[KIM JONG-HAN] Korean electronics come a long way

In 1989, the year that I started practicing law in Los Angeles, the big news in the business world was the Japanese wave into the United States. Riding a major boom in the stock and real estate markets in Japan that started in the mid-1980s, Japanese investors poured a massive amount of money into the United States. They invested in some of America`s most iconic landmarks. The famed golf course Pebble Beach in California, the Rockefeller Center in New York, and even a venerable Hollywood movie studio, Columbia Pictures (later renamed Sony Pictures), were purchased by Japanese investors.

The U.S. consumer industries also experienced Japanese penetration and subsequent domination. In the automobile industry, Toyota, Nissan and Honda became established brands and smaller Japanese brands such as Suzuki, Subaru, Isuzu, Mitsubishi and others penetrated the U.S. auto market.

In the consumer electronics industry, Japanese products achieved absolute dominance. U.S. consumers bought Quaser, Panasonic, Sharp and Pioneer electronics goods without even knowing that they were Japanese brands. It was Sony, however, which became an undisputed leader in the U.S. electronics industry. Every American teenager wanted to own a Sony Walkman, and a Sony television set was the prized household asset even though it was quite expensive.

Around this time, Korean electronics companies such as Samsung, Lucky-Goldstar and Daewoo Electronics began to sell cheap microwave ovens and color television sets in the United States.

Only the people who could not afford to purchase fancier and higher-quality Japanese goods purchased problem-prone but cheaper Korean products. In one Los Angeles television news program, a Samsung Electronics executive remarked in an interview that Samsung`s goal was to sell to American consumers electronic goods of "acceptable quality at an acceptable price."

Roll forward 20 years, after spending seven years in Asia, my wife and children recently decided to return to the United States. When our family went shopping for electronics goods and home appliances at a well-known electronics chain called Best Buy, both my wife and I could not believe our ears.

When we asked for recommendation on flat-screen television, our American salesman said, "Samsung is the best in terms of quality." "Over Sony?" I asked incredulously. His response was a confident "yes."

For washers and dryers, another American salesman without hesitation recommended an LG. "I own an LG washer and dryer myself. They are very quiet," he said with a big smile.

I did not know an American salesman would even know the LG brand. When it came to a Blue-ray DVD, another salesman said that it was a close contest between Samsung and Toshiba. We felt somewhat awkward to furnish our new home in America with LGs and Samsungs, but we did! From a 50-inch flat-screen TV to a refrigerator to a washer and dryer, we bought quite a few Korean-made electronics that afternoon.

"What a difference 20 years has made," I thought. From "acceptable quality at an acceptable price," Korean goods have made a giant leap to premium-brand products, commanding top prices while earning respect from American consumers.

Aside from engendering pride in Korean nationals, it must make a good economic sense for Korean companies (and the Korean nation as a whole) to produce such high-quality products that are in demand by the consumers of the world. Just like Japanese goods are being pushed off the store shelves by the competition from Korea, however, it`s not unthinkable that a similar thing could happen to the Korean goods by their competition from Taiwan or China.

Therefore, Korean manufacturers should not let their guards down, and they should continue to upgrade their technology. Moreover, no one should underestimate the power and determination of Japanese manufacturers. Although they have had some setbacks, it`s quite possible that they could roar back to capture their previous position.

In any event, Korean electronics makers should be commended for their great achievements during the past 20 years. Personally, walking down the aisle of an American electronics store and watching so many Korean made goods on display, I felt proud to be Korean. Hopefully, such experiences will not be short-lived.

Kim Jong-han is a Hong Kong-based partner at Paul, Hastings, Janofsky & Walker LLP, an international law firm. He is a graduate of Georgetown University`s School of Foreign Service and its law school. - Ed.