South Korea‖ College Code : 706 CK
Total Page：16
File Type：pdf, Size：1020Kb
A Global Country Study Report on ―South Korea‖ College Code : 706 C. K. Pithawalla Institute of Management Master of Business Administration Guide Name E mail Address Designation of Guide Mrs. Richa Agrawal [email protected] Assistant Professor Mrs. Tejal Patel [email protected] Assistant Professor Ms. Farzana Doctor [email protected] Assistant Professor Dr. Kunal Pandya [email protected] Assistant Professor Submitted to : Gujarat Technological University Year : 2012-13 1 Institute‘s/Guide‘s Certificate Certified that this Global Country Study and Report titled ―Global Country Study Report on South Korea‖ is bonafide work of attached student list with enrollment numbers, who have carried out their research under our supervision. We also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on earlier occasion on this or any other candidate. Guide Name Designation of Guide Signature Mrs. Richa Agrawal Assistant Professor Mrs. Tejal Patel Assistant Professor Ms. Farzana Doctor Assistant Professor Dr. Kunal Pandya Assistant Professor Signature of I/C Director Dr. Snehal Mistry 2 Executive Summery South Korea – The country of study for our GCSR. Like India, South Korea is also a peninsula country. India is already into a good economic relationship with South Korea. World‘s leading electronics company, Samsung and another big player LG are already a very popular brand in India. Hyundai is also a famous name in automobile in India. So we can say as far as technology and research and development is concerned, South Korea is very advanced. India is also good in commercial services exports to South Korea. So first of all if we sense the opportunity to learn from the existing relationship with South Korea, we can say that our focus should be to learn and imitate the technological advancement in electrical and automobile industry. South Korea‘s strategy for doing and expanding business looks very clear from their performances. It must be ―Let your product perform, it will create more customers‖. If we take the example of automobile industry in India, Maruti‘s market share was very high in India as it was the only company which was perceived to give best performance cars for Indian roads. Then Hyundai entered Indian market and slowly and gradually it gave tough fight to this giant and if we see the current scenario, it has snatched lot of market share from Maruti and proved that it can also deliver the best performance cars for Indian roads and more importantly with competitive price and better service. Another example is Samsung Electronics. It has made a great name in India and currently giving tough fights to all leading companies operating in India from all over the world. And if we take the example of Samsung Mobile in particular, it has made a revolutionary change in mobile usage in India. When Samsung entered mobile handset market in India, Nokia was on pick and it was almost a generic brand. Slowly and gradually Samsung took over the market and currently Nokia is in its worst position ever. Samsung has even made I phone and blackberry struggle for their business after the introduction of android operating platform. Similarly LG has made good share in house hold consumer durables. The best practices followed by these South Korean companies are that they are constantly innovative; they give lot of options to consumers and lastly a good service. So we can learn technological innovations, business practices and customer relationship management from these companies. Actually many mobile companies from India have also introduced android system and started stealing some market share of this giant. India currently is exporting cottons, commercial services, mineral fuels etc to South Korea. But if we analyze the whole environment, there is still scope for doing more business in different areas. If technology is their power, agriculture is our biggest strength. We can focus to export more of agriculture products to South Korea. 3 First of all, medical tourism can be considered important. Technology may be advanced with South Korea but the expertise lies in doctors are better in India. The overall treatment would be much cheaper in India as compared to South Korea especially in fatal medical problems. We can promote our medical facilities with attractive rates in South Korea. Moreover we can also promote our traditional medical treatments, Ayurvedic and Homeopathic, in South Korea. Ayurvedic approach of treatment is well accepted all over the world, so it can also be promoted in South Korea. Our tradition Yoga has already started attracting youths in South Korea; so focus on it should be increased, because this is something which is our basic strength. Moreover we can focus on exporting rice and fruits to South Korea because they are widely used in South Korea. They