JEDDAH, 3 October 2006 — Korea has of late emerged as a major power in manufacturing. “I believe the secret of Korea’s emergence as a manufacturing powerhouse is in its ability to improvise on its technical and process manufacturing abilities,” Moon Seok Chang, managing director of Samsung Electronics Co. Ltd., Jeddah branch, said in an interview.

“The Korean love for technology and engineering is also a reason that has propelled the country in the big league of manufacturing, aside from the dedication and focus of the countries’ professionals in settling for nothing less than excellence,” he said.

Following are excerpts from the interview:

Q: What opportunities do you see in the future for new business relationships between Saudi Arabia and Korea.

A: Saudi-Korean business relations are on the threshold of opening a new chapter in the development of mutual trade. With the advancement of Korean technology and the country’s ability to churn out innovative and new products, Saudi Arabia is always a lucrative market for Korean products. With increasing demand for technology products and rising aspirations of Saudis, Korean companies stand to benefit from their growing potential. Saudi Arabia will offer new avenues to Korean products and the scenario looks mutually beneficial.

Q: Does Korea have any special advantages over other countries when it comes to doing business in the Middle East?

A: Korea definitely has special advantages over other countries as a result of its continuous value additions and superior product offerings to the Middle East markets. Rising demand and wider consumer acceptability of Korean products will give the country a special standing among the Kingdom’s trading partners.

Q: Many Korean manufacturers, from automobiles to appliances to electronics, are now producing world-class products. How do you explain Korea’s growing reputation as a manufacturing powerhouse?

A: Korea has of late emerged as a major power in manufacturing. I believe the secret of Korea’s emergence as a manufacturing powerhouse is in its ability to improvise on its technical and process manufacturing abilities. The Korean love for technology and engineering is also a reason that has propelled Korea in the big league of manufacturing, aside from the dedication and focus of the country’s professionals in settling for nothing less than excellence.

Q: What can Saudi businessmen learn from the way the Koreans do business.

A: A lot of lessons can be learned from Korea’s development, especially in areas of human resource development and vocational training. Human resources are the cornerstone of development. I believe, Saudi Arabia needs to devote its resources toward developing and training its vast pool of talents. We can also learn the concept of development through commitment and dedication. Hard work is the key to success and there cannot be a shortcut to this.

Q: You have a number of Koreans working with you here, supervising various aspects of Samsung’s business. What do they have to say about working in Saudi Arabia?

A: Our Korean workers at Samsung view Saudi Arabia as a very strategic market within the GCC. They attach a lot of importance to maintain leadership position of its products in this market. They acknowledge the superior buying power of Saudi people and the Kingdom’s expanding economy as a key indicator of fueling rapid growth in the future.

Q: How is the Saudi consumer changing, and what are companies like Samsung doing to answer their needs?

A: The Saudi Consumer is going through a phase of awakening and empowerment. They have begun to realize their true potential and have become very demanding in terms of what they want and need. As a market driven company, Samsung understands the changes in Consumer behavior and is constantly striving to deliver the best products and services that can fulfill the growing demands of the Kingdom’s residents. Samsung is also continuously adding value to its products and services in order to always stay close to its customer base in the Kingdom.

Q: The United Matbouli Group (UMG) is well known as the partner and distributor for Samsung goods across the Kingdom. How long is the association between UMG and Samsung.

A: The association spans over 20 years during which it has witnessed its transformation from a small producer of home appliances and electronics manufacturer to an $80 billion conglomerate.

Q: Samsung has experienced an extraordinary growth in recent years. What are the reasons for their success?

A: Samsung’s clear vision of the future is one of the reasons of its success. Another reason is its commitment to research and development where it has invested to improve its products and provide cutting-edge technologies at an affordable price.

Also, design plays a vital role in Samsung’s success. The company has more than 450 people on their design team and that has gained Samsung many design awards in 2005.