B. DATA ON BEST PROSPECT AND SECTOR EXPORT PROFILES Best prospects products and services for U.S. exporters COUNTRY: DATE OF REPORT: A) Rank of sector: 5 B) Name of sector : Computers and Peripherals C) Three-letter ITA industry sector code : CPT D) Market size, total (U.S. $mil.): -- 1993 : 2,610.2 -- 1994 (estimated) : 2,843.3 -- 1995 (estimated) : 3,096.3 E) Local production, total (U.S. $mil.) -- 1993 : 4,009.8 -- 1994 (estimated) : 4,410.9 -- 1995 (estimated) : 4,852.0 F) Exports, total (U.S. $mil.) -- 1993 : 2,584.7 -- 1994 (estimated) : 2,894.9 -- 1995 (estimated) : 3,242.3 G) Imports, total (U.S.$mil.) -- 1993 : 1,185.1 -- 1994 (estimated) : 1,327.3 -- 1995 (estimated) : 1,486.6 H) Imports from U.S. (U.S. $mil.): -- 1993 : 472.7 -- 1994 (estimated) : 570.6 -- 1995 (estimated) : 684.7 I) Exchange rates used (U.S. dollar = ) -- 1993 :Won 808 -- 1994 (estimated) :Won 806 -- 1995 (estimated) :Won 804 J) Comments: The Korean market for computers and peripherals will continue to expand as modernization of information processing and innovations in management continue in the principal facets of the government, financial, and industrial sectors. Computer peripherals, such as high- capacity HDDs and CD-ROMs, and high-speed laser beam printers (LBPs), are also increasing in popularity with the proliferation of high capacity engineering workstations (EWS) and 486 PCs. The trend toward networking and decentralization among advanced private sector computer users will also spark significant demand for other related peripherals for a wide rage of applications. Improvements in the price/performance of PCs and the broadening base of supporting technology around client/server model of computing are creating compelling alternatives to traditional mainframe solutions. The U.S. is the princiapl supplier to Korea. The growing market, however, has led to increased competition from third country suppliers, mostly European and Japanese. Technology of local products is relatively high, particularly in the PC subsector, but is not expected to be any major challenge to foreign suppliers. U.S. suppliers should continue to intensify their sales efforts now if they are to capture Korean users' loyalty in anticipation of the eventual expansion of the local market. K) List of most promising subsectors within the sector, along with estimated 1994 total market size of each subsector (U.S. $millions): - Supercomputers 76.0 - Mainframes and Minicomputers 360.2 - Engineering Workstations 84.2 - Personal Computers (PCs) 1,071.8 - Computer Storage Devices 421.2 - Computer Printers (inc. LBP's) 210.5 - Local Area Network (LAN) Equipment 147.0 COUNTRY: DATE OF REPORT: A) Rank of sector : 4 B) Name of sector : Telecommunications Equipment C) Three-letter ITA industry sector code : TEL D) Total market size (U.S. $mil.): -- 1993 : 2,506.7 -- 1994 (estimated) : 2,834.7 -- 1995 (estimated) : 3,205.9 E) Local production, total (U.S. $mil.) -- 1993 : 3,001.9 -- 1994 (estimated) : 3,362.2 -- 1995 (estimated) : 3,765.6 F) Exports, total (US $mil.) -- 1993 : 1,398.0 -- 1994 (estimated) : 1,565.7 -- 1995 (estimated) : 1,753.6 G) Imports, total (U.S. $mil.): -- 1993 : 902.8 -- 1994 (estimated) : 1,038.2 - 1995 (estimated) : 1,193.9 H) Imports from the U.S. (U.S. $mil.) - 1993 : 424.3 - 1994 (estimated) : 498.3 - 1995 (estimated) : 585.0 I) Exchange rates used (U.S. dollar = ) - 1993 :Won 808 - 1994 (estimated) :Won 806 - 1995 (estimated) :Won 804 J) Comments: Korea is one of the fastest growing telecommunications markets in the world. Opportunities will unfold over the next several years for U.S. sales of communications equipment and systems as economic restructuring and deregulation in the telecommunications sector accelerate in Korea and the Korean government loosens its monopoly control on the telecommunications sector. In addition, the Korean government has recently lifted major technical barriers to imports of all customer premises equipment to be attached to the public telecommunications networks (PSTN and PSDN). Korea will be broadcasting its new CATV channels by April 1995. There will be one more cellular telephone service provider by early 1996. Korea also plans to invest approximately $50.0 billion to build an integrated information super highway system by 2015. Local producers have captured the broad middle segment of the market for high demand/volume types of products, while U.S. suppliers have maintained its dominant technologically competitive postion in Korea, controlling the specialized equipment market. As Korea's telecom market opening progresses according to schedule, an increasing number of Japanese and European industries are expected to advance into the market, forming a new challenge to U.S. U.S. firms can benefit from Korea's rapidly growing telecom market, as Korea expands its telecom networks and explores ISDN features. Since the technoloyg of local product is relatively high, the highest quality is expected from U.S. equipment. K) List of most promising subsectors within the sector, along with estimated 1994 total market size of each subsector (U.S. $millions): - Cellular Telecomm Equipment 118.5 - Broadcast Equipment 205.9 (CATV Equipment) (131.8) - Satellite Communications Equipment 81.0 COUNTRY: DATE OF REPORT: A) Rank of sector : 10 B) Name of sector : Automobiles and Light Trucks / Vans C) Three-letter ITA industry sector code : AUT D) Market size, total (U.S. $ mil.) - -- 1993 : 14,000 -- 1994 (estimated) : 16,000 -- 1995 (estimated) : 18,000 E) Local Production, total (U.S. $ mil.) - -- 1993 : 14,878 -- 1994 (estimated) : 17,273 -- 1995 (estimated) : 19,864 F) Exports, total (U.S. $ mil.) - -- 1993 : 4,110 -- 1994 (estimated) : 5,054 -- 1995 (estimated) : 5,443 G) Imports, total (U.S. $ mil.) - -- 1993 : 373 -- 1994 (estimated) : 563 -- 1995 (estimated) : 750 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 50 -- 1994 (estimated) : 75 -- 1995 (estimated) : 100 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 788 -- 1994 (estimated) : Won 808 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Korea's auto industry is rapidly growing and its export is increasing too. Therefore, U.S. auto parts manufacturers are urged to export to Korea auto parts that which cannot be locally manufactured. They are also urged to have technological cooperation with local parts manufacturers that do not have advanced manufacturing technology. As long as Korean auto industry prospers, local car and parts manufacturing companies will enjoy profit making business. It is suggested that U.S. car manufacturers try to export price-competitive medium-size cars to middle income brackets in Korea with efficient after-sales market service network in major cities in Korea in order to compete against local manufacturers. U.S. faces strong competition from European auto manufacturers, especially Germany and Sweden. Quality models, however, should be very competitive due to current exchange rate. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Dump truck, trailer, ambulance, fire-fighting truck, refrigerator truck, garbage truck: 150 COUNTRY: Korea DATE OF REPORT: A) Rank of sector : 25 B) Name of sector: : Travel and Tourism Services C) Three-letter ITA industry sector code : TRA D) Total Sales (U.S. $ mil.) - -- 1993 : 8,976 -- 1994 (estimated) : 9,873 -- 1995 (estimated) : 10,861 E) Sales by Local Firms, total (U.S. $ mil.) - -- 1993 : 4,872 -- 1994 (estimated) : 4,948 -- 1995 (estimated) : 4,951 F) Foreign Sales by Local Firms, total (U.S. $ mil.) - -- 1993 : 3,511 -- 1994 (estimated) : 4,216 -- 1995 (estimated) : 4,848 G) Sales by Foreign-owned Firms, total (U.S. $ mil.) - -- 1993 : 4,104 -- 1994 (estimated) : 4,925 -- 1995 (estimated) : 5,910 H) Sales by U.S.