ECCK Connect Summer 2018 Cover Story Euromonitor ......Dear Readers, Welcome to the Summer 2018 edition of ECCK Connect. As many of you will soon embark on your summer vacations, I

ECCK Connect Summer 2018 The Quarterly Magazine of the European Chamber of Commerce in Korea

Cover StoryEuromonitor International: Penetrating Digital Technologies Reshape Global Manufacturing Sector Page 32

SAP: Digital Transformation in Manufacturing Page 36

Social Responsibility Concern Worldwide: Humanitarians in the Two Koreas Page 48

Cover StoryIndustry 4.0

Page 30

SS_Expat Sales_ECCK Q2_200*264_OL.indd 1 2018. 5. 16. �� 3:51

Dear Readers,

Welcome to the Summer 2018 edition of ECCK Connect. As many of you will soon embark on your summer vacations, I wish you the most pleasant and relaxing time.

Since spring, the ECCK has been kept busy with a number of activities, particularly placing special effort hosting numerous conferences and forums which received great publicity as well as great reviews from our members. In March, the Chamber successfully hosted its first ever ‘Korea-EU Future Automotive Forum’ with many global automotive makers in attendance, followed by Chamber’s annual ‘Global Alternative Investment Insights’ conference, which gathered over 400 dignitaries and leading industry experts from all over the world. Also, on the occasion of EU’s newly introduced data protection law, the ECCK organized ‘EU General Data Protection Regulation Forum’ with Korea International Trade Association and Korea Internet & Security Agency in April. On behalf of the Chamber, I would like to extend my appreciation towards everyone’s kind attention and support for our events.

Focusing on further consolidating our government relations, more highlight events are being arranged as we speak. Following the successful meetings with the heads of Korean ministries and agencies in the first half of the year, the ECCK will be hosting a luncheon meeting with His Excellency Kim Sang-jo, Chairperson of Korea Fair Trade Commission, to convey operational business concerns and recommendations for the advancement of business environment in Korea.

Besides ECCK’s activities, this edition’s cover story is featuring industry experts’ opinions and insights on the various aspects of the ‘Industry 4.0’. Furthermore, in addition to our regular spotlights on “Startup News”, “Research & Insights”, and “Taste of Europe”, ECCK Connect will begin to highlight companies basing its core mission and vision on “Social Responsibility”.

As always, I hope you will find this edition interesting and informative.

Dimitris PsillakisChairman, European Chamber of Commerce in Korea

2 Chairman's Massege

4 Table of Content

02 Chairman’s Message

ECCK News

06 New Members

08 General Events

14 Seminars & Forums

18 Busan Chapter News 20 Committee News

22 All European Network Night

ECCK Members News

24 Finnair, celebrating 10 years of flying to Seoul

EU Project

26 Introducing Austria, Next Chair of the EU Council

Cover Story

30 Industry 4.0

32 Euromonitor International: Penetrating Digital Technologies Reshape Global Manufacturing Sector

36 SAP: Digital Transformation in Manufacturing

40 DIGITALEUROPE: How digital transformation impacts both the society and the economy

Research & Insights

44 RDI: Engaging and Communicating with Millennials

Social Responsibility

48 Concern Worldwide: Humanitarians in the Two Koreas

Startup News

52 PAJEORI, Urban Farming Organization

Taste of Europe

56 Tapas Gourmet

Art & Culture

58 The Story About Your Memories of the Weather

AD & Sponsorship

62 ECCK Advertisement & Sponsorship

jll.co.kr

JLL (NYSE:JLL)은 부동산 투자자, 개발자, 기업에게 부동산 관련 포괄적 서비스를 제공하는 종합 부동산 서비스 회사입니다. 부동산 라이프 사이클 전반에 걸쳐 오피스, 리테일, 주거, 물류/산업 자산 등 다양한 유형의 자산에 대해 원스탑 서비스를 제공합니다.전세계 80개국, 300여개 지사에서 8만명의 직원들이 서비스를 제공하고 있는 명실상부한 세계 최고의 부동산 회사입니다.

JLL (NYSE:JLL) is a professional services and investment management firm specializing in real estate. We offer integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying, developing, or investing in real estate.We are the industry leader with our 80,000 colleagues serving clients in over 80 countries from more than 300 corporate offices.

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

매입매각 자문 (Capital Markets) 자산관리 (Property Management)

전략 컨설팅 자문 (Advisory) 리서치 (Research)

ACRO Seoul ForestACRO Seoul Forest

임대 대행 (Leasing) 임차 대행 (Tenant Representation)

건축 및 인테리어 프로젝트 관리 (P&DS) 통합퍼실리티 매니지먼트 (IFM)

주거 서비스 (Residential Service) 중소형 서비스 (Mid-market Service)

리테일 서비스 (Retail Service) 물류/산업 서비스 (Logistic Service)

02-3704-8888

Amazon

KTB Building

Toyota Showroom Baan Mai Khao, Thailand

Citrix

Lotte World Tower

Jongro Place

Sinsa Retail Logiport Icheon

Apple Plaza

AMBITIONSAchieve

New MembersApril-June 2018

6 ECCK News

Moncler Shinsegae (Italy) Mr. Yong-Taik Lee (CEO) www.moncler.com

Mirae Asset Daewoo (Korea) Mr. Hyun Man Choi (Executive Vice Chairman & CEO) www.miraeassetdaewoo.com

New Committee Chairpersons

ECCK would like to extend a warm welcome to new committee chairpersons.

[ECCK Healthcare Committee]Mr. Christophe Piganiol (President at Zuellig Pharma Korea)

[ECCK Compliance Forum]Mr. Stephano Kim (Head of Legal & Compliance at Philips Korea)

Tecno spa. (Italy) Mr. Jihoon Ahn (Country manager) www.tecnospa.com

Gastro TONG (Korea) Mr. Roland Hinni (President) www.gastrotong.com

Alitalia - Societa Aerea Italiana (Italy) Mr. Massimo Allegri (Regional General Manager Asia) www.alitalia.com/ko_kr

Highendcamp.Inc. (Korea) Mr. Scott Lee (CEO) www.highendcamp.com

EML Trade and Consulting Co., Ltd (Korea)Mr. Eduard Meier (President)

Gute Form (Korea) Mrs. Sunhee Yang (Art Director) guteform.kr

K World International (Korea) Mr. Karl H. Kim (President)

Seoul B&B Dental Clinic (Korea) Mr. Sanghwan Kim (President) beautyandbalance.modoo.at

Key Benefits of Joining the ECCK

Advocacy: ECCK strives to ensure a fair and open business environment for its members by facilitating dialogues with the Korean government, EU Delegation to Korea, European Com-mission, influential business associations as well as the media.

Committees and Forums: ECCK regularly hosts professional forums to closely follow market trends and changes in the regulatory environment relevant to the interests of our members.

Business Promotion: ECCK members can maximize their company exposure by distributing or sponsoring promotional materials at selected ECCK events or publishing company news on our website on request.

Networking Opportunities: ECCK functions as the first point of contact for European executives or officials visiting Korea and regularly hosts various formal and informal gatherings to help our members expand their networks.

Prominent Platform for Information: ECCK members receive a variety of complimentary periodicals– newsletter, magazine, white paper, membership directory, and survey report– to stay updated on the current market and regulatory issues in Korea.

ECCK Connect — Summer 2018 98 ECCK News

General Events

KOIMA to introduce import database service

On April 5, the ECCK participated in the information session organized by the Korea Importers Association (KOIMA) to learn about its upcoming Importers Database Service. KOIMA built an import database of 110,000 Korean import companies with import earnings, which can check real-time information on company’s shutdown and credit information. The goal is to support B2B matching with domestic companies by providing reliable information and consulting services to foreign companies looking into entering the market. This paid service will be launched in the second half of the year.

ECCK Request for Legislation Translation Approved by MOLEG

Following a request by the ECCK, the Ministry of Govern-ment Legislation (MOLEG) has announced that it will proceed to translate four pieces of legislation that are of high importance to ECCK members. As part of the effort to improve the understanding of Korean laws and policy, the MOLEG has been conducting demand survey for the legislation translation.

Below is the list of legislation approved for translation. The ECCK is committed to promote optimal business environment and fairly represent the European business community.

• Enforcement decree of the act on the consumer protection in electronic commerce, etc.• Enforcement decree of framework act on product safety• Enforcement decree of the industrial technology innovation promotion act• Hygiene products control act

RDA releases first report on underage drinking preven-tion campaign

Responsible Drinking Alliance (RDA), an industry alliance formed by global alcoholic beverage manufactures in Ko-rea, released its first report on the underage drinking pre-vention campaign. Marking the first industrywide effort made by global alcoholic beverage companies, the RDA was founded in 2015 by ECCK with an aim to address alco-hol related social issues in Korea.

Currently, there are 5 member companies (Chairman: Dia-geo Korea) participating in the RDA with the Korea Wine & Spirits Importers Associ-ation (KWSIA, 57-member companies) joined as an associate member, and the ECCK oversees its operation. The RDA is open to everyo-ne including government agencies, associations, or-ganizations and companies including retailers that can make a commitment to the responsible drinking culture in Korea.

[The Korea Herald] Interview with ECCK Director of Legal and International Affairs

A special interview with Sven-Erik Batenburg, director of legal and international affairs and of the intellectual property rights committee at the ECCK, was published in The Korea Herald on March 18 where he talked about the needs to recognize the damage counterfeits bring to the economy.

ECCK Participated in The EU Agri-Foods SPS Seminar

The ‘EU Agri-Foods SPS Seminar’, hosted by the European Union (EU), was held from March 20 to 21 at the Four Seasons Hotel in Seoul. Joined by food industry experts from both EU and Korea, the seminar provided an opportunity to learn about sanitary and phytosanitary standards (SPS) and food quality standards employed in the EU.

The event also featured a special roundtable debate entitled “The Korean market, in food safety and quali-ty standards: benefits and challenges”, where Mr Erwan Vilfeu, Chairman of ECCK Food Committee and CEO of Nestlé Korea, participated as a panelist. Mr Vilfeu em-phasized the need to focus on identifying characteristics of Korean consumers and markets in order to successfully enter the market.

