Doing Business in South Korea H T U O S

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CONTENTS

5 South Korea Overview 7 Foreword from Scott Wightman, British Ambassador to the Republic of Korea

9 Introduction from UKTI Deputy Director of Trade South Korea, Andrew Dalgleish 11 Foreword from David Lee, Chief Executive Officer of the British Chamber of Commerce in Korea

12 About International Market Advisor (IMA) 13 About UK Trade & Investment (UKTI) 14 Download the free Mobile App. 15 About this Guide 17 Why South Korea 23 Researching The Market 29 Choosing The Right Location 35 Business Opportunities 51 Establishing The Right Presence 59 Getting Started 69 Business Issues And Considerations 79 South Korean Culture 86 British Embassy South Korea 89 Contact Details 90 Useful Links 91 Additional Useful Links 91 Trade Shows 93 Map of South Korea 94 Disclaimer 95 Quick Facts

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For Your successful Business in Korea

Our Services We are proud of our distinct services that provide clients with comprehensive solutions by one expert, which is called “one client one expert” . That means that our assigned professional CPA takes full responsibility for clients’ requests .

Kay H. Lee/ Managing Partner, e-mail: [email protected]

Accountancy and Tax Taxation is one of the crucial parts of successful business in a strategic decision-making process. With a team of tax professionals, we provide unparalleled hands-on tax services to bring out the best taxation strategies for our clients’ need. Especially, the corporate income tax is not detachable from accounting in terms of recognising potential risks and opportunities from the financial aspect of clients. Theoretically and in actual execution, accountancy is a preparative and essential process of taxation. Sometimes, failure of accountancy directly causes the crucial failure in taxation. Our tax expert provides precise advices and solutions to clients on the basis of their accurate knowledge in GAAPs and Taxation.

Our service includes: • Short And Mid, Long Term Tax Planning • Bookkeeping • Investigation of arisen • VAT Return Financial Issues • Withholding Tax Return • Double Taxation • Corporate income Tax • Transfer Pricing Return • Incorporation • Assistance in Tax Audit • Statutory Financial Audit • Business Planning • Due Diligence & Valuation South_Korea:master 08/08/2014 14:38 Page 3

South Korea Overview

Nestled between two great powers, Japan and China, South Korea remains off the radar to most UK companies even though it is home to 50 million people generating GNP of US $1 trillion, making it the world’s 12th largest economy – just less than the size of the entire Association of Southeast Asian Nations (ASEAN) and equal to 2% of global GDP.

Sophisticated, affluent, globally aware consumers are eager to experience the latest fashions and products from around the world. Particularly, many South Koreans in their 20s and 30s have travelled internationally and have substantial disposable income. South Koreans are disciplined, hard-working, loyal, motivated, well-educated and eager to excel. Participating in this resilient and vibrant economy is about to become easier with the implementation of the EU-South Korea Free Trade Agreement.

Over the next five years, the South Korean economy is set to make the 10th-largest contribution to world growth. That’s as much as the UK and more than France or Italy. Despite the global economic slowdown, South Korea’s economy grew by 2.8% in 2013, and is predicted by the Bank of Korea to grow 3.8% in 2014.

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Based upon over 25 years of local Business experience MES Co Ltd offers real, hands on experience in developing an effective Market Entry Strategy for this attractive market.

We offer Market Entry: Human Relations and Organisational Development: • Company, Brand and Product Registration • Pre-Appointment Appraisals • Market Surveys and Market Research • Country/Cultural Orientation Programs • Set Up and Start Up Business Plans • Compensation and Incentive Structuring • Agent and Licensee appointment • Change Management Programs • Contracted Company Representation • Executive Mentoring • KORUS & EU-KOREA F.T.A. impact • Crisis Management Training

IPR Protection: Corporate Risk Control:

• Brand Protection and Anti-Counterfeiting • Corporate and Personal Services Due Diligence • Market Scans and Sweeps. • Reputation Assessment • Customs Recordation and Representation

Korea is a rapidly developing attractive market, with many business sectors in the world’s top 10, but it can be difficult and very culturally sensitive.

5-503 Misung Bldg, 102 Yeonhee 41Gil, Seodaemun-Gu, Seoul, Republic of Korea

Tel: +822 391 7403 Fax: +822 391 7404

Email: [email protected] www.market-entry-korea.com South_Korea:master 08/08/2014 14:38 Page 5

Foreword from Scott Wightman, British Ambassador to the Republic of Korea

Many thanks for your interest in the South Korean market.

Korea possesses a dynamic and modern economy: a population of over 50 million, a stable and business friendly political environment, excellent transportation links, and Internet connectivity (both in terms of speeds and penetration) consistently ranked as the best in the world. Rapid development since the 1970s (dubbed ‘The Miracle on the Han’) saw the emergence of world-leading brands such as Samsung, LG and Hyundai. Koreans retain the spirit and work-ethic of the ‘Miracle’. This means a high income, high growth market.

The EU-Republic of Korea Free Trade Agreement will eliminate tariffs on 97% of goods by 2014. This is already leading to increased British exports. Non-oil goods exports increased by 15% in 2012 and were up by 30% in the first half of 2013. Developing further our trade and investment relationship with Korea is a high priority for the UK government.

The British Embassy and UKTI stand ready to support British-Korean trade. We will continue to offer high quality market research, to lobby and monitor FTA implementation, and to offer the British Embassy and Residence as one of the premium reception venues in Seoul.

I hope this guide will encourage you to take advantage of all the British Embassy and Korea has to offer.

Scott Wightman British Ambassador to the Republic of Korea

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Introduction from UKTI Deputy Director of Trade South Korea, Andrew Dalgleish

Korea is an exciting market. This is an exciting time for UK companies to do business in Korea.

2012 was a great year. UK exports to Korea reached a new high, with Korea becoming the 3rd largest destination for UK goods in Asia-Pacific; and Korea made the largest contribution to the UK’s growth in exports to the world. Since 2011, Korea’s growth continues; 2% in 2012, and 0.7% in the first quarter of 2013. Opportunities for UK firms in Korea have never been better. The EU-South Korea Free Trade Agreement is becoming firmly embedded, on course to remove 97% of all trade tariffs. Alongside this, President Park is championing a new ‘creative economy’ to foster an environment supportive of design, advertising and start-ups; all areas where UK companies are particularly strong. Korea’s economy, and with it the tastes of Korean consumers, are diversifying. British firms are already active and successful across a wide range of sectors, including Food and Drink, ICT and Advanced Tech, Green Growth, Shipping, Chemicals, Education, and Fashion.

