Smart City, Songdo International City and the Incheon Free Economic Zone (IFEZ).

Incheon City Road Network Hub for Level 4 Road for Level 4 Autonomous Testing

April 16, 2024 Don Southerton Uncategorized Comments Off

Hyundai MOBIS to promote the commercialization of self-driving vehicles.

Hyundai MOBIS, a global leader in future mobility, will begin testing Level 4 autonomous driving in South Korea Incheon City’s Songdo and Yeongjong districts. These test rides aim to promote the commercialization of self-driving vehicles.

According to a Hyundai MOBIS article in the media, MOBIS, the Incheon Free Economic Zone (IFEZ), and the Incheon Technopark have signed a memorandum of understanding for Level 4 testing as well as plans to collaborate on nurturing startups that can innovate smart mobility.

The smart mobility project will engage 20 startups, partner firms, research institutes, and universities that will participate in the test-driving project. The expectation is that this will spur further regional IFEZ and Technopark smart mobility testing and R&D.

I see this as a smart move by Hyundai, MOBIS, local officials, and shareholders engaged in the project– as someone who has followed autonomous technology development, supported MOBIS teams, been a backer of IFEZ initiatives, and has considerable first-hand experience of the urban, bridge, and highway road network.

For example, in the 2000s, we built the Songdo IBD (today Songdo International City) smart road system to address future transportation needs… wide lanes to reduce congestion and traffic sensor data capture technology. Songdo, too, is designated by the City of Incheon and IFEZ as a “Smart City” and innovation hub. And, so frankly, it’s a great venue to be at the forefront of smart mobility. ( See my article on Songdo).

https://www.brandinginasia.com/smart-cities-a-tale-of-innovation-and-collaboration-in-south-korea

Under the memorandum, the test vehicle will be able to drive on a 60 KM/ 37 miles course. In addition to Songdo, the nearby Yeongjeong area is home to the Incheon International Airport.

Hyundai MOBIS noted that the Incheon municipal government had given its permission for test drives that include inner-city routes. This is a rare chance to test autonomous driving technologies under city traffic conditions versus exclusively highway drives.

Industry experts categorize autonomous driving into six levels, ranging from 0 to 5. Level 4 autonomous driving requires the vehicle to perform the majority of driving tasks independently. For example, and still a little unclear, a Level 4 does not require a human driver to remain engaged and ready to take over, though they’re limited by geographic and weather conditions, where human drivers need to take over.

http://m.theinvestor.co.kr/view.php?ud=20240415050743&np=1

Best International Market Entry Practices

April 12, 2024 Don Southerton Global Business Comments Off

Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation.

I am a strong advocate of global business, as it presents great opportunities. I am also deeply passionate about seeing brands succeed in overseas markets.

Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation. As Wharton Magazine noted, “…expansion provides diversification and additional revenue, it also exposes one to different methods of doing business.”

Frankly, my experience is that global companies looking at market entry for Asia-Pacific countries like Korea, Singapore, the Philippines, or Vietnam, should recognize the potential upfront investment required to enter a new market. Best practices require a company to invest time and resources in “Discovery” and hire a qualified expert or firm to assist in the local mark

It is also common for local entrepreneurs to approach global brands with the hope of securing a memorandum of understanding (MOU) to bring a popular brand to their market. However, these entrepreneurs may not currently have the necessary resources and means to operate the brand. They intend to get the MOU, and then pitch the deal to local business partners.

Sadly, we’ve seen over the years even seasoned international companies realize too late that their well-intentioned partnership was less than qualified. The deal, then, stalled or ended.

Qualifying a local partner can be a challenge, as it requires deeper insights into the local market and identifying key players.

As a benchmark based on recent projects this cost is easily a minimum of US $20,000- $50,000 in international travel and legal fees to secure a partnership. There are, of course, additional costs after an agreement is signed.

There are methods to offset these development costs, which include joint ventures and licensing. Also, a best practice is to ensure you are working with a market entry firm that can

Effectively screen for highly qualified potential partners,
Secure high-level meetings with decision-makers and,
The target company has the required capital, resources, and experience to successfully operate the brand.