SKBC, SBHK and ECCK sign cooperation agreement

The ECCK signed a cooperation agreement with Swiss-Ko-rean Business Council (SKBC) and Swiss Business Hub Korea (SBHK). Through this agreement, ECCK, SKBC and SBHK have plans to cooperate in organizing and promoting infor-mation sessions, seminars and other business events when opportunity rises. Furthermore, collaborative efforts will be placed into exchanging information on or refer to potential overseas speakers being of relevance for the European inclu-ding Swiss business community and to organize as co-hosts such events. The cooperation agreement was signed by Mr Erwan Vilfeu (Chairman of SKBC), Mr Roger Zbinden (Head of SBHK), and Mr Sven-Erik Batenburg (Director of Legal & International Affairs at ECCK).


The Korea Herald interview with ECCK President

The interview article with ECCK President Christoph Heider was published by the Korea Herald on April 25. In the article, he discussed about 'pure' Korea regulations which referred to those that only exist in Korea and explained how those regulations are hampering European companies from laun-ching their new products in Korea.

ACRC policy round table with foreign businesses in Korea

In the morning of April 18, the Anti-Corruption and Civil Rights Commission (ACRC) hosted its annual Policy Briefing round table with representatives of foreign chambers and companies in Korea. The meeting was attended by ACRC Chairperson Pak Un Jong and 13 foreign business leaders including the ECCK President Christoph Heider and Vice President Bosun Kim. During the meeting, Chairperson Pak introduced the recently amended Improper Solicitation & Graft Act, and newly launched Business Complaints Team specifically designed to handle business affairs. Also, the heads of foreign business groups shared their opinions and difficulties on anti-corruption policies and regulations related to doing business in Korea.

The ACRC has held the annual Policy Briefing for foreign businesses in Korea since the launch of the Commission in 2008. The purpose of the Policy Briefing is to help foreign businesses better understand Korea’s anti-corruption policy and the ACRC reach out to foreign businesses in Korea.

Round table with MFDS Cosmetics Policy Division

On April 27, ECCK Cosmetics Committee organized a round table meeting with Cosmetics Policy Division of Ministry of Food and Drug Safety (MFDS), the key office responsible for handling cosmetics policies in Korea. Director Sung Jin Kim and Associate Director Ji Won Lee of the MFDS Cosmetics Policy Division along with 20 members of the ECCK Cosmetics Committee participated in the meeting.

During the round table, Director Kim shared updates of the cosmetics regulatory plans in 2018 and discussed about current industry issues, including customized cosmetics, natural/organic cosmetics certification, solid soap, child-use cosmetics, and import process, with the attendees. Also, Director Kim, who was appointed to his position last February, promised to actively communicate and organize regular meetings with the ECCK Cosmetics Committee in the future.

ECCK attended the 6th meeting of the EU-Korea Civil Society Forum

ECCK President Christoph Heider attended the 6th meeting of the EU-Korea FTA Civil Society Forum held on April 11, at COEX, Seoul. Led by Professor Ho Geun Lee, Chair of the Korean Domestic Advisory Group, and Georgi Stoev, Chair of the European Union Domestic Advisory Group, the event revolved around discussions on circular economy, environmental risk factors, and employment standards including upcoming ratification of four ILO Core Conventions by Korea.

The ECCK was nominated by the European Commission to be a member of the European Union Domestic Advisory Group in 2016. The roles and responsibilities of its member are defined in the Trade and Sustainable Development Chapter of KOREA-EU FTA.

Breakfast Meeting with Monetary Policy Board Member Koh Seung Beom (Vice Minister)

In the morning of April 25, ECCK organized a breakfast meeting with a special guest, Dr. Seung Beom Koh of Monetary Policy Board of the Bank of Korea. During the session, Dr. Koh shared his insights on the economic outlook and future policy direction of Korea with the participants. The Monetary Policy Board is a policy-making body that deliberates and decides on major matters concerning the monetary policy of Korea, and Dr. Koh has been a member of the Board since 2016. Prior to his appointment to the Board, Dr. Koh served as Standing Commissioner of the Financial Services Commission from

ECCK speaks at national assembly seminar on ILO core convention

On April 12, ECCK President Christoph Heider participated in the ‘International Seminar on Ratification of ILO Core Conventions in Korea and Trade Union Rights for All’ held at National Assembly Research Service. Opened with welcoming remarks by Minister Kim Young-Joo of Ministry of Employment and Labor, the seminar focused on Korea’s decision to ratify International Labor Organization (ILO) conventions and ways to improve existing labor law of Korea. Along with Deputy Director Karen Curtis of ILO, Legal Director Makbule Sahan of International Trade Union Confederation (ITUC), President Heider spoke at the seminar about the implementation of the outstanding ILO core conventions.

2015 to 2016 and has been in charge of wide range of economic policies for the last three decades since joining the Ministry of Finance in 1986.

First ECCK Quarterly Report published

The ECCK published its very first Quarterly Report in May. Its purpose is to provide a succinct overview of the most pertinent developments for European industry in Korea, which is why it is limited to a few pages, ensuring the report’s readability.

Further editions of the quarterly report are scheduled for publication each second working week of a new quarter. The second edition will also include data related to trade between Korea and EFTA countries. The Report is available on the ECCK website at ecck.eu.


ECCK – KATS Round Table Meeting on Electrical Appliances and Consumer Products Safety Control Act

On May 30, the ECCK Kitchen & Home Appliances Committee organized a round table meeting with Korean Agency for Technology and Standards (KATS) Electrical & Telecommunications Product Safety Division at Seoul Square building. It was a follow-up meeting subsequent to the previous discussion held on April 16 regarding the legislation on Electrical Appliances and Consumer Products Safety Control Act.

In order to share expert views in terms of technical interpretations, the day’s meeting was attended by three main testing & certification institutions in Korea namely Korea Testing Laboratory (KTL), Korea Testing & Research Institute (KTRI), and Korea Testing Certification (KTC), which all are affiliated organizations of the Ministry of Trade, Industry and Energy (MOTIE).

In the course of the meeting, the KATS shared the revised draft of the Act which reflected opinions previously raised by the members of the ECCK Kitchen & Home Appliances Committee. The final version will be announced to the public by KATS in June, and implementation of the revised legislation will take effect from July 1, 2018.

The ECCK would like to thank our committee members and everyone else who participated in the meeting and provided valuable inputs. As always, the ECCK continuously strives to improve our services as the major communication platform for the European business community.

[KBS World Radio] Interview with ECCK President Christoph Heider

ECCK President was invited for an interview with KBS World Radio, where he talked about why Korea needs to continue its support in innovation and a favorable business environment in order to maintain sustainable economic growth. Also, on the occasion of the recent inter-Korean summit, he shared his views on future investment and trade opportunities in North Korea. The interview was conducted in German.

President Heider attends 2018 Korea Economic Forum

ECCK President Christoph Heider attended Korea Economic Forum organized by Korea Joongang Daily to hear Financial Services Commission (FSC) Chairman Choi Jong-ku’s discussion about current developments in the Korean economy and changes to financial regulations.

ECCK delivers donations to Global Youth Fair

ECCK delivered donations collected during the All European Network Night last week to Global Youth Fair (GYF), a global cultural organization established for youth in Korea. Founded in 2015, the GYF is a group consisting of professionals from various industries, provides educational events and international exchange programs for children in Korea.

ECCK meets with Sang-Min Lee, a Member of the National Assembly

On May 24, ECCK President Christoph Heider had a meeting with Mr. Sang-Min Lee, a fourth-term member of the National Assembly of Republic of Korea from the ruling Minjoo Party. During the meeting, Mr. Lee stressed the significance of the strategic relationship of mutual benefit between Korea and Europe, particularly in the field of science and technology. Also, Mr. Lee expressed the determination to work as a bridge among Korean legislators, government officials, industry people, and European businesses to pursue stronger cooperation between the two sides.

Mr. Lee also serves as a member of Science, ICT, Broadcasting and Communications Committee. His constituency includes Daedok Techno Valley.

ECCK to serve another term in EU Domestic Advisory Group

On April 30, the mandate of ECCK, member of the EU Domestic Advisory Group for Korea since 2016, has been renewed by the European Commission. The Chamber will serve for another two and a half-year.

The EU DAG for Korea makes recommendations and advises on any issue related to the implementation and promotion of the trade and sustainable development chapter of the EU-Korea Free Trade Agreement (FTA), at the request of the EU-Korea Civil Society Forum, the Committee on Trade and Sustainable Development, the Panel of Experts, the European Commission, or on the DAG’s own initiative.

ECCK Connect — Summer 2018 15

Seminars & Forums

ECCK Seminar on Labour Market Trends and Expectation

In the morning of March 14, the ECCK organized its annual seminar on ‘Labour Market Trends and Expectation’ in cooperation with Robert Walters and Bae, Kim & Lee. The seminar provided participating companies with insights on developments in their particular segment, as follows from Robert Walters’ Salary Survey, as well as expected amendments to pertinent labour regulations and their impact on the industry.

ECCK held Seminar on Standard Essential Patents

In the morning of March 21, the ECCK held its second seminar on Standard Essential Patents (SEPs) under the title of ‘Recent Developments in Europe and Korea’. During the seminar, the European and Korean experts clarified the most pertinent developments, the interplay of these and discussed what the future may hold for SEPs in light of industry 4.0.

The seminar was very timely as the European Commission had indicated its strategy to establish a balanced IP enforcement system responding to today’s societal challenges and that SEP protection and their licensing are topics of many debates worldwide.

‘Korea-Europe Future Automotive Forum’ concludes with great success

Korea-Europe Future Automotive Forum jointly organized by the ECCK, European Automobile Manufacturers’ Association (ACEA) and Korea Automobile Importers & Distributors Association (KAIDA), successfully concluded on March 28 at the Conrad Seoul.

Under the theme ‘The Future of Mobility will be Cleaner and Smarter!’, the event focused on three main topics of future mobility; Autonomous Driving, Connectivity, and Electric Vehicle. More than 100 industry experts and academics in the field of automotive technology participated to discuss about the transportation revolution for which both Europe and Korea will be able to seek broader future cooperation.

First ECCK CFO Forum of 2018

On March 28, the ECCK held its first CFO Forum of the year at Pierre Fabre Dermo-Cosmetique Korea office in Seoul. Joined by 15 CFOs across various industries, Mr Sangmin Nam, a partner of KPMG Korea, delivered a presentation on the topic of 'Changes in external audit law and background'. Throughout the evening, in-depth and fruitful discussions took place in a very lively atmosphere. The event was followed by dinner, where CFOs and speakers shared their knowledge and insights while enjoying delicious Italian food and wine.

