South Korea Analysis

Republic of South Korea Capital: Seoul (9.8mn) Population: 48.7mn (+0.23%) Size: 1/10 of US Mountainous, fishing Currency: Won ($1=₩1,077) GDP: $1.45tn  or $30K/capita Unemployment: 3.4%

ECONOMIC LEADER

World’s 8th largest foreign currency reserves

World’s 15th largest economy

World’s 7th largest exporter

STRATEGIC GEOGRAPHIC LOCATION

• • • •

Northeast Asia corridor Direct access to millions of people in neighboring China & Japan 1/2+ of trade volume with Asian neighbors Korean consumers open to new, innovative, cutting‐edge technology products

KEY INDUSTRIES

AUTOMOBILES SEMI‐CONDUCTORS & DISPLAYS

SHIP BUILDING

STEEL

HIGHLY EDUCATED LABOR FORCE

% of population aged 25‐34 with a  graduate degree • • Highest growth rate in labor  productivity No. 3 in the world in IT skills

56%

• • • • •

97.9% literacy rate 79% admitted to university 2nd in the world for reading 3rd in the world for math 5th in the world for science

LOGISTICS INFRASTRUCTURE & FREE ECONOMIC ZONES

6 free economic zones Self‐contained business districts  Sophisticated Highway System Over 5K km of  highway  coverage

World’s 2nd largest freight  processing capacity Voted best in passenger service

Incheon Airport

Busan Port KTX Train Gwangyang Port

Handles world’s 5th largest cargo  volume

World’s 5th fastest high‐speed  train  Handles over 182mn tons a year  (17th in world)

FDI SUPPORT BY GOVERNMENT

5‐15 yr reprease from acquisition,  registration &  property  taxes

7 yr tax holidays for  corporations

Tariff reductions  for 3 years

Low or no rent  leases

Promote investment  in R&D facilities  (subsidies)

Support for building  of infrastructure (cash grants)

Kim Hwang‐sik South Korea’s current PM

BUSINESS ETIQUETTE