Going it alone

In contrast, I have seen firms entering overseas markets who prefer to take a different, more reserved approach and go it alone with their internal staffing. Sadly, the success rate for an international firm successfully entering a new overseas market is poor— or more costly than expected, even with the support of highly dedicated government agencies for local market entry.

To elaborate more, some businesses want to focus on finding a solid, committed overseas partner or client with little investment and need to pay upfront fees to engage a local expert in a market entry — all compensation is contingent upon first finding a potential partner. This rarely (code word–never!) works.

More to the point, a highly qualified market entry firm that has a track record of getting results will rarely shoulder the risk of funding the upfront development costs for a client. Instead, an experienced market entry firm will seek out businesses that expect success and are willing to compensate for the services.

Also, although a company going it alone may have websites, products, and company information (often in need of editing), they however lack what is commonly accepted content for meeting presentations with potential partners, including, but not limited to, a detailed localized, savvy Go to Market Plan—often a high content 20+ pages and a competitive market analysis. These expectations are not options.

And finally, for highly recognized U.S. or global brands, there is less of a barrier in setting up meetings because of the strong international desire for a top brand. For less-known brands entering an overseas market, there is considerably more effort. I most often have to rely on my credentials to begin a dialogue with a potential partner vs. the brand itself, which typically is little known outside Korea and East Asia.

All said I am a strong advocate of global business. I see a great opportunity and am passionate about seeing brands succeed overseas. However, as I have shared, this does require an upfront investment in time and resources, as well as securing local expertise. My advice, too, is to follow best practices for market entry.

Don southerton

Don Southerton provides strategy, consulting, and training to Korea-based global businesses. See https://www.bridgingculture.com

Incheon Global Campus’s New York State University and General Motors Sign MOU

April 4, 2024 Don Southerton Global Business, Songdo IBD in the News Comments Off

New York State University President Arthur Lee, GM Korea President Hector Vizarreal and GM R&D Corporation President Brian McMurray (Photo IFEZ)

The Incheon Free Economic Zone Authority Incheon Free Economic Zone(IFEZ) under Commissioner Dr. Peter Wonsok Yun has announced New York State University and General Motors (GM), both with operations within the Incheon Global Campus, have signed a business agreement to foster future talent

I’ve noted in previous posts how IFEZ specifically Songdo is home to a community of foreign and domestic academic institutions, companies, and NGOs.

See https://www.brandinginasia.com/foreign-direct-investment-rooted-in-international-commerce-but-an-evolving-ecosyst em/

See https://www.brandinginasia.com/smart-cities-a-tale-of-innovation-and-collaboration-in-south-korea/

As noted in Maeil Business Newspaper Co., Ltd. the NY State Univerity and GM signed the MOU on April 3, 2024. GM operates an R&D center within IFEZ.

Attending the signing ceremony were Arthur Lee, president of New York State University, Hector Vizarreal, president of GM Korea, and Brian McMurray, president of GM R&D.

On this day, the two sides agreed to join forces to provide various educational programs for the growth of students at New York State University in Korea, including mentoring, seminars, and internships, to plan and promote job training and joint research and development (R&D) for GM employees, to visit both institutions and to contribute to the local community.

“We are happy that our students, who have strengths in engineering and management, will have the opportunity to strengthen the capabilities needed in global companies and grow into future talents,” President Lee said. “We will contribute to student growth and community development by promoting various programs with GM.”

President Vizarreal said, “STEM (Science, Technology, Engineering, Mathematics) education is an indispensable keyword in GM that leads future mobility,” adding, “I am happy to have an opportunity to cooperate with New York State University in Korea, which has strengths.” He said, “We will discover more innovative and creative programs and support fostering talents who will lead the rapidly changing future industry.”

“We are happy to have various collaborations with potential students and excellent faculty at New York State University in Korea through this partnership,” said McMurray.

“The high student recruitment rate (of IGC resident universities) means that IGC meets the purpose of creating new growth engines and creating a global education hub,” said Yoon Won-seok, head of the Incheon Economic Office.

