KITA News and Reports
  • Korea-France Likely to Cooperate in Premium Consumer Goods, Startup, ICT
    2018-10-15

    Korea-France Likely to Cooperate in Premium Consumer Goods, Startup, ICT

     

    - KITA, report on expansion measures to expand economic cooperation between Korea and France trade deficit is decreasing -

      

    It appears that premium consumer goods, startups and information and communication technology (ICT) are promising economic cooperation fields between Korea and France.

      

    According to a report titled "Economic Trends in France and Measures to Expand Economic Cooperation between Korea and France" issued by the Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association on October 11, France recorded the highest economic growth rate of 2.3 percent last year in six years, thanks to the government-led economic reforms as well as the global economic recovery. Macron's government is making efforts to revitalize the private economy and improve its fiscal soundness through major reforms such as abolishing lifetime employment of France's national state-owned railway company (SNCF) and reducing welfare benefits, easing requirements for reemployment and dismissal, reducing corporate tax, and reducing the number of public officials.

      

    Korea-France trade, which showed a declining trend, has turned to upward trend since Korea’s exports to France significantly increased last year. This year, 17 out of the 20 major export items to France recorded a high growth rate and the trade deficit is also being resolved.

      

    The report states, "Since the French consumers’ income level is high and the society is aging, their interest in health care in France is growing." However, considering the low recognition of Korean brands, the report proposed various approaches such as joint investment with the local companies, mergers and acquisitions (M & A), and the exports of technologies.

     

    Start-up business is also an area where the two countries’ cooperation is expected. The French government is currently implementing La France Tech, an ICT-based startup fostering policy aiming at establishing a digital startup ecosystem. Last year, France established Station F, the world's largest startup campus, and succeeded to attract participation from Naver and Facebook. The 'French Tech Ticket' program, run by the French government, provides 45,000 euros of fund, visa and residence space for overseas startups. Last year, Stratio, spectroscopic technology start-up, was selected for the first time as a Korean company.

     

    The French government’s plans to invest in the digitalization of the public sector will be a good opportunity for Korean companies with technological capabilities, and the collaboration between the research institutes and companies in the two countries is expected to increase on the basis of bilateral science and technology cooperation. The autonomous vehicle development project, in which Korea’s Renault Samsung, LG Electronics, Korea Automotive Research Institute and France’s Renault, Valeo, and the National Information and Communications University (ENST) are jointly participating in, is in the process of the test run in August after receiving temporary operation permit from the Ministry of Land, Infrastructure and Transport.

     

    Kim Hyeon-soo, a researcher at the Institute for International Trade, said, "Korea needs to refer to the fact that France is lifting the stable growth through consumption and investment and is leading the development of advanced technology fields through active opening and deregulation for foreign companies."

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