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Korean market will benefit from new trade settlement solution and partnerships with SK Global, LG International, World Trade Center InfoTech and Chohung Bank
SEOUL, August 2, 2000 - TradeCard, Inc., an online international trade transaction network for buyers and sellers, officially announced the launch of the TradeCard network today in Korea. The system will give Koreans a fundamentally new way of conducting their international trade business. TradeCard will provide the Korean business community with the tools they need to initiate, conduct and complete international trade transactions securely over the Internet.
This marks a major milestone for the Korean trading community as it strives to gain competitive advantage in the international trade arena. Korea is already ahead of many Asian countries in its Internet adoption rate. The introduction of TradeCard will facilitate its e-commerce readiness as Korean countries compete with other Asian economies in both the physical and virtual worlds.
TradeCard's entry into Korea is supported by four Korea-based partnerships that cover country management, sales and financing:
Kurt Cavano, Chairman and CEO of TradeCard, said, "Entering the dynamic Korean market has been one of TradeCard's primary goals since day one. We wanted to ensure that we were solidly joined in our efforts by the key Korean trading and banking sectors before announcing this strategic move. Today's announcement, which showcases our partnerships with SK Global, LG International and the World Trade Center InfoTech, as well as Chohung Bank, provides us the solid foundation we need to best serve the Korean trading community."
The TradeCard network opens up new trading possibilities for Korean traders. Through online marketplaces or one-on-one relationships, buyers and sellers can discover, negotiate and even order online. But until TradeCard, buyers and sellers have had to drop offline to settle in traditional paper-based, time-consuming ways. With TradeCard's patented documentary compliance engine and financial settlement platform, buyers and sellers can now finish the settlement process online without having to change their existing financial institution relationships, for one flat fee per transaction.
In addition to Korea, TradeCard is available in the United States, Canada, Hong Kong, Taiwan, and Singapore.
Taik-Keun Jung, Vice President of LG International, said, "We are delighted to be an integral part of TradeCard's joint venture in Korea. TradeCard Korea is perfectly poised to tap into the Korean trading market by providing Korean traders increased efficiencies for expanded global trading opportunities."
According to SK Global's Steve Ham, Vice President, "One of Korea's economic strengths is international trade. The Internet has increased opportunities for trade, but has also increased competition. By equipping Korean traders with the latest in Internet-based trading technology, such as with TradeCard, we will strengthen their global trading leverage."
His comments were supported by the World Trade Center InfoTech's David Lee, Chairman, who added: "WTCA's goal in Korea is to give the Korean trader every possible advantage as more international trade is conducted online. Making TradeCard available to Korean traders - no matter how large or small they may be - helps us fulfill this mission."
Today's announcement comes at a time when Korean traders are increasingly demanding an e-commerce alternative to traditional paper-based and labor-intensive trade settlement methods. The TradeCard system meets this demand, enabling Korean traders to complete their transactions online through a secure network.
This announcement also represents the first agreement between TradeCard and a Korean bank, providing Korean traders access to the TradeCard system as well as pre- and post-export financing through Chohung Bank. Pre- and post-export financing is critical to traders who require additional working capital to execute trades with overseas trading partners.
Chohung Bank's Myong-Hyun Kyong, Vice President & Head, Corporate Banking Group, said: "Chohung Bank is always looking for ways to provide our customers innovative solutions to improve their businesses, and our agreement with TradeCard takes this commitment to a new level. Customers who take advantage of TradeCard will increase their trading efficiency, receive payment guarantees from overseas buyers, and expand their overseas trading reach."
How TradeCard Works
In order to use TradeCard's patented transaction system, buyers and sellers must first become approved TradeCard members by completing an online application. To begin a transaction, the buyer creates a purchase order containing the transaction's terms and conditions. This purchase order can be created directly on the TradeCard system, or sent via electronic file from a company's ERP system or an online marketplace.
TradeCard stores the purchase order on its secure, proprietary database, and notifies the seller that an order is pending. The seller can either approve the purchase order electronically, or can negotiate the order with the buyer online. Once both parties have agreed on the terms of the purchase order, it becomes a purchase contract.
At the time of shipment, the seller populates an invoice and packing list on the TradeCard system using either TradeCard's pre-populating tools, or by means of an electronic file. At this point the seller may obtain assurance of payment from a third-party credit insurer. If the order requires inspection, the inspecting party submits an inspection certificate. At the time of delivery, a third-party logistics provider submits the incoterm-appropriate proof-of-delivery documents. At any time during this fulfillment phase, either party can submit a request for amendment to the purchase order that will only be effective upon the electronic approval of both parties.
