2. • 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
3. Economy
Electronics
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
5. 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
7. 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
IMPLICATIONS
Growth in Chaebol companies
Growth in domestic companies and
shift to export-orientedPark Chun Hee
Chun Doo-hwan
IMPLICATIONS
Increased competitiveness
Growth in SME
Clamp down on Chaebol companies
Kim Young Sam
IMPLICATIONS
Rise in unemployment rates
Stronger Chaebol companies
Further increase in foreign capital
inflow
Kim Dae-jung
IMPLICATIONS
Increase in foreign capital flow
Rise in banks and financial
companies to handle foreign capital
8. RecentDevelopment
2.87
Veto point
Credible commitment
vs
decisiveness
Deregulation:
Negotiate new bilateral and multilateral FTA
Review economic regulations
Reduce reliance on Chaebol exports:
Increased funding for start ups
Foster Venture Capitalists
Opens up Korean market
to foreign firms
Nurture service sector
Increase number of
exporting firms (SME)
19th Assembly of South Korea
9. 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
10. 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