What’s more, UK companies are increasingly choosing Korea as their base for wider East-Asian expansion. Korea’s tourism has risen to around 11 million visitors per year and is now an important test bed for selling goods to Chinese, Japanese, Taiwanese and other Asian tourists. We have seen the growing importance of the Korean market first hand here at UKTI where the demand for our market research reports and other services has more than tripled in 4 years. We bring our expertise to over 1,000 UK businesses every year in Korea.

Over the next five years the South Korean economy is set to make the 10th largest contribution to world growth. UK firms with an interest in Asia cannot afford to overlook South Korea.

Andrew Dalgleish UKTI Deputy Director of Trade South Korea

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Foreword from David Lee, Chief Executive Officer of the British Chamber of Commerce in Korea

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialised economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. In 2011 The Korea-EU Free Trade Agreement (FTA) came into effect, which was followed by the Korea-US FTA in 2012. These along with six other FTAs and eight Free Economic Zones provide a multitude of opportunities for foreign companies wanting to grow and expand their business into and on the peninsula.

However, entering Korea is not always straightforward and its uniqueness can pose challenges to companies new to the market. The British Chamber of Commerce in Korea (BCCK) supports and promotes the business interests of all member companies and works to strengthen cultural and economic ties between the UK and Korea. We create value for our membership by offering a wide range of events, information services and networking. UK companies can access expert support and advice from organisations such as the BCCK and UK Trade & Investment (UKTI). The BCCK has over 35 years of experience of helping UK companies to develop their business in Korea. Working in close partnership with the British Embassy in Seoul and the UKTI, the BCCK can offer support and guidance to mitigate the risk factors of entering the Korean market. As such, I urge you to leverage the experience that the BCCK has to offer. If you require more detailed advice we can link you to experts in every possible field, many of them members of the BCCK.

It is my hope that this guide encourages you to explore and challenge the wealth of opportunities that await you and your organisation in South Korea. And if you need help, the BCCK will be there to assist you.

David Lee Chief Executive Officer British Chamber of Commerce in Korea www.bcck.or.kr

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About International Market Advisor (IMA)

International Market Advisor (IMA) has The hardcopies (brochures and CD been working ‘in association’ with UK ROMs) are distributed across the UK Trade & Investment (UKTI) for eight years and throughout the world to key strategic and during this time IMA and UKTI have offices such as British Embassies, High collaborated on more than 80 market- Commissions, Consulates, British trade and industry-specific trade and offices, UKTI’s UK-wide network of investment projects. International Trade Advisers (ITAs), and local and international Chambers of Working together IMA and UKTI support Commerce, where they can be directly British and foreign Embassies, High accessed, free of charge, by those Commissions and international involved in international trade. Chambers of Commerce throughout the world. Our work has helped to identify For more information on IMA the most efficient ways for British please visit our website: companies to trade with and invest in opportunity-rich overseas markets. www.DoingBusinessGuides.com

IMA in association with UKTI produces Contact IMA 'market' and 'industry sector' reports, Office address the multi-media based 'Market Advisor' International Market Advisor series of trade publications and the IMA House multi-format 'Doing Business in' guides, 41A Spring Gardens all of which are designed to advise and Buxton assist UK companies when looking to Derbyshire do business internationally. SK17 6BJ United Kingdom The reports, publications and guides are published in a variety of formats including Email websites, CD ROMs, full-colour printed [email protected] brochures and PDFs, and are now available in the ‘new’ free-to-download General enquiries switchboard mobile device-friendly apps! +44 (0) 1298 79562

Media enquiries

Newsdesk & out of hours +44 (0) 1298 79562

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About UK Trade & Investment (UKTI)

UK Trade & Investment (UKTI) is the British Government Department that helps UK-based companies succeed in an increasingly global economy. UKTI’s range of expert services are tailored to the needs of individual businesses to maximise their international success. UKTI provides companies with knowledge, advice and practical support.

Through a range of unique services, including participation at selected tradeshows, outward missions and providing bespoke market intelligence, UKTI can help you crack foreign markets and get to grips quickly with overseas regulations and business practice.

UKTI is an international organisation with headquarters in London and Glasgow. Across the network UKTI employs 2,400 staff and advisors, including those overseas in UK Embassies, High Commissions, Consulates and trade offices, and in the English regions.

UKTI brings together the work of the Foreign & Commonwealth Office (FCO) and the Department for Business, Innovation & Skills (BIS). It draws staff and associated administration funding from both the parent departments, but has its own stream of programme funding, for which the Chief Executive is directly responsible as accounting office.

To find out more visit the UKTI website – www.gov.uk/ukti

You can also contact the UKTI enquiry service on +44 (0) 207 215 5000

www. SouthKorea .Doing Business Guide .co.uk 13 P o w e r e d b y www.SouthKorea.DoingBusinessGuide.co.uk SOUTH KOREA V M a • • • • • • W n i e s o D L U A L E p b d a i r c s s e p i s o b t t c s i t - t

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ABOUT THIS GUIDE

This guide aims to provide a route map of the way ahead, together with signposts to other sources of help.

The main objective of this Doing Business in South Korea Guide is to provide you with basic knowledge about South Korea; an overview of its economy, business culture, potential opportunities and to identify the main issues associated with initial research, market entry, risk management and cultural and language issues. We do not pretend to provide all the answers in the guide, but novice exporters in particular will find it a useful starting point. Further assistance is available from the UK Trade & Investment team in South Korea. Full contact details are available in this guide.

Much of the information presented in this guide has been contributed by experts at UK Trade & Investment, British Diplomatic Posts and the British Chambers of Commerce. The South Korea Business Guide is intended to provide general business advice and should not be used as a substitute for market research, due diligence or legal and professional services.

