 11
Brammo, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Bristol Compressors International, Inc.. . . . . . . . . 13
Communications-Applied Technology. . . . . . . . . 16
Correct Craft, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 18
Crown Hardwood Co., Inc.. . . . . . . . . . . . . . . . . . 19
Cutters Edge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Dexter Laundry, Inc. . . . . . . . . . . . . . . . . . . . . . . . 21
Drexel Metals, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 23
FURminator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Hope Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Justi Group, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Mark Rite Lines Equipment Company, Inc. . . . . . 34
MATCOR, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Metaldyne, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Morgan Thermal Ceramics. . . . . . . . . . . . . . . . . . 38
Northwest River Supplies. . . . . . . . . . . . . . . . . . . 39
Optimum Spring Solutions, Inc. . . . . . . . . . . . . . . 40
PakSense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Pelican Products, Inc.. . . . . . . . . . . . . . . . . . . . . . 43
Profile Products LLC. . . . . . . . . . . . . . . . . . . . . . . 45
Quality Float Works, Inc.. . . . . . . . . . . . . . . . . . . . 46
Reynolds Polymer Technology, Inc.. . . . . . . . . . . 47
SAS Automation. . . . . . . . . . . . . . . . . . . . . . . . . . 49
Sharpe Mixers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Spika Welding and Manufacturing . . . . . . . . . . . . 53
W R Systems, Ltd. . . . . . . . . . . . . . . . . . . . . . . . . 60
Winix America and Winix Inc.. . . . . . . . . . . . . . . . 63
Worldwide Protective Products. . . . . . . . . . . . . . . 64
Cleary Gottlieb Steen & Hamilton LLP. . . . . . . . .
Fentress Architects. . . . . . . . . . . . . . . . . . . . . . . .
Hawaii Exports International, Inc.. . . . . . . . . . . . .
Ropes & Gray LLP . . . . . . . . . . . . . . . . . . . . . . . .
Tradewinds Global . . . . . . . . . . . . . . . . . . . . . . . .
Universal Weather and Aviation, Inc. . . . . . . . . . .
VP Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INVESTMENT
CJ BIO America, Inc.. . . . . . . . . . . . . . . . . . . . . .
Kia Motors Manufacturing Georgia. . . . . . . . . . . .
Kiswel Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oxford Bioscience Partners. . . . . . . . . . . . . . . . .
15
32
33
41
67
17
24
28
48
55
57
59
TECHNOLOGY
Analytical Graphics, Inc.. . . . . . . . . . . . . . . . . . . . . 4
DiSTI Corporation. . . . . . . . . . . . . . . . . . . . . . . . . 22
GT Advanced Technologies. . . . . . . . . . . . . . . . . 27
S.I. Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Texas Instruments Incorporated. . . . . . . . . . . . . . 54
Universal Display Corporation . . . . . . . . . . . . . . . 56
68
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