Page 25 - Sphere No.7 (Oct 2002)

China
Hong Kong
TOKYO
Yantian
Kwangyang
to NorthAmerica
Pusan
Osaka
Japan
to NorthAmerica
South Korea
Shanghai
South China Sea
SEOUL
S PHERE
1223
The re-emerging nation has even managed to teach its tra-
ditional European and Asian rivals a thing or two about football,
reaching the semi-finals of the Fifa World Cup, which it co-
hosted. Indeed, the link between global economic growth and
sporting achievement is not as abstract as it appears.
Like its fast-reforming economy, South Korea’s recentWorld
Cup success owes much to foreign influence. Dutch coach Guus
Hiddink took a young team full of potential, cut through tradi-
tional Korean management styles and structures, and taught
them how to compete – and win – on the world
stage. He was declared a national hero.
O N THE BALL
With Hiddink’s sporting achievements in mind,
the world’s leading port developer and operator,
Hutchison Port Holdings (HPH), is helping
South Korea realise its economic potential.
In May last year, Korea International
Terminals (KIT) – a local consortium comprised
of HPH, Hyundai Merchant Marine and Hanjin
Shipping – was granted the rights to develop and
operate seven berths at the new Kwangyang
Container Terminal (KCT) Phase 2, situated
along the south-central coast.
While the investment in Kwangyang was
initially viewed as a long-term strategic move
into North Asia – aimed at complementing Hutchison’s
expanding port network and existing terminals in China – a
surprise move in January saw the company become a major
player in South Korea almost overnight.
HPH secured three deep-water container terminals from
Hyundai Merchant Marine. These included South Korea’s
busiest container terminal – Hutchison Busan Container
Terminal (HBCT), located at the port of Pusan; a separate
50,000 tonne berth in Pusan – Hutchison Gamman Container
Terminal (HGCT); and another in Kwangyang – Hutchison
Kwangyang Container Terminal (HKCT), just four berths
down from KIT. These are now held under Hutchison Korea
Terminals (HKT).
“The timing was perfect,” says KIT Chief Executive
Officer Paul Ho. “We’ve noticed that as the Korean
Government started to open up the economy to attract foreign
investors four years ago, there have been a lot of changes. But
in just the past few months, the pace of change
has been even faster. I can see more foreign
companies wanting to move in.
“In fact, it’s moving both ways. After
Hiddink led the national football team to suc-
cess, smaller communities outside Seoul like
Kwangyang, which are traditionally very con-
servative, opened up and became more accept-
ing of foreign companies and ideas. Previously
they might have been worried about protecting
their local industry. Now they look up to some-
one like Hutchison and say:‘Yes, that’s good for
our local industry’.”
HPH Korean Country Advisor Park
Chong-man agrees. “The result of hosting and
progressing through the World Cup was
very successful. Right after that, we Koreans
felt a confidence that we could really achieve things. This
atmosphere spread throughout all areas – into local industry,
into the economy and general psychology of the people.”
So much so that the government has announced an ambi-
tious drive to turn South Korea into the logistics hub of
Northeast Asia.And for once, being wedged between the world’s
largest market – China – and its second-largest economy – Japan
– is a distinct advantage.
“Being wedged
between China
and Japan is
a distinct
advantage.”