• Website (www.SouthKorea.DoingBusinessGuide.co.uk) • a ‘free’ downloadable 'mobile device-friendly’ App • PDF Download (please see the website for more details) and • this full colour hard-copy Brochure

Doing Business in South Korea Guide Team; Project Manager: Craig Smith Managing Editors: Olivia Taylor and Brian Underwood Sponsorship Manager: James Clowes Creative Manager: Paul King Creative Consultants: Twistedgifted www.twistedgifted.co.uk

Printed using materials from sustainable sources www. SouthKorea .Doing Business Guide .co.uk ‘Doing Business in South Korea Guide’ published in the UK by International Market Advisor Ltd. © 2014 International Market Advisor Ltd (unless otherwise stated). All rights reserved. Contains public sector information licensed under the Open Government Licence v2.0.

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SOUTH KOREA South Korea is a hi-tech economy. It is a world leader in electronics manufacturing, including semiconductor chips, flat-screen TVs and mobile phones. Samsung – the world’s largest electronics company – originated in South Korea. South_Korea:master 08/08/201414:39Page15 w w w . S o u t h K o r e a . D o i n g B u s i n e s s G u i d e . c o . u k 1 7 WHY SOUTH KOREA South_Korea:master 08/08/2014 14:39 Page 16 A E R O K Doing Business in South Korea H T U O S

Why South Korea The organisation has a turnover greater than that of Apple, Google and Microsoft Background combined. South Korea also has the Nestled between two great powers, Japan highest level of broadband penetration in and China, South Korea remains off the the world (with speeds of 100 megabytes), radar to most UK companies even though as well as the highest 3G mobile usage. it is home to 50 million people generating Moreover, the country is a world leader GNP of US $1 trillion, making it the world’s in shipbuilding, steel and automotive. Its 12th largest economy – just less than the construction and energy companies are size of the entire Association of Southeast increasingly successful overseas. The Asian Nations (ASEAN) and equal to 2% population is highly educated. 7% of the of global GDP. country’s entire GDP is spent on education and nearly three quarters (74%) of South Sophisticated, affluent, globally aware Koreans undertake postgraduate-level consumers are eager to experience the study. This creates excellent opportunities latest fashions and products from around for UK educational institutions. the world. Particularly, many South Koreans in their 20s and 30s have In July 2011, the EU-South Korea Free travelled internationally and have Trade Agreement (FTA) came into force. substantial disposable income. South The historic agreement presents Koreans are disciplined, hard-working, opportunities for greater UK-South Korean loyal, motivated, well-educated and eager collaboration – based on current trading to excel. Participating in this resilient and patterns it will be worth at least £500 vibrant economy is about to become easier million per annum to the UK economy. with the implementation of the EU-South The most comprehensive FTA ever agreed Korea Free Trade Agreement. between two parties, the deal will create outstanding opportunities in financial Over the next five years, the South Korean services, telecommunications and legal economy is set to make the 10th-largest services. 97% of tariff barriers between contribution to world growth. That’s as South Korea and the EU will be eliminated much as the UK and more than France within three years and €1.6 billion of duties or Italy. Despite the global economic for EU exporters will be abolished annually. slowdown, South Korea’s economy grew See the Business Opportunities section of by 2.8% in 2013, and is predicted by the this guide for more detail on the EU-South Bank of Korea to grow 3.8% in 2014. Korea Free Trade Agreement.

South Korea is a hi-tech economy. It is a A leading choice for investors world leader in electronics manufacturing, According to the South Korean including semiconductor chips, flat-screen government, the UK was the 9th largest TVs and mobile phones. Samsung – the foreign direct investor in South Korea in world’s largest electronics company – 2011, investing US $4.42 billion. In fact, originated in South Korea. over the last 45 years, the UK has been the second-largest EU investor in South Korea, in cumulative terms. Source: MKE, EXIM Bank

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Tesco and Standard Chartered are among Inward investment: Many South Korean the country’s largest foreign investors, companies have chosen to invest in the investing between £2-3 billion each. UK. There are currently around 170 South Other major UK investors include: HSBC, Korean firms doing business in Britain, Prudential, Barclays, Fidelity Asset with the largest investors being Doosan Management, Diageo, Burberry, Unilever, (which owns Doosan Babcock HQ in BAT, AMEC, Rolls-Royce, AstraZeneca, Scotland and has offices across the UK), GSK, Edwards, Shell and BP. Samsung and LG Electronics (both of whom have their European headquarters UK Trade & Investment (UKTI) in 2010, and design/R&D facilities here). The Korea published a report entitled “South Korea – National Pension Service, while not yet Open for Business”, which detailed 100 physically present in the UK, has spent commercial opportunities resulting from over US $1 billion on infrastructure assets the EU-South Korea Free Trade in the country, including the HSBC Tower Agreement (FTA). In March 2011, the in London’s Canary Wharf and a 12% second edition of the report was published, stake in Gatwick Airport. with updated information. To download the report, email: South Korean economy [email protected] Manufacturing output grew for the first time in four months (June 2013), expanding South Korea is making stringent efforts 0.7% from the previous month. A 3.2% to ease excessive regulations in a bid rise in exports accounts for much of this to make the market more accessible for pick-up in manufacturing, driven by strong both foreign and local companies. It has demand in China and ASEAN. become one of the top 10 business- friendly economies in the world. This has The new Park Geun-hye government the potential to increase foreign direct expressed early signals that it would investment to US $20 billion. The Foreign boost fiscal spending to promote jobs and Investment Promotion Act (FIPA) governs growth, representing quite a shift in policy foreign investment in South Korea. thinking for a nation which has commonly put fiscal prudence ahead of fiscal You can find more information in the multipliers, and with one of the OECD’s Business section of www.korea.net – lowest public debt-to-GDP levels. the South Korean government’s official website, or at www.investkorea.org In response to downgrading of 2013 growth forecasts, the new Finance Minister Strong bilateral trade announced an interest rate cut in May There is strong bilateral trade between 2013. The central bank lowered the the UK and South Korea, and this is set benchmark interest rate by 25 Basis Points to increase even further with the FTA (bps) to 2.5% to provide a boost to growth. created in March 2011.

Exports: UK exports to South Korea have risen 21% since 2003.

The UK has a 1.2% share of the South Korean market for goods and services. This compares with 0.6% for France and 0.8% for Italy.

