WELCOMEPresenter: Gloria Taylor

LG TV/AUDIO/VIDEOLife’s Good

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POLITICAL BACKGROUND

South Korean government’s structure is determined by the Constitution of Republic of Korea.

South Korea is divided in to three branches: executive, judicial, and legislative.

South Korea’s president is Park Geun-Hye.

South Korea’s President Park Geun-Hye

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ECONOMIC BACKGROUND South Korea’s economy flourished after the

Korean War in the 1950’s.

South Korean economy is currently more focused on consumer electronics, software and other information technology industries.

South Korea has the world’s 12th largest economy.

South Korea has no oil, therefore, it’s one of the largest importers of oil in the world.

Korea is the US 2nd largest trading partner.

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ECONOMIC BACKGROUND CONTINUES

Quick Facts

Population: 50.0 million GDP (PPP): $1.6 trillion

2.0% growth in 20125-year compound annual growth 2.9%$32,272 per capita

Unemployment: 3.3% Inflation (CPI): 2.2% FDI Inflow: $9.9 billion Public Debt: 33.7% of GDP

Heritage.org2012 data unless otherwise noted.Data compiled as of September 2013

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SOCIAL BACKGROUND Most South Korea’s live in urban areas

Seoul is the country’s capital and largest city – 10.3 million inhabitants in 2006.

Other major cities include: Busan (3.37 million), Incheon (2.62 million), Daegu (2.44 million),

Daejoen (1.53 million) and Gwangiu (1.50 million)

Four million people from North Korea crossed the border to South Korea after World War II.

South Korea’s flourishing economy and improved political climate in the early and mid-1990s slowed the high emigration rates typical of previous years.

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SOCIAL BACKGROUND CONTINUES

As of April 2005, the total number of know foreign laborers in South Korea stood at 378,000; 52% were without authorization.

The foreign workforce is mostly from South Asian and Southeast Asian nations.

There are about 11,000 emigrants English teachers and around 31,000 US military personnel.

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CULTURAL BACKGROUND Korean is the official language of South

Korea.

Approximately 22 million of South Korean population express no religious beliefs, the remaining are Christian, Buddhist, and other or unknown religions.

The largest Christian church is located in Seoul with an estimated 780,000 members

South Korea is the second largest missionary sending nation on earth.

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CULTURAL BACKGROUND CONTINUES

South Korean Ministry of Culture and Technology encourages traditional arts, modem forms, through funding and education programs.

Korean forms of metal work, sculpture, painting, and ceramics flourished throughout the Korean peninsula.

South Korea’s has embraced the capitalist mindset.

Low Individualism within the Culture

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South Korea has a strong education system and provides high level of technical training.

South Korean society is in general well-educated, hard working and reliable.

Students in South Korea receive highly technical education

South Korea is a world leader in IT including cell-phones and digital –TV technologies

HUMAN RESOURCES/SKILLS

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RAILWAYS: TOTAL: 3,381 KM (2008).

HIGHWAYS: TOTAL: 104,983 KM; PAVED: 83,199 KM (INCLUDING 3,779 KM OF EXPRESSWAYS); UNPAVED: 21,784 KM (2009 EST).

WATERWAYS: 1,600 KM; USE RESTRICTED TO SMALL NATIVE CRAFT.

PORTS AND HARBORS: INCHEON, POHANG, BUSAN, ULSAN, YEOSU.

AIRPORTS: 111 (2013).

http://www.factmonster.com/country/korea-south.html

TRANSPORTATION

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TELEPHONES: MAIN LINES IN USE: 30.1 MILLION (2012); MOBILE CELLULAR: 53.625 MILLION (2012).

BROADCAST MEDIA: MULTIPLE NATIONAL TV NETWORKS WITH 2 OF THE 3 LARGEST NETWORKS PUBLICLY OPERATED; THE LARGEST PRIVATELY-OWNED NETWORK, SEOUL BROADCASTING SERVICE (SBS), HAS TIES WITH OTHER COMMERCIAL TV NETWORKS; CABLE AND SATELLITE TV SUBSCRIPTION SERVICES AVAILABLE; PUBLICLY-OPERATED RADIO BROADCAST NETWORKS AND MANY PRIVATELY-OWNED RADIO BROADCASTING NETWORKS, EACH WITH MULTIPLE AFFILIATES, AND INDEPENDENT LOCAL STATIONS (2010).

INTERNET SERVICE PROVIDERS (ISPS): 315,697 (2012).

