Ksd Korea Makkolli

Our campany name is ksd. we sell Korean traditional alcohols(makkolli) and fruits alcohols mainly in Korea. Makkoli covers 40% in our product sellings. We also have traditional alcohol bar in Seoul for advertising traditional alcohols to young korean. We are listed on korea stock market since 2000. Our main transaction bank is a shinhan bank. We have 2 production factories in korea.(There are no factories in other nations)

In the makkolli market in korea, we are not a market leader. Just 2nd now. The 1st is seoul-makkolli. They have 40% in the market of korea(KSD has 20%)

Because we want to increase our sellings than seoul mak, we will export our product. After some investigatings we decided our strategy. The best nation for exporting makkolli is japan.

Here are the main reasons :

1) Lower transporting cost will be lower than others.

2) Normal expiration date of makkolli is just 30-days, so its better to export to near nation.

3) The Korean wave prevails in japan like china. So we can advertise our tradition product easily.

4) Good infra and withdrawal stability of account receivable(than china or india etc..)

And we also decied the form of corporate structure to take : joint venture with operation corporation.

GOOD | BAD |

It is more effective to be advertise by local corporation(more familiar) | Problem about controls of company |

We can difuse risk with local corporation | Its more difficult to withdraw of sales or invested money in local company |

In operating makkolli, it is important to diliver promptly(expiration date) | |

It will be easy to gather money from other investors | |

We thought to beginner in exporting, Its better to start as joint venture than M&A. It is more safe., and helpful for know-how in foreign nation.

As we search about exporting makkoli to foreign nations, we can expect to get 4million dallars.(if we do it well it will increase) But we also have to think about Political risk between Korea & japan.