This chapter brings together some of the
issues raised in earlier chapters where they are of particular cross sectoral
relevance.

5.1. Profile
of Australian Capabilities

The lack of an Australian profile in Korea
affects many industry sectors, especially those sectors not involving
agricultural and mineral commodities (The level of understanding in Australia about Korea is also low, where the
opportunities are seen to be in Japan and China and South East Asia. Korea was
rarely even on the "radar" of many organisations).

A Korean who has not spent much time in
Australia or who has not focussed on Australia, would think of Australia as a
quarry and a farm and a nice place to visit – what a Korean taxi driver
described as "paradise". To those Koreans, Australia is not thought
of as a "clever country", as a source of technically or
intellectually advanced inputs to assist in Korean development. This perception
is captured in an Australian Education International (AEI) report of October
1998 on Korean Perceptions of Australian Education, which presented the results
of quantitative and qualitative research in Korea on perceptions of Australian
education. The report said:

On the basis of the research results those
Korean students who choose Australia as a study destination are more likely to
do so for reasons such as a perceived better living and study environment and
low cost, rather than for the quality of its education product. Unless
Australia's quality profile is raised and English language is linked more
strongly with study in other sectors, for most Korean students Australia will
remain as an ELICOS (i.e. English Language) destination and little else.

Tied in with the education image is a
complex of other factors, such as the perceived level of development of
Australia's science, technology, art, culture and sport. Given this, no one
institution can "go it alone" in Korea, no matter what its size or
standing elsewhere. To turn Korean perceptions around will require a
coordinated, long-term promotional strategy at the institutional level, tied in
with a national strategy based on the proven quality of the Australian
education and training product.

A more recent study of Korean students in
Australia said:

Koreans' perceptions of Australia are poorly
informed and inaccurate, as are their perceptions of Australia's achievements
in science and technology. Koreans do not think of Australia as comparable to
the United States or Japan in terms of high technology (O Yul Kwon and See-Gyoon Park, Australia-Korea Relations in Education: Issues
and Prospects (2000).

This is not to say that all Koreans are
unaware of Australia's technological strengths. Koreans directly involved in R
& D, especially basic R & D, are aware of Australian capabilities. But
this awareness does not often extend to the management of Korean companies
involved in technology areas. Koreans regard the USA, and to a lesser extent
Western Europe and Japan, as the technology rich countries.

The suggestions made under Technology and
Education and Training in the previous chapter go some way towards overcoming
those perceptions of Australia.

In addition, there is scope to use the media
to highlight the existing successful economic relationship between Australia
and Korea. This can be done through publicising case studies and sponsoring the
relevant media both in Korea and Australia. This media attention should be
encouraged to shift focus to highlighting the new economy developments and the
potential for opportunities to expand the economic relationship.

The benefits of Australia as a low cost,
high quality provider of information and communications technology and software
applications, as well as a provider of systems integration services, photonics,
biotechnology, resource and environmental management and technological research
and development should be marketed to key Korean Government and industry policy
makers and influencers as well as to the "man on the street".

5.2. Intellectual
Property

Over the years there has been concern
amongst Australian exporters about the lack of safeguards on intellectual
property rights (IPR) in some countries. These concerns relate not only to the
possibility of resulting inferior products and thus possible damage to the
reputation of the company concerned: IPR concerns can also reduce the chances
that an innovative company can recoup its investment in research and
development and release enhanced new products.

Companies also need to be on the alert to
ensure that pirated copies of their own product produced in countries where
intellectual property laws are not fully enforced, do not turn up in their home
market or in third countries.

It has generally been accepted that the
Australian software industry has been at the forefront of worldwide development
of applications. However, while realising the potential opportunities of their
software products overseas, the software industry participants have been
reluctant in general to export to those markets where it has been perceived
that software products may be subject to copyright infringements.

The protection of intellectual property has
been hard to police and even harder to enforce through some legal systems. The
problems are being addressed at many levels: the developers are introducing
increasingly sophisticated protective measures for their own products while the
countries in question, realising the negative impact to their economies (from
an investment point of view), are also implementing stronger legal frameworks
to protect IPR.

The Korean Government addressed these issues
in June 2000 when it identified a concept of digital copying of materials,
established rights for the digital transmission of materials, and enforced the
punishment for infringement of digital copyright. The Government allows the IPR
holder to claim compensation for damages, even in the case of unintentional
infringement. The Government is promoting the use of digital copyrighted materials
by allowing digital copying and transmitting in libraries. (Source - 2000 Korea Internet White Paper, Ministry of Information and Communication)

Nevertheless, there remains a perception
among some Australian exporters, particularly potential exporters, that their
IPR will not be adequately protected in Korea. There is scope for initiatives
to be taken in this area to address this perception.

5.3. Standards
and Compliance

An issue that arises for elements of the
Australian elaborately transformed manufactures sector is the standards and
compliance regimes in Korea (as well as in other Asian countries). The actual
processes for obtaining approvals or certificates that the Australian goods
comply with the various standards and regulations are time-consuming and often
do not readily acknowledge that the goods in question meet internationally accepted
standards.

In some elements of the Australian
manufacturing sector, there is a willingness to work towards Mutual Recognition
Agreements.

Korea will come under increasing pressure by
major developed countries to take initiatives in these areas. It could be in
Korea's longer term interests to be seen to be willing to move forward in these
areas by working with Australia which, as a smaller developed country, will not
pose the same potential threat to Korean businesses.