INTERNET USERS: 39.4 MILLION (2009).

http://www.factmonster.com/country/korea-south.html

TELECOMMUNICATIONS

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SOUTH KOREA OFFERS SEVERAL DIFFERENT TYPES OF SERVICES TO CITIZENS AND FOREIGNERS

Savings Account

Time Deposit Account

Instalment Account

Lack Services, fees and Interest

International Credit Cards

The Korea Travel Card (KTC)

International Money Transfer

BANKING INFRASTRUCTURE

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CURRENT LEVEL OF TRADE WITH USA

Top Import Partners Top Export Partners

China 15.60% China 24.50%

Japan 12.40% USA 10.70%

USA 8.30% Japan 7.10%

Saudi Arabia 7.60%

Hong

Kong 6%

Qatar 4.90%

Singapor

e 4.20%

Australia 4.40%The table for export and import trade partners of South Korea, from the CIA World Factbook

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CURRENCY AND TRADE EXCHANGE

Source: US Census Bureau

US-South Korea Trade

Imports Exports Total

2013 62,386 41,714 104,100

2012 58,901 42,265 101,166

2011 56,661 43,461 100,122

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INDUSTRY AND PRODUCTION CAPACITY

http://www.tradingeconomics.com/charts/south-korea-capacity-utilization.png?s=southkorecaputi

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Exports $552.6 billion (2012 est.)

Exports -partners China 24.4%, US 10.1%, Japan 7.1% (2011 est.)

Imports $514.2 billion (2012 est.)

Imports - partners China 16.5%, Japan 13.0%, US 8.5%, Saudi Arabia 7.1%, Australia 5% (2011 est.)

EXPORT SALES VOLUME/VALUE PRODUCT/IMPORTERS

Source: The CIA World Factbook (www.cia.gov)

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CURRENT TRADE POLICY

FREE TRADE POLICY

Free trade allows for a greater degree of economic efficiency, such that the country with the comparative advantage in a given product can produce that good for export to the other country.

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ETHICS & RISK FACTORS

South Korea has no known ethical risk factors

No Child Labor No Excessive Work Hours Production done by Robots

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BENEFITS OF DOING BUSINESS WITH SOUTH KOREA

Strong export Infrastructure

Existing relationship with the US

Leaders in electronics products

Samsung electronics - largest technology firm – revenues $120 billion

Free Trade Agreement with the US

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THANK YOU FOR YOUR TIME AND LOOK FORWARD TO CONTINUOUS GROWTH WITH

THE US

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REFERENCES

Bio 2014. Park Geun-hye Biography. Retrieved November 21, 2014 from http://www.biography.com/people/park-geun-hye-21145475 CIA World Factbook. (2014). South Korea. Central Intelligence Agency. Retrieved November 9, 2014 from https://www.cia.gov/library/publications/the-world-factbook/geos/ks.html CountryStudies. (2014). Money and banking. Country Studies. Retrieved November 9, 2014 from http://countrystudies.us/south-korea/54.htm Export.gov (2014). Tariff tool home. Export.gov. Retrieved November 9, 2014 from http://export.gov/fta/ftatarifftool/TariffDetail.aspx?ID=363348&PortType=Import&Partner=1 

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REFERENCES CONTINUES

FactMonster (n.d) Retrieved on November 9, 2014 from http://www.factmonster.com/country/korea-south.html Heritage (n.d.) Retrieved on November 9, from http://www.heritage.org/index/pdf/2014/countries/southkorea.pdf 

Hofstede. (2014). South Korea. Geert Hofstede. Retrieved November 9, 2014 from http://geert-hofstede.com/south-korea.html Murillo, D & Sung, Y. (2013). Understanding Korean capitalism: Chaebols and their corporate governance. ESADE. Retrieved November 9, 2014 from http://www.esadegeo.com/download/PR_PositionPapers/43/ficPDF_ENG/201309%20Chaebols_Murillo_Sung_EN.pdf

Oanda. (2014). USD-KRW historical rates. Oanda.com. Retrieved November 9, 2014 from http://www.oanda.com/currency/historical-rates/

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REFERENCES CONTINUES

Trading Economics (2014). South Korea capacity utilization. Trading Economics. Retrieved November 9, 2014 from http://www.tradingeconomics.com/south-korea/capacity-utilization Transparency International (2014). Corruption Perceptions Index 2013. Transparency International. Retrieved November 9, 2014 from http://www.transparency.org/cpi2013/results US Census Bureau (2014). Foreign trade schedule B. US Census Bureau. Retrieved November 9, 2014 from https://uscensus.prod.3ceonline.com/ US Census Bureau (2014). Trade in goods with South Korea. US Census Bureau. Retrieved November 9, 2014 from https://www.census.gov/foreign-trade/balance/c5800.html