South Korea

Korea - Market of Opportunities 

The Korean Market

With a population of about 50 million and GDP in the range of

US$1.1975 trillion as of 2013, Korea has a huge market. Its GDP per capita is about $23,837 and the population has very strong purchasing power. In fact, the high-end Korean market is recognized as the global trend-setter. Its response to new products affects many companies' marketing strategies for not only China, Japan and ASEAN member nations, but also for Europe and other parts of the world.

Korea's Neighboring Markets

Northeast Asia has now become one of the three global economic pillars, along with the United States and Europe. Geographi-cally, Korea is situated at the center of air and maritime transportation networks in Northeast Asia. There are 51 cities with a 1 million-plus population within a 3-hour flight from Seoul. Also, Korea, Japan and China boast a combined GDP of about $15 trillion. Their total population exceeds 1.53 billion, or 22% of the global population, and their trade volume is $6.6187 trillion, or about 18% of the global trade volume as of 2012.

Korea's FTA Markets

Korea has signed free trade agreements with the EU and the United States, and they went into effect in 2011 and 2012, respec-tively. As of 2015, Korea has 47 FTAs in effect, including those with ASEAN, the European Free Trade Association (EFTA), India and Peru, while FTA negotiations are underway with China and Japan. The economies of the countries with which Korea has signed FTAs account for 61% of the total global economy and are home to 36.2% of the world population.

An Ever-Growing Nation

A Country of Growth

Just 60 years ago, Korea was a country devastated by war and poverty. But with aid from the international community, a devotion to hard work, steady government efforts to open up the economy and corporate efforts to innovate and enhance the country's global competitiveness, Korea has become one of the world's strongest economies. Between 1970 and 2012, Korea's GDP grew by more than 147 times, from $8.1 billion to $1.1975 trillion. Korea's GDP per capita also increased by more than 290 times, from $82 in 1961 to $23, 837 in 2012. So far this millenni-um, from 2000 to 2012, Korea has achieved an average annual economic growth rate of approximately 2.5% and maintained strong economic vibrancy.

International Standing

The Seoul Summer Olympic Games in 1988 helped Korea gain international recognition. Hosting the World Cup in 2002 and the G-20 Summit in November of 2010, Korea has led global political and economic discourse. The same year, Korea joined the OECD Development Assistance Committee (DAC), becoming the first country to go from being a recipient of foreign aid to an aid donor. In 2018, Korea will host the Winter Olympics, which is expected to be a valuable opportunity to expand exchanges with international communities.

Driven People 

Global Talents

Korea is a country famous for its passion for education, boasting an illiteracy rate of only 2.1% as of 2013. Every year, approximately 470,000 college graduates join the labor market. In 2013, Korea's college entrance rate was 72.5%, the highest among OECD member countries, and about 65% of the population between ages 25 and 34 were college graduates.

Korea's Global Human Assets & Their Sell-Development

As of 2013, the number of Korean students overseas stood at 227,126. Korean student communities are the largest among foreign student communities in the United States, China, and Japan. Koreans engaged in lifelong education are estimated at 17 million. Most notably, 42.1% of the workforce work and study at the same time to obtain certificates, study a foreign language earn an MBA or other master's degree.

Productive People

Koreans are diligent and faithful to their work. Their average annual working hours as of 2012 were 2,090, the highest among OECD countries. The labor productivity index is also steadily on the rise. Setting the index of the year 2010 as 100.0, the index recorded 103.5 in 2012. It was 54.2 in the year 2000.

Innovating the World

Enterprises and Society Pursuing Innovation

Korea is the most innovative country in the world, according to Bloomberg (2014). Such an innovation-oriented social and corporate atmosphere leads to great achievements for the multinational companies of Korea.

6.1% of the World's Patent Applications Filed by Korea According to a report by the World Intellectual Property Organization (WIPO), the number of Korea's Patent Cooperation Treaty

(PCT) applications in 2012 is 11,848, or 6.1% of the worldwide cases (194,400). Korea stood at fifth place in terms of PCT applications after the USA, Japan, Germany and China.

