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CONNECT South Korea a Smart Guide to Shipping

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CONNECT South Korea a Smart Guide to Shipping CONNECT South Korea A smart guide to shipping This is your quick guide to help you connect with customers and businesses across South Korea. It’s here to help you understand the local culture, shipping requirements, regulations and key commercial opportunities to expand your business. united problem solversTM Contents CONNECT South Korea Visit UPS.com South Korea Overview 03 > Find out the most important facts about the markets to help you assess the potential for your business. Economic Potential 04 > Learn about what sells where and the most popular exports and imports that may be relevant to your sector. Business Culture 07 > Pointers on how to build successful relationships with local businesses and consumers. Tips and Advice 08 > Useful information and directory to help you ship to and from South Korea. Connecting with UPS 10 > A quick overview of UPS capabilities and experience and how we can help connect your business with customers across South Korea. 02 Contents South Korea Overview Economic Potential Business Culture Tips and Advice Connecting with UPS South Korea Overview CONNECT South Korea Visit UPS.com Open your new trade South Korea has a mixed economic system which includes a variety of liberties, combined with centralized economic planning and government regulation. South Korea is a member of the Asia-Pacific Economic Cooperation (APEC) and the Asia-Pacific Trade route to South Korea. Agreement (APTA). South Korea has developed into one of Asia's most affluent countries since its partition in 1948. The country possesses enviable economic strengths as well as a strong cultural work ethic, a highly educated workforce and a history of technological innovation. National facts and figures South Korea Capital Seoul Population 50,924,172 (July 2016 est.) Land Area 99,720 sq. km Although it is only the 109th largest country in the world, it has the 28th highest population and is over 80% urbanized. Land Area Seoul (capital) 9.774 million; Busan (Pusan) 3.216 million; Incheon (Inch'on) 2.685 million; Daegu (Taegu) 2.244 million; Daejon (Taejon) 1.564 million; Gwangju (Kwangju) 1.536 million (2015) Languages Korean Sustainable development Trade is important to South Korea’s The Korean economy grew 2.8% Ease of doing business South Korea is the 5th largest export economy in the economy in 2016 In recent years South Korea has become more world and the 10th largest importer (2016). The total value of exports and imports equals 85% According to the Bank of Korea, in 2016 business-friendly, according to the World Bank, South Korea Economic Freedom Index for 2016 is of GDP. South Korea has been a member of the exports grew 2.1%, imports grew 4.5% and the rising from 16th to 5th within 5 years. 74.3 (23rd in Index of Economic Freedom; Heritage World Trade Organization (WTO) since 1995. manufacturing sector grew 2.3%. Foundation). 03 Contents South Korea Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Economic Potential CONNECT South Korea Visit UPS.com Unlocking your In over half a century, South Korea has managed to transform itself from a deeply impoverished nation to one of the world’s leading economies. South Korea achieved this with a government that dictated policy and goal-setting to local industry while potential. simultaneously restricting Foreign Direct Investment (FDI). Over the same period, South Korea moved from being a follower of product development to a global leader of innovation. A system of close government and business ties, South Korea has been named by the Bloomberg Innovation Index as one of the top Most Innovative Economies for 2016 and 2017. including direct credit and import restrictions, The country ranks high in the areas of R&D (Research and have made Korea success possible. Development) spending, value added manufacturing, patent The government promotes the import of raw materials and activity and with top-five rankings in high-tech density, higher technology at the expense of consumer goods. It also encourages education and researcher concentration. savings and investments over consumption. Global Link to Success The government works to create the most optimum business The most efficient economic hub environment for companies located in South Korea and to promote Currency South Korean Won (KRW) South Korea is heavily integrated into international trade and foreign direct investment. The aim is for the market to become a key facilitator of business partnerships, growth and prosperity. finance. Korea’s proximity to the major Asian markets makes it the GDP (US$) 1,411,246 (2016) most efficient economic hub in Asia. Indeed, Korea’s Free Economic Today, a growing number of foreign companies are using South Zones (KFEZ) were developed to take full advantage of this great GDP Per Capita (US$) 27.663 (2016) Korea as a springboard to enter major markets in Asia and beyond, location. CPI inflation Rate: 0.74% (2016) thanks to the country’s extensive business network. Most notably, The “World’s Best Customs” strategy is an initiative launched by The 495.5 billion (2016). 