Also, the Forum had an opportunity to express sincere gratitude to Co-Chairmen of ECCK CFO Forum, Mr Torsten Berger (CFO, Continental Automotive Systems) and Mr Olivier Verjat (CFO, Pierre Fabre) as their two-years term came to an end. ECCK would like to thank Mr Berger and Mr Verjat for their hard work and support towards the committee during their tenure.

14 ECCK News

Info Session: “Why Industry 4.0 and Collaboration Go Hand-In-Hand?”

On April 3, ECCK hosted a breakfast seminar in collaboration with Swiss Korea Business Council (SKBC) on the topic of Industry 4.0 at Lotte Hotel Seoul. Dr. Dominic Gorecky, Head of the research group for Industry 4.0 at Switzerland Innovation Park Biel/Bienne and co-founder and head of the Swiss Smart Factory, participated as guest speaker in the event. The Swiss Smart Factory is the first test and demonstration platform for Industry 4.0 topics in Switzerland. During his presentation, Dr. Gorecky shared his insights on the transformation of Industry 4.0 taking place in Germany and Switzerland and stressed the importance of cross-sector collaboration and international cooperation for a successful adoption of Industry 4.0. Joined by 30 ECCK members, the morning seminar concluded in a livery atmosphere.


Info Session: ‘Changes in Labor Law for Executives’

Under the theme of ‘Changes in Labor Law for Executives’, the ECCK organized an information session with HMP Law in the morning of April 10 at Lotte Hotel Seoul. Chan Sik Ahn, Partner lawyer at HMP Law, covered recent issues and trends in labor law with the attendees. Mr Ahn has the labor and employment, data protection and anti-corruption related expertise. ECCK would like to thank Mr Ahn for the informative presentation and all members for attending the session.

ECCK Co-organized the EU GDPR Forum

The ECCK, together with Korea International Trade Association (KITA) and Korea Internet & Security Agency (KISA), co-organized a forum on ‘Implications of the EU GDPR in Korea’ on April 11 at COEX, Seoul.

With the impending enforcement of EU General Data Protection Regulation (GDPR) on May 25, 2018, the day’s forum was to enhance the awareness of the GDPR and to provide proper guidelines on how companies can better prepare upon this new regulation. Designed to harmonize data privacy laws across Europe, to protect and empower all EU citizens data privacy, the EU GDPR is expected to reshape the way organizations across the region approach data privacy.

Attended by members of the ECCK and KITA, the forum was also featured by Mauricio Coarasa, Vice Chairman of ECCK and CFO of AXA Korea, who delivered welcoming remarks.

Global Alternative Investment Insights 2018 successfully concluded

The Global Alternative Investment Insights 2018 (GAII 2018) jointly held by the ECCK and Maekyung Media Group, was a great success. Joined by over 400 leading specailists in real estate, PEF, and infrastructure from all over the world, this year’s GAII was held on April 12 at The Shilla Seoul.

At the conference, Mr. André Schmidtgall, Vice Chairman of ECCK and Country Retail Manger of IKEA Korea, delivered welcoming remarks in which he addressed the significance of the business of alternative investment especially during times of heightened investment uncertainty.

ECCK holds a BPR seminar in cooperation with ERM

In the afternoon of June 12, the ECCK Chemical Committee co-organized a seminar on Biocidal Products Regulation (BPR) with ERM at Courtyard Marriott Seoul Namdaemun. Attended by the Committee members and industry professionals from ERM and the Ministry of Environment (ME), the day’s featuring speakers from ERM included Dr. Richard Elsmore and Dr. Samantha Wright who talked about EU-BPR and how it’s differentiated from K-BPR. Followed by was a presentation by Mr Dea Joon (Deputy Director, ME) who shared legislation information on Enforcement decrees and Rules of K-BPR.

By the end of the seminar, Q&A and networking sessions were provided in which participants engaged in further discussion and active information sharing pertaining to the day’s topic.

16 ECCK News

ECCK HR Seminar on Millennial Engagement

On May 16, the ECCK joined forces with RDI to organize a HR seminar titled ‘Communicating & Building better engagement with millennials’ at the Seoul Square building. Attended by executives and HR specialists from the ECCK member companies, the seminar was led by a speaker, Mr Eric Wan (Chief HR Officer at RDI). During the seminar, Mr Wan touched upon topics including organization’s internal communication strategies and key learnings on millennials’ expectations at their workplace. Followed by was a Q&A session in which the participants got to share their own experiences pertaining to the day’s topics.


Busan Chapter

ECCK Busan seminar ‘The ABC’s of Anti-Bribery and Compliance in Korea’

Following the success of the ECCK compliance seminar ‘The ABC’s of Anti-Bribery and Compliance in Korea’ held in Seoul in March, the Chamber’s Busan Chapter hosted the compliance seminar in Busan for its members on April 12 at KNN Tower.

The seminar featured three speakers to offer their insights on corporate compliance, including Sven-Erik Batenburg (Director of Legal & International Affairs, ECCK), Jeena Kim (Partner Lawyer, Bae, Kim & Lee) and Moonsup Kim (Director of Finance & Analytics, Samil PwC). Throughout the seminar, the speakers highlighted the importance of corporate compliance and presented the 2017 Corruption Perceptions Index, the implementation of the Anti-Graft Act as well as practical tips to a complaint operation.

ECCK Busan Spring Network Night

In the evening of April 24, ECCK Busan Chapter held its annual Spring Network Night at the Living Room Bar on the 31st floor of Park Hyatt Busan. The theme of the evening party was “The scent of art”, where participants enjoyed live painting and piano performance along with a splendid view of Gwangan bridge.

The evening also prepared a short presentation session from our diamond sponsor, Busan Metropolitan City. For this session, Vice Mayor Kiwon Han of Busan delivered a speech on the topic of ‘Hasten the Advent of New Era with Busan’.

2018 Busan Global Gathering

The ECCK participated in the 13th Global Gathering held by Busan Metropolitan Government at Haeundae APEC Naru Park on Sunday, May 20. The Global Gathering is an international event for locals and expatriates to network and experience world cultures, including food, traditional clothing, and performances. Around 100 promotional booths were installed for the day, representing 41 nations from all around the world. As a representative of the European business community in Korea, ECCK operated a promotional booth and distributed the Chamber’s publications and brochures to introduce ECCK’s missions and services to the event attendees.

Furthermore, ECCK conducted IPR campaign again this year to raise public awareness on the value of intellectual property and preventive actions to fight counterfeiting. By displaying various fake products and explaining its negative consequences, the visitors were able to learn how counterfeit can negatively impact all layers of the society. Also, the Chamber conducted its annual survey to measure consumers’ perception of counterfeit products with more than 400 responses this year.

To read the full survey report, please visit the ECCK website at ecck.eu

Logistics Industrial Seminar on Crisis Management Pl-anning

In the afternoon of March 27, the ECCK held a logistics indus-trial seminar at Seoul Square building. Under the theme of ‘Crisis Management Planning for a North Korean Crisis’, the seminar was attended by a guest speaker, Rodney J. Johnson who is a president of Erudite Risk. Along with effective stra-tegic risk management, Mr Johnson particularly discussed on crisis management for a conflict on the Korean Peninsula.

Gyeongnam Investors Network Night & Site Tour

The Gyeongnam Investors Network Night & Site Tour 2018, hosted by Gyeongnam province and co-organized by the ECCK together with Geoje Maritime Tourism & Develop-ment Corporation, was held from May 31 to June 1 in Gye-ongnam.

The two-day event kicked off with Investors Network Night in the evening of May 31 at the Stanford Hotel & Resort Tongyeong. The networking event was attended by the dignitaries and European business leaders including Chris-toph Heider, President of ECCK. Throughout the evening, the attendees were able to learn about the investment en-vironment and success stories of foreign direct investment in Gyeongnam.

On the second day, the participants went on a tour around the attractive Gyeongnam area. The day began with a vi-sit to Daewoo Shipbuilding & Marine Engineering (DSME) site in Geoje Island followed by a trip to Busan-Jinhae Free Economic Zone (BJFEZ) in the afternoon. Also, the group had a chance to visit inside the Busan New Port area and Busan International Distribution Company which was or-ganized by Busan Port Authority.

18 ECCK News


Committee NewsThe Chemical Committee

The ECCK Chemical Committee is organized by multinational chemical companies, representing the voice of the European chemical industry. The Committee works primarily as a platform to support member companies and advocate member’s opinion to government, national assembly and relevant stakeholders.

Recently, there were drastic changes in CCA (Chemical Controls Act), K-REACH (The Act on the Registration, Evaluation, etc. of Chemicals), K-BPR (Biocidal Products Regulation) and OSHA (Occupational Safety and Health Act) due to chemical accidents. In order to comply with such unexpected changes, the Committee has been striving to facilitate active communication between its member companies and Korean authorities to better reflect concerns and grievances from the industry.

On November 2017, the Committee had a round table meeting with Cefic (European Chemical Industry Council) and Ministry of Environment (ME) to discuss on amendments of K-REACH and challenges of its compliance. Later in June 2018, the Committee also organized a meeting with ME, this time for K-BPR and its enforcement decrees / rules, in which the two parties engaged in active conversations over uncertainties involved in the regulations.

Along with the ECCK’s diverse communication channels for delivering member’s opinions such as White Paper, position letter, forums and seminars, the Committee itself aims to become a prominent and influential communication channel between the industry and government by maintaining high levels of advocacy.

Enforcement of K-BPR (Biocidal Products Regulation)

Due to the humidifier disinfectant incident, ME decided to strengthen the biocides management to prevent from such accident to happen again. K-BPR and its Enforcement Decrees and Rules were then officially announced on May 30, 2018.

ME has confirmed on 733 kinds of biocides from 18,000 products among 23,000 consumer chemical products (’16 research result). However, there are only 180 kinds with inhalation toxicity.

Composition and System of BPR are as follows:

The purpose of EU-BPR is that “Biocide is necessary to suppress activity of organisms that have harmful effect of human and the environment, but the property and manner of use of biocide itself can be harmful to human and the environment. Therefore, to ensure health of human, animal, and the environment, distribute only biocide products that are permitted by the regulation”

In line with that, the general purpose of BPR outlines to protect human health and the environment by

20 ECCK News

establishing standards on Consumer Chemical Products risk assessment, active substance and biocide product approval and Treated Articles. The key features that differentiate BPR from K-REACH are approval on active substances for consumer chemical products and treated article before its usage.

According to BPR, active substances not approved by ME are prohibited from being used in biocidal products, and exceptional cases are only allowed for scientific experiment, analysis & research, and test products. Anyone who manufactures or imports biocidal materials for the use of biocidal products should get approval from ME.