There is therefore scope for the Australian
and Korean Governments to work together, perhaps on a sector-by-sector basis,
to establish mutually beneficial arrangements in relation to standards and
compliance regimes.

5.4. Commercialisation
of Technology

The commercialisation of technology in
Australia is not maximised due to the lack of sufficient capital to develop new
Australian ideas and technologies through the initial commercialisation stage
and into full-scale production. The existence of many leading innovative
companies in Australia, combined with Australia's well educated and trained
workforce, means that the advanced technology and manufacturing sectors have
potential for further growth. In recent years this sector has diversified,
particularly in technologically advanced products based on the application of
innovative technologies. The manufacturing and services companies are
increasingly attuned to export markets, with many producers in Australia
developing strong niche markets in international arenas.

New developments in advanced technology
manufacturing are also growing, including biotechnology, new materials
technology, medical and scientific instrumentation, aerospace and defence. A
number of innovative firms are producing leading edge scientific
communications, military and industrial products, radar systems, optic fibre
connectors, spaceborne communications and electronic warfare equipment.

The need to assist in the commercialisation
of technology has been recognised by the Australian Government. It has taken a
number of initiatives in the technology area, especially the support of
R&D.

When Australian technology companies look
for overseas support for the commercialisation of their technologies, they tend
to look to the USA and to a lesser extent Western Europe and Japan. Korea
should be an emerging source of support as the Korean Government places greater
emphasis on becoming a knowledge based economy. Some Korean companies and
organisations are already using Australia as a base to develop new products.
The examples to date are limited, which means there is scope for the Australian
and Korean Governments to foster a greater interest in each other's country:
Australia as a source and a place to develop technologies and Korea as a source
of funding and a partner in the development of successful technologies.

5.5. Investment

With the current restructuring in Korea
there is considerable opportunity for investing in Korea by Australian
organisations. The liberalisation of Korea's foreign investment policies,
coupled with the ongoing regulatory reforms and the need for Korean firms to
dispose of surplus assets and attract foreign capital, is enhancing the
investment opportunities in Korea. The complementary opportunities for Korean
firms to invest in collaborative research with Australian companies where the
resultant manufacturing and marketing and distribution could be carried out by
the Korean partners, is an attractive proposition.

While there has been a substantial increase
in foreign investment in Korea from foreign investors keen to capitalise on
mergers and acquisitions, investment opportunities are still available and the
promotion of these opportunities within Australia could provide new
opportunities for some Australian organisations. While the Australian
Government has been promoting Korean investment in Australian manufacturing and
resources development projects, it would seem logical to initiate an awareness
program both in Korea and Australia about the various mutually beneficial
investment opportunities in both countries.

5.6. Making
Connections

The current economic relationship between
Korea and Australia is on the one hand impressive due to the success of the
traditional commodities sectors and several key niche areas where
entrepreneurial organisations have capitalised on the potential for
complementarity, such as the automotive components sector and software in the
financial and Internet related areas. On the other hand, it seems incongruous
that such successful economic relations between two countries could be achieved
with so little relative knowledge and social contact between the countries. It
is our understanding that from a media perspective, currently there is only one
Korean correspondent working in Australia, for the Donga Ilbo in Sydney. From
the Australian point of view the Australian Financial Review has a stringer
based in Seoul while most other Australian media outlets cover Korea from
Tokyo.

The government-to-government relationship
and co-operation between Australia and Korea has been strong for quite a few
years and the interaction and the vision for mutually beneficial enhanced
economic relations is also being propagated at strategic levels in both
Governments. The obvious anomaly is the lack of people to people contact. The
personal, social, cultural and sporting links are in need of innovative ideas
and strategies. Such links will underpin a strengthened economic relationship.

Korea is viewed by many Australian business
people as a "difficult" market. In some cases this view is based on
actual experience, but in many cases the information is based on hearsay.

Discussions with representatives of the
Australia New Zealand Chamber of Commerce in Korea identified issues regarding
the difficulties of Australian expatriates working in Korea, in particular
issues with superannuation, taxation and work visas for foreign workers in
Korea. There were several instances of difficulties in the recognition of
defacto relationships where Korea's recognition of these relationships is
different to that in Australia.

The Australia – Korea Foundation has been
actively engaged in broadening the relationship between Australia and Korea,
with a particular emphasis on promoting individual and group visits and
exchanges between the two countries, especially in the areas of commerce,
industry and sports, education, science and technology, the arts and the media.
These initiatives should be continued and if possible extended with a greater
emphasis on publicising these initiatives through the Australian and Korean
media outlets.

In August 1999 the AKF co-hosted an
inaugural Australia-Korea Media Forum with the Korea Press Foundation. The
forum was co-chaired by Mr Mack Williams the Deputy Chairman of the
Australia-Korea Foundation and Mr Moon-Won Kim Chairman of the Korean Press
Foundation. The meeting issued a number of recommendations:

(i) the
Australian-Korea Media Forum, with the participation of senior level
journalists, should be held on a rotating basis in the Republic of Korea and
Australia, with the support of the Korea Press Foundation and the
Australia-Korea Foundation;

(ii) in
order to enhance the understanding between the two countries, an exchange program
between a number of journalists from the two sides should be carried out for,
say, one semester at an assigned university. The arrangements for this exchange
program should be carried out under the agreement of the two Foundations;

(iii) the
two Foundations should encourage tie-up relations between media organisations
of the two countries; and

(iv) the
two Foundations should urge their respective governments to ease visa
requirements for stringers.

< Industry
Sectoral Issues

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