New York State University Korea, which opened in 2012, is the first U.S. university in Korea with undergraduate and master’s, and doctoral courses. It operates an excellent department at Stony Brook University, which has the best science and engineering education programs in North America, and Fashion Technology University (FIT), the world’s top fashion school. All classes are the same as the faculty at New York State University in Korea through this partnership,” said McMurray.

Questions on IFEZ? Songdo? Korea? FDI?

Just ask dsoutherton@bridgingculture.com

Foreign Direct Investment an Evolving Ecosystem

April 4, 2024 Don Southerton Global Business Comments Off

By Don Southerton

I’m reposting my recent article in Branding in Asia.

Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?

Foreign direct investment has become a cornerstone for governments and corporations looking to stimulate and sustain business growth. Foreign direct investment plays an important role on a macroeconomic and microeconomic level. We define foreign direct investment (FDI) as investment made by a company in one country into another country’s business or assets. FDI is a crucial aspect of international commerce, but it is also an evolving ecosystem that continues to change and develop over time.

Some key benefits of foreign direct investment include:

Economic Growth: Countries receiving foreign direct investment often experience higher economic growth by opening up to new markets, as seen in many emerging econom

Job Creation: Most foreign direct investment is designed to create new businesses in the host country, which usually translates to job creation and higher wages.

Technology: Foreign direct investment often introduces innovative technologies and creates hubs for technical expertise.

Stepping back between 2000 and 2008, the world saw an early growth phase in FDI. This was the peak time for global investment in FDI.

An Asia-Pacific (APAC) standout was South Korea’s Songdo International Business District (Songdo IBD). The project was a Joint Venture project I was engaged as a consultant and have continued to follow. Like other FDI of the period in the region, the 1997 Financial Crisis brought to the forefront the need for the APAC nations impacted to broaden their economies beyond domestic export-driven businesses

Economists recommended attracting foreign direct investments as a buffer against the potential impact of recessions and fiscal crises.

The Songdo vision in the early 2000s was to build an international business-friendly hub on the West coast of South Korea. The community with Western amenities was built on reclaimed land and covered roughly 1500 Acres complete with a Central Park, an international school, and a Jack Nichols-designed golf course–all within a short distance of the Incheon shipping port and international airport.

Over the years, Songdo IBD, now Songdo International City, has broadened beyond FDI to include residential, domestic companies, and NGOs. As part of the Incheon Free Economic Zone (IFEZ) which was created in 2003 and designated as Korea’s first free economic zone, today Songdo is one of three districts—along with Cheongna, and the airport’s Yeongjong International City.

Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?

Over the years, the approach to international foreign direct investment (FDI) has evolved from a model solely focused on incentivizing foreign businesses to a more collaborative, synergistic, and dynamic ecosystem. This is observed in countries such as South Korea, Singapore, Vietnam, and Indonesia, as well as Ireland, the Netherlands, Latin America, and the Caribbean.

And, as noted by the World Bank, an exception to the downturn can be found in Greenfields–projects that require developing a new product or service from the ground up. Data shows this is the top area of FDI growth.

In turn, APAC markets like South Korea, Vietnam, and Singapore seek to position themselves as global hubs. Specifically for future industries such as bio-healthcare, smart manufacturing, high-tech finance and future robots, information and communication (IT), and artificial intelligence (AI) while making great strides in distribution, logistics, tourism, and MICE.

One takeaway does stand out—FDI is an evolving ecosystem that continues to change and develop over time.

https://www.brandinginasia.com/foreign-direct-investment-rooted-in-international-commerce-but-an-evolving-ecosystem

South Korea’s Songdo leading the way in bio-pharma

March 28, 2024 Don Southerton Global Business Comments Off

A sector near Samsung Biologics’ Bio Campus 1 within the Songdo Bio Cluster in Incheon (IFEZ)

South Korea’s Songdo is leading the way in bio-pharma…The Korea Herald notes…” Songdo Bio Cluster in Incheon, where the biopharmaceutical production capacity has reached 1.2 million liters, the world’s largest followed by Massachusetts, San Francisco and Singapore, according to officials from the

South Korea’s growing biopharmaceutical production capacity is increasingly making the country an attractive investment destination for global life science companies, industry sources said Thursday.