BPR took effect from January 2018, and the chemical industry in Korea should be aware of these major changes and prepare itself to better adapt to the new system in order to avoid disrupting production.

Amendment of Chemical Controls Act

ME announced the amendment of Chemical Controls Act on April 27, 2018, which includes Universal Chemical Tracking System. Key purposes of the amendments are as follows:• To track down the distribution route in the case of occurrence of any risk-related accidents• To ensure the right to know of the public on hazardous chemical substances and to enhance the transparency of trading• To minimize the risk of submitting false LOC, in response to lacking cross-verification measures in the current system

Although Universal Chemical Tracking System (notification system of confirmation on chemicals) aims to improve the existing system, corporates may perceive it as going through too many repetitive reports on handling chemical substances. Unlike the current confirmation system on chemicals, which are mainly relevant to imported products, the notification confirmation system on chemicals, in combination with Statistical Survey Report, will be a result of reports with abundant information on a wide range of chemical distribution processes for the industry because it will include not only imports but also the production of mixtures. In that regard, "Report of hazardous chemicals" according to Article 49 and Ministerial Decree Article 52 shall no longer be needed since it is a completely duplicate report, thus should be deleted in order to avoid inefficient reporting process and to build a reasonable system.

Source: Ministry of EnvironmentSource: Ministry of Environment

Regulation Composition and System

Total7 chapters

and 59 clauses


All European Network NightWe would like to thank everyone for their attendance to All European Network Night on May 10, 2018; the evening could not have happened without our valued members and friends. We truly appreciate your continuous interest and support.

To commemorate the 10th anniversary of Finnair’s Incheon to Helsinki route, Finnair recently held a press conference. At the press conference, Finnair presented its 10-year story and mid-to long-term objectives as well as launching of its new in-flight meal by Chef Sung-Yeol Nam.

Finnair opened its direct flight from Incheon to Helsinki in 2008. It began with 4 flights per week and now offers 7 flights per week. Additionally, the revenue from the Korean market has grown 4.5 times in the last decade, and the number of Korean airline crew has increased since 2008.

To provide a unique Nordic experience, Finnair has worked with a number of celebrity chefs to upgrade its in-flight meal. This year, Finnair selected Korean star chef, Sung-Yeol Nam, to develop a meal which represents his food philosophy of traditional Korean food with a modern twist, focusing on fresh and seasonal ingredients.

24 ECCK Members News

Finnair, celebrating 10 years of flying to Seoul

In the first menu, available in May-July 2018, Finnair customers can enjoy a sea bass appetizer, followed by a main course with a modern take on traditional Korean dish of rice and abalone.

Aside from the signature chef cooperation, Finnair Korea also launched a double point promotion for passengers. Until June, Finnair’s double point promotion doubles Finnair Plus point mileage for those flying from Incheon to Helsinki. This promotion is limited to those who make flight reservations by June 18, and point mileage can be checked through Finnair’s main website. In addition to the Incheon-Helsinki route, those who are traveling to other European cities can receive the double point promotion as well.

For more information, please visit www.finnair.com

The ECCK serves as the public voice for European companies conducting business

in or related to Korea

For Membership Inquiries: T +82-2-6261-2700 / E [email protected]

ECCK Connect — Summer 2018 2726 EU Project

Introducing Austria, Next Chair of the EU Council

After 1998 and 2006, Austria will chair the EU Council for the third time in its history in the second half 2018, starting on July 1, 2018. Each EU member state assumes this role for half a year in turns. Acting in the Council’s chair, Austrian representatives will confront the task of finalizing up to 190 different bills on the EU’s table into EU law. However, most dossiers will be turned into EU law only if Council and European Parliament agree upon it. Therefore, a substantial part of the Council chair’s work means active contribution to this consensus.

Since the next general elections to the European Parliament will take place in May 2019, Austria’s Presidency will cover the very last full active semester prior to these elections. After the European elections, the European Commission will also be renewed.

On top of the usual bustling EU - routine in Brussels, Luxembourg and Strasbourg, Austria will organize at home around 300 events, including 13 informal ministerial meetings and one informal EU – Summit.

External developments and unexpected moments of crisis often cannot really be foreseen, and respective policy in response set out ahead. In addition, the ongoing negotiations on Brexit, although not conducted directly by the Council Presidency, keep most players within the EU busy. The top EU-representatives and the Council Presidency therefore should stay vigilant, which means that they must remain ready to react properly and in a flexible manner.

Austria views its role during the forthcoming Presidency

of the Council of the European Union as that of a neutral broker. Given its geographic location in the heart of the EU, its obligation of neutrality and in line with its traditional role as bridge builder, Austria will endeavour to contribute to the unity within the EU. The motto of Austria’s Presidency is ‘A Europe that protects’. To that effect, the Austrian Presidency will prioritise the protective role of the European Union, in particular concerning three priority areas: security and migration, securing prosperity and competitiveness through digitalization, stability in the neighbourhood – the EU perspective of the Western Balkans/South Eastern Europe.

Regarding the further strengthening of relations between Europe and Asia, an important event is going to be the 12th Asia-Europe (ASEM) Summit on October 18-19,

Hallstatt: © Oesterreich Werbung / Weinhaeupl

The UNESCO World Heritage region of Hallstatt Dachstein Salzkammergut


2018 in Brussels, Belgium. On May 25, Prime Minister Lee Nak-yeon paid an official visit to Austria, meeting Federal President Alexander Van der Bellen and Federal Chancellor Sebastian Kurz. Chancellor Kurz highlighted at that occasion that Austria hopes for a peaceful resolution and a peaceful living together on the Korean peninsula.

Austria is a good partner for Korea. Overall, Austria’s economic activity is set to remain buoyant through 2018. Solid job creation and dynamic wages underpin private consumption. Bilateral trade develops well. Korea is Austria’s third most important Asian trade partner after China and Japan. In 2017, Austria exported goods with a value of almost €1.3 billion (a massive plus of 51.6 percent). Goods made in Austria’ enjoy a positive quality image, and they are internationally competitive. Exports in the automotive sector and in machinery and plant construction are particularly in high demand and account for more than half of all Austrian exports to Korea. In addition, imports of Korean goods to Austria grew by 13.6 percent to €857.5 million, especially in the segments of

vehicles and electronic goods. Austrian enterprises have placed direct investments of over €1 billion in Korea, which led to the creation of some 3,000 new jobs. Another area that has gotten more attention recently is the vocational training system in Austria, called ‘Duale Ausbildung’. It is a well-established education and training model that combines apprenticeships in a company and vocational education at a vocational school in one course. It has been very successfully applied for a long time not only in Austria, but also in Germany and Switzerland, to prepare the youth for the job market, and many countries have been studying this model and how it might benefit their economies.

Austria is also a well-established destination for tourists. It registered in 2017 more than 300,000 arrivals from Korea. Vienna, Salzburg and Innsbruck are the Austrian cities that welcome most Korean travellers.

Written by :Austrian Ambassador Dr. Michael Schwarzinger &ADVANTAGE AUSTRIA – Embassy of Austria Commercial Section

28 EU Project

Graben in Wien: © Oesterreich Werbung / Diejun Stift Admont: © Oesterreich Werbung / Trumler

Fahrrad: © Oesterreich Werbung / Himsl

Pedestrian zone in the city center of Vienna near St. Stephen’s Cathedral Admont Abbey (founded in 1074) in the province of Styria, containing the world’s largest monastic library.

Austria offers many outdoors activities, such as skiing, hiking or bicycling

Industry 4.0The Fourth Industrial Revolution, simply Industry 4.0, is right around the corner with unprecedented cutting-edge technologies and has been reshaping our lifestyle and business models already.

As part of the effort to provide up-to-date information on the business environment to its members and partners, the ECCK holds seminars and forums on a regular basis. In line with the ongoing digital revolution, the ECCK has recently organized an information session on the signifi-cance of collaborative platforms to drive a successful digi-tal innovation on April 3 and on the potential impact of AI on the economy on May 9. Additionally, the ECCK greeted Cecilia Bonefeld, Director General of DIGITIALEUROPE to its office at Seoul Square building on April 23, where the two parties shared views on the significance of international regulations and practices in the digital era and discussed on agendas of mutual interest for future cooperation.

This edition’s Cover Story will provide various aspects of Industry 4.0 – including how digitalization is transforming a manufacturing sector and expanding its full impact to-wards the economy and the society. The articles were fea-tured by Euromonitor International, SAP Korea, and DIGI-TALEUROPE.

30 Cover Story ECCK Connect — Spring 2018 31

180521_BMW_SS_Diplomatic Sales_MGZ_DATA_out.indd 1 2018. 5. 21. �� 4:58


Computer and Related Service Purchases by Manufac-turing and Other Buyers and Their Dynamics over 2010-2015

Source: Euromonitor International from national statistics

Industry 4.0

32 Cover Story

Penetrating Digital Technologies Reshape Global Manufacturing Sector

The traditional manufacturing process typically consists of three parties: the physical manufacturer, suppliers and services providers. These parties are usually fairly unconnected and have independent operations, which creates a lot of inefficiency in the supply chain and turns into lost opportunities. Fortunately, development of the fourth industrial revolution, the Industry 4.0, which emphasizes digital technologies, such as cloud computing and IoT (Internet of Things), is expected to decrease this inefficiency, as well as refurbish the whole manufacturing supply chain.

This article is part of the global briefing Industry 4.0: The Future Impact of the Fourth Industrial Revolution, which analyses preparedness and implications for the adoption of the fourth industrial revolution from global market research company Euromonitor International.

Computer services led by cloud computing will drive the changes

The manufacturing sector remains one of the main investors in computer and related services. The share of the manufacturing sector in total IT services’ capital purchases (GFCF) stood at 10-30% of total investments over 2010-2015. Notably, this figure was higher in developing countries, which were acquiring large-scale foreign direct investments in the manufacturing sector. However, as investment flows to such countries dries up, this share is starting to evaporate. The contrary can be said about innovating countries, which saw IT investments rise in importance over 2010-2015.

More complex manufacturing structure to simplify operations

The emergence of Industry 4.0 will be followed by Digital Production, which will transform the manufacturing process as we know it today. This means physical production, through cloud computing, will be connected to digital systems and other players in the supply chain. Digital production will enable the virtual manufacture of products, sense potential issues and communicate these problems to the system, as well as choose the optimal way to manufacture products.

Currently, similar functions are fulfilled by employees, but they lack flexibility and are based on extensive calculations and preferences, etc. Digital production, carried over cloud computing and other technologies, on the other hand, is flexible and can arrange production on-the-go and choose the best way to fulfil an order.