-owned Firms, total (U.S. $ mil.) - -- 1993 : 712 -- 1994 (estimated) : 886 -- 1995 (estimated) : 1,064 I) Exchange rates used (U.S. dollar = ) - -- 1993 : WON 808 -- 1994 (estimated) : WON 806 -- 1995 (estimated) : WON 804 J) Comments (15-20 line description) Korean outbound tourism is enjoying annual double digit growth since all travel restrictions were lifted in 1989, making it one of the world's fastest growing new markets. Overseas travel by Koreans has nearly tripled from 725,000 in 1988 to 2 million in 1992, with the number of Koreans visiting the U.S. in 1993 surpassing the 420,000 mark. The U.S. current market share of 17.4 percent valued at $710 million in foreign exchange receipts will likely increase to 19 percent, or $1.3 billion, by the end of 1996. This upward trend of two digit growth rate will continue another five years or so. Korean travel industry sources project that total outbound traffic will easily pass 4 million by 1996, with the United States expected to account for 750,000 of the total. In 1994 more than 500,000 Korean travelers will visit the U.S. Since the government lifted all of the travel restrictions in 1989, there have been many changes in Korean's travel trend. In the early days of Korea's outbound tourism, the market was led by the business community, primarily wealthy and academic travelers. Now, the relative importance of travelers from the middle class and even rural areas is increasing. The United States is the second most selected tourist destination for Koreans after Japan. Now that Korean Government has lifted travel restrictions to China and relations between the two countries have been normalized, China is expected to displace the United States's number two position in 1995 or 1996. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - FIT (Foreign Individual Travel) 4,070 - GIT (Group Inclusive Travel) 814 - Honeymoon Travel 50 COUNTRY: DATE OF REPORT: A) Rank of sector : 22 B) Name of sector: : Air Conditioning and Refrigeration C) Three-letter ITA industry sector code : ACR D) Market size, total (U.S. $ mil.) - -- 1993 : 2,732 -- 1994 (estimated) : 2,868 -- 1995 (estimated) : 2,982 E) Local Production, total (U.S. $ mil.) - -- 1993 : 3,168 -- 1994 (estimated) : 3,294 -- 1995 (estimated) : 3,392 F) Exports, total (U.S. $ mil.) - -- 1993 : 634 -- 1994 (estimated) : 665 -- 1995 (estimated) : 692 G) Imports, total firms (U.S. $ mil.) - -- 1993 : 840 -- 1994 (estimated) : 870 -- 1995 (estimated) : 880 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 168 -- 1994 (estimated) : 174 -- 1995 (estimated) : 180 I) Exchange rates used (U.S. dollar = ) - -- 1993 :Won 808 -- 1994 (estimated) :Won 806 -- 1995 (estimated) :Won 804 J) Comments (15-20 line description) Domestic construction trends influence air conditioning/refrigeration industry in the area of household air conditioning & refrigeration home appliances while current increase of automobile production influence air conditioning production for transportation. Foreign firms with advanced technology for the substitute of CFC will have an advantage in the Korean market. General refrigerating equipment and coolers are manufactured by local companies often through technical licensing agreements or joint venture. Major parts such as screw condensing units and compressors are imported because of the lack of local engineering technology. Relevant Korean manufacturers are reluctant to invest in the industry where product lines are diverse, and characterized by small production volumes. The weakest point of the Korean air/ref. industry is design and technology. Korean government's anti-Japanese import diversification efforts will strengthen U.S. export prospects. U.S. is a major supplier in import market because U.S. suppliers meet demand for large size equipmentsuppliers meet demand for large K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). 1) Air, vacuum pumps, air/other gas compressors 530 2) Air conditioning equipment: Indst. 185 3) Show case 46 COUNTRY: DATE OF REPORT: A) Rank of sector : 16 B) Name of sector: : Pollution Control Equipment C) Three-letter ITA industry sector code : POL D) Market size, total (U.S. $ mil.) - -- 1993 : 712 -- 1994 (estimated) : 968 -- 1995 (estimated) : 1,316 E) Local Production, total (U.S. $ mil.) - -- 1993 : 433 -- 1994 (estimated) : 617 -- 1995 (estimated) : 874 F) Exports, total (U.S. $ mil.) - -- 1993 : 49 -- 1994 (estimated) : 59 -- 1995 (estimated) : 70 G) Imports, total (U.S. $ mil.) - -- 1993 : 328 -- 1994 (estimated) : 410 -- 1995 (estimated) : 512 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 61 -- 1994 (estimated) : 76 -- 1995 (estimated) : 94 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) The market for pollution control equipment, valued at about USD 761 million in 1993, is expected to grow rapidly as concern with a coming "Green Round" of environment-related trade agreements drives the Korean government to strengthen environmental control. Solid waste management equipment holds especially good potential for the U.S. suppliers. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Air Pollution Equipment 234 - Water Pollution Equipment 185 - Incineration Equipment 210 - Recycling Equipment 137 COUNTRY: DATE OF REPORT: A) Rank of sector : 23 B) Name of sector : Computer Software C) Three-letter ITA industry sector code : CSF D) Market size, total (U.S. $mil.): -- 1993 : 425.0 -- 1994 (estimated) : 484.9 -- 1995 (estimated) : 552.7 E) Local production, total (US $mil.) -- 1993 : 257.3 -- 1994 : 297.1 -- 1995 : 342.1 F) Exports, total (U.S. $mil.) -- 1993 : 4.9 -- 1994 (estimated) : 5.5 -- 1995 (estimated) : 6.2 G. Imports, total (U.S. $mil.) -- 1993 : 172.6 -- 1994 (estimated) : 193.3 -- 1995 (estimated) : 216.8 H. Imports from U.S. (U.S. $mil.) -- 1993 : 110.1 -- 1994 (estimated) : 129.5 -- 1995 (estimated) : 151.5 I. Exchange rates used (U.S. dollar = ) -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J. Comments: As computerization progresses in almost all sectors of the economy, the demand for software will rise, providing opportunities for incremental sales of U.S. high technology, specialized computer software. The Korean software development technology is still far behind that of the U.S. and Japan, due to limited experience in computer industry, and an accute shortage of highly qualified software specialists. Korea depends heavily on imports to meet its system software and special- purpose applications software requirements. In the past, inadequate legal protection for software adversely affected the U.S. software industry's position, most evidently in the PC software. In the future, the Computer Program Protection Law (CPPL) will be more strictly enforced to protect both domestic and foreign creators' rights. Korea depends entirely on imports for systems software, but is quite strong in developing applications software. There is a lack of a strong infrastructure, resulting from the lack of accumulated technology and experience. The U.S. is and will be the principal supplier to Korea, enjoying the many advantages it has over third country suppliers, resulting from the strength of its sofware project management and marketing skills. U.S. suppliers' willingness to modify their software slightly to meet specific Korean user needs is an important factor in the end-user purchasing decisions. