The South Korean exhibition industry has grown in recent years. The number of exhibitions held in the country has been expanding at a double-digit rate over the past decade. Exhibition industry data from AKEI, the organisation that takes care of the Korean exhibition industry, shows 560 exhibitions were held last year, up significantly on 221 in 2001.
On the back of this development, AKEI has set itself the goal of making Korea one of the world’s top 10 exhibition hubs in the next couple of years by scaling up, internationalising and specialising events.
Korea’s growing economic structure and export industry has led to its emergence as an attractive global exhibition destination. With a population of around 50 million and GDP in the range of US$1.13tn, Korea presents a huge market for organisers. Its GDP per capita is US$22,778, giving the population strong purchasing power. In fact Korea boasts the world’s 14th highest national GDP, and with it a high-tech culture well suited to events and communication. The country, for example claims to have more online consumers than any other.
Looking outside exhibitions for a moment, the country has hosted various international mega events since the Seoul Olympics in 1988. It staged the 2002 World Cup, APEC 2005, 2010 G20 Seoul Summit, and most recently the 2012 Seoul Nuclear Security Summit. Today, to continue its solid record for international events, Korea is developing its exhibition centres, introducing support programmes and services that exceed global standards.
Many organisers come looking to court its multinational businesses, global companies in industries including electronics, automobile, chemical, steel-making, shipbuilding and IT. Samsung Electronics, LG Electronics, Hyundai Motor Company, KIA Motors, POSCO and SK Telecom are a few of Korea’s best known companies, each one a potential flagship customer for organisers. The high-end Korean market contains several market leaders.
Zoom out further and the main focus for Korea, as with all global markets these days, is grabbing China’s growing purchasing power. “Korea considers neighbouring Asian nations not as competitors. Rather, Korea has to invite China, Japan, and ASEAN nations to create synergy among Asia’s emerging markets,” says AKEI’s Jinnie Bae.
But what type of event is particularly suited to South Korea, given industrial trends or geographic location? ICT and transport infrastructure, WiFi technology and technological events are well suited to South Korea. The country has also seen a boom in medical tourism analogous with the development of the country’s high-quality, relatively low-cost medical facilities and services. This makes the country well placed to host medical events. Elsewhere, its implementation of green facilities makes it a prime location environmentally friendly energy-focused events.
Gangnam style
Most of the cities in Korea are geared up for global events, each hosting a wide range of exhibitions throughout the year. Kintex in Gyeonggi-do hosts the Korea Industry Fair, Bexco in Busan hosts the Busan International Shipbuilding & Marine Machinery, Daegu’s Exco centre the Green Energy Expo and Conference, following a 2011 expansion to double its floor space.
However Coex convention and exhibition centre in Gangnam, Seoul, host of the World IT Show, hosts the majority of South Korea’s international events. Two-hundred exhibitions a year take place under its roof, 20 of which are organised in-house by Coex teams. “Seoul is pushing to increase its convenience and competitiveness as a global business destination,” says Coex CEO, Mr Bokyung Byun. “In particular, the district of Gangnam, in which Coex is located, is making many moves to attract international business guests and tourists, including improved facilities and transport options.”
Coex also aims to establish itself as a premier MICE cluster, employing effective joint marketing and cooperation between the many MICE facilities on the Coex site. “This move towards becoming an integrated MICE cluster includes the Coex centre itself, as well as three onsite hotels, city airport terminal. In addition, Coex Mall – which claims to be the largest underground shopping mall in Asia – is currently undergoing extensive refurbishment and will open as a brand-new, state-of-the-art shopping space in 2014,” he says.
“In terms of convention, Singapore is Korea’s main competitor. Korea competes with Hong Kong when it comes to the hosting of exhibitions,” says Byun. “These two countries are our main competitors largely because of the high standard of their English-language services and infrastructure, along with the strength of their manpower and software. In addition, the Asia-Pacific branches of many associations and global businesses tend to be located in either Singapore or Hong Kong, making the planning of events in the country convenient.”
Exhibition organisers targeting emerging markets, particularly in South East Asia, prefer to locate themselves on the ground there, claims Byun. “For these reasons, Korea finds itself competing most with Hong Kong and Singapore.”
As for the competition from China, Coex’s 30-year history in the international business and events industry gives it a bit of a head-start. Kintex director of international sales and marketing, Phil Chung, says South Korea has a huge high-end consumer market. “Especially Seoul and its surrounding area, Gyeonggi has over 20 million high-end consumers and they are all wonderfully connected by public transport.”
Kintex, located in the northern tip of Seoul, is forming partnerships with UK, German and Japanese exhibition organisers including UBM, dmg:events and Messe Munich International. “We help global PEOs to set up their operation, support them with local event management, market research and government assistance programmes, and provide them with our own unique global organiser incentive programme during our ‘incubating period’ of around two to three years,” says Chung.
As with any market where the industry has recognised the potential of exhibitions, one obstacle hindering the development of quality exhibition business in South Korea is the increasing duplication and copying of shows. According to Byun, “Instead of many replicas of successful events creating unnecessary competition between planners and hosts, similar exhibitions should be integrated or co-hosted. This method also allows shows to collaborate in terms of database sharing and joint marketing and public relations.”
This is helped by the Korean Government being fully involved in the promotion and development of Seoul and of Korea’s positioning as a prime destination for international events. It offers full support to global events planners. Owned by the Korea International Trade Association (KITA), Coex itself has the full backing of the Korean government. Coex, for example, works closely with both KITA and the Gangnam District Office and Seoul Convention Bureau in the hosting, sponsorship, and promotion of international events.
Friction across the border
A few months ago, North Korea’s provocation became an issue in the global news. However, businesses there claim there is no problem of national security in Korea at present, and South and North Korea have re-initiated talks in recent months. The situation with North Korea is long-standing and, despite the prevalence of the tension in global news, life for South Koreans continues as normal.
“Korea never has had, and never will have, any problem of security,” says AKEI’s Bae. “Foreign visitors and organisers don’t have to be anxious about safety in Korea at all.”
“We believe the threat from North Korea to be extremely minimal, and should not adversely affect any events planned here,” adds Byun. “Seoul is a very safe city with a relatively low crime rate.”
South Korea is a modern, well-connected exhibition destination capable of connecting international organisers with big business, offering in-roads to China and posing a practical alternative to Hong Kong and Singapore.
Image: Kintex international centre in Seoul, South Korea.
This was first published in issue 4/2013 of EW. Any comments? Email exhibitionworld@mashmedia.net
