Mongolian brands to enter the South Korean market

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  • Apr 22,2016
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  • 0 reported that Mongolian brands will soon be exported to the Republic of Korea, under the government’s policy for supporting exports. During the regular Cabinet meeting held last Monday, the Cabinet revised the program on supporting the export of domestic products. Cabinet members highlighted that Mongolia has been implementing the program since 2013. However, the program's implementation has been poor at 18 percent, prompting revision. The main goal of the program is to support the export of domestic products, improve Mongolia's competitiveness in the global market, and to diversify exports to ensure the long-term economic growth of Mongolia. The Cabinet believes that by implementing the revised program through 2016 to 2020, the export of products from non-extractive industries will reach 30 percent of the country’s overall exports, while the processing industry's products will reach 15 percent. Estimates suggest that annual revenue from exports of food, agriculture, and light industry products will rise to one billion USD.  In order to create a mechanism for providing financing for the program's implementation, the Cabinet decided to establish an investment management company to be in charge of creating an investment fund for supporting exports, operating as a subsidiary of Development Bank of Mongolia. Under the Cabinet’s program, the Mongolian National Chamber of Commerce and Industry (MNCCI) signed a memorandum on cooperation with Sky Hypermarket LLC last Tuesday. Sky Hypermarket LLC is working to introduce the South Korean E-Mart chain to Mongolia, a leading hypermarket in South Korea and East Asia. One of E-Mart’s priorities for fulfilling its corporate social responsibility is to support domestic production. E-Mart will become a bridge for selling and promoting Mongolian brands in over 160 chain markets in South Korea. Authorities from Sky Hypermarket underlined that procurement experts from E-Mart will visit Mongolia and hold meetings with domestic producers and study products that could be exported to the Republic of Korea. The MNCCI and Sky Hypermarket will jointly organize the meetings with South Korean delegates. The MNCCI says it will also provide integrated policy and recommendations for domestic producers hoping to export their brands to Korea. They also will be responsible for ensuring standards for exporting products to South Korea and organize meetings for businesses of the two countries annually.