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $millions): - Packaged Software 186.4 - CAD/CAM/CAE Systems 158.0 - Computer-Aided System 21.4 Engineering (CASE) COUNTRY: DATE OF REPORT: A) Rank of sector : 14 B) Name of sector : Drugs and Pharmaceuticals C) Three-letter ITA industry sector code : DRG D) Market size, total (U.S. $ mil.) - -- 1993 : 6,790 -- 1994 (estimated) : 7,180 -- 1995 (estimated) : 7,630 E) Local Production, total (U.S. $ mil.) - -- 1993 : 6,256 -- 1994 (estimated) : 6,600 -- 1995 (estimated) : 7,000 F) Exports, total (U.S. $ mil.) - -- 1993 : 196 -- 1994 (estimated) : 220 -- 1995 (estimated) : 250 G) Imports, total (U.S. $ mil.) - -- 1993 : 730 -- 1994 (estimated) : 800 -- 1995 (estimated) : 880 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 72 -- 1994 (estimated) : 80 -- 1995 (estimated) : 90 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Korea's imports of foreign-made pharmaceuticals has increased due to the rising demand for better healthcare and the steadily improved business environment. U.S. pharmaceutical industry has been active in the Korean market, representing one of the major suppliers with Japan, Germany and Switzerland. The Korean market for imported pharmaceuticals is forecasted to continue to grow because of the reduced ability of local manufacturers to produce me-too products after 1995 when the Uruguay Round is fully in place. K) List of most promising subsectors within the sector, along with the estimated 1995 total market size of each subsector (U.S. $ mil.). - Diagnostic Reagents 50 COUNTRY: DATE OF REPORT: A) Rank of sector : 8 B) Name of sector : Cosmetics and Toiletries C) Three-letter ITA industry sector code : COS D) Market size, total (U.S. $ mil.) - -- 1993 : 3,300 -- 1994 (estimated) : 3,600 -- 1995 (estimated) : 4,000 E) Local Production, total (U.S. $ mil.) - -- 1993 : 3,185 -- 1994 (estimated) : 3,475 -- 1995 (estimated) : 3,865 F) Exports, total (U.S. $ mil.) - -- 1993 : 35 -- 1994 (estimated) : 40 -- 1995 (estimated) : 45 G) Imports, total (U.S. $ mil.) - -- 1993 : 150 -- 1994 (estimated) : 165 -- 1995 (estimated) : 180 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 70 -- 1994 (estimated) : 80 -- 1995 (estimated) : 90 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) The Korean market for cosmetics and personal care toiletry products market has realistically opened to foreign firms only recently. Despite a number of barriers in import and distribution, foreign firms have been making progress since 1990 due to amendments to import regulations and strong marketing. U.S. sources and European sources are competing. Due to the strong growth in the Korean economy, public interest in personal care products has been rising. The market for quality foreign-made personal care products are expected to grow rapidly in unison. K) List of most promising subsectors within the sector, along with the estimated 1995 total market size of each subsector (U.S. $ mil.). - Cosmetics 2,200 - Toilet Soap 130 COUNTRY: DATE OF REPORT: A) Rank of sector : 15 B) Name of sector : Medical Equipment C) Three-letter ITA industry sector code : MED D) Market size, total (U.S. $ mil.) - -- 1993 : 543 -- 1994 (estimated) : 624 -- 1995 (estimated) : 718 E) Local Production, total (U.S. $ mil.) - -- 1993 : 313 -- 1994 (estimated) : 360 -- 1995 (estimated) : 413 F) Exports, total (U.S. $ mil.) - -- 1993 : 102 -- 1994 (estimated) : 117 -- 1995 (estimated) : 135 G) Imports, total (U.S. $ mil.) - -- 1993 : 332 -- 1994 (estimated) : 382 -- 1995 (estimated) : 439 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 100 -- 1994 (estimated) : 115 -- 1995 (estimated) : 132 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Imports have always dominated the Korean medical equipment market. Strong economic growth and a rising standard of living have spurred an increase in healthcare spending and demand for quality healthcare service. Accordingly, Korean demand for sophisticated medical technology has been on the upswing and is expected to continue to increase for the next several years. U.S. medical equipment companies have maintained a strong position as the largest country source. European and Japanese sources are also competing with U.S. sources. The market is forecasted to expand at a rate of 10- 15 percent annually for the next three years, and imports are expected to grow, matching with the growth of the entire market. K) List of most promising subsectors within the sector, along with the estimated 1995 total market size of each subsector (U.S. $ mil.). - Diagnostic Imaging Equipment 65 - Surgical/Therapeutic Laser Equipment 33 - Aids for the Disabled 65 - Contact Lenses and Solutions 12 - Patient Monitoring Systems 6 COUNTRY: DATE OF REPORT: A) Rank of sector :1 B) Name of sector: :Transportation svcs C) Three-letter ITA industry sector code :TRN D) Total sales, total (U.S. $ mil.) - -- 1993 :30,832 -- 1994 (estimated) :33,991 -- 1995 (estimated) :38,703 E) Sales by local firms, total (U.S. $ mil.) - -- 1993 :26,416 -- 1994 (estimated) :29,045 -- 1995 (estimated) :32,480 F) Foreign sales by local firms, total (U.S. $ mil.) - -- 1993 :10,810 -- 1994 (estimated) :11,805 -- 1995 (estimated) :12,950 G) Sale by foreign-owned firms, total (U.S. $ mil.) - -- 1993 :4,416 -- 1994 (estimated) :4,946 -- 1995 (estimated) :6,223 H) Sales by U.S.-owned firms (U.S. $ mil.) - -- 1993 :765 -- 1994 (estimated) :856 -- 1995 (estimated) :1,214 I) Exchange rates used (U.S. dollar = ) - -- 1993 :Won 808 -- 1994 (estimated) :Won 806 -- 1995 (estimated) :Won 804 J) Comments (15-20 line description) The Korean transportation services market has been growing at over 16 percent since 1990. Particularly, a growth of over 20 percent is expected from the maritime services sector in 1994. The revenues from maritime services by Korean flags achieved a 26.2 percent increase in 1993 despite the global recession in this market. The Korean maritime services market is expected to grow even more with the recent increasing demand from the Pacific rim countries, notably the Republic of China. The Trans-Pacific routes are becoming the most promising maritime services area. Last year, reported market share in this trans-pacific routes between the North America and Asia was 49.2 percent for conference shipping firms like APL of the U.S., Maersk of Denmark, and 50.8 percent for non-conference shipping firms like Hanjin, Hyundai of Korea, and the Evergreen of Taiwan. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). Maritime Service: 10,341 Port Service : 2,100 COUNTRY: DATE OF REPORT: A) Rank of sector : 19 B) Name of sector: : Machine Tool & Metal working equipment C) Three-letter ITA industry sector code : MTL D) Market size, total (U.S. $ mil.) - -- 1993 : 1,280 -- 1994 (estimated) : 1,382 -- 1995 (estimated) : 1,478 E) Local Production, total (U.S. $ mil.) - -- 1993 : 589 -- 1994 (estimated) : 647 -- 1995 (estimated) : 692 F) Exports, total (U.S. $ mil.) - -- 1993 : 110 -- 1994 (estimated) : 115 -- 1995 (estimated) : 120 G) Imports from U.S. (U.S. $ mil.) - -- 1993 : 712 -- 1994 (estimated) : 768 -- 1995 (estimated) : 821 H) Sales by U.S. firms (U.S. $ mil.) - -- 1993 : 88 -- 1994 (estimated) : 93 -- 1995 (estimated) : 98 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won808 -- 1994 (estimated) : Won806 -- 1995 (estimated) : Won804 J) Comments (15-20 line description) Imports have traditionally dominated the Korean machine tool market because of the lack of domestic producers. Korea has an adverse balance of trade in the machine tool equipment sector. Local demand has shifted from basic machine tools to high precision machineries. However, Korean firms have not been able to duplicate their success on other high-quality machinery. For those sophisticated types of machines, dependence on foreign suppliers is still heavy. Local manufacturers lack the key technical skills, patents, and foreign technology transfers. The CNC equipment's percentage of the total machinery industry has been increasing steadily. Expansion of automobile manufacturers' production line is a major factor of machine tool industry increase. Korean machine tool manufacturers mainly focus their effort in improving old models while end-users require new model by new technology. A strong yen and anti-Japanese import diversification efforts will strengthen U.S. export prospects. Marketability of Japanese goods is expected to decrease while Germany remains second major supplier and U.S. remains third major supplier in import market. