By Jane Han
Staff Reporter
Over the past several months, there have been quite a few changes for KOTRA employees posted at the state-run trade agency's Silicon Valley office in California. They stick to phone calls instead of costly face-to-face meetings, clamp down on office supplies and delay purchases of all kinds. And on a more personal level, they're looking for cheaper apartments to trade down on.
``These adjustments are necessary not only because of the economic downturn, but more so because of the weak Korean won against the dollar. That's what's really killing us,'' said a mid-level commissioner who declined to be named.
The state employee, assigned to the U.S. location for almost two years, is one of hundreds of overseas dispatched KOTRA staff who have been forced to tighten their belts both at home and at work to stay afloat through the money crunch.
But despite the cost-cutting measures, the trade-promotion agency with a giant global network of more than 90 offices worldwide still faces one recurring question: Are they doing enough?
At a time when KOTRA is facing an annual currency exchange loss totaling 50 billion won ($32 million) and about to ask for more money from the government, the firm responsible for bringing in inbound investment is tasked to defend its role and show what it's doing to save.
``We can't hold back exploring overseas markets because of the downturn, so we're trying our best to prevent unnecessary expense from leaking,'' says KOTRA spokesman Jang Soo-young, who stressed that the latest money shortage is solely due to the sliding value of the local currency.
KOTRA, which allocates more than 65 percent of its budget in foreign currency, was handed a yearly budget of 215 billion won based on a won-dollar currency forecast of 1,100 won. But as the won now hovers in the 1,500 won range, it's planning to submit a request for additional cash in June.
The public firm isn't alone in scrambling for cash, as many other private companies have similarly been thrown off due to the wild fluctuation of the Korean won.
Jang explained that the firm is trying to roll back costs in virtually all areas by minimizing business trips, reconsidering costly projects and relocating overseas staff to cheaper residences.
These are common measures taken by typical private firms, but one thing that KOTRA is shying away from is shutting overseas offices.
Most recently, lawmaker Lee Hak-je of the ruling Grand National Party blasted the firm for careless management and wasteful use of taxpayers' money by running inefficient posts overseas. KOTRA currently operates 94 offices worldwide.
``Our global network is built strongly on trust and relationships, so if we keep opening and closing our offices sporadically, it eventually takes a toll on Koreans' image as a whole,'' said Jang, adding that office closures would be the agency's last resort.