[India Forum] Kintex hopes to become growth platform in India

NEW DELHI -- Kintex, the operator of the convention center of the same name in Korea, hopes to function as a platform for Korean companies aspiring to forage into the burgeoning Indian market.

Kintex, short for the Korea International Exhibition Center, operates a convention center under the same name in Goyang, Gyeonggi Province. It is the largest convention facility in Korea with a 108,483 square meters of space for exhibitions.

In 2018, the operator received a permit to operate India’s newest convention center Yashobhoomi, also known as the India International Convention and Expo Centre, for 20 years.

“We are doing more than just operating a convention center here. This is about securing human resources and expanding connections. Hopefully, Kintex could be helpful to the Korean companies trying to make way in the Indian market as a platform for them,” Lee Jae-yul, CEO of Kintex, said during an interview with The Korea Herald.

During his tenure as a public official, Lee served as the vice governor of Gyeonggi Province. He took the post as the head of Kintex in December 2022.

“With Yashobhoomi being Indian Prime Minister Narendra Modi’s pride, the Kintex personnel dispatched here are working closely with the government officials here. These networks will empower Korean companies when they venture out to the Indian market,” he said.

Lee was visiting India to attend the Korea Industry Expo 2024, known as KoINDEX 2024, which took place at Yashobhoomi. The three-day convention featured Korean companies in diverse industries, from healthcare, beauty, food and tech.

Yashobhoomi is the first convention center operated by Kintex overseas. Though it did not have any references for operating an overseas center, the operator won the bidding, beating its competitors from countries such as France and Hong Kong.

Lee stressed that credibility was key for Kintex to win the Indian bid. The Korea Trade-Investment Promotion Agency, also known as Kotra, Gyeonggi Province, and Goyang City each hold a one-third stake in Kintex.

“As a public institution based in Korea, trust can be guaranteed,” he said.

After years of construction, Yashobhoomi kicked off its operation in October 2023. In its first phase, the center features an exhibition area of 50,000 square meters with a 6,000-seat auditorium with an automatic seating system. When the second phase of the construction is complete, it will be 2.5 times the size of Kintex.

Though Kintex initially forecasted the center to turn to profit in five years, it was able to reach the target in just six months since the inauguration.

“The Indian economy is growing by an average of 7 percent every year. With the rapidly growing economy, more are taking interest in the Indian market, and more conventions are taking place as well, bringing up the occupancy rate of the center,” he said.

Following the success in India, Kintex is set to secure another operating right of a convention facility in Penang, Malaysia soon. Including Yashobhoomi and the incoming Malaysian deal, Lee hopes to have five foreign centers under Kintex’s portfolio in three years.

“Kintex’s goal is the ‘global MICE road,” Lee said. MICE stands for meetings, incentives, conferences, and exhibitions.

“Having secured a spot in India, I hope to acquire another bridgehead in the Southeast Asian region. We need at least five overseas branches to generate 30-40 percent of Kintex’s total revenue from foreign soil.”

“A total of 18 convention center operators are competing against each other in the limited domestic market,” Lee said. Kintex’s rivals include Coex, which also operates a convention center under the same name in southern Seoul.

“Rather than trying to eat up the stagnant domestic market share, it would be better to expand Kintex’s presence in the foreign market and increase the whole pie,” he said.