Once all the required documents have been submitted, TradeCard's patented compliance engine automatically verifies that all required terms of the transaction are met by comparing the data of the purchase order with the commercial invoice, packing list and proof-of-delivery documents. If discrepancies are noted, the buyer and seller can resolve them online.
Once discrepancies, if any, are resolved and compliance is met, a global payment provider electronically transfers funds from the buyer's financial institution to the seller's financial institution, settling the transaction. If necessary, foreign currency exchange services can also be obtained from the global payment provider. TradeCard is an open network; buyers and sellers are not required to open new accounts with other financial institutions. TradeCard and its global payment provider work with buyers' and sellers' existing account relationships.
In addition to these core features, TradeCard members can contract for inspection services, and will be able to contract for pre- and post-export financing, cargo insurance and other value-added services.
About TradeCard
TradeCard is a business-to-business e-commerce infrastructure that enables buyers and sellers to conduct and settle international trade transactions securely over the Internet. By aggregating buyers, sellers and disparate trade service providers, our solution automates and streamlines existing international trade transaction processes, whichare complex, paper-based, time-consuming and expensive. Our objective is to provide a secure, reliable, cost-effective and user-friendly solution for conducting and settling international trade transactions.
TradeCard, Inc. is headquartered in New York City with branch offices in Hong Kong and California, and can be found on the World Wide Web at http://www.tradecard.com.
About LG International
LG International Corp. was established in 1953 and was formally designated as a global trading company in 1976. At the global level, LGI has 6 overseas subsidiaries and 45 representative offices to support the company's goal of expanding into and acquiring overseas clients. Through the utilization of these solid overseas networks, financial capabilities, and organizing functions, LGI is able to efficiently export/import IT (Information Technology), Chemical & Products, Metal & Coal, Energy, Aviation & Machinery, Agribusiness & Foodstuff, and Plant materials. Domestically, LG Fashion and LG Mart (supermarket chain) are also efficiently operating in their respective markets.
According to strategic priority, LGI is putting efforts into e-businessizing its current business through the establishment of an e-infra system. To expand market share and industry presence, LGI is investing in various IT related technologies/methodologies as well as in the innovative e-business sector. Through this and other continuous efforts in creating on-line/off-line business models, LGI is considered a multi-diverse company.
For more details about LG International Corp. please go to www.lgicorp.com
About SK Global
SK Global is Korea's premier general trading company supporting a diversity of both offline and online businesses. Having begun as the parent company of the SK Group in 1953, SK Global has evolved into a leading business integrating company. Its established network of experienced professionals deals in over 2,000 products from130 countries through 50 branches worldwide. Among its traded products are high-tech telecommunications, oil, chemicals, steel, fabrics, garments and general merchandise.
This innovative enterprise has created a truly global exchange, combining its extensive base of active alliances and local corporate subsidiaries with the reach and power of the Internet. SK Global is embracing for the future by continuing to integrate its customer friendly human resources and its collaborative management style to become a knowledge leader in value networks.
For more details about SK Global, visit www.skglobal.com.
About WTC InfoTech
WTC InfoTech, which operates WTC University and WTC Business Tourism for international traders in Korea, is a member of the World Trade Centers Association (WTCA). WTCA is a worldwide organization of 330 World Trade Centers in 97 countries and over 500,000 companies are affiliated with WTCA members worldwide. The WTCA is dedicated to promoting international trade through the facilities and services of its members.
For more details about WTC InfoTech, visit www.wtcit.co.kr
About Chohung Bank
Chohung Bank is a leading financial institution in Korea. Established in 1897, it is the nation's oldest business entity with strong brand recognition which warrants respect and trust, an important quality in the nation's financial sector. With more than 464 domestic branches and six branches and five subsidiaries abroad, CHB has one of the most extensive networks of Korean banks, not only in Korea but also abroad. CHB is recognized as a leader in the Korean financial market, with total assets of 51.2 trillion Won or a US 45.9 billion dollar equivalent as of June 30, 2000. Our BIS ratio recorded 10.27%, and total shareholder's equity of 2.3 trillion Won. Its total volume of trade-related transactions reached US 30.1 billion dollars last year, with more than 700 EDI transaction customers. Chohung Bank takes much pride in being a true pioneer of internet banking in Korea, well equipped with the necessary hardware and software infrastructure.
For more details please visit www.chb.co.kr