In recent years, developed countries have witnessed notable shift towards innovation in communication technologies, which are seen as a primary future driver of modern economies. Particularly this has been evident regarding spheres like cloud computing, the IoT and the 5G internet, which are poised to become the major driving technologies of the Industry 4.0.

Cloud computing can be called the most important of the three, as it envelops the essence of Industry 4.0. Cloud computing has been expanding at double digits over recent years globally, primarily boosted by SMEs seeking cost reductions on their IT bills. The manufacturing sector has however still been waiting for appealing proposals from technology companies. With Industry 4.0 gaining ground, this is about to change and cloud-based solutions like IIoT (Industrial IoT) are expected to surge in demand.

Major constraints remain unresolved but long-term potential is high

Many issues remain, however, regarding the implementation of technologies like cloud computing in manufacturing operations. Most of these issues are technological, such as security issues surrounding cloud computing networks, uninterruptable 5G internet connection and the absence of common standards. In addition, there is a lack of understanding about how Industry 4.0 can help businesses. Recent studies on cloud computing and Industry 4.0 have shown that businesses in developed countries still have little idea about Industry 4.0, are unsure how these technologies can transform processes and are concerned about data protection.

Over recent years, large efforts to reduce obstacles have been notable. For instance, all of the major telecom infrastructure developers have been working on the launch of 5G equipment by circa 2020, which will create a field of high-speed connectivity for manufacturers to work on, while in Europe, the Alliance for Internet of Things Innovation (AIOTI) was established in 2015 to standardise the development of cloud technologies.

Suppliers Customised products

Logistics Virtual production

Computer/server Smart productsPhysical production Humans communicating

with robots

Cloud

Sensors

Digital production

% share of investments in computer services

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%China FranceRussia GermanyJapan US UK

By manufacturing sector Increase/decrease over 2010-2015 By other sectors


What is IoT in the home?

In a home setting, IoT is all about comfort, convenience and ease. IoT-enabled devices strive to deliver analytics and access, in order to save time, save costs or just help users understand the digital world around them better. The sky is the limit in terms of innovation, which is why the IoT market has so much hype around it, attracting almost all big-name brands in the household space.

The kitchen is the most lucrative domestic area for IoT

IoT is driving the kitchen space beyond simple connectivity and apps to platforms that connect the cooking, storage, commerce, planning and every other aspect of the kitchen into a holistic system.

The high prices demanded for connectivity are yet to be justified in terms of practical usage, making IoT-based kitchen appliances still a relatively niche range of products.

34 Cover Story

As a result of these restrictions, it is estimated that it will take around five years for the Industry 4.0 revolution to really kick in. Major work will take place in the development of cloud networks with trustable connectivity, while policy makers will have to ensure no constraints exist to adopt these technologies. Developed countries that invest in research and development should be at the forefront of the industrial revolution and thus benefit the most from it, as they have the enforced data protection laws, developed internet infrastructure and tech-savvy population.

Internet of Things in the Home

The Internet of Things (IoT) in the home is already a multibillion-dollar global industry, as premiumisation, efficiency and technology adoption have encouraged households to embrace smart solutions for individual areas of the home – the kitchen, bathroom and living room – and provide relevant case studies that reflect current trends in smart-home solutions.

IoT will play a major role in advancing the value of kitchen products globally, particularly as consumers increasingly look to upgrade older domestic appliances and move up the product food chain.

IoT in the bathroom

The bathroom remains a fairly underdeveloped space for IoT devices. This is partly due to the limited number of appliances there and a lack of awareness among consumers of actual available products.

Countries that suffer from severe water shortages provide major markets for consumer-based IoT systems that limit water waste. A major challenge for IoT in the bathroom is installation. Installers need to be as comfortable with network architecture and connectivity as they are with drainage and soil pipes.

Future households will possess multiple IoT-enabled devices

A typical household in an advanced economy today already possesses several IoT-enabled devices, such as multiple smartphones, a video game console, a smart TV and a desktop computer or laptop.

Source: Euromonitor from national statistics Note: 2030 figures are forecast.

% of households

Global Household Possession of Selected Appliances and Facilities 2017 and 2030

2017 2030

0

25

50

75

100

Smartphone Colour TV Set Laptop Broadband Internet

Tablet Air Conditioner Cable TV Satellite TV System

Video Game Console

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis and has more than 40 years of experience publishing international market reports, business reference books and online databases on consumer markets.

For more information about Euromonitor International research, visit here: www.euromonitor.com


Industry 4.0

The Industry 4.0 was one of the future projects adopted in the “Action Plan High-tech strategy 2020” by the German Federal Government in 2010. The key objective was to main-tain a competitive advantage of manufacturing industry by transformation with the Internet of Things (IoT), Data, and Services. A vision of this new industrial revolution ignited by Industry 4.0 has been diffused beyond German borders, and inspired European and Asian countries. For example, “Made in China 2025” is a strategic initiative to comprehensively upgrade Chinese manufacturing industry and “Society 5.0” is the big societal transformation plan of Japan. Originally Industry 4.0 was conceived in the context of manufactu-ring, but now it goes beyond the factory. In other words, Industry 4.0 is the digital transformation of traditional in-dustries including manufacturing and other industries.

Digital Transformation in Manufacturing

Why does Industry 4.0 matter to Korea?

The manufacturing industry has been the growth engine of the Korean economy, even though its role has been wea-kening in terms of contribution to economic growth and employment. Still the manufacturing industry is the back-bone of the Korean economy, accounting for 30% of GDP and employing 17% of Korea’s total workforce. However, manufacturing industries are losing their competitiveness to China as well as facing structural problems – low produc-tivity, rapid aging population, weak institutions and high energy imports. The OECD report1) said, “Labor productivity growth in Korea has decelerated and productivity levels re-main around half of those in leading OECD countries. Given the country’s rapid aging population, reviving productivity growth is essential to sustain further increase in living stan-dards.”

Industry 4.0 can solve key challenges faced by Korean companies. Leveraging the principle of Industry 4.0, com-panies can shorten cycle times, improve product quality, and implement efficiency across their operations, as well as grow the manufacturing of highly customized products on a global scale. For example, with an Industry 4.0-enabled factory, Harley-Davidson can build 1,700 bike variations on one production line and ship an individualized bike approxi-mately every 90 seconds. At the same time, the company has brought costs down by 7%, increased net margin by 19%, and slashed the locked schedule to build a bike from 21 days to 6 hours.2) In addition, companies can3) • Operationalize mass personalization by manufacturing individualized products at the efficiency of mass production to give customers what they want, when they want it, while streamlining the supply chain.• Perform maintenance based on actual operational conditions, usage levels, and predictive insights rather than preset time intervals. Decisions and investments can be based on real-time asset sensor data reflecting an asset’s current state. • Improve inline quality control. For example, to identify deteriorating quality in time to save the product and minimize scrap costs by adjusting manufacturing pa-

rameters or triggering a maintenance task to solve a problem• Identify patterns and roots causes for customer complaints, such as product color deviations and surface defects, and trace their relationship to process para- meters, maintenance, and raw material suppliers.

Many leading companies are already gaining much from Industry 4.0. Connectivity between humans and machi-nes and connectivity within the manufacturing process are fundamental to the success of Industry 4.0. Leading com-panies are innovating their business models from product makers to service providers, and are aiming for digital eco-system providers (figure 1).

Differentiation beyond operational excellence

As commoditization is inevitable for most businesses, dif-ferentiation is key to survival and prosperity. That’s why

36 Cover Story

many companies are shifting to a more service-centric business model – called servitization. From a technology perspective, the Internet of Things (IoT) is accelerating the adoption of servitization. Thanks to IoT, more and more products are becoming smart and connected. Now manufacturers can collect data from their products even after sold to their customers. It means that they know how their product is used, how it performs, and what the operating environment is. This information can be used in various ways to increase the value to their customers. Companies can develop new products based on cus-tomer experiences, decrease the unplanned downtime of their product by delivering proactive and preventive maintenance, educate their customers for safe and pro-per operation, propose value added service, and effec-tively recommend new products (Figure 2). In short, they can have access to information, like never before, and provide highly customized services to differentiate them-selves from the competition.

Digital Ecosystem Provider (Platform)

Data-driven Digital Busienss

Business Network Open Data Platform

Cross-Industry Standard

Servitization (connected product)

Product-as-a-Service, Value-added Service

Service Platform Big Data Anlytics

Service Billing

E2E Optimization

Product Sales and After-sales Services

Optimization Analytics / ML Horizontal

Integration

Smart Factory

Product SalesBusiness Model

Embedded System, Machine Connectivity Vertical Integration

Technologies

Asset Intensity

Data Intensity

Figure 1. Evolution of Digital Transformation in Manufacturing


1) OECD, “Digitalization: An Enabling Force for the Next Production Revolution in Korea,” October 20172) Richard Howells, “How Harley-Davidson Deliver Individualized Products,” Digitalist Magazine, SAP SE, July 20163) SAP, “Industry4.0: What’s Next - An SAP’s Point of View,” 20174) Paul Clark, “How can you sell air? As a service, of course,” Digitalist Magazine, SAP SE, May 20165) World Economic Forum, “Digital Transformation Initiative: Unlocking B2B Platform Value,” March 20176) Klockner & Co, “Leading digital transformation of metal distribution,” September 2017

Dae Young, Chung (Head of Presales, SAP Korea)Young Suk, Baik (Head of Industry Value Engineering, SAP Korea)

Kaeser Kompressoren is a good example of innovating its business model from making products to delivering servi-ces. Kaeser has been around for almost 100 years selling machinery including air compressors. Despite its history of selling large and tangible equipment, Kaeser decided to use innovative technology and embrace the as-a-service model to sell something as intangible as compressed air. Kaeser began putting sensors on its equipment and monitoring the usage and condition of the machines. After analyzing the data, Kaeser came up with a predictive maintenance program, and started selling air by the cubic meter through compressors that it owns and maintains. Kaeser’s “Air-as-a-Service” model has become a new way to generate reve-nue, and it has also forced the company to rethink the way it operates. Instead of selling more equipment to maximize revenue, Kaeser focuses on maximizing uptime of its com-pressors, so that customers can consume more air. Kaeser collects and analyzes sensor data from its equipment to predict potential issues and repairs, which maximizes its equipment’s uptime. Service calls are no longer generating revenue, but they come at a cost to the bottom line. Digital transformation offers many opportunities, but it also crea-

tes perpetual disruption in many sectors of the industrial and business landscape. This challenges organizations to constantly adjust and update their business models simply to remain competitive.4)

Continuous product and service innovation are essential, but business model innovation can deliver more sustaining competitive advantage. Industrial platforms are regarded as one of the most prominent business model innovation in the era of digital transformation. An industrial platform is a technology or service foundation that enable and in-novate an independent ecosystem of businesses, and the platform requires complementary innovations created by the participating eco-partners. Though the platform has higher value potential relative to products or services in-novation, platform businesses are fundamentally different from product or service-centric businesses. For example, the success of platform businesses relies on vast ecosystem of outside partners. Unlike product or service businesses, the ownership of intellectual property and control are dispersed among the participants. A small number of large industry leaders are developing the industrial platforms today (Figu-

re 3), the platform will reshape how value is created.

