PREMIER INTERNATIONAL TECHNOLOGY & INFRASTRUCTURE EXHIBITION MAKES AN IMPRESSIVE DEBUT IN DPR KOREA

North Korea’s Readiness for Investment and Development Marks Business climate at Pyongyang ITIE 2002

The Pyongyang International Technology and Infrastructure Exhibition 2002 (or Pyongyang ITIE 2002) held recently at DPR Korea, concluded on a high note of optimism and great expectations for the next event to be held in 2003 also at the Pyongyang New Technology & Innovation Hall.

For 4 days from 17 – 20 September 2002, 70 companies from 10 countries started on a historic attempt to showcase their respective companies’ products and services to a hitherto closed market. The DPR Korea had been lately beckoning with its intent to go global, and lay the groundwork through a series of liberalizing measures that are targeted to reconfigure the technological, economic and industrial landscapes of the country.

For a debut event, the Pyongyang ITIE 2002 covered an impressive 3,000 sqm of space and attracted 12,000 trade visitors. It was certainly better than expected. The event was opened only to the trade, professionals, and members of relevant university faculties.

Of the exhibitors, 70% declared that their main objective for participation was to access market potential, with other objectives as securing contacts and orders, creating new business or seeking agents and distributors. In this regard, 21% of exhibitors realized their objectives fully while 50% did so partially. This carried well with the fact that 73% of the exhibitors did not have their business represented in Korea – only 18% did so either through an established plant or with a business office. As a result of the participation at this first ever infrastructure and industrial technology trade fair with international cooperation, a great majority of exhibitors (79%) agreed that they had achieved a better understanding of DPR Korea’s economy and potential.

If exhibitors had come merely thinking that they were only going to get an introduction to DPR Korea, many were gladly impressed that business could also be conducted on the spot. 9.1% of the exhibitors had sales of about US$250,000 to US$1 million each on average, while another 3% managed to clinch sales of over US$1 million each. The rest secured potential future orders.

Projected sales for the following two years were also impressive with nearly 20% of companies expecting a conservative target of over US$1 million each, another 31% expecting sales of between US$50,000 to US$1 million each on average and the rest at less than US$50,000 each on average.

Never had there been an opportunity like that presented by the Pyongyang ITIE 2002 for manufacturers, suppliers and distributors from outside the country to meet together and intimately understand a market at the dawn of a new era. This was definitely the right place to be for business opportunities as well as to begin cultivation of ties that translate opportunities to business reality. In a week marked by major events in foreign relations of the DPR Korea, Pyongyang ITIE 2002 delivered these opportunities in a very timely setting.

This was ascertained through exhibitors’ response to their satisfaction with their success in participation in the Pyongyang ITIE 2002. A great majority at 97% gave the resounding thumbs up vote to full satisfaction with the number of visitors at their booth. While most exhibitors were more than happy with the number of visitors to their booths, 79% of them appeared most happy with the quality of the visitors -- and with the same percentage also most were satisfied with the professional talks or meetings held with them.

Visitors to Pyongyang ITIE 2002 covered a wide range with the majority being builders or developers, contractors, consultants, engineers, equipment or material manufacturers and distributors, project managers, quality surveyors and researchers. Of these visitors, 67% came from the government sector. The industries they represented were as significantly relevant too. Almost half of the visitors were from the manufacturing industry with the balance covering building & construction, environment technology, infrastructure development, power generation and mining.

On making contacts with new customers, a more than expected result earned the Pyongyang ITIE 2002 the reputation as the definitive event for business with DPR Korea - 82% of exhibitors polled that they were more than satisfied with the contacts with new customers. Similarly a 82% response rate for full satisfaction for contacts made for import business further compounds favourably Pyongyang ITIE 2002’s capacity to be the well-placed business conduit for the world in the DPR Korea.

The Pyongyang ITIE 2002 provided an avenue for not only meetings with trade visitors but also a timely platform for the exchange of business knowledge during the networking sessions with key officials, professionals and business prospects. The Seminar on Investment Opportunities in DPR Korea brought together experts who shared information on DPR Korea’s legal framework, investment policy, incentive package for FDI and the priority projects in infrastructure development as well as in the various industrial sectors. Foreign companies found this a most unique match making opportunity in forming smart partnerships that increased the capacity to fast track inking of business deals.

All exhibitors consistently polled that they were not only greatly satisfied with the capacity of the organizers in staging Pyongyang ITIE 2002 but that they were equally satisfied with the hall set-up, stand contractors, official freight forwarders and other hall services and facilities such as cleaning, food and beverage and security. This consistent assessment strikes a more than balanced chord in sending a unified message that for a first event, the Pyongyang ITIE 2002 does indeed owe much of its success to the good management and organisation of the event.

As a result the DPR Korea government and most of the exhibitors are already looking forward to the next Pyongyang ITIE 2003 to make further inroads into the goodwill and vibrant business connections already made. Guided by the positive experiences of Pyongyang ITIE 2002 and the feedback from exhibitors and visitors, the organisers, MMI and its co-organisers, the Korea International Exhibition Corporation (KIEC), have mapped out plans to highlight specific industry sectors at the next event. These sectors are transport and logistics, IT and electronics (including finished products) and healthcare/medi-care as well as medical/hospital technology and equipment.

Pyongyang ITIE 2003 is also expected to attract more national pavilions as a result of the successful experience at the 2002 event. The official participation in 2002 by Austria, Germany, Italy and the State of Bavaria were very pleased with the organization and outcome of the event and are seriously planning their presence at the 2003 event.

With all of these positive results, signs and prospective outcomes, Pyongyang ITIE is geared to grow into a significant international doorway, for the world to meet and do good business in DPR Korea. The Pyongyang ITIE 2002 marks the beginning of fresh business opportunities and the renewed aspirations for result-oriented international business relations, in a fast growing market.

The next Pyongyang International Technology and Infrastructure Exhibition (Pyongyang ITIE) is scheduled to be held in September 2003, Pyongyang, DPR Korea.

Issued by: MMI-Munich International Trade Fairs Pte. Ltd.