High Rate of R&D Investment

Of the top seven countries that invest heavily in R&D, Korea is number two in terms of the ratio of R&D investment to GDP.

Because of Korea's favorable conditions for R&D, a number of global companies have set up their R&D centers here. Such centers include the Microsoft Mobile Innovation Lab, IBM Ubiquitous Computing Laboratory, Google Engineering R&D Center, Kimberly-Clark Global Innovation Center Korea, Siemens Medical Research & Development Center, Dupont Nano R&D Center and Institute Pasteur Korea, a world-famous biotech research institute that opened in Korea in 2004 and has been very active in R&D.

Powerhouse Industries

Competitive Industries

Korea has a number of global companies in various industries, including the electricity and electronics, automobile, chemical, steelmaking, shipbuilding and IT industries. Samsung Electron-ics, LG Electronics, Hyundai Motor Co., Kia Motors, POSCO and SK Telecom are a few of Korea's famous companies.

Automobile Industry

Korea's auto industry produced a total of 4.56 million vehicles in 2012, ranking fifth in the global market. About 14 million vehicles are sold each year in Korea, including about 130,000 imported cars. Hyundai, Kia, General Motors, Renault Samsung and Ssangyong are the major automobile manufacturers in Korea. Notably, Hyundai and Kia have established overseas manufacturing sites as well as domestic sites, conducting active business operations.

ICT Industry

Korea's ICT industry reached a production volume of $105.9 billion or 5.7% of the global production, in 2012, ranking fourth after China, the United States and Japan. As of 2012, Korea's ICT production grew by 1.5% compared to 2011 due to improvements in external conditions, including the gradual recovery of the global ICT market, expanded smartphone distribution in emerging markets and increased demand in system semiconduc-tors.

Display Industry

Korea ranked first in the display industry in 2012, accounting for 48.4% of the global market share. Among the total production, LCD accounted for 44.7%, PDP for 72.0% and OLED for 94.2%, making Korea the world's biggest display manufacturer in the world for two consecutive years. Looking at the production volume of flat panel displays in 2012, Korea rolled out $58.98 billion (48.4%, while Taiwan produced $32.94 billion (27.0%) and Japan made $18.71 billion (15.3%). Despite low growth in demand, Korea continues to lead the display industry based on the outstanding competitiveness of products such as AMOLED and high-resolution LCD.

Semiconductor Industry

Korea's semiconductor industry in 2012 ranked third after that of the United States and Japan, accounting for 14.3% of the global market. Among the total semiconductor market, which is worth $345,6 billion, Korea produces 49.9% of semiconductor memories and ranks No. 1 globally, with 49.5% of the total DRAM production and growing it into the most competitive sector. Also, the monetary production value of Korea's semiconductor industry increased to 618 trillion won in 2012 from 38.3 trillion won in 2007.

The Chemical Industry

The ethylene production capacity ot Korea's chemical industry is 840 million tons, which ranked fourth globally in 2012. The production capacity of Koreal s petrochemical industry is 21.747 million tons. 10.853 tons of this is for domestic consumption and 11933 tons, for export. The Korean industry's major trading parthers are Asian countries, e.g, China and Japan, which account for 45% of the global market. As Korea's FTAs with the EU and United States have taken effect, chemical products produced in Korea can be shipped to these areas on tariff-free conditions. Recently, global chemical companies have expanded their presence in Korea particularly in the areas of high-end chemicals and R&D. As of May 2012, 25 leading chemical companies, including Korea's LG Chemical and SK Energy, are operating their manufacturing sites in Korea.

An Easy Place to Do Business 

Korea's Transportation Network

The international competitiveness of Korea's logistics infrastructure is showing continuous improvement. According to an evaluation of global airports' services conducted by the Airports Council International, Incheon International Airport has been ranked the best airport in the world for nine consecutive years.