Klockner & Co is one of the largest producer-independent distributors of steel and metal products and one of the lea-ding steel service center companies worldwide. To maintain its industry leadership, Klockner realized that it needed to transform the traditional supply chain into an open digi-tal industry platform. Klockner leveraged specific industry expertise and longstanding relationship with suppliers and customers to build a successful vertical platform. This in-dustry platform operates as a completely independent marketplace and is open to competitors. Sales share via digital channel increased to 15% in Q2 2017, and further acceleration of online sales growth are expected through integration of third party products, OCI(Open Catalog In-terface) and other additional features.6)

Korean companies need the transition from fast followers to innovators. We need to find out new growth engines through Industry 4.0. In order to make our vision a reality, collaboration and openness are required more than ever. Industry 4.0 is a journey we must go on.

38 Cover Story

Improving functions and features

Parts and repair services

Education for safer and proper operation

Value added service (e.g., Insurance)

Replacement recommendation

Cloud

Big Data, Advanced Analytics

Manufacturer Connected Product

Usage Patterns, Operational Environment, Status, …

12

3

Figure 2. Value Added Service with IoT Figure 3. Selected B2B Platform Companies5)

ECCK Connect — Summer 2018 4140 Cover Story

How digital transformation impacts both the society and the economy Digitalisation is changing the world economy. The digital economy is expanding 2.5 times faster than the rest of the economy, and it is offering the world great opportunities, notably in increased productivity and growth.

The pace of the digital economy is very fast. While in 2011 only one of the five largest companies in the world was from the tech sector, today all five are digital companies. Another way to look at it is from the perspective of revenue growth. In the last 7 years, the top 100 digital companies saw their revenue growing on average by a staggering 14.2% per year. This is in stark contrast to their analogue counterpart which only increased by 0.2% per year. The urgency of the adoption of a robust digital transformation strategy is no longer a question of when, but of how to do it. Here at DIGITALEUROPE, the leading trade association representing the digital technology industry in Europe, we ensure that businesses at the forefront of the digital transformation are heard loud and clear by European policy and lawmakers. Our membership includes over 35,000 companies in Europe represented by the largest global digital companies as well as 39 National Trade Associations from across all parts of Europe.

For every government across the globe, and for Europe in particular, there is no time to lose. Europe needs to catch up with other markets, to build the next generation

of digital infrastructures and to carry societies into the digital age. From a regulatory perspective, I often say that the foundation for the digital society lies on three Cs: a Common market, Competences and skills, and access to Capital. From a technological perspective, the use of data and artificial intelligence are real game-changers.

At DIGITALEUROPE, we’ve identified four priorities that are instrumental to deliver on the digital transformation of both the economy and society.

Digital Infrastructure & ConnectivityThere is an urgent need to upgrade digital infrastructures and to boost connectivity. No one could imagine an efficient country without highways to enable trade in goods and financial growth. In comparison, digital infrastructures that connect citizens and business often remain too slow and disparate. Yet, digital growth is entirely dependent on a high-speed infrastructure connecting markets internationally and providing opportunities for scale. In Europe, it is estimated that sufficient investments in 5G infrastructure could have a 2.5x multiplier effect, benefiting up to € 113 billion every year to the European economy. 5G will prove itself essential to enable the constant data sharing – notably in the automotive sector – that is required for the streamlining of undustry digitalisation, and ultimately of a truly digital society.

Artificial IntelligenceArtificial Intelligence (AI) is already becoming an essential tool to compete in the global market. AI will not only be ubiquitous in the digital economy, but it will be necessary to process the volume of data created by Internet-of-things (IoT) devices and to enable a truly connected society. Besides, it is forecasted that AI has the potential to increase labour productivity by 40% and to double the annual growth rates of many European countries. However, about 66% of the AI investments from VCs are directed towards North America with 20% going to Asia and only 14% ending up in Europe. As crucial as direct investments in AI developments may be, there is also a need for an AI political vision. While France has decided to take the lead in Europe, and the European Commission has shown willingness to

coordinate a European effort, there remains a lot to be done before Europe can catch up with the American and Chinese AI ambitions. The European Commission has just set up a high-level group to reflect on AI’s future implications on ethics and the society, and I have the privilege to be part of this group.

Privacy & SecurityCreating a safe and trusted online environment is necessary for people to use digital services confidently and to ensure their adoption. Each day millions of cyberattacks are carried out in the world. Cyberattacks are cheap and relatively easy to conduct, making the Internet and information systems at risk. We must reinforce the cybersecurity resilience with a deliberate strategy and hands-on international cooperation. Collective efforts are required to prevent and manage cyberattacks. We need more companies to cooperate and work with governmental bodies to understand the types of cyberattacks and prepare for prevention. We also need to see more investments in cybersecurity solutions and develop a robust cybersecurity risk-management programme. Cooperation, prevention, and preparedness are the best response to fight cyberattacks.

Digital SkillsDigital skills are more than just a buzzword. The OECD believes about 14% of jobs are at a high risk of being automatised. They also underline individuals with higher digital skills are far less likely to see their work automated. In Europe, there are over 360,000 vacancies for ICT specialist at this very instant. What’s worse is that the trend is not improving, and it is expected that the skill gap will reach 500,000 missing specialists by 2020. We need to see the IT skills gap bridged by making children, entrepreneurs and decision-makers digitally literate. In today’s digital environment, coding and digital education should become mandatory in schools and there needs to be a comprehensive plan to upskill the workforce. DIGITALEUROPE is proud to be the secretariat of the EU Digital Skills & Jobs Coalition.

A new wave of digital Darwinism is hitting upon our global economy. The digitalisation of the public and private sectors is transforming our world, and we need an advance

and more pragmatic approach. The journey of the digital transformation is far from easy, but it brings many benefits for businesses and citizens around the world. Soon, we will have a robust cybersecurity in place, leading to a trusted and secure cyber space enabling a successful digital transformation, where we will benefit from the excellence of artificial intelligence to facilitate our lives and work, acquire new digitally skilled jobs, and be connected anytime and anywhere.

International collaborationMy recent trip to Asia confirmed to me the importance of international collaboration. It is crucial for governments to understand the need for more collaboration on digital regulations and standards for the growth and prosperity of society. International digital data-driven trade can either become the new growth booster, or the symbol of a new protectionism that hampers growth in the free trade environment we know today - and some countries are already challenging this with issues like data localisation, cyber security rules and other.

It is now time for governments to set the scene and to actively choose to create a world of free digital trade that can unleash the growth potential where nations collaborate and align digital standards and regulations on frequencies, cyber security, data protection rules, AI and other. The digital industry in Korea is highly dependent on export and is a longstanding trade and collaboration partner to the EU. DIGITALEUROPE remains committed to take an active role in leveraging a constructive dialogue on digital trade and collaboration together with our partner ECCK, KEA and our members Samsung and LG Electronics.

Cecilia Bonefeld-DahlDirector-General, DIGITALEUROPE

ContactDIGITALEUROPE www.digitaleurope.org


Making an impact Most millennials we work with grew up in an environment that is unlike the previous generations; they do not need to work to survive and be the sole income generator. Growing up, their parents often encouraged them to do what they think is best for themselves. This means millennials would often seek employment that enables them to be an influential member of the team, and they would like to make a positive impact at work and be rewarded and recognised for their contributions.

What can your organisation do?Do your employees know that what they do contributes to the bigger picture of your organisation? Do they know what are the top priorities for your organisation this year? If they are not clear about the organisation’s priorities, then it will be difficult for them to see their contribution as important. Try this exercise next time at work: first, write down your team’s top 3 priorities on a post-it note, then ask your team members individually to do the same thing on a post-it note.

Would everyone write down the same 3 priorities?

It is important for leaders to communicate their organisation’s priorities clearly and frequently (ideally every week at your team meeting!). What’s even more important is to have a robust performance management conversation which people managers and HR business partners are able to clearly articulate how each employee's personal objectives are aligned to the organisation’s objectives. That way employees will have a clear understanding of what they do is making an impact at a high level. Those conversations need to happen often, to give your millennial employees a sense of how they are contributing to the organisation’s big picture. Opportunities to developMillennials entered their workplace, knowing that career development no longer means a vertical promotion. With prolonged retirement age and organisational changes, in a traditional hierarchical organisation, most millennials understand that unless their manager retires or quits, there is little chance of progression in the short term.

Millennials make up the majority of workforce worldwide. While the media might have unfairly labelled the generation as lazy, social media obsessed and selfish, the reality is that millennials (especially Koreans) grew up in a completely different type of economic and social environment as their parents, and thus understandably have a completely different approach to life, work and how to communicate.

Here are a few things we have learned while working in leadership development for millennials, including what they want and how organisations could do better when it comes to work engagement and communication.

Engaging and Communicating with Millennials

44 Research & Insights

Increased connectivity between SMEs, start-ups to potential candidates as well as a plethora of online platforms for freelancers to make a living, millennials can see that there are increasing opportunities which enable them to develop their professional career without necessarily working in an organisation.

To make matters worse, most organisations are sticking to the learning and development model of developing employees to fill their manager’s role, while their employees are well aware that they will not be filling that role anytime soon.

What can your organisation do?Training calendar is retrospective, lacking agility to deal with business changes, and most of all time consuming for the intended audience as well as the learning and development function. The learning and development function needs to bring the learning and development focus back to the employee experience and create a learning environment in the organisation where employees can learn on the job via constant real time feedback and mentoring.

