South Korea Chip Companies Sends Market Exploitation Teams to India For Expansion

by Karen Lydelle Linaja / Aug 22, 2016 05:47 AM EDT

South Korea Chip or Semiconductor companies plan to send market exploitation teams to India to expand their businesses in the second most inhabited market in the world, which is India.

According to the Ministry of Trade, Industry and Energy, the first team led by SK Hynix Inc., which is the second-largest chipmaker in the world, will conduct a road show in New Delhi on Monday to show and present their technologies of mobile chips and goods to Indian clients.

Intex Technologies and Lava Mobile, which are the leading handset manufacturers in India will also participate in the said event.

In 1973, the formal establishment of ties between South Korea and India started. During the 1997 Asian financial crisis, South Korean businesses sought to increase access to the global markets, and began trade investments with India.

Korean companies such as LG and Samsung have established manufacturing and service facilities in India. However, several Korean construction companies won grants for a portion of the infrastructural building plans in India, such as the National Highways Development Project. Tata Motors' purchase of Daewoo Commercial Vehicles at the cost of US$102 million highlights India's investments in Korea that consist mostly of subcontracting. Furthermore, the two countries work in the Free Trade Agreement and Presidential invitation for 2009 Republic Day celebrations in New Delhi.

India is one of the fastest growing mobile phone markets in the world. A total of 40 percent of global smartphones were sold in the country last year. While South Korea's Samsung Electronics posting a market share of 25 percent in the first quarter of the year.

In addition, other South Korean companies will also collaborate with Indian companies to have a business fair in Mumbai on Aug. 30 to tap the Indian automotive semiconductor market. India has emerged as the world's sixth-biggest car market led by Tata Motors and Fiat India Automobiles.

"We expect the business teams to make inroads into the high-potential Indian market. The government will establish a business network to help South Korean companies further advance into the Indian market," the trade ministry said.