Conexio consulting

LEATHER SECTOR EXPORT OPPORTUNITY TO SOUTH KOREA

Erkan Zandar, Chairman of the Board of Aegean Leather and Leather Products Exporters Association, said that the first goal in the export of leather products to the Far East market is to increase the export of fur and leather garments to South Korea.
Zandar, said that, Turkey who has one of the leading capacities in the World in leather sector and explained Turkey has focused on increasing the exports with alternative markets.
Zandar emphasized that South Korea, which is shown among the target countries by the Ministry of Commerce, is also important for the sector, and that leather and leather products exports to this country have been in a rapid increase trend for the last 2 years.
Zandar reminding that Free Trade Agreement between South Korea and Turkey (STA) “As Turkey, we made 1 billion dollar export to South Korea in 2018. In return, we have an import of $ 6.3 billion. We need to sell more value-added products to South Korea.”
Zandar pointed out that Turkey made 39 million dollars of leather and leather products export to South Korea, stressed that total leather imports of this country is 6.7 billion dollars, stressed that Turkey was only able to reach the 5 per thousand of this market.
Zandar expressed that they want to draw this rate to 1 percent with value-added products and they wanted to be effective with fur and leather clothes in this market.
Within this scope, Zandar said that they had visited Seoul with the representatives of 19 companies from the sector and that the negotiations had promising results.
” China is the partner country for them. There is also a logistics advantage. But that’s no problem for us. Because our product range does not exist in Chinese manufacturers. We do not have the power to produce leather in the Chinese. The Chinese do not provide the collections we will provide them. In the first place, we focused on fur and leather garments where our design power is present. Since it is an STA, we will not experience customs shortage.”
Zandar also stated that they want to benefit from the freight supports provided by the Ministry of Trade in the export of agricultural products. Zandar said that exports to South Korea will open the doors to other Far Asian markets, particularly to Japan.
Zandar said, ” The Japanese market has quota and surplus tax on leather products. We could not achieve these, we could not achieve the export we deserve. Japan has $ 11.8 billion worth of leather imports. Most of this is done at the brand level from Europe and China. Our share is $ 2.2 million. South Korea is a very active marketing point in that region. Most Chinese and Japanese companies come to South Korea and buy products. Our goods can also go to that area on South Korea.”

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