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How to do business in Korean market? Young Ho Seo
How to do business
in Korean market?Young Ho Seo
Population
· 50.4 Million
GDP
· USD 1.9 Trillion
· USD 38,350(per capita)
Unemployment
· 3.7%
Inflation(CPI)
· 1.94
FDI inflow
· USD 17.1 Billion
(OECD Data 2017)
Republic of Korea
1900s
1950s
Following the
Korean War, South
Korea remained
one of the poorest
countries in the
world for over a
decade
1960s
In 1960 Korea
Gross Domestic
Product(GDP) per
capita was USD 79
1970s
1980s
1988
2010s
2018
The economy of South Korea is 4th largest in Asia and 11th largest in the world by GDP.
Korea has World largest market share in high-tech manufacturing for semiconductors,
smartphones and displays. Korea holds No.1 in markets including:
· Semiconductors(DRAM)
· Display
· Smartphones
· Steel
· Lithium battery
· Chemicals
Korea was ranked in top 10 nations in terms of manufacturing competitiveness (Deloitte, Global
manufacturing competitiveness index 2016)
Number 1 industries in Korea
2014 2015 2016 2017
Export 71.7 66.3 62 73.3
Import 85.4 75.3 66 75
Net -13.7 -9.1 -4 -1.7
-20
0
20
40
60
80
100
USD
Bill
ion
Korea to Europe
2014 2015 2016 2017
Export 3.8 3.5 3.2 3.8
Import 6.3 5.8 5.4 5.7
Net -2.8 -2.3 -2.3 -1.9
-4
-2
0
2
4
6
8
USD
Bill
ion
Korea to Italia
Korea top 5 export to Italia(2017):
Cars(USD 940 Mil), Synthetic resins(USD 480 Mil), Hot
rolled steel plates(USD 240 Mil), Cold rolled steel
plates(USD 180 Mil) and Milling machines(USD 130 Mil)
Korea top 5 import from Italia(2017):
Bags(USD 720 Mil), Shoes(USD 330 Mil),
Cars(USD 250 Mil), Textile & Fabric(USD 250 Mil)
and Medicines(USD 240 Mil)
Trade statistics
Kor-EU FTA
EU's first trade deal with an Asian country
Signed in October 2010
Provisionally applied in July 2011
Formally ratified in December 2015
Kor-EU FTA goes further than any previous agreements in lifting trade barriers
(Import duties) Majority of import duties removed in 2011 Remaining import duties removed in 2016, with
exception to limited number of agricultural products
(Non-tariff barriers) Addressed sectors include: automotive, pharmaceutical, medical devices and electronics sectors
Strategic Partnership: EU and South Korea upgraded relationship to ensure high level of commitment
(Cooperation) Major political and global issues – human rights, non-proliferation of weapons of mass destruction,
counter-terrorism, climate change and energy security
Kor-EU FTA
1. Expansion into EU market
·Increase participation and investment in Europe
·Maintain market presence despite economic downturn
in Europe
Japan(- 0.47%p) > China(-0.42%p) > Korea(-0.12%p)
2. Increase in trade volume
· Increase export of Korean products to Europe
· Create routes for import of oil and electronic devices
· Increase in choice for consumers in Korea on
European consumption products
Cars, bags, luxury fashion items etc.
3. Attraction of FDI
·Escalate national growth and employment
>> Outcome as of 2018:
· Increase in import of Italian luxury products to
Korea
· Increase in export of cars to Italia(down in 2012
due to market stagnation)
Top 10 tips
for business
in Korea
01 Acquire guidance to
meet the right person
08 Personalize business
relationship
05 Contracts
subjected to changes
02 Exchange of
business cards 03 Emphasize your key point
04 Negotiate with
tact
09 Find ‘emotional
common denominators’ 10 Rapid changes and generation gap
07 Hospitality to be
accepted
06 Flatter, do not push hard
This is your presentation title
CONNECTING BUSINESS TO THE GLOBAL
“Korea is
one of the most exciting
and dynamic markets in Asia.
It offers huge opportunities,
but can also be
a challenging market
to do business.”Young Ho Seo CEO & President GBP
Registered in the Republic of Korea, GBP offers corporates and
foreign offices representation, FDI lead generation, business
promotion and consulting services.
We aim to be reliable partner for public and private businesses
to add newly realized value to Korean and global market.
Our unique selling proposition is in having access to both
government and senior business circles in Korea. GBP has
represented a diverse range of overseas organizations and
companies and actively provides dedicated client tailored
services.
GBP is gateway
for your business
to the global market
Business consulting
Market research
Opportunity assessment, competitive analysis and
market entry strategy in Korean market
Business partner search
Identification of potential business partners and key
account customers.
Representation service
Representation service at initial stage for companies to
establish firm ground work in Korea.
FDI consulting
Investment promotion
In-depth research on potential investors, organization
of marketing events, publicity support and aftercare
assistance to retain Korean investors
Roadshow and event organizing
Arrangement of roadshow and visits to organizations,
management of investment promotion seminar
Representation
Local contact office in Korean market to be on real time
communication with potential investors
“Finding the right partner and
getting excellent local advice
is a key to business success
in Korean market”
Young Ho Seo CEO & President GBP
For more information
please contact
Global Business Partners
Invest Korea Plaza 508
Heolleung-ro 70
Seocho-gu Seoul
Republic of Korea
Tel: +82 2 6275 5050
Fax: +82 2 6275 5060
Email: [email protected]
Web: www.gbp.kr
