Asian Crisis Creates Opportunities Korean, Taiwan Businessmen Say Now Is A Good Time To Forge New Ties

U.S. companies may feel like they’re walking a tightrope when trying to do business in Asia.

They face the challenge of developing customers thousands of miles across the Pacific and, if they can, they’re still not sure their business connections will weather the current Asian financial crisis.

Two businessmen, S.I. Ko from Korea and Jim Lin from Taiwan, tried to allay some fears over coffee and muffins with Spokane business leaders and students Tuesday. They talked about how their countries are recovering from the regionwide economic collapse and the potential for American business.

Korea’s crisis was caused by insufficient reserves and rapid business expansion, Ko told the group. “It was too much, too fast,” he said. “Then for two months - two and a half months, it was really a nightmare.

“Everybody started to take Korea with a very negative attitude,” he said. Other countries refused to accept letters of credit from Korean banks.

But Korea is the sixth-largest trading partner with the United States and second-largest with Washington state, so an end to business there would hurt Washington’s economy, said Howard Granger, a representative from the Port of Seattle.

Ko works as an agent for Kaiser Aluminum in Korea and serves as an intermediary between the aluminum manufacturer and Korean customers.

He says if a U.S. company can find a local bank to accept a letter of credit from Korea, it has an excellent opportunity to develop a strong business relationship such as the one Kaiser has with its customers. “This may, in many senses, be the best opportunity to build up a relationship and beat out competitors.”

Lin, who serves as a business agent in Taiwan and China, agreed.

He said U.S. companies shouldn’t be afraid to do business in Taiwan.

He said the industry is not reliant on a few large companies. “We are many, many small groups and one easily replaces another,” Lin said. If one company fails, because it is small, it’s not that big a deal.

And Taiwan, while branching into Vietnam and China, also has subsidiaries in strong economies like the U.S., said Phillip Grub, a Spokane consultant and professor emeritus from George Washington University. Korea, on the other had, has largely expanded into emerging Asian countries that also suffered from the financial crisis.

Ko replied that anyone will realize that Korea will regain control of its economy. “It’s not a matter of if,” he said, “it’s a matter of when.”

, DataTimes