LG International Corp. Launches Revolutionary International Trade Network in KOREA (August 2, 2000)
Korean market will benefit from new trade settlement solution and partnerships with SK Global, LG International, World Trade Center InfoTech and Chohung Bank Seoul, Korea - 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 is poised to fundamentally change the way Korea conducts its 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 our Korea-based partnerships that cover country management, sales and financing: ▶Sales and Management : Sales and management of TradeCard will be overseen in Korea through a joint venture operating under the name "TradeCard Korea." TradeCard Korea is comprised of TradeCard, Inc., SK Global, LG International, and the World Trade Center InfoTech. TradeCard Korea's management team will consist of Mr. David H. Lee from World Trade Center Infotech as Chairman, Korea, TradeCard, Inc., and Mr. Byung-Mo Park of SK Global as General Manager, Korea, TradeCard, Inc. ▶Trade Financing : Chohung Bank will offer pre- and post-export financing to TradeCard members, the first such Korean bank to do so. 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 stre ngthen 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.