Developing countries offer opportunities in infrastructure for Korean companies, postulates Lim Young-mo, a research fellow at the Samsung Economic Research Institute.

In summary the report states -

The infrastructure industry is emerging as a promising area for growth due to an annual average of $2 trillion expected to be spent worldwide on building infrastructure, over the next twenty years

As emerging countries need to build infrastructure much faster than advanced countries did in the past, they are highly sensitive to costs and prefer the latest in technologies.

To resolve their shortage in financial resources, these countries are adopting diverse business strategies, thus generating opportunities for Korea, a relative latecomer in terms of exports and market entry.

Based on the characteristics of infrastructure markets in emerging countries and Korea’s capabilities, the report lists the following promising areas for growth -

Express trains

• Powerful emerging countries such as China, Brazil and India are enthusiastic about adopting express trains because of their eco-friendliness and lower operational costs compared to other forms of transportation.

Nuclear Power

• Due to its reputation as a clean, inexpensive and stable supply of electricity, emerging countries are actively constructing nuclear reactors, currently accounting for 69% of the world’s nuclear reactors slated for construction.

Water treatment solutions

• Investments by the BRICs in this sector will amount to $7 trillion over the next two decades.

For an investment opportunity in the water treatment sector see a profile on Korean SME - Centennial Technology, or Ecoeye, an environmental consulting firm working in developing countries.

Next-generation mobile telecom businesses

• Which are proving more favorable than fixed-line networks in terms of implementation time and costs.
• Based on the CDMA/WiBro technologies that it has already secured and its advanced operational capabilities, Korea should also secure leadership in next-generation mobile telecommunications and target emerging markets.

For investment opportunities in Korean IT infrastructure companies see Ivy Network (Wireless repeaters), XRONet (Broadband chip-sets), or Shinhan Photonics (Fiber optic equipment).

For the full article posted in the JoongAng Daily see here. Or to see the full report, along with many other interesting reports published by the Samsung Economic Research Institute, sign-up for free at www.seriworld.org.