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The South Korean government welcomed • restrictions on the provision of legal the central bank’s move, saying that the and professional services rate cut is expected to maximise the effect • restrictions on IT delegation/server of the recently announced fiscal stimulus location. package. Business opportunities for Below target inflation has given the Bank UK companies of Korea the scope to loosen monetary policy. South Korea’s consumer prices UKTI has designated South Korea as increased at the slowest pace in nearly a high growth market and identified 14 years in May 2013, at 1% year-on-year. significant opportunities in the following Falling international oil prices, economic sectors: uncertainty and the prolonged slowdown in consumer spending are the main • Aerospace – The South Korean explanatory factors. Weak consumption government is looking to develop continued to weigh down consumer prices a small and medium-sized aircraft over the remainder of the year. Core manufacturing value chain, led by its inflation was marginally higher in May single aircraft manufacturer, Korean at 1.6% year-on-year (0.4% month-on- Airspace Industries Ltd. There are month). opportunities for UK companies to supply and collaborate. The new South Korean administration has solid government finances to address • Creative industries (Design) – future challenges including an ageing South Korea’s overall design market population and potential cost of unification is worth £10.6 billion. Seoul was the with DPRK. Experts said that South World Design Capital in 2010 and Korea’s gross government debt should encouraged new and creative design be around 30% of GDP through 2014. concepts in and around the city. Most Public sector finances remain strong, with Recently, President Park Geun-hye a budget surplus recorded since 2010. pledged during her election campaign to focus on building South Korea’s Challenges for UK companies ‘Creative Economy’. UK design is Although the business climate in South highly valued by South Korean Korea is improving all the time, obstacles companies. still remain. The main market access issues faced by UK companies include: • ICT (Communications, Industrial Electronics, Consumer Electronics) – • restrictions on the opening of new South Korea leads the world in many retail stores applications, including digital media • pricing and reimbursement for broadcasting (DMB). pharmaceuticals – the Drug Expenditure Rationalization Plan has controlled prices, to the detriment of R&D-intensive companies producing patented drugs

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There are many opportunities for UK • Environment – President Park companies involved in areas such as: Geun-hye’s “Green Growth” policies embedded software, 4G mobile telephony, are creating multiple opportunities in games (including mobile games), the development and application of bio-recognition systems, internet security green technologies, particularly in and green ICT. reducing carbon emissions from industry and buildings. There are also In addition to these strategic priority niche opportunities in water and waste sectors, there are also many other management, and in air pollution commercial opportunities for UK abatement. companies in the following areas: • Financial and legal services – • Automotive – South Korea has been The EU-South Korea FTA will remove the world’s fifth-largest automotive some key barriers to the profitability of producer for three consecutive years UK banks in the country and gradually and offers wide-ranging opportunities allow UK law firms access to the South for auto supply, component and design Korean market. There are particular companies, particularly in the opportunities for asset management development of low carbon and companies to work alongside South electric vehicles. Korean sovereign wealth funds, including the Korean National Pension • Consumer products – South Korea is Service (the fourth largest in the a sophisticated market with steadily world), and the Korean Investment increasing levels of disposable Corporation. income. Most major luxury brands are represented, with many rating South • Life Sciences – South Korea’s rapidly Korea as one of their most profitable ageing population and societal drivers markets. Major opportunities exist in for a healthier lifestyle ensure a wide fashion, and in food and drink. range of opportunities, from the supply of branded drugs to over-the-counter • Education – South Korea is one of the supplements, with natural ingredient- largest education markets in the world. based products in particularly high English language training, including demand. South Korea is a developed training delivered via e-learning, offers market for healthcare provision, considerable opportunities. offering niche opportunities in the supply of high end equipment and • Energy – South Korea currently telemedicine. imports 96% of its primary energy needs, but is seeking to reduce See the “ Business Opportunities ” section significantly its dependency on oil and of this guide for more details. gas imports by generating power from renewable sources. Opportunities exist in wind, wave, solar and CCS (Carbon Capture & Storage), in R&D and full commercial-scale projects. Major opportunities also exist in nuclear, both in South Korea and in partnership in third markets – initially the UAE.

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Market strengths These are the essential facts that UK companies doing business in South Korea need to know:

• South Korea is the world’s 12th-largest • The South Korean government is economy. Over the next five years, committed to green growth. It has it is set to make the 10th-largest pledged to spend US $50 billion, or contribution to world growth – more 2% of GDP, over the next five years than France or Italy and roughly the to transform South Korea into a low same as the UK. carbon, green-growth economy.

• The new landmark EU-South Korea • The UK was the largest foreign direct FTA will be worth £500 million to UK investor in South Korea in 2011, businesses per annum. 97% of tariff investing US $1.9 billion. barriers between South Korea and the EU will be eliminated within three years.

• South Korea is a world leader in electronics, shipbuilding, steel and automotive.

• Nearly three quarters (74%) of South Koreans undertake postgraduate-level education. The country spends 7% of GDP on education.

• South Korea has the highest level of broadband penetration in the world, with speeds of 100 megabytes. Pilots are now using 1GB broadband to allow consumers to download HD television. It also leads the world in 3G mobile usage and technology.

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Researching The Market Consultation and bespoke research You should not rely solely on desk Where to begin research. Websites and online materials Doing business with South Korea may can be out of date and the quality and seem rather daunting for those new to the reliability of content varies widely. market, but taking a strategic approach is the key. Sometimes you may simply be unable to find the information you’re looking for. Companies should conduct reliable re - This is why it is essential to verify initial search before venturing into business in research findings and conduct further any new territory and South Korea is no investigations. exception. Good research saves money and improves efficiency and performance Often this requires you to map out a right from the start. bespoke research brief with the help of specialists, exploring what additional information you might need to make an Desk research effective entry into the market and how General introductory business information you can make the contacts vital to about South Korea is readily available success. and companies can obtain a reasonable amount of preliminary insights through desk research. Speaking to an expert UKTI provides support for UK companies Economic research and sector analysis through a network of International Trade can be obtained from a large number of Teams based in the English regions. UKTI leading consultancies, research agencies services are also available to companies and public-sector trade promotion in Scotland, Wales and Northern Ireland. organisations. To arrange a consultation with your local Furthermore, the increasing use of UKTI International Trade Adviser, e-commerce and B2B websites in South call +44 (0)20 7215 8000 or visit: Korea has made it possible to identify, www.gov.uk/government/organisations/uk and gain access to, potential partners -trade-investment across the globe. A good place to start is the UKTI website: www.gov.uk/government/world/ organisations/uk-trade-investment-southkorea , which provides detailed country and sector information. Registration is free and offers additional benefits, such as access to business opportunity alerts and information updates.