Songdo has successfully created an ecosystem for the bio-industry over the past few years, and it is now home to numerous international bio companies, with Korean biopharmaceutical giant Samsung Biologics being the key driving factor.

Full article Korea’s CMO ramp-up lures biotech investors

Tip of the Iceberg

March 25, 2024 Don Southerton Uncategorized Comments Off

I have been fortunate throughout my career to receive extensive media coverage in both Korean and Western publications. I feel a major contributing factor is that as a consultant I cover and am engaged in Korean business.

I have a lot to say, and many people seek out my perspective. In fact, in just the past 6 months, I’ve contributed to Korea Times, CNBC, Branding in Asia, Haps Magazine, and Sisajournal-e.com, not to mention releasing a new book and multiple press releases.

Topics often vary — Hyundai, Startup Ecosystems, EV and Critical Minerals, Smart Cities, and insights into the ever-changing Korean business culture.

So why “Tip of the Iceberg?”
As a prolific writer, I enjoy sharing my perspective, but only a fraction of my insights are shared, like the tip of an iceberg.

It’s in my consulting work that I explore the difficulties that companies and teams encounter in greater detail. I have decades of experience providing solutions and workarounds.

All said, for those who follow my commentaries and writings as well as acquaintances — Have a request for an article? — please let me know.
Have a question or opportunity… let’s talk.

Don

Smart Cities: A Tale of Innovation and Collaboration in South Korea

March 19, 2024 Don Southerton Global Business Comments Off

Don Southerton takes a look at smart city development in South Korea.

https://www.brandinginasia.com/smart-cities-a-tale-of-innovation-and-collaboration-in-south-korea/

Over the past nearly 20 years, I have been engaged in Smart Cities. This work has involved various Smart City projects. The first was the Songdo International Business District in Incheon, South Korea, and more recently—cutting-edge Smart City Platforms.

The concept of “Smart City” is an emerging technology that many local governments see as the future; however, few municipalities have a solid roadmap.

The term “Smart City” can be defined differently. Some envision a green and sustainable community that offers a life-work balance and implements cutting-edge technologies to achieve these benefits.

For example, Songdo, on the West coast of South Korea was built on reclaimed land and covers roughly 1500 Acres. Today, Songdo is a community of 167,000 residents located within one of three Free Economic Zones (IFEZ) in Incheon, South Korea. The project has been approximately 86% completed. Aside from residential areas, the location is also home to a Global Campus, Pharma Hub, Startup Center, and international organizations such as the Green Climate Fund.

Songdo’s development aimed to create an integrated 15-minute city, where people can access 90% of their daily activities by bike or public transportation in fifteen minutes or less.

In Songdo, traffic sensor data is utilized to regulate signal timing on the technical front, while household waste is directly transported from homes to waste processing centers through underground tubes.

Additionally, various apps assist residents in managing their daily lives providing them with information on bus schedules or checking on parking availability in the area.

That said, since these innovative systems were first offered, many new smartphone apps are now available across Korea and provide these and other digital services.

Today, there is a continuing effort to foster the development of Songdo as an urban district under the Incheon Free Economic Zone (IFEZ).

Dr. Won Sok Yun, who has been named the new Commissioner of the IFEZ) notes, “Over the next three years, I will aim to attract foreign and domestic investment in pharma and healthcare, tourism and leisure, and high-tech industries to create a ‘world-class city’.”

Smart City Platform

Recently, we are seeing the adoption of Smart City Platforms. These provide an integrated Geographic Information Systems (GIS) and Information and Communication Technology (ICT) platform. Plus, they offer municipalities some innovative urban solutions.

With the help of the Internet of Things (IoT) and AI, cities can enhance their emergency and fire response, traffic management, sanitation services, and facility maintenance. I’d add that it’s a tool for urban development and revitalization, and in some cases can enhance a city’s security.