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). 1) NC Machine Tools 282 2) Grinding Machines 183 3) Lathes 80 COUNTRY: DATE OF REPORT: A) Rank of sector : 17 B) Name of sector: : Plastic Materials and Resins C) Three-letter ITA industry sector code : PMR D) Market size, total (U.S. $ mil.) - -- 1993 : 1,195 -- 1994 (estimated) : 1,338 -- 1995 (estimated) : 1,499 E) Local Production, total (U.S. $ mil.) - -- 1993 : 2,816 -- 1994 (estimated) : 3,100 -- 1995 (estimated) : 3,411 F) Exports, total (U.S. $ mil.) - -- 1993 : 1,792 -- 1994 (estimated) : 1,948 -- 1995 (estimated) : 2,115 G) Imports, total (U.S. $ mil.) - -- 1993 : 171 -- 1994 (estimated) : 186 -- 1995 (estimated) : 203 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 57 -- 1994 (estimated) : 63 -- 1995 (estimated) : 69 I) Exchange rates used (U.S. dollar = ) - -- 1993 : 803 -- 1994 (estimated) : 806 -- 1995 (estimated) : 810 J) Comments (15-20 line description) The demand for plastic materials and resins is growing steadily for automobile, electronic and electrical applications. However, the Korean market for standard derivatives of petrochemicals is quite competitive and less promising for imports. Specialty plastic materials have shown particular growth potential for foreign suppliers of high technology products. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Specialty Plastic Materials 297 COUNTRY: DATE OF REPORT: A) Rank of sector : 3 B) Name of sector: : Architectural/ Construction/ Engineering Services C) Three-letter ITA industry sector code : ACE D) Total Sales (U.S. $ mil.) - -- 1993 : 48,400 -- 1994 (estimated) : 54,100 -- 1995 (estimated) : 68,000 E) Total Sales by Local Firms (U.S. $ mil.) - -- 1993 : 43,300 -- 1994 (estimated) : 47,900 -- 1995 (estimated) : 60,900 F) Foreign Sales by Local Firms (U.S. $ mil.) - -- 1993 : 5,100 -- 1994 (estimated) : 6,200 -- 1995 (estimated) : 7,100 G) Sales by Foreign Firms (U.S. $ mil.) - -- 1993 : N/A -- 1994 (estimated) : N/A -- 1995 (estimated) : N/A H) Sales by U.S. Firms (U.S. $ mil.) - -- 1993 : N/A -- 1994 (estimated) : N/A -- 1995 (estimated) : N/A I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 788 -- 1994 (estimated) : Won 808 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) The Korean construction market was opened in January, 1994. Architectural services are scheduled to be open to foreign participation in 1996. Engineering services are expected to be opened upon adoption of WTO. Therefore statistics are not available. Foreign construction companies, however, will be able to engage in construction business in Korea beginning in January, 1995. Therefore, U.S. construction companies are urged to make full preparations for entry into the Korean construction market in 1995. FCS Seoul has tried in vain to obtain statistics on G) and H) above, but has not been able to get them due to the following reasons: (1)There is no official statistic service institute in Korea that compiles business statistics from a numerous business companies and organizations; (2)Korean government, industry associations and business companies do not have statistical data on foreign companies operating in Korea; (3)Foreign firms in Korea are not required to release their business statistics to the local industry associations or government authorities unless they are asked to do so. Although, the market has not been open, major firms from Germany, France, and other European companies will make their presence known due to the lucrative price tag on the various construction projects. Germany has already built a vast business center and France is scheduled to build a comparable structures in 1995. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Design: 750 COUNTRY: DATE OF REPORT: A) Rank of sector : 24 B) Name of sector: : Building Products C) Three-letter ITA industry sector code : BLD D) Market size, total (U.S. $ mil.) - -- 1993 : 16,704 -- 1994 (estimated) : 17,205 -- 1995 (estimated) : 17,721 E) Local Production, total (U.S. $ mil.) - -- 1993 : 620 -- 1994 (estimated) : 644 -- 1995 (estimated) : 670 F) Exports, total (U.S. $ mil.) - -- 1993 : N/A -- 1994 (estimated) : N/A -- 1995 (estimated) : N/A G) Imports, total (U.S. $ mil.) - -- 1993 : 2,750 -- 1994 (estimated) : 2,830 -- 1995 (estimated) : 2,920 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : N/A -- 1994 (estimated) : N/A -- 1995 (estimated) : N/A I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won808 -- 1994 (estimated) : Won806 -- 1995 (estimated) : Won804 J) Comments (15-20 line description) With the domestic market completely opening to foreign firms in 1995, US companies will have a good opportunity to increase market share because end-users seek more comfortable living housing condition. High value added U.S. building materials will enjoy an increase in the local market share while foreign suppliers of developed countries would enjoy increased market share in raw materials supply. The domestic forestry production accounts for about 14 percent of total wood consumption, with the deficit made up largely by imports. Korean house-builders are orienting better and more comfortable environmental facilities to end- users through house- construction using natural building materials such as log, wood. Prefabricated building materials are becoming popular to save time and labor cost. Foreign suppliers superior quality and design will insure competitive position in Korean market especially for large size apartments, luxurious town houses, and tourist hotels. Accurate statistical data is not available because a relevant association which is responsible overal building materials is not available. Price changes of building material is very often and statistical data by reference book or related association are unavailable. Statistical data is an estimation on the basis of newspaper articles, etc. U.S.A. is the top supplier in high quality structural/raw material of building products while Japan is the second major supplier. In high quality interior finished products, Italy is the leading foreign supplier, Japan is the second supplier and U.S.A. is the third major supplier. