South Korea: Politics and Economy

The Republic of Korea was proclaimed in 1948. In 1986, they returned to a democratic government that has a separation of powers among three branches of government which are the executive, legislative, and judicial branch.

They go by the rule and law and believe the government should be responsible for their citizen’s welfare as well as keeping Korea a peaceful and unified country.

Threats from North Korea

South Korea has been at war with North Korea since 1950. Recently, North Korea fired air missiles into the sea near South Korea. It was to show of force against annual military drills between South Korea and the United States. The president of North Korea has been making nuclear bomb threats as well.

• This can affect South Korea’s Economy and Its foreign investors

• The tension can cause companies to move elsewhere due potential safety, hazard, and financial issues.

An Anti-terror Bill was pass last month. It is a bill that allows the NIS agency to collect personal information, location, and conversation on cell phones from people they think are a national threat. A record breaking filibuster was held for 140 hours, with opposition lawmakers opposing the bill because they believe the NIS will abuse their power due to their history of spying on the people and interfering with politics. This can be an issue for eBay and its customers if their privacy and security are not protected.

A Three Year Plan for Economic Innovation plan was announced in 2014 by the President Park. The plan will focus on resolving structural and continuing problems essential in the export-driven economy in the course of rapid growth. It will raise the country's potential growth rate to the 4 percent range and the employment rate to 70 percent, while lifting the per capital national income to 40,000 US dollars. Which will be a plus for Ebay.

The Korea-US Free Trade Agreement

Is major step forward in enhancing the legal framework for U.S. investors in South Korea. All forms...