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Questions to ask yourself before you begin:

• What are our company’s unique selling points?

• Is there likely to be a market for our product or service in South Korea?

• Are there any legal barriers to our business model?

• Whereabouts in South Korea should we start?

• Do we have sufficient resources (management time, project finance and expenses) to fund our South Korean project?

• Who will be leading the project within our company?

• Do we need to work with a partner in South Korea to succeed?

• If so, can we communicate effectively with them?

• Have we evaluated business risks (such as protecting our IP) and conducted research and due diligence?

• Do we know how to secure payments and get the right quality products?

It is unlikely that you will have the answers to all these questions at the outset and these “knowledge gaps” should form the basis of further research and investigation.

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Help available for you Events and seminars UKTI organises business events, seminars and workshops in the UK and South Korea, covering a wide range of business interests and issues. Not only do these events inform companies about business opportunities and offer the latest market information, they also provide a valuable platform for networking and sharing experiences with like-minded If you are interested in pursuing business peers, not to mention regular access to opportunities in South Korea, you can visiting South Korean delegations. Sign register your interest on up to a forthcoming event by visiting www.gov.uk/government/organisations/uk www.events.ukti.gov.uk -trade-investment and arrange for an International Trade Adviser based in Market visits and trade missions your UK region to help you. The UKTI Visiting South Korea is an invaluable part team in Seoul can also be contacted at of the process of market entry. You will [email protected] . UKTI also offers experience the marketplace first-hand the following services for UK exporters: and make the contacts necessary to do business. This is essential, but it will be Overseas Market Introduction Service much more effective with careful planning. (OMIS) The Overseas Market Introduction UKTI organises regular trade missions to Service (OMIS) is a chargeable, UKTI-led South Korea where you can benefit from tailored service available to companies group activities, in addition to your own interested in finding out more about an programme. OMIS can be used to support overseas market. In South Korea, it visits, providing bespoke meeting can assist you by undertaking tailored arrangements with appropriate potential research using UKTI’s extensive network partners, agents and distributors, or with of dedicated researchers based across relevant government officials. South Korea.

Typically, OMIS can provide market research and analysis (e.g. sector reports, market initiatives, regulatory environment, market opportunities), identification of local contacts (e.g. agents, distributors, suppliers, potential partners), in-market activities (e.g. meeting arrangements, event organisation such as workshops, seminars, promotional activities and product launches).

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As part of UKTI’s package of follow-up For example, the South Korean market support for British companies, government introduced a huge fiscal they are running a number of focused stimulus in response to the global sector inward missions to South Korea in financial crisis, made up of roughly the following areas: one-third tax cuts and two-thirds public spending. In total, the measures equate • Global Sports to around 5% of GDP, spread over two • Nuclear years. • Wind energy / renewables • Green Building Export Communications Review (ECR) • Printed Electronics ECR assesses the way companies • Creative & Design communicate with overseas customers • Fashion and makes practical recommendations • Financial / Legal for improvement. The service is managed for UKTI by the British Chambers of If you are interested in participating in one Commerce. of these events please contact the UKTI Seoul office at: [email protected] Export Marketing Research Scheme (EMRS) Passport to Export EMRS offers support, advice and grant This provides new and inexperienced funding to eligible companies wishing to exporters with the training, planning research a potential export market. The advice and ongoing UKTI support they service is managed for UKTI by the British need to succeed overseas. Chambers of Commerce.

Gateway to Global Growth Foreign & Commonwealth Office (FCO) This is a free UKTI service to experienced Country Updates exporters. It offers a strategic review, Country Updates provide authoritative planning advice and support to help analysis of emerging markets and identify companies build on their previous key issues relevant to UK businesses. success and develop new overseas The updates are compiled by British markets. embassies, which have access to high-level government and business Business opportunities contacts. Visit: www.gov.uk/government/ These can be emailed directly into your organisations/foreign-commonwealth- in-box, highlighting hot leads in your office For more information on any of chosen overseas market. Companies can these services, please contact your local sign up for this free service by visiting - UKTI International Trade Team. www.businessopportunities.ukti.gov.uk/ukt ihome/search.html?search=§or=- 1&country=%2Fasiapacific%2Ffar - east%2Fkoreasouth&x=15&y=17

Fiscal Stimulus Initiatives These have been introduced by governments around the world. UKTI can help UK companies of all sizes to identify the opportunities created by fiscal stimulus packages and major spending programmes.

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SOUTH KOREA

In July 2011, the EU-South Korea Free Trade Agreement (FTA) came into force. This historic agreement presents opportunities for greater UK-Korea trade and collaboration. Based on current trading patterns it will be worth at least £500 million per annum to the UK economy. South_Korea:master 08/08/201414:39Page27 w w w . S o u t h K o r e a . D o i n g B u s i n e s s G u i d e . c o . u k 2 9 CHOOSING THE RIGHT LOCATION South_Korea:master 08/08/2014 14:39 Page 28 A E R O K Doing Business in South Korea H T U O S

Choosing The Right Location Climate South Korea has a temperate climate, Geography with four distinct seasons. Spring, from The Korean Peninsula lies in the late March to May, is warm, while north-eastern part of the Asian continent. summer, from June to early September It is bordered to the north by Russia and is hot and humid. Autumn, from late China, to the east by the East Sea and September to November, is generally Japan, and to the west by the Yellow Sea. mild. Winters in South Korea tend to In addition to the mainland, South Korea be bitterly cold, due to Siberian airflows, comprises around 3,200 islands. and there can be heavy snow in northern and eastern parts. At 99,313 sq. km, the country is slightly larger than Austria. It has one of the Centres of business highest population densities in the world, after Bangladesh and Taiwan, with more Seoul – is the capital of South Korea and than 50% of its population living in the its largest commercial centre. With a country’s six largest cities. population of around 10 million, it is one of the largest cities in the world. The Korea has a history spanning 5,000 years Seoul National Capital Area, which is and you will find evidence of its rich and generally referred to as Sudogwon, is the varied heritage in the many temples, second-largest metropolitan area in the palaces and city gates. These sit world. It has over 24.5 million inhabitants alongside contemporary architecture that and includes the Incheon metropolis and reflects the growing economic importance most of Gyeonggi province. There are a of South Korea as an industrialised range of industrial clusters outside Seoul, nation. including:

