My Presentation Very Brief History South Korea Jea Chul Shin.
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Poh Kian YongSoh Hwa JieFion Wong
• Population: ~50 million• Ethnically homogenous• Christianity (31.6%) ,
Buddhism (24.2%)• Confuscianism
Geography&Demography
• 8 distinct provinces• Seoul and South Gyoengsong
the most developed• Mountainous, shortage of land• Among Russia, Japan and China
EconomyElectronics
Automotive
Ship-Building
•TV, aircons, phones and hi-tech display•Mobile telecommunications taking the lead •Global leading manufacturer of LCD and plasma display•LG and Samsung
•Started exporting in 1976, rapidly expanding thereafter• Trendsetting policies, vanguard of major movements•Durability, diversity, technology, safety and economical•Hyundai Kia, GM Daewoo and Renault Samsung Motor
•7 of the world top 10 shipbuilders AND shipyards•High value-added cruise ships and special oil prospecting ships•Hyundai, Samsung and Daewoo Heavy Industries
• GDP: US$ 1.1296 trillion • Annual GDP Growth: 3.9%• Inflation Rate: 1% • Trade Surplus: US$ 926 million
MajorExports
25%
14%
10%9%
42% China
ASEAN
US
EU
Others
10%
Petrochemicals
9%
Semiconductors
9%
Machinery
9%
Automobiles
7%
Ships
7%
Steel
5%
LCD Devices
Export Partners
6th Largest Exporter
ComparativeAdvantages
R&D
• Invests heavily relative to their income
• Growth in investment faster than GDP growth rate
• Technological forefront and keeping up with changes
• Value-for money
Educated Workforce
• Large emphasis on education• Science, technological &
business• 63% of 25-34 year-olds
complete tertiary education• Industrial flexibility • Low-cost, high quality
products
Financial Institution
• 10 banks in the top 50 safest emerging market banks
• 3 banks in the world’s 50 safest banks
• Credible banking industries• Safe and reliable conduit of
business transactions
PoliticalDevelopment
1945-1948
1948-1960
1960-1961
1961-1963
1963-1972
1972-1979
1979-1987
1987-presentday
First Republic Syngman Rhee
Second Republic Yun Bo-seon
Military rule MG Park Chung-hee
Third Republic Park Chung-hee
Fourth Republic Park Chung-hee
Fifth Republic Chun Doo-hwan
Sixth Republic Roh Tae-woo
Kim Young-sam Kim Dae-jung Roh Moo-huyn Lee Myung-bak Park Geun-hye
Military rule Liberal Conservative
US military Administration
Lt. Gen John R. Hodge
Politics&Business
• Increased deregulation and decreased government intervention
• Increased transparency• Liberalization of foreign
exchange rate, FDI and insurance
• Privatized most publicly owned• bank• Raised interest rates• Abolished cap of aggregate FDI• “Big Deals” approach• Legalized lay-offs
• Increased cooperation with Chaebols to reinforce autonomy
• Protected domestic industries Control of financial sector and government-business ties• Adopted tight fiscal policy
• Increased efforts to distribute resources to SME
• Reduced protectionism and improved business environment
IMPLICATIONSGrowth in Chaebol companiesGrowth in domestic companies
and shift to export-orientedPark Chun Hee
Chun Doo-hwan
IMPLICATIONSIncreased competitiveness
Growth in SMEClamp down on Chaebol
companies
Kim Young Sam
IMPLICATIONS
Rise in unemployment ratesStronger Chaebol companies
Further increase in foreign capital inflow
Kim Dae-jung
IMPLICATIONS
Increase in foreign capital flowRise in banks and financial
companies to handle foreign capital
RecentDevelopment
2.87Veto point
Credible commitment vs
decisiveness
Deregulation: Negotiate new bilateral and multilateral FTAReview economic regulations
Reduce reliance on Chaebol exports:Increased funding for start ups Foster Venture Capitalists
Opens up Korean market to foreign firmsNurture service sector
Increase number of exporting firms (SME)
19th Assembly of South Korea
Culture&Business Etiquette
‘Ppalli Ppalli’ culture• ‘Hurry, hurry’• Time efficiency
Collectivism• Harmony• Protests• Strikes
Kibun• Pride, Face, Mood• Politeness,
Consideration
Nunchi• “Eye measure”• Ability to read kibun• Non-verbal cues
Hoesik• Company dinners• Hierarchical bonding• “Rounds”
Drinking• Posture• Never pour for yourself• Always fill empty cups
Society
• Influence of celebrities• Flourishing advertising industry
The Celebrity Effect• Entertainment Industry• 2/3 of advertisements use
celebrities
IMPLICATIONS
• Importance of connections and
relationships• Transparency issues
Nepotism• 56% of workers hired
through personal connections
• FM Nepotism Scandal
IMPLICATIONS
• Need for internet presence• Communicating with consumers• Telecommunication infrastructure
Connectivity & Internet• Naver, ‘Cafe’s• KakaoTalk, Naver Line• 5G by 2020
IMPLICATIONS