The Kunpo factory
The LEGO Group’s decision to set up molding in South Korea is reached for several reasons. The company observes an economic development in this part of Asia, which can increase its share of the market. At the same time international competition, with the appearance of more imitation products, may well spread beyond South Korea. A South Korean product, COKO, a copy of LEGO products, is already gaining ground in Korea.
The fact that a company must set up local production in order to enter the market in this part of Asia is also a contributing factor for the decision.
The early campaign in South Korea are not easy for the LEGO Group. With COKO already on the market, it is difficult for LEGO products to establish a presence. Initially, LEGO products are actually assumed to be copies of COKO, not vice versa!
In 1988, activities in South Korea begin to make headway, thanks in large part to a massive marketing and sales push. The people of South Korea gradually become aware of the qualities of LEGO products, sales increase and the Kunpo factory is kept busy.