In 1948, Korea divided into North Korea Osong Bio-Technopolis – South Korea’s and South Korea. North Korea was allied first bio cluster, located 170km south of to the, then, USSR and South Korea to Seoul. Osong is designated a special the USA. The divide between the two zone for foreign direct investment, countries at Panmunjom is one of the securing US $260 million to date. Foreign world’s most heavily fortified frontiers. companies seeking to invest in the Surrounded on three sides by the ocean, complex will be exempt from rent and it is easy to see how South Korea became corporate taxes for five to seven years, a world leader in shipbuilding. with additional tax benefits offered by the local government

Visit the Website and download the free Mobile App South East Coast and Ulsan – is where Incheon was South Korea’s first Free South Korea’s world-leading shipbuilding Economic Zone, providing various types cluster is located. The cluster is home to of government services to promote manufacturers of steel plates, steel foreign investment. For example, English structures and engines, as well as is the official language for government colleges specialising in shipbuilding and documents in this area and, in September marine engineering. Ulsan shipyard is 2010, the Chadwick International School currently the largest in the world and has – the first in the region – opened in the the capacity to build a variety of vessels, Songdo district. Incheon’s goal is to including commercial cargo, offshore and transform three of its districts (Songdo, naval. Yeongjong and Cheongna) into the logistics, leisure & tourism, and Busan (officially Busan Metropolitan City international business hubs of the and formerly spelled Pusan) – is the Northeast Asia region. second-largest metropolis in South Korea after Seoul. It is the largest port city in the Incheon will play host to the Asian Games country and the fifth-largest port in the in 2014, from 19 September to 4 October. world. Busan has played host to several It beat off India to host the Games and is high-profile international business and the third city in South Korea after Seoul sporting events, including the APEC (1986) and Busan (2002) to stage the Economic Leaders Meeting in 2005. event.

The largest department store in the world, Songdo – this district of Incheon is aiming Shinsegae Centum City, is located here to become a global city of hi-tech and Busan is building many super- knowledge and international business. skyscrapers, including the 110-floor The Samsung Group recently announced Lotte Super Tower. a US $266 million venture with partner Quintiles Transnational Corp. to make Incheon (officially Incheon Metropolitan biologic drugs here. The new plant, which City) – is part of the Seoul National will contract-make medicines from living Capital Area and is the third-largest urban cells, will help Samsung to tap into South area in South Korea, behind Seoul and Korea’s massive biopharmaceuticals Busan. Incheon is the country’s most market, which has produced five of the important transport hub, housing the world’s 10 best-selling medicines. largest seaport on the west coast and the country’s largest airport. Global business is centred around the hi-tech Songdo International City, which is the site of South Korea’s tallest building, the Northeast Asia Trade Tower.

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Daegu (officially the Daegu Metropolitan City) – is one of the largest metropolitan areas in South Korea, with more than 2.5 million people. The city is located in south eastern South Korea; about 80km from the coast, there are 5 international ports in an hour distance. It is a centre for fashion, textiles, and hi-tech industries. The city is home to 3 largest manufacturing and R&D clusters in South Korea (Transportation Components, Steel/Energy, and IT). With expressway corridors organised to connect major industry clusters nearby, a large number of parts and materials companies in Daegu supply their customers effectively.

Yeongjong – is aiming to become an international logistics city. It is the site of Incheon International Airport and harbour. Expansion plans for the airport include creating a free trade zone, international business district and special economic zone. In March 2009, it was named Best Airport Worldwide in the Airport Service Quality Awards.

Pyeongchang – Pyeongchang is set to host the Winter Olympics in 2018, and is looking for international support and advice on sports event management, stadiums, green building and many other areas related to tourism and event hosting.

Other major centres in South Korea include: Suwon, Goyang, Seongnam and Bucheon.

Visit the Website and download the free Mobile App SPOTLIGHT ON DAEGU GYEONGBUK ADVERTISEMENT FEATURE

GLOBAL POWERHOUSE More than $2bn of investment has flowed into South Korea’s Daegu Gyeongbuk Free Economic Zone since 2008 – a tribute to the zone’s attractiveness to foreign investors