People managers need to coach more and dictate less when interacting with employees to develop decision-making and problem-solving skills. Leaders in organisations need to devote time and energy to be mentors, to share experiences, to create connections and network as well as to endorse employee to take (and make mistakes) on challenges and projects that take the organisations forward. Strategically, develop their skill for the future of your organisation. Instead of asking people “where do you see yourself in 5 years’ time”, ask them “How do you see your role changing in 5 years’ time”

Life online vs. life offline A quick peep into how Millennials use their mobile device will tell you the majority of the time they are spending it on either social media or entertainment (studies show that the average millennial checks his or her smartphone 43 times a day and spends 5.4 hours on social media on a daily basis). One could argue that they almost have a parallel life online where a persona is being cultivated and shared amongst peer groups.

The amount of attention Millennials spend on social media has enabled the rise of “Influencers”, an online personality that has established credibility in a specific field with a massive number of followers on social media. Millennials would refer to information and content from influencers when it comes to purchasing and making decisions. For example, in Korea, when looking for restaurants, the most trusted form of information would often be a Naver power blogger who had produced content as well as having a massive follower on a social media platform. For Millennials, influencers are the new authority.

What can your organisation do?Look around and ask your team, who are the influencers within the organisation, people that have a proven following due to their competencies and social network coverage. Influencers might not always be at the top of the hierarchy in your organisation, some organisations have implemented reverse mentoring where junior employees mentor and teach senior leadership on how to use social media and give leaders honest feedback on their communication effectiveness. Consider holding a community of experts where experts in their fields are encouraged to share knowledge and experience with a wider audience in the organisation.

Millennials not only follow influencers, they also aspire to be influencers too.

Social media users capture and then post online experiences and moments that they perceive worth sharing, they share what they consider worthy as representations of their online persona. Most people don’t post pictures of

46 Research & Insights

RDI works with companies across North East Asia as a strategic HR partner, promoting better communication and cultivating engagement across all levels of the organisation. You can join one of our seminars to see how RDI does things differently. Check out rdiuk.com for more info.

Written by Eric Wan, RDI Worldwide’s Head of HR in Korea.

themselves routinely brushing their teeth in the morning or being packed like a sardine on line 9 on the Seoul subway (unless that is that online persona they are trying to cultivate!). Smart organisations figured this out when it comes to their customers as they create moments and experiences for customers to capture and share online. If an organisation is serious about employee engagement, it is time to think about employee experience and ask: Is your organisation creating employee experiences worthy of sharing on social media? Final thoughtLeaders often commented that they find it difficult to connect and communicate with Millennials, and we would challenge them with the question: Apart from your job title, how much do they know about you as a person, and how much do you know about them? Building effective communication channels across hierarchy is not an easy task in a traditional hierarchical culture; it takes time, energy and patience.

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ECCK Connect — Summer 2018 4948 Social Responsibility

Humanitarians in the Two Koreas

“Hunger is preventable. Every human being has a right to eat, a right to use clean water and a right to protection.” — Dominic McSorley, CEO, Concern Worldwide

There are not many countries that have made the transition from being an aid recipient to an aid donor but then there aren’t many countries like South Korea which has managed to do this in a remarkably short space of time. A comparable statement could be made about Ireland, which has also experienced an economic transformation from what had been a famine-stricken country in the nineteenth century to becoming a prosperous modern nation with a well-established international aid program.

The parallels between the two countries don’t stop there. There is an affinity between Ireland and South Korea

which is the result of their common experiences – both are countries that have emerged from the shadow of a powerful neighbour and have overcome poverty and conflict to become successful modern nations with well-educated populations. With economic success, has come the recognition of a need to help other less fortunate nations and communities.

Concern Worldwide, Ireland’s largest aid and humanitarian agency, was born out of this recognition in Ireland fifty years ago and made the decision to move into the Korean sector with the opening of an office in Seoul 3 years ago.

The First Branch Office in Asia

The organization “Concern Worldwide” or simply “Concern” was founded in Dublin in 1968 in response to the famine in war-torn Biafra in Nigeria. Ever since, it has worked with the world’s poorest people to transform their lives and to eliminate hunger and poverty. Such is its reach in Ireland, that it would be difficult to find an Irish person who hasn’t contributed to one of Concern’s appeals. In 2016, Concern Worldwide spent over €179.4 million, reaching over 22 million people in 27 of the world’s poorest and most vulnerable countries, through its emergency response and development programs.

▲ A North Korean householder turning on the water which Concern set with gravity-fed water supply system (2014)

◄ Dominic McSorley, CEO of Concern Worldwide, delivering an opening speech at the “2017 Global Hunger Report” in Seoul after visiting North Korea (2017)

In 2015, Concern Worldwide embarked on a new chapter with the establishment of an office in Korea - its fifth branch office worldwide but the first in Asia. According to Dominic McSorley, CEO of Concern Worldwide, the move into the Korean aid sector was motivated by factors other than pure fundraising opportunities. It was a means of tapping into Korea’s "wonderful resource” of a vibrant young population who Concern wish to engage in its work “and the growing sense of need around the world through development educational initiatives and publications like Concern’s annual Global Hunger Index report”


The Global Hunger Index (GHI), a series of reports jointly published by the International Food Policy Research Institute (IFPRI), Concern Worldwide, and Welthungerhilfe (WHH), one of Germany’s largest private aid organisations, tracks the state of hunger - worldwide and country by country - and spotlights those regions and countries where action to address hunger is most urgently needed. In 2015, Concern Worldwide Korea launched its first advocacy activity in Seoul at the International Humanitarian Forum hosted by the Korea NGO Council for Overseas Development Cooperation (KCOC). It repeated this the following year and aims to urge bigger participation with Korean stakeholders to tackle the root of hunger together. Partnership in North Korea for 20 years

Even before the launch of Concern Worldwide Korea, Concern Worldwide was making a significant contribution to development in North Korea. For twenty years, it has

been one of the six international NGOs, supported by the European Union Program Support (EUPS Units) working in the exceptionally complex and difficult environment of North Korea along with six UN agencies, the International Federation of the Red Cross (“IFRC”), the International Committee of the Red Cross (“ICRC”) some bilateral government missions and several non-resident UN agencies and NGOs.

As one of these 6 international NGOs, Concern Worldwide is leading the “Water, Sanitation, and Hygiene” working group with UNICEF and IFRC as an initiative which comes under the working title of EUPS 3. Recently Concern has developed vulnerable women and children focused water and sanitation programs and farm-based disaster risk reduction (DRR) programs against climate change and environmental hazards. Concern currently works in four provinces, Kangwon, North Hwanghae, South Hwanghae, South Pyongan and in Pyongyang since the 1998 flood.

Jun Mo Lee, Country Manager of Concern Worldwide Korea, visiting Michael D. Higgins, President of Ireland, at a Reception on the occasion of the 50th Anniversary of Concern in Dublin (2018)

50 Social Responsibility

In terms of funding for its activities in North Korea, Concern Worldwide gets approximately one third of its funding from the Irish Aid Program which is funded by the Irish government through the Department of Foreign Affairs and Trade. Approximately forty-five percent of funding for the North Korean program comes from the EU while the Swedish International Development Cooperation Agency (SIDA) provides approximately another twenty percent.

Birth of New Humanitarians

In only three years, Concern Worldwide Korea has made huge strides in making significant contributions to the Concern Worldwide international aid programs. As the only Concern Worldwide branch office in Asia, it is uniquely positioned to tap into the generosity of a nation that has known suffering and division and wishes to use its position of hard-won prosperity to help its disadvantaged near neighbour as well as other countries further afield.

The Korean peninsula is a uniquely complex environment with many intersecting contradictions and tensions, but which equally has the reserves of imagination, courage and resolve to address these issues. In such a landscape, the future is bright for Concern Worldwide with the help of Concern Worldwide Korea to yet further increase and improve its development programs, but it needs the support and engagement of the administrations and people of North and South Korea, albeit in their very different circumstances. If you can help in any way, through donating time, money or ideas, please contact Concern.

“Koreans know what humanitarian aid is through their painful history. We hope various agencies will come together in Korea to take part in the work of recovery and peace-building in extremely poor countries, together with Concern Worldwide.” – Jun Mo Lee, Country Manager, Concern Worldwide Korea

An enthusiastic Irish volunteer of Concern Worldwide Korea sharing humanitarian stories with the public at “Sharing Korea Festival” in Seoul (2016)


PAJEORI,Urban Farming Organization

52 Startup News

Pajeori, a nonprofit urban farming organization in Seoul, was first founded as a small hobby group of young college students in 2011. Its name “Pajeori” is the abbreviation for

“fresh green young people” (파릇한 절믄이) in Korean.

ECCK Connect met Ms. Nahee Kim, Director of Pajeori, at its rooftop farm located on the top floor of a five-story of-fice building, surrounded by high-rise apartment buildings in Mapo-gu, Seoul.

We had a chance to learn about urban agriculture scene in Korea and Pajeori’s vision and mission and its strategies.

Pajeori has a lot of coverage in the media.There are not that many urban farming organizations in Korea. And especially those that are being run by young people. Many of our fellow organizations had to close down, and we are the only one who kind of survived.

You moderated the panel discussion for the interim evaluation of Urban Agriculture Masterplan 2.0 by Seoul Metropolitan City last October. Urban agriculture development is something Seoul Metro-politan City has been working on since 2013. The Master-plan was first launched in 2015, and since it requires colla-borative efforts between public and private sectors, there are lots of ongoing cooperative projects and involvement by private organizations, including Paeori.

Seoul Metropolitan City announced that the number of rooftop farm is increasing in the city. Did Pajeori receive any kind of support for its operation under the city’s master plan?The increased number here is referring to the number of planter boxes and plant pockets supplied by the City. It doesn’t really overlap with what we are doing.

On the other hand, Seoul Metropolitan City provided spaces for farming on the rooftop of public buildings. However, with many unfavorable circumstances that has risen, the number of gardens started decreasing since last year.

Even though we (urban farmers) work on creating more

rooftop gardens in the city, our main focus is on improving the quality of the existing rooftop farms. Our value is fo-cused on quality rather than quantity.

How did you start working in urban farming business? I first joined as a member of Pajeori (then-cooperative association) in 2014, while I was working at an environ-mental organization. After a year, I became the Director when Pajeori became a nonprofit organization, officially registered with the City.

What is the most challenging thing about operating Pajeori?Finding spaces (rooftops) for farming and negotiating with building owners. Building leakage is usually the big-


gest challenge for rooftop farming. In the recent 1~2 years, many of our fellow organizations had to close down be-cause they confronted with many building issues. We had to stop our farm in Gwangheung Chang station in 2017 after 5 years due to building leakage.

