JEDDAH, 23 March 2004 — The problem of the gray market in the Kingdom is difficult to address, a top executive of a leading electronics company said here yesterday. This is because Dubai is a re-export center and products are being imported from there through legal channels. “The so-called gray market is active with small size products, but it does not affect white goods,” Choong-Keun Cho, LG Electronics’ new general manager for Saudi Arabia, told Arab News.
“We identify the gray market products, trace their origin and take measures to protect our local partners,” said Cho who assumed charge recently. He came here after serving the company in Istanbul for five years. He earlier worked for two years in Dubai and four years in Germany. He was posted back in the LG headquarters in Seoul in between his overseas assignments. Giving his experiences in overseas markets, Cho said LG had emerged as a leading player in Europe, which was dominated by local manufacturers. “In terms of product leadership, we’re ahead in air conditioners, big-size refrigerators and microwave ovens — No. 1 in the case of some of these product categories,” Cho said. LG Deputy General Manager S.M. Arshad, introducing the new GM, said Cho had an excellent track record and has won international accolades for his performance.