Prime location, end-to-end supply chain, “DAEGU-GYEONGBUK WILL BE zone, enabling tenant companies greater and customised facilities are only some opportunities to participate in national proof the many advantages that the Daegu THE NEXT BEACON OF jects and receive funding. With some 50 gov- Gyeongbuk Free Economic Zone (DGFEZ) INDUSTRIAL DEVELOPMENT. WE ernment-funded R&D centres in the region, in South Korea provides clients. HAVE A PROVEN SUCCESS several companies have taken advantage of Established in 2008, DGFEZ was created – this infrastructure, particularly in the medical with the goal of creating a ‘global best’ working MODEL FOUNDED ON STABLE device, automotive and IT fields. environment for both Korean and foreign ECONOMIC INFRASTRUCTURE companies. Five years later, the efforts of local AND TALENTED MANPOWER – FUTURE GROWTH investment promotion agencies have been Among such projects is Medivalley, a 4-million- paying off. With $2bn in investment, more THAT WE ARE EAGER TO SHARE square-metre medical complex that will house than 4000 workers and 100 companies, it is WITH THE WORLD” an international hospital and various medical clear that DGFEZ is building something special. and pharmaceutical R&D activities aimed at But why have multinationals such as advancing the healthcare industry as a driver Dassault Systèmes (France), Daicel (Japan) and ers, including 11 of the world’s top 15 automo- of Korea’s economy for the next 20 years. The Boeing (US), as well as Korean conglomerates tive components companies. To top it off, the $4.5bn project is slated to open its core facili- Hyundai Motors, Hyundai Heavy Industries world’s fourth largest steel company, POSCO, ties in 2014. and Samsung, committed to DGFEZ? provides lightweight metals to automotive and Interested investors can rely on DGFEZ’s shipbuilding companies from its Yeongnam one-stop service programmes, which guide KOREA’S LARGEST MANUFACTURERS base. resident companies from feasibility study to A global powerhouse when it comes to manu- registration and after-service assistance. facturing for exports (eighth in trade volume), EXCELLENT HUMAN RESOURCES “Daegu-Gyeongbuk will be the next beacon of South Korea’s exports totalled $547.9bn in Supporting the industry with valuable man- industrial development,” DGFEZ commissioner 2012, with 41% ($225bn) coming from Daegu power are a myriad of well-respected universi- ByungRok Choi states. “We have a proven suc- Gyeongbuk and the surrounding 100-kilo- ties and colleges. These 52 universities and cess model – founded on stable economic metre region. In South Korea, the Daegu colleges supply 70,000 graduates annually, infrastructure and talented manpower – that Gyeongbuk region is known as the birthplace including 17,000 engineering graduates. In we are eager to share with the world.” of industry, a place where Samsung, Hyundai addition to a well-educated workforce, Daegu and POSCO were founded. Gyeongbuk boasts low employee turnover For more information This area, Yeongnam, is home to South (2.04%) and has the lowest man hours lost due www.dgfez.net Korea’s largest manufacturing clusters (trans- to strike in Korea. portation, IT and mobile, and steel and energy). Samsung Electronics operates a mobile hand- SPECIAL R&D ZONE Sponsored by set manufacturing factory there that produced Part of the free economic zone concept is to 325 million units in 2011; LG Display operates a incorporate research and development (R&D) liquid crystal display factory with sales of $379m. centres to work alongside nearby industrial Yeongnam is also home to South Korea’s largest complexes to become a research and busi- automotive cluster, which includes Hyundai ness development hub of north-east Asia. To Motors, GM Korea and Renault-Samsung accomplish this goal, DGFEZ was designated Motors. That’s not to mention the many suppli- by the central government as a special R&D South_Korea:master 08/08/2014 14:39 Page 32 South_Korea:master 08/08/201414:39Page33 I S o t c e A t n o o O o p x S c

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3 s 5 BUSINESS OppORTUNITIES South_Korea:master 08/08/2014 14:39 Page 34 A E R O K Doing Business in South Korea H T U O S

Business Opportunities Moreover, the country is a global pioneer in shipbuilding, steel and the automotive As the 12th largest economy worldwide industries. South Korean companies have and the fourth largest in Asia, South delivered more than US $500 billion of Korea is a dynamic and vibrant place overseas projects in 130 countries since to do business. Its 50 million strong the 1960s, including over US $50 billion in domestic population is wealthy, savvy and 2012 alone; six of the top ten contractors out to buy the best. With the introduction in the Arabian Gulf’s oil and gas markets of the EU-South Korea Free Trade are Korean. Samsung C&T built the Burj Agreement and a passion for UK goods, al-Khalifa, the world’s tallest building in the country ranks among the most Dubai, and state power utility KEPCO is lucrative and exciting overseas markets delivering four new nuclear plants in Abu for British companies, with numerous Dhabi, the Arab world’s first civil nuclear and varied opportunities for export. power facilities.

The figures speak for themselves. Over Increased success for these Korean the next five years, the South Korean companies abroad has opened up a economy is set to make the 10th-largest range of opportunities for British contribution to world growth. That’s as companies to collaborate and share much as the UK and more than France in their success across third-country or Italy. South Korea’s economy grew by markets. UK firms with appropriate 3.6% in 2011, the fastest in the OECD products, expertise and connections (Organisation for Economic Cooperation in the Gulf, North Africa, ASEAN and and Development), and despite the global beyond can seize a range of opportunities economic slowdown, the economy grew to work with them. They acknowledge the by 2.8% in 2013, and is predicted by the UK's global footprint, and show interest Bank of Korea to grow 3.8% in 2014. in the capacity of UK companies to help them manage project risk in all its forms. South Korea is a hi-tech economy. It is a world leader in electronics manufacturing, The EU-South Korea Free Trade including semiconductor chips, flat-screen Agreement (FTA) TVs and mobile phones. Samsung – the world’s largest electronics company – In July 2011, the EU-South Korea Free originated in South Korea. Trade Agreement (FTA) came into force. This historic agreement presents The organisation has a turnover greater opportunities for greater UK-Korea trade than that of Apple, Google and Microsoft and collaboration. Based on current combined. South Korea also has the trading patterns it will be worth at least highest level of broadband penetration in £500 million per annum to the UK the world (with speeds of 100 megabytes economy. The most comprehensive FTA the norm), as well as the highest 3G ever agreed between two parties, the deal mobile phone usage. has created outstanding opportunities in financial services, telecommunications and legal services.

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97% of tariff barriers between Korea and • UK strength in services is big the EU will have been eliminated by July advantage in South Korea: A major 2014 with £1.6 billion of duties for EU focus of the FTA is trade in services exporters abolished annually. South where the UK is particularly strong Korea is currently the only country in (especially legal and financial Asia to have concluded an FTA with the services) and where South Korea European Union: is weak. This represents a special advantage for the UK over other • Increased opportunities for trade in EU countries. goods and services: Duties will be eliminated on 98% of products • Intellectual property is protected in accounting for 70% of the trade South Korea: Intellectual property between the EU and South Korea. protection in South Korea is relatively The FTA is expected to create more advanced, so UK companies can than £17 billion in new trade in goods approach the market with confidence and services for the EU. The that trade secrets will be safe. schedule of tariffs can be found online Protection is further strengthened at: http://trade.ec.europa.eu/ by the FTA. doclib/docs/2009/october/tradoc_ 145133.pdf • FTA supports removal of “non-tariff” barriers: Non-tariff barriers (such as • EU first mover advantage over the harmonisation of local safety and US: The EU negotiators of the FTA testing standards with international had a target of equalling or exceeding standards) were a major issue that the South Korea-US (KORUS) FTA were extensively addressed in the (termed KORUS Plus). Furthermore, FTA. South Korea has committed EU companies have had a significant to transparency of its regulatory first-mover advantage over US processes and to making the companies, as the EU-Korea FTA regulatory process more readily took effect on 1 July 2011, before available to foreign firms. This should KORUS FTA implementation in lead to a consistent, predictable March 2012. regulatory regime.

