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Korea makes plan for textile boom

During the seventies textiles were Korea's number one export item accounting for nearly half of total exports. Since then the numbers have decreased to only one quarter of what they were some thirty years ago. For some time Korean textile companies pondered how they might weave a stronger future for the industry, now it seems their thoughts have been answered ... by the WTO.

From the beginning of January, 2005, the World Trade Organisation will completely remove all tariffs and quotas levied on textile products.

South Korea (currently the worlds 5th largest textile producer) will look to completely revamp its industry and take full advantage of the opportunity to become once again, a powerhouse of the textile world. It must brace itself, however, for tough competition ahead.

There are estimations that China may be able to capture 50% of the global market by 2010 under the new environment. Logistics costs in North Korea are three times higher than those of China. Other developing countries set to benefit from the changes are India and Pakistan. According to a recent article in the Korea Times:

'It is estimated that the textile industry will increase by 69% following the liberalisation''

As the government prepares to map out technology development projects for ''next generation textiles'' the chairman of the Korea Federation of Textiles Industries (KFOTI) claims that:

''2004 is the last year for South Korean textiles firms to equip themsleves for global competitiveness''

One way to achieve this competitiveness is the so-called Milano project to create a world-class textiles industrial cluster over the past five years to 2003 in Taegu. For the next five years, there will be a Post-Milano Project implemented.


Read the full article in the Korea Times