62.9% of exports Korea’s ratified agreement with China is set to transform the Korea Customs Service and it aims at making South Korea a business by value were delivered to other Asian peninsula into an economic powerhouse. hub in Northeast Asia. The plan includes: Total Exports (US$) countries while 16.4% were sold to North The Korean government has already spent billions of dollars - improving import and export logistic system American importers on laying the infrastructure to facilitate the emerging high-tech, Semiconductors, petrochemicals, international business, leisure and tourism hubs there. This - simplifying cargo handling automobile/auto parts, ships, wireless includes setting up eight Free Economic Zones (FEZ) : (Incheon FEZ, Exports – - improvements for customer, through more effective, joined-up communication equipment, flat panel Busan-Jinhae FEZ, Gwangyang Bay Area FEZ, Yellow Sea FEZ, Daegu- commodities services displays, steel, electronics, plastics, Gyeongbuk FEZ, East Coast FEZ, Chungbuk FEZ and Saemangeum- computers Gunsan FEZ). - use of information across Internet-based eCustoms systems to help target compliance activities Total Imports (US$) 406.1 billion (2016) Environment to promote growth The South Korean economy's long-term challenges include a The acceleration and innovation of the FinTech sector (the new Crude oil / petroleum products, rapidly aging population, inflexible labor market, dominance of technology and innovation that aims to compete with traditional semiconductors, natural gas, coal, steel, Imports – large conglomerates and a heavy reliance on exports. In an effort to financial methods in the delivery of financial services) is prominent computers, wireless communication commodities address the long-term challenges and sustain economic growth, the in South Korea. Many start-ups entered this industry in 2016, while equipment, automobiles, chemical, current government has prioritized structural reforms, deregulation, major financial companies expanded their investments in IT. textiles promotion of entrepreneurship and creative industries and the China 25.1%, U.S. 13.5%, Hong Kong 6.6%, Top Trading Partners competitiveness of small and medium-sized enterprises. Vietnam 6.6%, Japan 4.9% 04 Contents South Korea Overview Economic Potential Business Culture Tips and Advice Connecting with UPS Economic Potential CONNECT South Korea Visit UPS.com Key Business Sectors in South Korea. The South Korean economy has shifted from agricultural towards manufacturing, with service The South Korean government also focuses investments to develop the industries becoming increasingly important. Specialized Regional Programs – nurture specialized local industries to strengthen the local economies and create jobs Today, the agricultural sector in South Korea only makes a negligible contribution to the country's GDP (2.3%) and employs only 6% of the population. South Korea's mineral resources are limited to gold and silver. The main industries are: electronics, semiconductors, textile, steel, manufacturing equipment, car manufacturing and shipbuilding. South Korea's economy is strongly export-oriented and it will continue to be a two-speed economy, with dynamic industrial conglomerates but a lower productivity services sector. Innovation and Growth Gangwon big data South Korea is a rich, technologically advanced, mature country with an impressive record of innovation and economic reform. Chungbuk Thanks to its ideal geographical location, outstanding human resources and top-notch infrastructure, bio-beauty some 16,000 foreign companies - from big corporations to burgeoning start-ups - are turning to Korea for business expansion. Jeonbuk South Korea also serves as a great ecosystem for companies involved in newly emerging industries such carbon as renewable energy and Information and Communication Technologies (ICT) convergence. Gwangju The major industries of the country which are expected to grow in 2017 thanks to an increase in export, automotive recovery of global trade and rise in oil prices: – Information and communication technology (ICT) – Automobile – Petrochemical – Oil refining – Semiconductor – Display and general machinery Specifically, the increase in annual export from the oil refining industry is estimated at 10.7%, petrochemical 5.5%, information and communication equipment 4.5%, semiconductor at 4.3%, display at 2.5% and general machinery at 2.0%. 05 Contents South Korea
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