The 'green key' service in Korea can unlock doors for U.S. business visitors

Business America, July 26, 1993 by Clint Yuhfill

With Korea keyed up for environmental clean-up and American business keying on Pacific Rim markets, the U.S. and Foreign Commercial Service in Seoul has developed a "Green Key-Korea" service to unlock doors for business visitors.

"We realized the potential of the environmental sector here and wanted to make it a priority in attracting new business to Korea," said Commercial Minister-Counselor Robert S. Connan. "But the market's in such an infancy and the government is not clear where it is going . . . so we were convinced that we needed a special service to help new-to-market companies get in."

Seoul's newspapers reported earlier this year that the capital has worse air quality ratings than Mexico City. Leaded gasoline is only now being phased out. Streams change color by the day. The total market for pollution control products and services will reach $3.8 billion this year. That figure, as well as the share held by foreign firms, is expected to grow sharply.

Those prospects encouraged the first Green Key client, Dr. Allan Sass, vice president for international business development with Wheelabrator Technologies in Los Angeles. During a visit to Korea in May, Sass worked through two-and-a-half days of meetings arranged by the U.S. Embassy and received copies of relevant Embassy market research, just as he would have in the Commerce Department's better-known Gold Key program.

The Green Key goes beyond the more general Gold Key by providing clients with a customized research brief on their own environmental product or service, a briefing with American businessmen familiar with environmental issues, and a brochure on environmental projects and contacts.

'A Good Way to Get Started'

"I think this is a good way to get started," Sass said in an interview at the conclusion of his visit. "It helps you make some initial contacts, get a sense for the market, then you're on your own. So there's a sense of efficiency."

Of particular help, Sass said, were his breakfast briefing by members of the American Chamber of Commerce's environmental/chemical committee, and the environmental background of his interpreter, FCS Commercial Assistant Hye-Shik Kim. At the breakfast, Sass not only had a chance to test the validity of what he had read about the Korean government's environmental commitment, but also discovered some prospective customers.

Sass found his way to Seoul through a Department of Commerce district office in Southern California. His first stop was the National Trade Data Bank (NTDB), which he used to select the Asian countries with the most ambitious environmental investment plans.

Sass' firm is part of the Wheelabrator Clean Air & Water Group, a $200 million-a-year operation that sells a broad range of environmental control products for cleaning up air and water. These include activated carbon absorption systems, thermal and catalytic oxidizers, and flue gas desulfurization systems. Major customers are utilities, waste-water treatment plants, petroleum refineries, and chemical plants.

After the NTDB search, Sass signed up for the Asia/Pacific Business Outlook Conference at the University of Southern California in March. There he met with Minister-Counselor Connan, who told him about the Green Key service.

"I felt he was absolutely right for our new Green Key service," Connan said. "He said, 'I know virtually nothing about this market--all I know is it's tough to do business there'."

Connan said even old Korea hands could have trouble in the environmental sector. The Ministry of Environment is only three years old, the body of environmental law is relatively undeveloped, and there is a confusion of newly sprouted interest groups and regulatory jurisdictions.

Given those unique obstacles and also the market's explosive potential, Connan said FCS Seoul felt that something more than just the Gold Key service was needed to attract and serve U.S. environmental exporters.

Sass said the program definitely worked out better for him than his previous trips to Asia, when he didn't work through the U.S. government. But he said there was room for improvement. "The system should try to force the client to be sharper and clearer in his objectives," Sass said. For instance, Sass said he "threw around" the term "joint venture" when organizing his trip, without actually thinking through what that would mean.

Had Seoul faxed him follow-up questions on his goals and later a copy of a proposed meeting itinerary, Sass said, "I might have focused a little more and perhaps one or two of these meetings might not have taken place."

Connan said he would consider the advice, but said he does not want to lengthen the six weeks of lead time now required of participants.

Other improvements are expected after the Seoul business representation office of the U.S.-Asia Environmental Partnership opens its doors this fall.

Sass, meanwhile, said he expects to take up FCS Seoul on its encouragement to "stay in touch." He said, "I've learned a lot in these three days, and I'm pleased, but I recognize it's just a beginning, and I'll be back (to Seoul)."