produce these things at their home but we can give competition by offering competitive prices. SBI, BOB, ICICI, KMBL etc banks can also focus to open their branches in South Korea. Now if we talk about Gujarat, there is lot of scope to do business with South Korea. Actually efforts are already put and some success is already achieved by Gujarat. A business delegation of 11 members from Gujarat visited the capital of South Korea on 17th September, 2012 to invite them to invest in Gujarat and to welcome them for the vibrant summit of January 2013. They also performed road show there and it was very well responded by South Koreans. During this visit, the Joint Development Agreement (JDA) is also signed between KOSPO (Korea Southern Power Limited), a leading Korean Government company and considered to be among top 10 power generating companies of the world, and Narmada Thermal Power Limited (NTPL). The delegation also showcased the opportunities in specific sectors such as ports, shipbuilding, telecom and IT industry. South Korea is also interested in developing SME industry in Gujarat. Moreover we can say Gujarat; in particular Surat has lot of opportunities of doing business in the areas like textile and diamond industry. Surat is world best in these industries and South Korea can be a very lucrative market for this. South Korean market can also be tapped for solar projects which are the strength and point of focus of Gujarat. So to conclude we can say that we are already on a increasing trend to do business with South Korea but the pace is slow which can be made more rapid if focus is increased and opportunities are tapped on time. 4 Index Sr No Topic Page No. 1 Introduction to South Korea 6 2 Industry Overview 9 3 Political Environment of South Korea 18 4 Economic Environment of South Korea 33 5 Social Environment of South Korea 41 6 Technological Environment of South Korea 53 7 Legal Environment of South Korea 59 8 Agriculture Industry 75 9 Automobile Industry 84 10 Aviation Industry 95 11 Chemical Industry 101 12 Dairy Industry 110 13 Home Appliance Industry 123 14 Mobile Industry 130 15 Ship Building Industry 141 16 Steel Industry 149 17 Textile Industry 156 18 Bibliography 166 5 Introduction to South Korea South Korea also called the Republic of Korea. The Republic of Korea (South Korea) is located in the southern part of the Korean peninsula. The northern half of the peninsula is North Korea or the Democratic Republic of Korea (Communist). The two Koreas were divided along the 38th parallel in 1945 into two military zones as a provisional arrangement pending a resolution of the political conflict in what was previously a single country. South Korea, officially the Republic of Korea is a sovereign state in the southern part of the Korean Peninsula. The name "Korea" is derived from Goryeo, a dynasty which ruled in the middle Ages. Its neighbors are China to the west, Japan to the east, and North Korea to the north. South Korea lies in the North Temperate Zone with a predominantly mountainous terrain. History of South Korea :: In 1945, South Korean economy was mainly agricultural. In the following decades South Korea developed light industry, consumer products and heavy industry. South Korean economy was further boosted in 1988, thanks to the Summer Olympics and in 2002 because of the Football World Cup, hosted in South Korea and Japan. At the same time the service industry grew immensely. At the beginning of the 21st century, South Korea is leader in the IT sector thanks to the aids received by its government. Leading firms in this sector are Samsung Electronics and LG Electronics. As for exports, South Korea has established itself as a main provider of semiconductors in addition to exporting various IT products. For the future, the South Korean government is beginning to invest in the robotic industry. In 1960 its gross domestic product per capita was $79, lower than most Latin American and some sub- Saharan African countries. The growth of the industrial sector was the principal stimulus to economic 6 development. In 1986, manufacturing industries accounted for approximately 30 percent of the gross domestic product (GDP) and 25 percent of the work force. Benefiting from strong domestic encouragement and foreign aid, Seoul's industrialists introduced modern technologies into outmoded or newly built facilities at a rapid pace, increased the production of commodities—especially those for sale in foreign markets—and plowed the proceeds back into further industrial expansion. As a result, industry altered the country's landscape, drawing millions of laborers to urban manufacturing centers. Rapid growth from 1960s to 1980s. South Korea's real gross domestic product expanded by an average of more than 8 percent per year, from US$2.7 billion in 1962 to US$230 billion in 1989, breaking the trillion dollar mark in 2007.