This past March, Lec Land Group, a Romanian buyer, requested a recommendation for a new “high-density polyethylene plastic film” through VIB (Visiting Buyer) Matching Service of tradeKorea. The buyer has a history of 10 total purchases of products manufactured by 8 Korean companies since 2015 through tradeKorea.

Based on the buyer’s request, a representative from CBT Matching Team of tradeKorea discussed and arbitrated with 3 production factories on specifications and price levels of products. Having reviewed various conditions in advance, the buyer finally revealed its desire to hold a meeting with Baekju Chemical. Mr. Cho Geon-hyeon of Baekju Chemical is a young CEO who succeeded a family business, following his father who led the plastic film production industry in Korea. Founded upon years of experience in the plastic industry, he took over a production factory in Chungcheongbuk-do in 2014, naming the company “Baekju Chemical,” which he has been running now for about 5 years.

During a visit to the Baekju Chemical factory, the buyer finalized a purchase of 0.3 tons of raw materials in advance in order to inspect the manufacturing processes. This allowed Baekju Chemical to demonstrate production with the raw materials purchased by the buyer.

The buyer visited Korea on April 25th and stopped by Baekju Chemical in Okcheon, Chungcheongbuk-do with a representative of tradeKorea’s CBT Matching Team. The buyer tentatively agreed to purchase 20 tons a year in the future, along with the initial order of 3.3 tons (including 0.3 tons of sample raw materials).

Also, based on the buyer’s request, Baekju Chemical  is preparing for a corporate certification of the 1) > in order to switch from 6.5% import tariffs to tariff-free. After completion of the certification, products may be exported free of tariffs to European countries for the next 5 years.

Thanks to this Romanian contract, Baekju Chemical was able to make its first export in the company’s history. Currently, production is in progress after receiving a pre-payment from the buyer and, in the middle of June, the first volume is scheduled to be exported to Romania. The buyer showed gratitude toward tradeKorea’s CBT Matching  Team for the match with excellent domestic companies and consulting for reduction of import-export tariffs.

1) It is a system through which Korea Customs Service reviews the company’s system and certifies if it possesses the competency to manage country of origin. There are two types of certifications: corporate certification that certifies companies and item certification that certifies only on certain items.