Republic of Korea

Seoul can seem the shopping capital of the world. Countless department stores filled with every imaginable luxury line streets teeming with vendors selling their wares. And yet, not a single retail outlet has made such an impact on the Korean economy in recent years as Home Shopping Networks - which has brought the products right into people's homes.

A recent addition to the Korean market, LG Home-Shopping entered the retail scene in 1995, rapidly becoming the most dynamic of all retail venues and the epitome of the new Korea.

In only seven years, the Korean company has risen to become the third largest home shopping network in the world, behind only the two pioneering US companies. A key to this success has been the use of a unique growth strategy adapted to the Korean market.

"We faced a very different situation in Korea from that in the US," recalls Choi Yung Jae, president and CEO of LG Home Shopping (LGHS). "In 1995 cable TV was only available in 900,000 households in Korea. We could not market to the low-to-middle income bracket, which is the mainstay of the US businesses. Our clients were among the top income level earners in Korea, and our products had to reflect this." LGHS adapted by becoming known as a reliable source for top quality products from around the world.
Choi Yung Jae, president and CEO of LG Home Shopping

The increased wealth effect realized during the last three years led to a rapid increase in the penetration of cable TV, in turn leading the rapid expansion of LGHS's customer base. Growing from 1 million customers in 1998 to 4 million in 2001, the company is also adapting its product mix and retail channels to suit this larger base.

The introduction of the LGeShop Internet Shopping Mall marks the company's first step towards reaching a global audience. Having gained valuable experience in the domestic market and a critical mass of local customers, LGHS is beginning to look towards the rest of Asia as a potential market. "China, for example, is a very attractive market for us, due to its proximity and size," he says.

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