e-Trade Links up with e-Procurement

KTNET has promoted e-trade for the past 17 years

Korea's next-generation e-trade system, uTradeHub, will be linked up with the nation's e-procurement system, Korea Online e-Procurement System (KONEPS), to provide one-stop services ranging from e-procurement to e-trading starting in June. The Ministry of Knowledge Economy (MKE) and the Public Procurement Service (PPS) announced a link between the uTradeHub and KONEPS. Following the linking procedures, one-stop online services covering all processes of procurement and trade will be made available from June, Won Dong-jin, director of trade policy at the MKE, said. The link will allow public organizations, clients of public procurement, and procurement suppliers to handle all trading and procurement processes on-line without visiting banks, customs offices and other related organizations by connecting to the uTradeHub via KONEPS. There are approximately 35,000 schools and research institutes that ask for the PPS to provide goods and services and some 122,000 companies that supply goods and services to the PPS. Currently, the ubiquitous trade hub, dubbed the uTradeHub, is built on a networking of about 80 trade-related organizations to provide online services including the issuance of trade documents. The MKE, the Korea International Trade Association and the e-trade major player, KTNET, joined forces in opening the uTradeHub last July 29.

e-TRADE LEADER
For the past 17 years, KTNET has promoted e-trade, which was previously nothing but a barren field. Through the establishment of the e-trade system, KTNET has achieved the simplification and automation of trade business processing procedures, and under this system KTNET has contributed significantly to the competitive enhancement of the trade business community through a dramatic reduction of expenses reaching 4.3 trillion won annually. With the grand opening of the next-generation e-trade system, uTradeHub, the competitiveness of trading companies is projected to be raised even further as they can now process all trade business processes via the Internet based on world-class security and certification systems and public certified e-document storage.
The interest and assistance shown by customers until the e-trade environment takes root, and even their harsh scolding, were important assets for KTNET and became the robust pillar for e-trade to take a position as a strong national infrastructure after much trial and error.
KTNET has designated 2009 as the year to ramp up substantial growth simultaneously for its customers and the company through the expansion of sales in services that contribute to the cost savings of the trade business community. Given the economic difficulties caused by the slumping global economy, KTNET plans to tide over the present ordeal through the active promotion of practices and efforts to reduce costs and enhance productivity, each by more than 10 percent.
While focusing on expanding our services, which can contribute significantly to corporate cost reduction, KTNET plans to expand dramatically the sales in high value added new services ― FSCM, uLogisView, e-Purchase Confirmation, e-B/L, e-T/B, Global e-C/O, etc.
KTNET also plans to expand the e-trade service utilization rate greatly through the operation of a responsible person system, deployment of closer customer marketing and the development of new complex services in the trade and logistics sectors.
Furthermore, KTNET intends to combine its capabilities in the continuous expansion and development of new growth engine businesses and take the lead in the market as Korea's first public certified e-document storage company. In the e-document storage business, it also plans to increase the re-subscription rate, maintain the No. 1 rank in terms of growth rate and achieve the issuance of 150,000 certificates for corporations.

KTNET'S DEAL ON e-C/O ISSUANCE
KTNET, recently commenced its e-C/O issuance service with a plan to eventually implement the service in full swing.
On Feb. 3, KTNET President & CEO Shin Dong-sik said, "With the recent Korea-Taiwan agreement on the transaction of e-C/O (Certificate of Origin), KTNET started the document issuance service between the two countries." President Shin added, "KTNET plans to expand the implementation of the service system further to European countries." The C/O is an official document proving that exported goods were manufactured in the exporting countries. Most countries, including Taiwan, are requesting the mandatory submission of the C/O in fear that exporters may sell goods falsely claiming they had been manufactured in their countries.With the start of KTNET's e-C/O certification service, domestic exporting companies to Taiwan will not have to visit the Taiwanese Trade Representative offices in Seoul and Busan to receive their examination and complete confirmation procedures.
President Shin explained, "When exporting pears, apples, etc., which are popular in Taiwan, domestic exporters now can resolve the expenses associated with trade documents for 3,000 won, a process that used to cost 300,000 won per case. If tangible and intangible expenses are taken into consideration, the effects of e-trade are very significant, including the shortening of the time needed for customs clearance procedures to a few hours from about three days in the past." For the expansion of sales this year, KTNET has also decided to debut five new services ― FSCM (Financial Supply Chain Management), e-LogisView (Global Logistics), e-Purchase Confirmation, e-B/L (Bill of Lading) and e-T/B (Trade Bill).
Shin emphasized, "KTNET has established this year's sales target at 71 billion won, up 1.4 percent from last year, and will achieve the additional turnover through the expansion of new services." He added, "KTNET will also strengthen the development of Internet phone-related complex goods that can contribute to the reduction of communication expenses for the trade community and marketing activities all the more." nw

KTNET teams up with the National Technopark Federation to facilitate e-Trade at a meeting held on Feb. 27.

KTNET President & CEO Shin Dong-sik