Korea – Italy Business Forum Seoul Apr 18, 2007 Investment Opportunities emerging from the Korea – Italy Industry Workshop Seoul Apr 17, 2007 Riccardo Gallo, Chairman of IPI (Italian Institute for Industrial Promotion) Riccardo Gallo - Ipi (Italy)

Riccardo Gallo - Ipi (Italy) Main features of the Italian productive system Entrepreneurship Quality of products Strong identification with Made in Italy industries Industrial clusters Export oriented enterprises Market niches specialization Riccardo Gallo - Ipi (Italy)

Made in Italy key-factors Specialization and internationally recognized excellence in traditional systems: Fashion (textile, clothing, shoes, bags, glasses, jewellery, accessories) Home (furniture, light, tile and ceramic) Food (agro-industry and transformation) Also defined as Italian life-style: distinctive elements find roots in our history and culture Individual features: creativity, design, luxury, taylor made and continuous product innovation Riccardo Gallo - Ipi (Italy)

Italian exportations prices’ trend Riccardo Gallo - Ipi (Italy)

Italian exportations prices’ trend Possible reasons for this trend, among others: an intra-sectoral wide turnaround, followed by: a falling out and/or a transfer abroad of less efficient enterprises or of their single phases a qualitative upgrading of remaining productions a shifting of many Made in Italy districts towards both products for final consumption and machinery for manufacturing Frequent presence of the machinery and equipment industry related to the sector as a source of continuous innovation Riccardo Gallo - Ipi (Italy)

The Made in Italy System A new value chain as an integrated system: Living, Wearing, Eating But also and overall: The Machine Industry, which has high competitiveness and, at the same time, is growing pushed by the market demand of Made in Italy Machines and systems able “to match tech know-how with creative eclecticism” (Mr. A. Delachi, Federmacchine – Federation of 10 Italian Associations of Manufacturers of capital goods) Riccardo Gallo - Ipi (Italy)

Machine Industry for Made in Italy Riccardo Gallo - Ipi (Italy)

The Italian Textile Machinery Industry Italy: 2nd global exporter of Textile Machinery (TM), with 11% of market share (2005) China: the main country that Italy provides with TM Italian TM producers: specialized in every single stage of the Mftg cycle highly innovative in the widest market segments range (Mr. G. Sora, Association of Italian Textile Machine Manufacturers) Riccardo Gallo - Ipi (Italy)

Korea – Italy: Machine Industry and Hi-Technology The Italian Machine Industry’s aims in Korea: to improve its own sales to develop co-operation with Korean partners by a model (why not?) similar to the ST-Hynix successful one with Korean government aid, for instance in terms of: tax incentives, R&D and technical training funding, business match making and technical standards setting (Mr. R. Sirtori, ST VP CFO Asia) Riccardo Gallo - Ipi (Italy)

Korea – Italy: Neo-renewable Energy The Renewable Energies Industry is moving its first steps both in Korea and in Italy: Italy’s policies are defined at EU level Korea offers a direct relationship to Italy As Energy represents one of the most important limits to economic and social development of the world, a direct relationship between Korea and Italy cannot conflict with the membership of Italy in the EU (Mr. S. Taglienti, Italian National Agency for New Technologies, Energy and the Enviroment) Riccardo Gallo - Ipi (Italy)