Government seeks retail giants' help in exports

Korea's trade minister requested the country's major distribution chains Tuesday to support the government's desperate efforts to boost exports.

"Local distribution firms doing business abroad can play a role as the spearhead of exporting our consumer goods," Joo Hyung-hwan, minister of trade, industry and energy, said in a roundtable meeting with representatives from the industry.

A dozen CEOs of online and offline retail giants operating both here and in foreign markets participated in the session held at the Korea Chamber of Commerce & Industry building in Seoul.

They include the heads of Lotte Mart, E-Mart, CJ O Shopping, Hyundai Hmall, 11Street and Hotel Shilla, which owns duty-free shops.

Korea's retailers operate about 230 stores in 14 nations including China, Vietnam and Indonesia.

Their combined overseas sales reached around 10 trillion won ($8.5 billion) in 2015, according to the ministry's data.

The sales of Korea-made goods such as clothing, food, and cosmetics stood at some 600 billion won, 6 percent of the total volume.

The minister took note of the business connection and market expertise of the retailers in those local markets.

"They can provide our manufacturers with new export routes and also inform them of changes in local consumer purchase patterns," he said. "I hope you will play a role as the advance guard of exports beyond the simple role as distribution companies."

He also called for "teamwork" between the retail giants and small and medium-sized manufacturers here from the stage of developing export products.

"The government will use every possible policy means to support the drive," Joo said.

His ministry agreed to form a "consultation body" with the distribution circles to follow through with Tuesday's discussion.

Korea's exports have been on a steady decline amid weak overseas demand, a global economic slowdown and low oil prices.

In February, overall outbound shipments totaled $36.4 billion, down 12.2 percent from a year earlier. (Yonhap)