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Big-4 express companies take low profile -- EMS rises in the market
Where would that leave the international express industry in Korea?

Treacherous conditions with uneasiness and uncertainty of international express companies in Korea are growing bigger under the negative factors of high oil prices, monetary crisis, sluggish economy.

They are in the dark of judging the prospect for 2009. An expert has reported that the competition system of international express market that has been simplified by big-4 companies (DHL, feDex, UPS, TNT) will be diversified a lot in the coming year of 2009 as the year of jungle.

Reorganization of international express market will be inevitable in the coming new year. Import express shipment has shown growing up by such a good curve, but in the expectation that a boost in rate of export volume would become blunt, status of import express to Korea will definitely be going side by side with downtrend of the world economy.

Especially dcreased volume of express to China will be a big blow on local express companies. Reveue target for 2009 will accordingly be reduced and consolidate their position in maintaining customers along with tougher profit management. Total competition will also be spreaded and all express companies will try to set their markets in better condition.

It may trigger that EMS launches an attack against Big-4 companies so actively, and it seems that small-medium express companies could be swept away from the policy of market expansion by some stable logistic companies in Korea.

*  Big-4 express companies :  Revenue target will be adjusted lower due to downtrend of the world economy. Profit management and cost saving will be the number one policy.

*  EMS :  Who's recently been rising up as the biggest competitor of big-4 companies would set up a series of new operation systems, such as 24 hours clearance, next-day delivery among Korea, China and Japan that keep competitiveness over the price and they are expected to have the leading power in the market of 2009.

* Total logistics companies locally in Korea :  As worse payability and expansion of international logistics initiated now have affected much to this giant public express, mammoth investment and reshuffled infrastructure along with tie-up with a reliable express company will be the central to their business in 2009.

* Wholesale express companies :   Since financial trouble of retail express companies went from worse to worst, wholesale express companies have been showing possibility of downsizing, M&A or tie-up with another wholesale express in the coming year.

* Local express companies :  Their financial status will come first above all, in cooperation with another express companies or M&A to another group of companies. Small-medium sized express companies especially speciallizing in China will meet big pressure in finance, expecting some of them will be closed in business or absorbed to a subsidiary company of others.

Worldwide depression in business, high price of oil, the exchange rate ruling high have driven shipment decrease and cost increase for most express companies. They are suffering from a vicious circle of price competition and outstanding payment receivable from their customers.

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