As a peninsula country, Korea has a number of modern sea ports including Busan, Incheon, Gwangyang, Pyeongtaek/Dangjin, Daesan, Gunsan, Mokpo, Jeju, Masan and Ulsan. The port of Busan, the largest in Korea, lies on a major global shipping route linking Korea to North America, Asia, the Middle East, Europe and Latin America. As of 2012, Busan was the fifth largest container port in the world, with a handling volume of about 17.04 million TEUs (Twenty-foot Equivalent Unit) per year.

Korea is a well-connected country in terms of railways and road networks. The Korea Train Express, or KTX, is the world's fifth bullet train system and can reach the farthest point in the country within three hours. KTX has increased Korea's passenger transportation capacity by 340% and its cargo transportation capacity by 770%. Korea also has 37 highways and well-main-tained national and regional roads running across the country.

Electricity, Water Supply, Gas & Telecommunications Korea's electricity supply is well known for being highly affordable and stable, and citizen satisfaction with 'city gas' is very high.

The supply of industrial water and potable water is highly stable as well. Plus Korea's high connectivity ensures that you can get connected within 24 hours wherever you are and whatever kind of service you need, whether it's wired, mobile or high-speed Internet services.

ITU ICT Development Index (IDI) 2013

The ICT Development Index (IDI) in Korea has ranked first for four consecutive years since 2010. Specifically, Korea ranked first in many sub-indices such as fixed-telephone subscriptions per 100 inhabitants, percentage of households with Internet access and ICT skills.

Make Yourself at Home in Korea

Safe Streets and Exciting Shopping

Korea's public security is very highly regarded among the international community. It is safe to walk around at night, and there are plenty of places to shop, including department stores, discount stores, brand-name shops and traditional markets, some of which are open 24 hours a day.

Convenient Transportation

Korean cities feature well-developed, cheap and convenient mass transportation. Subways are available in many metropolitan cities and buses run to almost all corners of Korea. In addition, because the fair calculation system between different carriers is well established, most cities offer the public significant transfer discounts between all types of mass transportation.

Easy Access to High-Quality Medical Care

Korea offers world-class medical care at low prices. The number of people who come from the U.S., China and Southeast Asia, in particular, to receive medical care is rising steadily each year.

Across the country, private clinics offer first-class medical services even in small towns. There are a great number of general hospitals in many cities across the country where foreigners don't have to worry about the language barrier.

Excellent Educational Environment

So far, 52 foreign and international schools have been established in Korea, including 26 for North American or British education, 18 for Chinese education and the rest for Japanese, Turkish, Mongolian and Norwegian education.

Culture & Leisure Life

Korea features a well-integrated cultural life drawing on the best from Korean and Western cultures. Movies, local or foreign, are popular in Korea, so there is a multitude of big screens throughout the nation. World-class musicals and operas are performed in many places, particularly in Seoul.

A Government on Your Side

Promoting Foreign Investment

Invest KOREA (IK) was established as the national investment promotion agency of Korea to support the advancement of foreian companies into the country. IK provides foreign investors with a free, one-stop consulting service encompassing initial investment counseling, the determination of business sites, establishment of companies, investment reporting and investment benefits application. Its Foreign Investment Ombudsman, who is appointed by the president of Korea, works to resolve the grievances of foreign investors. By dispatching investment counselors overseas, IK provides local companies with counseling services and the information necessary to invest in Korea. Korea's central government, in conjunction with its provincial and municipal governments, works consistently to overhaul regulations and systems related to foreign investment in terms of law, taxation, labor, financing and accounting, and strives to upgrade them to the level of international standards.

Also, Korea seeks always to improve education, medical care and housing related matters for foreign residents. Above all, Korea is open to the opinions of foreign chambers of commerce and foreign companies here to constantly improve the domestic foreign investment environment.

Major Incentives

Korea offers foreign investors various incentives based on the Foreign Investment Promotion Act. They can receive tax breaks for corporate tax and income tax, for example, and local taxes (such as acquisition tax, registration tax and property tax). Korea also offers foreign investors cash grants and can provide free land, such as plant sites, or loan it to investors at low prices.