Site Title

You are here Success Stories Case Study: Establishing a Representative Agency and a Sales Center in South Korea

Case Study: Establishing a Representative Agency and a Sales Center in South Korea

Target - Selling and giving support in the Korean Market

An Israeli company which runs from Israel an international school for languages learning through the internet, wished to increase its exposure in the South Korean market, through direct sale to the Korean consumers and to supply local service and support. The company has tens of thousands of students all over the world and a proven global marketing experience, yet, it hasn't succeeded yet to enter the Korean market efficiently, as it had done in other markets throughout the world. Furthermore, the Israeli company wasn't interested in establishing a subsidiary in South Korea but rather looked for a different operation structure to enable it to fulfill its targets in the Korean market. 

Challenge – Entering a New Market and Developing a Proper Operation Structure

The language studies market in South Korea is a highly developed one, and includes many local and international actors. The high competition over potential students, a diversified, heterogenic target audience, the customers' preference to use local means of payment, the need to supply a prompt telephone service with a human representative during the work hours in Korea, all made it hard to enter the Korean market. Furthermore, the company wished to enter the market without the establishment of a local subsidiary, a fact which necessitated the development of a new operation structure which will enable the company to fulfill its targets in the South Korean market.

Work Procedure – Developing a Business Plan and a Local Representative Model

At the beginning, the business development team of KOISRA had to examine and suggest different operation structures which will enable the Israeli company to act in the local market directly, without the establishment and registration of a subsidiary in South Korea. After discussing the issue with the Israeli company, and suggesting several options, an operation structure was chosen. The chosen structure was an operation within the legal entity of KOISRA which was already registered and acted in South Korea. It should be noted that the Israeli company has chosen KOISRA as a local partner due to the fact that KOISRA already supplied local representative services in Korea to many Israeli companies, and due to its experience in the execution of diversified commercial and marketing activities.

According to the designed operation structure, KOISRA shall supply to the Israeli company a Korean legal framework for its operation in the local market, development and business facilitation services in the Korean market, including a business plan and a marketing plan in accordance with the local market characteristics. In addition, representative services shall be supplied which include office and administration services, with equipped rooms, meeting rooms, locating and recruiting local employees, telephone services, and postal and dispatching services.

In the framework of the business and marketing plans development, the KOISRA research team informed the Israeli company regarding the market structure and the language learning market in Korea. It also characterized the potential customers, presented the ideal options for penetrating the market, specified the modifications and adjustments required for the operation in the local market and estimated the budget scope required for the operation. Correspondingly, the business development team of KOISRA interviewed different applicants for the support and sale centers, as well as prepared an appropriate office.

Result – Direct Sales in the Korean Market though a Local Center

After recruiting the appropriate employees and their training for the new job, the local center in KOISRA offices began its full operation according to the customary working hours in Korea. The recruited team was proficient both in English and in the Korean language, a fact which enabled the professional team of the Israeli company to work with it directly and continuously. The business and marketing plan was executed and included localization and adjustment of the services and products of the Israeli company to the Korean customers, execution of campaigns in the different media channels and the devising of a special model for receiving payment through local means of payment (bank transfers and local credit and debit cards), which did not necessitate the opening of a local bank account by the Israeli company.

Currently, KOISRA continues to supply representative services and diversified business services for the Israeli company, in the local market.