In this regard, Seoul Metropolitan City gives permission to farmers to use the space of rooftop on government buil-dings in Seoul. However, the access time to the rooftop is very limited since the building is only opened from 09:00 to 18:00 on weekdays. At the same time, most of our Paje-ori members usually visit the farm after they get off from work or on weekends. When we reached the critical point, we couldn’t keep up with the operations and had to shut down the ones on the government premises.

Other than that, farming itself is not an easy job to begin with. You have to really get in and work.

What do you have to do to in order to join Pajeori? We are like a community group. Anyone interested in ur-ban farming, growing crops, or eating good quality food, can join the club anytime.

We have three types of membership: (1) individual mem-bers with personal gardens at our farm (2) group mem-bers who use common gardens at our farm (3) members who only support us financially.

Members get together to learn about growing and har-vesting crops and participate in club activities on week-ends. Our motto is ‘Farming is Play!’. I want people to learn about the joy of farming.

Do you have any company sponsors or partners? Since last year, Bollore Logistics is letting us use the rooftop space of their office building. Before that, we did

54 Startup News

ContactWebsite: pajeori.orgEmail: [email protected]

collaboration projects with companies such as Innisfree and Hanhwa Group. We carried out highlight events and projects with businesses almost every year.

What kind of programs do you have?We have farmers school, workshops, and lectures which we do on weekends. Even if you’re not a member, anyone can come and join the sessions. Registration for the clas-ses can be done online.

What is your ultimate goal?The reason why I joined Pajeori is because I was interested in learning about fresh produce and ways to improve the food system. In Korea, a lot of people are indifferent to issues of the food supply system. Compared to other countries, Korean consumers have a very limited choice of fresh produce. For instance, when you go to a grocery store in Korea, you will probably find only one type of apple

when there’s about 100 different varieties.

Through urban agriculture, I want to raise public aware-ness of improving our food supply system and people to acknowledge the importance of access to varieties of fresh, healthy, organic food.

What is your favorite thing to grow?Catnip! Actually, I can’t choose one. In spring, we grow basil, then tomatoes in summer, and then in fall, we have carrots. I like all of them. Also, when we grow them orga-nically in our gardens, the scent and the taste of crops are much stronger and tastier. So much fresher than the ones you pick up at supermarkets.


Located in the oldest neighborhoods of Seoul, Tapas Gourmet is a small Spanish restaurant in a Hanok house setting near Gyeongbokgung Palace. Unlike its traditional surroundings of historical sites around the area, the restaurant gives a fresh, modern ambience with its simple black and white and wooden table interior.

Kim Mun-jung, the owner and head chef of the restaurant, opened Tapas Gourmet in 2010. Her architecture husband designed the restaurant, while she was still studying her masters degree course in Mediterranean diet studies and operating a one-table restaurant in Barcelona.

Why did you choose Seochon to open a restaurant? The main reason for choosing Seochon is because of the Tongin market (Tongin Market is a traditional market located between the alleyways of Seochon). It’s important to have a market nearby the restaurant where I can have easy access to fresh ingredients anytime. Also, I live in Pyeongchang-dong which is only about 15-minute drive from here. I wanted my workplace to be close to home.

Tapas Gourmet

56 Taste of Europe

When we first opened the restaurant in 2010, there was nothing on this street. Just old buildings, hanok village, and Tongin market. There were no tourists, visitors in the area. But now, Seochon is known for its uniqueness of old house settings and modern shops and restaurants.

Isn’t it hard to obtain some ingredients for Spanish cuisine in Korea?There are some essential ingredients for Spanish cooking that we can’t find in Korea. I travel to Spain from time to time to buy spices and dried ingredients such as dried oregano, chili, pimentón, etc.

Other than that, we buy fresh produce from Tongin market. Our dishes are mostly seafood or vegetable based. We order fresh seafood from Jeju Island, which gets delivered daily, and we get vegetables from this vegetable shop in Tongin market which also supplies to Cheong Wa Dae's kitchen.

Tapas Gourmet was listed on the Spanish Restaurant Guide published by ESCCK and was aired on ‘수요미식회’ (A popular TV program which introduces good restaurants in Korea). Yes. We had many new customers visiting our restaurant. We appreciate people’s interest in Tapas Gourmet. But our focus/goal is not getting more customers.

For us, it’s all about serving good quality food to people. We only have three people at Tapas Gourmet. Two in the kitchen and one in the hall.

I want to keep everything under control. And maintaining the quality of food while serving more than 20 people at once is not so easy. That’s why I want to keep Tapas Gourmet just the way it is now, small and neat.

Can you tell us about Spain food and different culinary regions in the country?The cuisine of Spain varies from region to region. When I lived in Spain, I loved to travel around the country, experience new cuisine, cook with fresh produce.

Barcelona, where I lived in Spain, is famous for its

Why do you think people are coming back to Tapas Gourmet?Hmm…because I pour my heart in every dish I serve? Haha. Most of our customers just ask me to serve them whatever I feel like for the day. Some of them visit Taps Gourmet two to three days in a row. I am grateful that they truly enjoy our food.

Whenever I see good, tasty ingredients or sauce, I want to serve it to our customers. That’s why we don’t have a signature dish, I cook something out of fresh ingredients that are in season.

Any future plans for Tapas Gourmet?No. I’m very happy with how I run it right now with my sister. I just want to keep it as it is.

Above all, I am already too busy with my packed schedule. I have two children. Running a restaurant and taking care of your family is not so easy. I rarely have time to meet my friends. Probably once or twice a year? I usually use up all my energy and time towards Tapas Gourmet and home.

ContactTapas GourmetTel: +82.2.6014.2369Address: 137-9 Tongin-dong, Jongno-gu, Seoul

Mediterranean style cuisine which means a lot of seafood-based dishes. But Barcelona also has very good quality meat, cheese, and nuts. Very rich of fresh produce.

Andalusia, which is the southern part of Spain, loves Gazpacho. Cold soup to cool off the hot temperature, full of nutritious vitamins from veggies in the soup. The region also has many fried dishes to prevent food from going bad. With that, oxtail stew, using parts of the dead bull from the Spain’s traditional bullfight, is popular too.

Caves of Sacramento in Granada is the habitat of Spain’s infamous jamón ham. The fridge-like caves are perfect drying places for jamón, away from the cold winter and hot summer.

With regards to gastronomy, the Basque country is probably the most important region in Spain. Due to its geographical position in the Bay of Biscay and in South Western France, it has varied culinary delights from the mixture of sea and mountain cultures. Salt cod is the most popular dish in the Basque region.

Galicia has excellent seafood because of its cold sea water. From octopus to rare delicacy like percebes…you can easily get the finest seafood in Galicia. They also produce great white wine.

ECCK Connect — Summer 2018 5958 Art & Culture

The Story About Your Memories of the Weather

1. Cloud Way, Street Errands, 2017 ©Kanghee Kim2. To Sunset, 2016 ©James Nizam

D MUSEUM presents Weather, an exhibition elevating our experiences of the weather through photographs, video, sound and installation works, from May 3 to October 28, 2018. The exhibition features the works of 26 international artists, each engaging with climatic phenomena such as sunlight, snow, rain, mist and thunderstorms from her or his own unique perspective. From the thunder and lightning of Greek mythology to storms of 19th-century British novels and the lyrics of contemporary pop songs, the weather has been an essential driving force in art, culture, philosophy, fashion, design, and all areas of life since ancient times. This exhibition introduces the diverse approaches of artists creating weather-inspired works, ranging from aesthetically distinct photographs to installation works amplifying tactile and auditory sensations. Divided into three chapters – Recognizing the Weather, Talking with the Weather, and Remembering the Weather – the exhibition reads like an essay consisting of a prologue, six stories

(Sunlight, Snow & Rain, Darkness, Blue, Mist, Sounds of Rain) and an epilogue. Beginning with Recognizing the Weather, the exhibition offers viewers to encounter works that capture everyday climatic concepts from a range of viewpoints, reawakening them to weather that normally goes unnoticed. It then moves on to Talking with the Weather, which brings together works based on sight, touch and hearing to enhance sensory experience of the weather. In the final chapter, Remembering the Weather, visitors discover an epilogue in which five artists employ their personal methods of recording the weather, observing its feelings and forms in their own memories.

Weather awakens the sensibilities and memories of each audience, in a space filled with special stories of the weather, told by artists with multifaceted perspectives and in different spaces and times. The works in the exhibition invite us to recall internal memories and forgotten sensations of the weather, discovering the value in familiar everyday moments.

ECCK Connect — Summer 2018 6160 Art & Culture

Period May 3, 2018 – October 28, 2018

Participating artists Mustafah Abdulaziz, Evgenia Arbugaeva, Olivia Bee, Mark Borthwick, Commonplace Studio, Chris Fraser, GABWORKS, Chosun Hong, Kanghee Kim, Eun Sun Lee, Yoshinori Mizutani, James Nizam, Jungsun Park, Martin Parr, raon records, Marina Richter, Dong Sik Roe, Jari Silomäki, Berndnaut Smilde, Maria Svarbova, Ulrich Vogl, Lukasz Waszak, Alex Webb & Rebecca Norris Webb

3. Sellwood Docks (Oregon Summer), 2016 ©Olivia Bee4. Lake Garda, Italy, 1999 ©Martin Parr Courtesy of the Artist and Rocket Gallery5. The Blizzard, 2017 ©Lukasz Waszak6. My Weather Diary, 2001-2018 ©Jari Silomäk7. The Pillars. Mount Martha, Australia, 2017 ©Mustafah Abdulaziz

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Copyright © 2018 by European Chamber of Commerce in Korea. All rights reserved. No part of this publication may be reproduced in any form without permission from the ECCK.

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Advertisers (in alphabetical order)BMW KoreaBNP ParibasJones Lang LaSalle (JLL)Mercedes-Benz KoreaSamil PWCSeoul Square

Contributors (in alphabetical order)Concern WorldwideD MuseumDIGITALEUROPEEmbassy of Austria Euromonitor InternationalFinnairPAJEORIRDI WorldwideSAP KoreaTapas Gourmet

ECCK ConnectVol. 20 ––– Summer 2018

European Chamber of Commerce in Korea (ECCK) 5F, Seoul Square, 416 Hangang Daero, Jung-gu, Seoul 04637+82 2 6261 [email protected] | www.ecck.eu

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ECCK Connect Summer 2018 Cover Story Euromonitor ......Dear Readers, Welcome to the Summer 2018 edition of ECCK Connect. As many of you will soon embark on your summer vacations, I