Electric Cable Cos. Build
Foundation for Fair Competition

KEWIC Chairman Kim pledges to make good on his promise of getting rid of substandard and illegal products

Korea Electric Wire Industry Cooperative (KEWIC), a grouping of electric cable SMEs, recently undergone such uncertainties like the elimination of no-bid group contracts and domestic electric wire products'conforming to International Electrotechnical Commission (IEC) standards.
However, KEWIC member companies are doing well by overcoming the initial repercussions, caused by the changes, KEWIC Chairman Kim Bok-kwon notes.
KEWIC Chairman Kim, whose 3-year term expires next February, said, "The weak can survive an era of fierce competition in which the law of jungle prevails if they are united. Our cooperative should exist to build up an environment in which member companies do a fair play to ensure co-prosperity as they now do."Kim recalled that when KEWIC member companies were faced with a crisis caused by the elimination of no-bid group contracts for electric wire SMEs during last year, but the cooperative succeeded in adopting a new approach - forming a consortium of KEWIC member companies to win orders from KEPCO - following the elimination of no-bid group contracts. To this end, all cooperative staff made concerted efforts. The cooperative requested cooperation from the Ministry of Commerce, Industry and Energy and Small and Medium Business Administration and finally obtained a concession from KEPCO.
KEWIC initially suffered a difficulty with some cooperative member companies strongly reacted against the elimination of no-bid group contracts. Kim stressed that his cooperative persuaded "naysayers,"saying that it is more desirable to get a new thing in place of "giving away what is required to be returned."The cooperative was also faced with the worst situation - a surge in copper prices that soared 70 to 80 percent in the first two months of this year following rises of last year. A consortium of member companies was able to readjust the value of contracts to solve the crisis. The consortium approach brought more benefits to member companies than their separate no-bid contracts and more companies'participation in a consortium yielding less profit, but taking less risk. The approach established an opportunity to secure a stable income in a situation in which the domestic industry has entered a maturity stage with a prediction of no big rise in demands. KEWIC Chairman Kim said he sees "no problem in keeping intact the consortium approach system for unit price contract negotiations with KEPCO."A DRIVE TO DRIVE OUT SUBSTANDARD PRODUCTS. Producing substandard or illegal wire products has been a long-standing problem facing the domestic electric wire industry that should be tackled with a resolute manner said Chairman Kim, adding, "Entering this year, a substandard electric wire reporting center has been established to launch a full-fledged surveillance into transactions into substandard and illegal wire products."He believes that the reporting center is hoping to lay a foundation for ensuring fair competition by transforming excessive competition into good-mannered competition."Chairman Kim said it is noteworthy that non-member companies agreed to participate in the self-reforming campaign. An ad hoc committee within KEWIC sounded out opinions from 18 non-member companies to launch the campaign. A survey will be conducted on three occasions from November and December and twice from next January and next February for a total of five to cover 90 percent of substandard and illegal products on the market. The Korea Agency for Technology and Standards will take punitive measures against repeated violators who are ordered to rectify their illegal practices. Kim expressed his hope that he will make good on his promise of solving the problems by the expiration of his term.
Large-sized electric wire makers have fully braced for conforming their products to IEC standards, but it is not easy for SMEs to follow suit. KEWIC Chairman Kim said, "Compliance with IEC standards is essential for SMEs to raise trust, and at a time of a good-faith competition sans no-bid contacts, SMEs can be recognized for producing their products if they comply with IEC standards."A consensus is growing that the quality of all the Korean-made products as well as automobiles and electronics goods should be upgraded according to one of Korea's standing as the world's top 10 economic powerhouses. However, it is not an easy, but a tricky task which electric wire makers in charge of the job linked to the safety of the general public as well as companies handling the foods of the public should perform with a determined mission.
KEWIC has a membership of 48 companies churning out such products as super high-voltage cables, electric cables, optical cables, communications cables and ship wires. Korean-made products are on par with those of advanced countries in terms of quality and price. The cooperative chalks up 6.2 trillion won in annual sales with exports and domestic demands with a ratio of 50:50.
Established in 1963, KEWIC has greatly contributed to the brilliant development of Korea's economy.
KEWIC organizes Seoul International Electric Fair each year with a goal of publicizing Korean-made electric wire products to foreign and domestic buyers. nw

KEWIC Chairman Kim Bok-kwon