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Log and Lumber products 1,200 - Pre-fabricated house 2 COUNTRY: DATE OF REPORT: A) Rank of sector :9 B) Name of sector: :Financial Services C) Three-letter ITA industry sector code :FNS D) Market size, total (U.S. $ mil.) - -- 1993 :5,055 -- 1994 (estimated) :5,700 -- 1995 (estimated) :6,612 E) Revenues of local firms, total -- 1993 :5,000 -- 1994 (estimated) :5,636 -- 1995 (estimated) :6,536 F) *Revenues of local firms overseas branches -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : G) Revenues of foreign firms -- 1993 : 55 -- 1994 (estimated) : 64 -- 1995 (estimated) : 76 H) Revenues of U.S. firms -- 1993 : 18.9 -- 1994 (estimated) : 22.5 -- 1995 (estimated) : 27.5 I) Exchange rates used (U.S. dollar = ) -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) * No substantial activities are expected within next few years. The Korean stock market, one of the emerging bullish markets in developing countries, opened for foreign investors as of January 1, 1992. Foreigners are now allowed to buy up to 10 percent of shares of a listed company in Korea. This ceiling of 10 percent is expected to go up by more than 5 percent in the later part of this year. This will greatly affect revenues of foreign securities firms. The Korean government is committed to expedite the wide opening of the financial markets. The stock market for foreign securities firms is expected to grow gradually with the recovery of the Korean economy. Strong Japanese Yen, relatively stable low interest rates and massive government deregulation have contributed to the recovery of the Korean economy. On December 28, 1993, the Korea Composite Stock Price Index (KOSPI) posted a rise of 24.2 percent reaching 866.18 points, up from 697.41 points at the beginning of 1993. It is expected to go up to 1,100 points by the end of 1994, and 1,470 points by 1996. Among 33 foreign securities firms (22 reps, 11 branches) British securities firms are very active in the Korean market. British firms focus on Asian capital markets more than U.S. or Japanese firms do, demonstrating bigger operational size and stronger manpower in research. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). Financial Management Service N/A COUNTRY: DATE OF REPORT: A) Rank of sector : 21 B) Name of sector: : Plastic Production Machinery C) Three-letter ITA industry sector code : PME D) Market size, total (U.S. $ mil.) - -- 1993 : 459 -- 1994 (estimated) : 538 -- 1995 (estimated) : 629 E) Local Production, total (U.S. $ mil.) - -- 1993 : 286 -- 1994 (estimated) : 337 -- 1995 (estimated) : 398 F) Exports, total (U.S. $ mil.) - -- 1993 : 63 -- 1994 (estimated) : 73 -- 1995 (estimated) : 86 G) Imports, total (U.S. $ mil.) - -- 1993 : 236 -- 1994 (estimated) : 274 -- 1995 (estimated) : 317 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 26 -- 1994 (estimated) : 31 -- 1995 (estimated) : 36 I) Exchange rates used (U.S. dollar = ) - -- 1993 : 803 -- 1994 (estimated) : 806 -- 1995 (estimated) : 810 J) Comments (15-20 line description) The demand for plastic production machinery continues to grow, benefiting from large-scale expansion of the automobile, eletronic and electrical industries. Japanese products dominate the import market, but U.S. suppliers stand to gain a larger portion,in part, because plastic prodution machines have been included in the "Import Source Diversification Plan", a scheme to reduce Korea's trade deficit with Japan. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Plastic Injection Molding Machine 205 - Plastic Extrusion Machine 139 COUNTRY: DATE OF REPORT: A) Rank of sector : 7 B) Name of sector : Education and Training C) Three-letter ITA industry sector code : EDS D) Total sales (U.S. $ mil.) - -- 1993 : 5,000 -- 1994 (estimated) : 5,500 -- 1995 (estimated) : 6,000 E) Sales by local firms, total (U.S. $ mil.) - -- 1993 : 3,230 -- 1994 (estimated) : 3,553 -- 1995 (estimated) : 3,803 F) Foreign sales by local firms, total (U.S. $ mil.) - -- 1993 : n/a -- 1994 (estimated) : n/a -- 1995 (estimated) : n/a G) Sales by foreign-owned firms, total (U.S. $ mil.) - -- 1993 : 1,200 -- 1994 (estimated) : 1,440 -- 1995 (estimated) : 1,728 H) Sales by U.S.-owned firms, (U.S. $ mil.) - -- 1993 : 480 -- 1994 (estimated) : 600 -- 1995 (estimated) : 750 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Education has been widely credited for the important role it has played in contributing to Korea's extraordinary economic development. The number of Korean students studying in the U.S. in 1993 increased to 42,625 students, representing just over one-half of the total out-bound flow from Korea. The number of Koreans who want to study abroad includes not only students but also business people who are seeking career advancement. The pool of potential Korean consumers of U.S. educational institutes is exceptionally large. Although American schools and institutes are competitive, other countries are also vigorously promoting themselves as alternative destinations for students who are looking to study abroad. Also, beginning in 1995 the Korean government will remove barriers to inward direct foreign investment in the Korean educational market. This market includes professional institutes such as language, design, art, music, drama, etc. In 1992 a total of 72,528 students the largest percentage of these Korean students study in the United States, followed by Japan(20,585), France(5,169), Germany(4,999), Australia(1,460), Italy(1,362) England(1,075) and etc. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Language Institutes 160 COUNTRY: DATE OF REPORT: A) Rank of sector :26 B) Name of sector: :Foods - Processed C) Three-letter ITA industry sector code :FOD D) Market size, total (U.S. $ mil.) - -- 1993 : 847.3 -- 1994 (estimated) : 975 -- 1995 (estimated) :1,142 E) Local Production, total -- 1993 : 862.1 -- 1994 (estimated) : 991 -- 1995 (estimated) :1,160 F) Exports, total (U.S. $ mil.) - -- 1993 : 15.4 -- 1994 (estimated) : 17.1 -- 1995 (estimated) : 20.5 G) Imports, total (U.S. $ mil.) - -- 1993 : 0.6 -- 1994 (estimated) : 1.1 -- 1995 (estimated) : 2.2 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 0.15 -- 1994 (estimated) : 0.3 -- 1995 (estimated) : 0.75 I) Exchange rates used (U.S. dollar = ) -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Beer stands at the top of the alcoholic beverage market in korea representing 63% of the market for alcoholic beverages. Import of beer is increasing while demand for high quality products is growing rapidly as Korean consumers are attracted by taste, well-known brands, and variety. Economic recovery, an increasing number of women drinkers, longer operating hours for amusement places, increasing consumption at home and greater leisure time will account for a dramatic increase in beer consumption in the next few years. Although the korean beer market is currently dominated by three local brewers the prospects for imports look positive as consumers' tastes become more sophisticated. U.S. Beer exporters must demonstrate long- run marketing strategies to the fullest extent in order to succeed competing with local brewers and other foreign beer exporters, and cooperate with qualified local importers/distributors who are familiar with import regulations and korea's unique distribution system. COUNTRY: DATE OF REPORT: A) Rank of sector : 12 B) Name of sector : Printing and Graphic Art Equipment C) Three-letter ITA industry sector code : PGA D) Market size, total (U.S. $ mil.) - -- 1993 : 552 -- 1994 (estimated) : 609 -- 1995 (estimated) : 670 E) Local Production, total (U.S. $ mil.) - -- 1993 : 50 -- 1994 (estimated) : 60 -- 1995 (estimated) : 70 F) Exports, total (U.S. $ mil.) - -- 1993 : 20 -- 1994 (estimated) : 25 -- 1995 (estimated) : 30 G) Imports, total (U.S. $ mil.) - -- 1993 : 522 -- 1994 (estimated) : 574 -- 1995 (estimated) : 630 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 53 -- 1994 (estimated) : 60 -- 1995 (estimated) : 65 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) The Korean printing and graphic arts equipment market is almost entirely supplied by imports. The