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Title Korean Second-Hand B2B Market Launches
Source Date
July 7, 2000

By Michael Kim
Korea Correspondent,

Korean Internet start-up SurplusGLOBAL, Inc. recently launched an international B2B e-marketplace specializing in auctions for idle facilities, surplus and used goods.

The company said the global intermediary service is designed for second-hand industrial goods such as machinery, computers, telecommunications equipment, electronics and automobiles.

The Korean online service firm sees a tremendous potential in the currently untapped market. The Asia-Pacific market for used and surplus assets would amount to $411 billion in 2000, according to a Merrill Lynch-World Bank survey.

"Our new service will provide an effective market to turn the huge amount of assets into productive resources and improve member companies' cash flow," said Bruce Kim, company chief executive.

SurplusGlobal offers a directory, information, database and transaction services in Korean, English, Japanese and Chinese.

Initially, the company is aiming at customers in Asia-Pacific region, but it is planning to offer global services eventually.

Currently, approximately 20 Internet sites are competing the used and surplus asset matchmaking market, according to Kim.

"Most of the sites are run by American firms. Only two Asian sites based in Hong Kong and India operate with their brand and service features, yet at a rudimentary stage," he said.

A few domestic e-marketplaces are offering auctions for used goods, but their coverage is limited to local companies.

"A great number of customers expressed dissatisfaction with existing distribution channels while showing strong interest in our proposed service," he said.

The company offers a standard auction system coupled with a first-come-first-serve basis, transaction history accumulation and incentive points. It also sports various value-added services such as member credit assessment, quality inspection, asset value appraisal and logistics data.

To build broad membership, the company adopted a fixed fee scheme for the first business year. Starting from the second half of 2001, it will levy a one percent transaction commission and promote a profit-sharing program with customers. The average transaction fee for its US competitors is five percent.

SurplusGLOBAL also plans to pursue strategic alliances with major trading firms and big manufacturers, while seeking diverse profit resources on and offline, such as database marketing and Web promotion.