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Korean businesses woo Chinese customers

Korean small businesses suffering under the long-term economic recession have recently become very active in trying to win new customers – the Chinese. The thought is that Chinese customers will increase business and breathe vitality into a difficult economic situation.

Small businesses such as restaurants, real estate brokers, beauty supply shops, and educational institutes for kids, are eagerly targeting Chinese customers by hiring bilingual Korean and Chinese speakers, so-called Chosunjok, or Korean-Chinese students majoring in Chinese. These days, Chinese customers are seen as strong spenders and solid customers; the hope is that this new customer base can revitalize sagging business.

As part of a strategy to increase the number of customer from other ethnic communities, Korean businesses are aggressively advertising in Chinese magazines, newspapers, and on TV that serve New York's Chinese community, as a way to offset the slump in business so many owners are experiencing.

One industry that stands a good chance of increasing its Chinese clientele is the restaurant business – Chinese customers seem to really enjoy Korean food. Korean restaurants already have Chinese-language menus, but are also now hiring Chinese-Koreans as service and wait staff. KumGangSan, one of the more famous restaurants in Flushing, Queens, is already seeing an increase in the number of Chinese customers, who now make up almost 50 percent of their diners. The restaurant has advertised in Chinese newspapers and is now preparing TV commercials in Chinese.

"We have hired seven Chinese speakers and upgraded our printed Chinese menu to resolve problems," said the restaurant's manager.

Sansugapsan, another restaurant in Flushing, is also hiring Chinese speakers and preparing a professional Chinese printed menu. This past weekend they noted that 35 percent of their non-Korean customers were Chinese.

Two other Queens establishments, the Wangkalbi Barbecue Restaurant and the Pukchangdong Sundubu (tofu) Restaurant, on Kissena Blvd., also have lots of Chinese customers. Chinese people love to eat Korean Bulgogi (barbecued meat), and love to see the meal being prepared in front of them over hot charcoal.

The Korean real estate branch is seeing a similar boom. One Korean agency in Long Island reported a great increase in business among new Chinese customers. The company hired professional Chinese agencies to help open the Chinese market a few years ago, and also advertised in Chinese magazines and on the Internet. Hanmi Real Estate, in Flushing, is putting a lot of effort into entering the untapped Chinese market. Mr. Paek, a company representative, said, "Chinese customers are up by 20 to30 percent. We continually advertise in Chinese newspapers."

One real estate analyst noted that, "Korean customers usually wait for 'ideal' conditions – both the price and offer must be perfect – before they sign. This can mean that they often drag their feet on a deal, waiting for the right moment before they close. This makes things harder for the brokers, whose business is hurting to begin with. Chinese customers are different; if they are satisfied with the offer, they will close quickly and not wait for a drop in price. They will even go for prices that are a bit high if they want the property."

The Korean make-up and beauty supply industry is also eyeing – and getting – Chinese customers. This is certainly a good sign for Korean fashion, especially since Chinese cosmetics are actually of lesser quality than Korean products. Analysts point out that the quality of the Korean products and services is better and Chinese customers have recognized this.

The Amore Korean Beauty shop, on Union St. in Flushing, has increased its after-service offerings to attract Chinese customers. If someone spends over $100, they receive a free skin massage. Francis Mei, a 35-year-old Chinese customer, said, "I have been using Korean cosmetics for the past two or three years. The price is somewhat higher than Chinese products, but the quality is better and the free skin massage and other offerings make Korean stores and shops more attractive."

Educational institutes for kids are also doing their best to bring in new Chinese customers. Koreans are known to seek out educational opportunities for their children to ensure that they receive as much training, practice, and instruction as they can. After-school programs at all levels, for basic schooling to college entrance and SATs, have always been popular in Korea, and kids study hard year-round, especially at exam times.

The same is true of Korean students in America. Many Korean academic institutes emphasize concentrated programs that are good for the students – and for business. One institute has five branches in the city's five boroughs and over 1,000 students enrolled. But with the economic downturn, only 20 percent of them are Koreans, while 60 percent are Chinese. Many Korean SAT institutes are really focusing on Chinese students.

"We are not only preparing children for important tests in their lives, but also teaching to help develop their entire personality. We place a strong emphasis on reading. Chinese parents recognize our methods and goals, and are very happy with us," said Mr. Seung-hwan Kim, director of the CCB Company, an academic institution.

 

In news section of Edition 393 8 October 2009

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