U.S. is the third largest supplier to the market following Japan and Germany. Due to the recent rise in labor costs and demand for more sophisticated prints, local printers or graphic arts firms are seeking computerized equipment for pre-press processing and new printing technology. U.S. firms must understand the needs of the Korean market and tailor their products and services in order to expand their exports. K) List of most promising subsectors within the sector, along with the estimated 1995 total market size of each subsector (U.S. $ mil.). - Offset Rotary Printing Machine 110 - Direct Imaging Systems N/A - Gravure Printing Machines 8 COUNTRY: DATE OF REPORT: A) Rank of sector :26 B) Name of sector: :Security & Safety Equipment C) Three-letter ITA industry sector code :SEC D) Market size, total (U.S. $ mil.) - -- 1993 :280 -- 1994 (estimated) :364 -- 1995 (estimated) :580 E) Local Production, total (U.S. $ mil.) - -- 1993 :180 -- 1994 (estimated) :286 -- 1995 (estimated) :403 F) Exports, total (U.S. $ mil.) - -- 1993 :50 -- 1994 (estimated) :95 -- 1995 (estimated) :133 G) Imports, total (U.S. $ mil.) - -- 1993 :150 -- 1994 (estimated) :173 -- 1995 (estimated) :310 H) Imports from U.S. (U.S. $ mil.) - -- 1993 :39 -- 1994 (estimated) :62 -- 1995 (estimated) :97 I) Exchange rates used (U.S. dollar = ) - -- 1993 :Won 808 -- 1994 (estimated) :Won 806 -- 1995 (estimated) :Won 804 J) Comments (15-20 line description) Due to the Korean government's implementation of the real name system in every financial transaction begining last August, preference for liquidity such as cash and keeping cash in safes have emerged as a popular trend. Thus, active demands for security systems are energizing the Korean market. Also, due to the rapid increase in awareness/importance of industrial safety, spurred by labor disputes during the last several years, the industrial safety market appears to be growing fast than ever. In addition to this, the Korean government's plan to invest appx. USD 370 million won for industrial safety programs for the next three years should also work to accelerate the market. L) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). Industrial Safety Equipment: 300 Traffic Control/Safety Products: 100 COUNTRY: DATE OF REPORT: A) Rank of sector :6 B) Name of sector: :Foods - Processed C) Three-letter ITA industry sector code :FOD D) Market size, total (U.S. $ mil.) - -- 1993 : 75 -- 1994 (estimated) :125* -- 1995 (estimated) :250* E) Local Production, total -- 1993 : 76.3 -- 1994 (estimated) :126.6 -- 1995 (estimated) :225 F) Exports, total (U.S. $ mil.) - -- 1993 : 1.3 -- 1994 (estimated) : 2.6 -- 1995 (estimated) : 4.9 G) Imports, total (U.S. $ mil.) - -- 1993 : - -- 1994 (estimated) : 1.0* -- 1995 (estimated) : 30* H) Imports from U.S. (U.S. $ mil.) - -- 1993 : - -- 1994 (estimated) : 0.5* -- 1995 (estimated) : 15* I) Exchange rates used (U.S. dollar = ) -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) * The above estimation in 1994 and 1995 are projected under the presumption that imports of bottled water will be allowed during the 4th quarter of 1994. Korea's domestic bottled (mineral) water market is now experiencing radid growth with an annual growth rate of 30%. Demand had not been met due to government policies restricting bottled water distribution business to sales to foreigners only for years, until the Ministry of Health and Social Affairs (MOHSA) announced the authorization for domestic sales on March 8th, 1994. MOHSA is expected to announce an enforcement decree concerning the standard of water quality, which will be applied as a norm for authorization of mineral water business in Korea, during the 4th quarter of 1994. It is believed that there will be a great potential for U.S. bottled water exporters in the rapidly growing market for bottled water in Korea. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). Waters, including mineral waters and N/A aerated waters, containing added sugar or other sweetening matter or flavoured. COUNTRY: DATE OF REPORT: A) Rank of sector : 18 B) Name of sector: : Hotel and Restaurant Equipment C) Three-letter ITA industry sector code : HTL D) Market size, total (U.S. $ mil.) - -- 1993 : 66 -- 1994 (estimated) : 70 -- 1995 (estimated) : 77 E) Local Production, total (U.S. $ mil.) - -- 1993 : 17 -- 1994 (estimated) : 16 -- 1995 (estimated) : 18 F) Exports, total (U.S. $ mil.) - -- 1993 : 8.5 -- 1994 (estimated) : 10 -- 1995 (estimated) : 11 G) Imports, total (U.S. $ mil.) - -- 1993 : 49 -- 1994 (estimated) : 54 -- 1995 (estimated) : 59 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 5 -- 1994 (estimated) : 6 -- 1995 (estimated) : 7 I) Exchange rates used (U.S. dollar = ) - -- 1993 : WON 808 -- 1994 (estimated) : WON 806 -- 1995 (estimated) : WON 804 J) Comments (15-20 line description) The Korean government considers tourism one of the high priority sectors of the economy since it creates a large number of jobs and brings in foreign capital. As a good potential growth sector, it also creates significant domestic investment. The market for hotel and restaurant equipment has been steadily growing in parallel with the national income as Korean's interest on their leisure keeps increasing. The government's recent announcement of the nationwide development of new sightseeing places, especially Cheju Island, beginning in 1995, has stimulated the industry's interests in the import of hotel and restaurant equipment. The market share of U.S. hotel and restaurant equipment is still weak in Korea. However, U.S. firms that specialize in quality niche market equipment can benefit from the steadily growing hotel and restaurant equipment market in Korea. Japan has been leading the import market because more adjustable Japanese products enjoy an advantage. Germany is the second market supplier in the import market. This Korean market will continue to grow as a result of the Korean government's and the private sector's commitment to expansion and modernization. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). - Laundry Equipment(Commercial) N/A - Catering Equipment N/A COUNTRY: DATE OF REPORT: A) Rank of sector :2 B) Name of sector :Aircraft and Parts C) Three-letter ITA industry sector code :AIR D) Market size, total (U.S. $ mil.) - -- 1993 :2,421 -- 1994 (estimated) :3,087 -- 1995 (estimated) :3,989 E) Local Production, total (U.S. $ mil.) - -- 1993 :594 -- 1994 (estimated) :737 -- 1995 (estimated) :1,009 F) Exports, total (U.S. $ mil.) - -- 1993 :332 -- 1994 (estimated) :433 -- 1995 (estimated) :563 G) Imports, total (U.S. $ mil.) - -- 1993 :2,070 -- 1994 (estimated) :2,667 -- 1995 (estimated) :3,504 H) Imports from U.S. (U.S. $ mil.) - -- 1993 :1,490 -- 1994 (estimated) :2,255 -- 1995 (estimated) :2,868 I) Exchange rates used (U.S. dollar = ) - -- 1993 :Won 808 -- 1994 (estimated) :Won 806 -- 1995 (estimated) :Won 804 J) Comments (15-20 line description) Korea is now in an exciting stage of development in the aircraft industry with the licensed production of UH-60 Black Hawk helicopters, and the F-16's of the Korea Fighter Program(KFP). Follow-up activities such as investment in production facilities and expertise building in this industry have also received heavy emphasis. In addition, the New Seoul Metropolitan Airport(NSMA) construction project, the mid-size passenger aircraft development project and a planned commuter air service are other factors that are expanding the Korean aircraft industry. Furthermore, the two national carriers' (KAL and AAR) competition in service including new route developments and