Seoul, South Korea’s Smart City Platform is an example of successful integration. The system was developed between 2017 and 2019 to provide various services, including sophisticated drone defense monitoring.

The platform has been highlighted at recent Consumer Electronics Shows (CES) and gained global attention when it was modified during the COVID-19 pandemic to track real-time virus outbreaks.

In January 2024, neighboring Incheon’s Mayor Yoo Jeong-bok was quoted, “Building a smart city is a global challenge that all cities worldwide should aspire…. in collaboration with leading global companies and cities that possess state-of-the-art technology related to smart city construction.”

I agree that developing “Smart Cities” will require collaboration between private tech companies and local government. The mayor envisions building “eco-friendly smart cities centered around people’s needs.” This will address concerns about the ambiguous nature of the “Smart City” identity, which may mean different things to different groups.

The bottom line is that in discussions centered on “Smart Cities,” I suggest there is no one exact definition, however, the goal should be improved quality of public services and citizen welfare.

Incheon

Incheon is a city located on the northwest coast of South Korea and is home to a population of about 3 million people. Its suburbs are situated on the outskirts of Seoul.

Moreover, Incheon is home to South Korea’s primary international airport, the Incheon International Airport, serving as a gateway to northeast Asia.

IFEZ

In 2003, the Incheon Free Economic Zone (IFEZ) was designated as Korea’s first free economic zone. Within the Zone are three districts– Songdo, Cheongna, and Yeongjong International City.

Over the past 20 years, IFEZ has grown significantly and developed into a global city currently home to more than 400,000 residents, 3,300 businesses, 14 international organizations, and renowned foreign universities.

Don Southerton takes a look at smart city development in South Korea

https://www.brandinginasia.com/smart-cities-a-tale-of-innovation-and-collaboration-in-south-korea/

The 2024 Korean Sisa Journal-e.com Start-up Conference

March 18, 2024 Don Southerton News Comments Off

Heads up– I am a keynote speaker at the 2024 Korea’s Sisa Journal-e.com Start-up Conference this week.

My topic–The Ecosystem of Global and Korean Start-ups: Risk, and the Shift in Startup Mindset.

I’m joining an amazing lineup of guest speakers talking on: the electric vehicle market, the Unmanned Exploration Research Institute Space robotics, and The role of climate tech in achieving carbon neutrality.

The event will be held in Seoul at 10 AM, March 20 KST, and shared Live via this YouTube link.

Later this week, I’ll post my presentation.

Questions? Just ask.

South Korea Aerotropolis–Air City and Incheon Free Economic Zone

March 17, 2024 Don Southerton News Comments Off

Site Selection Magazine just posted an article on the Incheon Airport City and the Incheon Free Economic Zone (IFEZ)— South Korea Aerotropolis leads the world in the combined magnitude, range, and quality of commercial investment in both its airport city core and peripheral business and urban clusters. Its planning and development epitomize the principles of “thinking big, acting fast, and doing it right.”

South Korea Aerotropolis--Air City and Incheon Free Economic Zone

International Business Centre 1 (IBC-I) was designed to reinforce air traffic demand, boost airport commercial revenues and improve the operational efficiencies throughout the broader Incheon Aerotropolis. Image courtesy of Incheon International Airport Corporation

Link to Site Selection article https://siteselection.com/issues/2024/mar/incheon-airport-city-is-tops.cfm

Questions? Comments? dsoutherton@bridgingculture.com

South Korea’s Free Economic Zone (IFEZ) Newsletter

March 17, 2024 Don Southerton Commentary Comments Off

South Korea’s Free Economic Zone (IFEZ) Newsletter shares how the district has positioned itself as the global hub for future industries such as bio-healthcare, smart manufacturing, high-tech finance and future robots, information and communication (IT), and artificial intelligence (AI) while making great strides as a hub for distribution, logistics, tourism, and MICE. #songdo

Please check out our Newsletter https://stibee.com/api/v1.0/emails/share/lp9zm4qG0yY9K45_RHds5rRVGh3ppNE

Questions? Please ask…. dsoutherton@bridgingculture.com

310–866–3777

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