providing large sized passenger aircrafts, are shaping the new Korean civil aviation market. K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). General Aviation: 2,450 Aircraft Parts : 1,117 COUNTRY: DATE OF REPORT: A) Rank of sector : 11 B) Name of sector : Sporting Goods C) Three-letter ITA industry sector code : SPT D) Market size, total (U.S. $ mil.) - -- 1993 : 1,500 -- 1994 (estimated) : 1,700 -- 1995 (estimated) : 1,890 E) Local Production, total (U.S. $ mil.) - -- 1993 : 1,600 -- 1994 (estimated) : 1,780 -- 1995 (estimated) : 1,890 F) Exports, total (U.S. $ mil.) - -- 1993 : 430 -- 1994 (estimated) : 470 -- 1995 (estimated) : 500 G) Imports, total (U.S. $ mil.) - -- 1993 : 330 -- 1994 (estimated) : 390 -- 1995 (estimated) : 440 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 130 -- 1994 (estimated) : 160 -- 1995 (estimated) : 190 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Thanks to Koreans' growing per capita income and interest in leisure time, sporting and recreational industries have been enjoying steady growth since the mid 1980's. Construction of leisure facilities is booming in Korea, including golf facilities (both indoor/screen golf centers and country clubs), bowling centers and fitness/health centers. This market is expected to grow from 15 to 30 percent for the next 10 years, well exceeding the average growth rate of the national economy. U.S. sporting goods are very strong in this market. Imports from Taiwan are very strong, however, those products have different target market from the U.S., Japanese and European goods. K) List of most promising subsectors within the sector, along with estimated 1993 total market size of each subsector (U.S. $ mil.) Bowling equipment 130 Resort/Leisure facilities equipment 50 Golf equipment 32 Fitness equipment 35 COUNTRY: DATE OF REPORT: A) Rank of sector : 13 B) Name of sector : Household Consumer Goods C) Three-letter ITA industry sector code : HCG D) Market size, total (U.S. $ mil.) - -- 1993 : 6,450 -- 1994 (estimated) : 6,900 -- 1995 (estimated) : 7,300 E) Local Production, total (U.S. $ mil.) - -- 1993 :12,500 -- 1994 (estimated) :13,530 -- 1995 (estimated) :14,410 F) Exports, total (U.S. $ mil.) - -- 1993 : 6,800 -- 1994 (estimated) : 7,450 -- 1995 (estimated) : 8,000 G) Imports, total (U.S. $ mil.) - -- 1993 : 750 -- 1994 (estimated) : 820 -- 1995 (estimated) : 890 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 140 -- 1994 (estimated) : 168 -- 1995 (estimated) : 200 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) Major household consumer goods include electrical home appliances, housewares including chinaware, glassware and decorative accessories, soaps and cleaners, home furnishings and cookware, among others. It is difficult to characterize as diverse a group of markets as household consumer items into a single sector. As a whole, local production of consumer goods has been strong and also protected by government restrictions on both imports and foreign direct investment. With gradual market liberalization, imports and foreign investment of consumer goods have increased remarkably. Compared to the first 3 years (1989 - 1992) of the beginning period of market opening, import growth rate has been cooled down. The growth rate of import between 1992 - 1993 was particulary slowed down due to an overall economic recession as well as post effect of import booming. However, the import market for household consumer goods is expected to grow steadily for the next few years, maintaining 5-10 growth rate. U.S. products are strong and has potential in the quality electrical home appliances market targeting high-end consumers already well established. Germany follows the U.S.A. for quality household appliances. L) List of most promising subsectors within the sector, along with estimated 1994 total market size of each subsector (U.S. $ millions). Major electrical home appliances (refrigerators, washing machines and dryers, gas oven/ranges, air conditioners, vacuum cleaners and dishwashers): 2,388 Housewares: N/A COUNTRY: DATE OF REPORT: A) Rank of sector : 20 B) Name of sector : Toys and Games C) Three-letter ITA industry sector code : TOY D) Market size, total (U.S. $ mil.) - -- 1993 : 400 -- 1994 (estimated) : 450 -- 1995 (estimated) : 500 E) Local Production, total (U.S. $ mil.) - -- 1993 : 601 -- 1994 (estimated) : 573 -- 1995 (estimated) : 575 F) Exports, total (U.S. $ mil.) - -- 1993 : 276 -- 1994 (estimated) : 220 -- 1995 (estimated) : 200 G) Imports, total (U.S. $ mil.) - -- 1993 : 75 -- 1994 (estimated) : 97 -- 1995 (estimated) : 125 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 10 -- 1994 (estimated) : 13 -- 1995 (estimated) : 17 I) Exchange rates used (U.S. dollar = ) - -- 1993 : Won 808 -- 1994 (estimated) : Won 806 -- 1995 (estimated) : Won 804 J) Comments (15-20 line description) In the Korean market for toys and games, imported products are increasing, capturing some 30 percent of the total market. Also, under the third stage of opening of the Korean distribution market, foreign firms can open up to 20 retail shops and maximum floor space for each shop is 3,000 square meters. Considering that U.S. toy industries are known to be in a final stage of direct investment, the U.S. market share is expected to increase continuously. The reputation of U.S. products is excellent and U.S. products enjoy strong representation in the high-end market. There is no doubt on success of U.S. toys/game business in Korea when it will be also supported by U.S. distribution know-how. In the import market, China and Japan are strong competitors for the U.S.A. L) List of most promising subsectors within the sector, along with estimated 1994 total market size of each subsector (U.S. $ millions). Metalic and plastic toys 180 Educational toys N/A K) List of most promising subsectors within the sector, along with estimated 1995 total market size of each subsector (U.S. $ mil.). COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Beef C) Three-letter ITA industry sector code : 0201 and 0202 D) Market size, total (U.S. $ mil.) - -- 1993 : 900 -- 1994 (estimated) : 1,000 -- 1995 (estimated) : 1,150 E) Local Production, total (U.S. $ mil.) - -- 1993 : 570 -- 1994 (estimated) : 600 -- 1995 (estimated) : 650 F) Exports, total (U.S. $ mil.) - -- 1993 : 0 -- 1994 (estimated) : 0 -- 1995 (estimated) : 0 G) Imports, total (U.S. $ mil.) - -- 1993 : 330 -- 1994 (estimated) : 400 -- 1995 (estimated) : 500 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 180 -- 1994 (estimated) : 250 -- 1995 (estimated) : 275 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Korea is already the fourth largest market for U.S. beef and this market will continue to grow. Quotas are unrealistically small but the increasin gvolume under SBS presents opportunities for high quality U.S. product. Estimates of market size are impossible to make because of the constraints imposed by the ROKG. Imports would increase dramatically increase in a free market environment. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Pork C) Three-letter ITA industry sector code : 0203 D) Market size, total (U.S. $ mil.) - -- 1993 : 2,165 -- 1994 (estimated) : 2,400 -- 1995 (estimated) : 2,600 E) Local Production, total (U.S. $ mil.) - -- 1993 : 2,162 -- 1994 (estimated) : 2,355 -- 1995 (estimated) : 2,540 F) Exports, total (U.S. $ mil.) - -- 1993 : 62 -- 1994 (estimated) : 100 -- 1995 (estimated) : 120 G) Imports, total (U.S. $ mil.) - -- 1993 : 3 -- 1994 (estimated) : 45 -- 1995 (estimated) : 60 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 0 -- 1994 (estimated) : 15 -- 1995 (estimated) : 20 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Pork imports will be liberalized July, 1 1997 but this will be preceded by imports quotas of 21,930 tons in 19995 and 29,240 tons in 1996. U.S. suppliers will face stiff competition from the domestic industry and imports from Taiwan, China and the EU. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Fish and Seafood C) Three-letter ITA industry sector code : Chapter 3 and 1604 and 1605 D) Market size, total (U.S. $ mil.) - -- 1993 : 2,817 -- 1994 (estimated) : 2,900 -- 1995 (estimated) : 3,000 E) Local Production, total (U.S. $ mil.) - -- 1993 : 2,309 -- 1994 (estimated) : 2,300 -- 1995 (estimated) : 2,300 F) Exports, total (U.S. $ mil.) - -- 1993 : 1,325 -- 1994 (estimated) : 1,300 -- 1995 (estimated) : 1,300 G) Imports, total (U.S. $ mil.) - -- 1993 : 508 -- 1994 (estimated) : 600 -- 1995 (estimated) : 700 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 134 -- 1994 (estimated) : 160 -- 1995 (estimated) : 200 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: This is a huge seafood market with great potential. The domestic fleet and catch are declining; incomes are increasing; per capita consumption is very high; and most seafood products are liberalized or will be by 1997. All these factors point to increasing imports, both for consumption and for processing and re-export. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Dairy products C) Three-letter ITA industry sector code : 0401-0406 and 2105 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 2 -- 1994 (estimated) : 2 -- 1995 (estimated) : 2 G) Imports, total (U.S. $ mil.) - -- 1993 : 50 -- 1994 (estimated) : 60 -- 1995 (estimated) : 70 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 4 -- 1994 (estimated) : 5 -- 1995 (estimated) : 7 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Opportunities for U.S. companies will be in the high value areas such as ice cream, frozen yogurt which are now liberalized and cheese, which will be liberalized January 1, 1995. Most imports now consist of milk powder and whey under quota. Whey will come under a tariff rate quota during the 1995-2004 period which has an annual increase built in, while milk powder is to be liberalized in 1995. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Nuts and Dried Fruits C) Three-letter ITA industry sector code : 0801, 0802 and 0806 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 85 -- 1994 (estimated) : 88 -- 1995 (estimated) : 90 G) Imports, total (U.S. $ mil.) - -- 1993 : 31 -- 1994 (estimated) : 50 -- 1995 (estimated) : 70 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 27 -- 1994 (estimated) : 43 -- 1995 (estimated) : 61 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Local production is stagnate with no production programs in place. Exports consist of chestnuts and will be basically flat. Imports will increase with the change in tastes, expansion of the bakery and confectionery industries, increases in income and entry of walnuts from the U.S. into the market. The U.S. will continue to dominate this market but face stiff price competition from Iran and China. Almonds will continue to be the largest import but expect larger imports of walnuts, pistachios and hazelnuts. Dried fruit imports are mostly raisins imports which will trend upward. Other dried fruits are relatively minor. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Citrus Fruit C) Three-letter ITA industry sector code : 0805 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : 750 -- 1994 (estimated) : 700 -- 1995 (estimated) : 800 F) Exports, total (U.S. $ mil.) - -- 1993 : 2 -- 1994 (estimated) : 5 -- 1995 (estimated) : 7 G) Imports, total (U.S. $ mil.) - -- 1993 : 9 -- 1994 (estimated) : 15 -- 1995 (estimated) : 30 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 9 -- 1994 (estimated) : 14 -- 1995 (estimated) : 29 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Imports now consist of grapefruit and lemons, almost exclusively from the United States. Orange imports will be liberalized in 1997 but with imports quotas of 15,000 tons in 1995, 20,000 tons in 1996 and 25,000 tons in 1997. Most of these are expected to come from the United States. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Poultry Meat and Products C) Three-letter ITA industry sector code : 0207 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 0 -- 1994 (estimated) : 0 -- 1995 (estimated) : 0 G) Imports, total (U.S. $ mil.) - -- 1993 : 33 -- 1994 (estimated) : 35 -- 1995 (estimated) : 50 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 21 -- 1994 (estimated) : 23 -- 1995 (estimated) : 35 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Present imports consist of turkey and duck meat. Chicken meat will be liberalized in 1997 with a quota of 7,700 tons in 1995 and 10,400 tons in 1996. The United States should be a significant supplier but will face competition from Thailand and China. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Fruit Juices C) Three-letter ITA industry sector code : 2009 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 1 -- 1994 (estimated) : 2 -- 1995 (estimated) : 3 G) Imports, total (U.S. $ mil.) - -- 1993 : 83 -- 1994 (estimated) : 100 -- 1995 (estimated) : 130 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 30 -- 1994 (estimated) : 40 -- 1995 (estimated) : 50 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: Orange juice is the major import and will be liberalized in 1995 with a quota of 50,000 tons and a bound duty of 60 percent. Apple and grape juice will also be liberalized in 1995 and 1996 while fruit juice beverages will be liberalized in 1995 with a 10 percent duty. This means that imports will increase rapidly and the U.S. is well positioned as a major supplier. Brazil dominates the FCOJ market on price but the United States will do very well in all other categories. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Prepared Fruits, Nuts and Vegetables C) Three-letter ITA industry sector code : 2001 - 2008 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 60 -- 1994 (estimated) : 66 -- 1995 (estimated) : 75 G) Imports, total (U.S. $ mil.) - -- 1993 : 94 -- 1994 (estimated) : 107 -- 1995 (estimated) : 125 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 41 -- 1994 (estimated) : 54 -- 1995 (estimated) : 65 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: This sector has shown very strong growth in the last few years - growing from $18.6 million in 1988 to $93.5 million in 1993. This growth is expected to continue. COUNTRY: DATE OF REPORT: A) Rank of sector : Not applicable B) Name of sector : Other Prepared Foods C) Three-letter ITA industry sector code : 2106 D) Market size, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA E) Local Production, total (U.S. $ mil.) - -- 1993 : NA -- 1994 (estimated) : NA -- 1995 (estimated) : NA F) Exports, total (U.S. $ mil.) - -- 1993 : 50 -- 1994 (estimated) : 52 -- 1995 (estimated) : 55 G) Imports, total (U.S. $ mil.) - -- 1993 : 107 -- 1994 (estimated) : 115 -- 1995 (estimated) : 125 H) Imports from U.S. (U.S. $ mil.) - -- 1993 : 35 -- 1994 (estimated) : 40 -- 1995 (estimated) : 45 I) Exchange rates used (U.S. dollar = ) - -- 1993 : -- 1994 (estimated) : -- 1995 (estimated) : J) Comments: This is a catch-all category that includes all the consumer-ready, high-value products that don't fit into other H.S. codes. It has seen dramatic growth, going from $11.9 million in 1988 to $106.7 million in 1993, that is expected to continue.