• Exchange rate fluctuations offer • FTA is an added benefit to the already advantages to the UK in the short open South Korean market: South term: The UK had an advantage over Korea is already relatively open many other EU countries at the to trade and foreign investment. launch of the FTA due to the relative However, the FTA will ensure that weakness of the UK pound. Once South Korea cannot ‘back track’ British firms have captured the on liberalisation. market, it will be easier to sustain even when rates change in the future. Fluctuations in exchange rate are a more significant factor than tariff reductions.

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• Joint collaboration: The EU-South Low carbon opportunties Korea FTA commits both parties to encouraging and supporting cross On green energy, the South Korean border collaboration particularly in Government is leading the way in the the areas of scientific and technical Asia-Pacific region with an ambitious co-operation. low carbon strategy. In July 2009, the Government committed to spending 2% • FTA provides structure and leverage of GDP annually on the low carbon for dispute resolution: South Korea economy. Its Presidential Committee for has a well established legal structure Green Growth has set an ambitious target but enforcement has often been of a 30% reduction in carbon emissions perceived to be discriminatory. by 2020. British business can help South The FTA addresses this issue by Korea meet these targets. establishing Working Groups as a forum for dialogue on issues that Both the UK and South Korea are arise. This is expected to provide pursuing Low Carbon, Green Growth ‘leverage’ for dispute resolution strategies. However, the focus of the and help businesses address policies and objectives of the two discriminatory practices. countries exhibit some differences. The UK is clearly committed to achieving • Positive perceptions of the UK by Low Carbon targets. A detailed, year- Korean consumers: The UK has a by-year timeline of carbon reduction relatively positive image with Korean targets and specific plans on how to consumers and the FTA is likely to achieve them has been laid out and increase the level of awareness of progress towards those targets is being the EU. The FTA is also expected to carefully tracked. Growth is a by-product increase awareness of South Korea that the UK government hopes will be among UK companies. generated by pursuing carbon reduction policies. The UK has a wide array of The full text of the EU-South Korea strengths but most notably in the areas FTA can be accessed on line at: of green buildings, construction and http://trade.ec.europa.eu/doclib/press/ind deployment of offshore wind power ex.cfm?id=443&serie=273&langId=en systems, environmental impact assessments, wind assessments and The European Commission has connection to the grid. established a mailbox at [email protected] South Korea also has targets but is for British companies who have queries primarily focused on economic growth, about the implementation of the FTA. and low carbon activities are defined as If you have any questions about the FTA a “new growth engine”. Policies and please email to this address. objectives are defined in terms of anticipated employment generation and potential for exports.

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The commercial viability of new More than 30 specific low carbon, green technologies and energy conservation growth opportunities are presented in a products are at the forefront of South UKTI report “Low Carbon Opportunities Korean policies. The South Korean in the Republic of Korea” (updated 31 government is hoping to create a October 2012) which can be accessed at: sustainable business model that utilises www.businessgreen.com/digital_ market forces to drive green assets/5950/UKTI_Low_Carbon_ developments. A reduction in Korea’s English_version_pdf1.pdf carbon footprint is a welcome addition to its green growth policy. Carbon reduction Sector-specific opportunities targets certainly exist but the link between the targets and the low carbon activities For UKTI Korea Sector Reports on is less strong than in the UK. South Korea any of the below industries please has a wide array of strengths but most contact [email protected] notably in building materials, hardware to request a PDF. for wind power and ICT components for smart grids. The South Korean population is highly educated. 7% of the country’s entire GDP Due to the differences in the approach is spent on education and nearly three to green building in South Korea, the quarters (74%) of South Koreans opportunities in green buildings have undertake postgraduate level study. been slow to evolve. UK green building This creates excellent opportunities for policies take a systematic approach UK educational institutions. looking at the whole spectrum of contributors to carbon emissions: building Education – South Korea is one of the design, building materials, materials largest education markets in the world. manufacturing processes, transportation, English language training, including demolition, recycling and reuse. South training delivered via e-learning, offers Korea is focused almost exclusively on considerable opportunities. British reducing energy consumption through English, our accent and linguistic energy saving materials (primarily expertise are held in high regard. insulation) and active energy reduction systems at the expense of passive Financial and legal services – Korea has solutions. Unfortunately, South Korea’s a highly developed and profitable financial electricity costs are relatively low in services sector including the second minimising commercial motivation to largest insurance market and third largest save energy. banking market in Asia. The EU-South Korea FTA has removed some key However, New and Renewable Energy barriers to the profitability of UK banks in (NRE) offers much more potential for the country and gradually, allows UK law cooperation. Both countries are actively firms access to the South Korean market. working to increase power generation There are particular opportunities for from new and renewable sources, both asset management companies to work face the need to develop a grid that can alongside South Korean sovereign wealth handle diversified power inputs and funds, including the South Korean two-way flow, with the UK focusing on National Pension Service (the fourth system design and management while largest in the world), and the South South Korea is focused on developing Korean Investment Corporation. ICT devices to monitor and regulate power flow.

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Creative industries (Design) – South Education Korea’s overall design market is worth £10.6 billion. Seoul was the World Design The South Korean education system is Capital in 2010 and encouraged new and based on the US model consisting of creative design concepts in and around six years of elementary schooling, three the city. UK design is highly valued by years of middle school, and three years of South Korean companies. high school, with four-year undergraduate degrees and two-year masters degrees Life Sciences – South Korea’s rapidly the norm. Pre-school children are ageing population and societal drivers for educated in day care centres (or a healthier lifestyle ensure a wide range nurseries at ages of two to three) of opportunities, from the supply of and kindergartens (at four to six). branded drugs to over-the-counter supplements, and natural-ingredient- Historically spending 11 out of every 14 based products in particularly high days at school, South Korean primary demand. South Korea is a developed and secondary school students adopted market for healthcare provision, offering a five-day school week in March 2012. niche opportunities in the supply of Young South Korean students are now high-end equipment and telemedicine. free on Saturdays and parents, teachers and local education suppliers are keen to Global Sports – South Korea will host provide various educationally enriching the Winter Olympics in 2018 in the city entertainment activities for them. The of Pyeongchang in Gangwon Province. South Korean Education Ministry also British companies with expertise in encourages schools to offer extra- managing and delivering major curricular education programmes for its international sporting events are well students. placed to offer their services to the South Korean organisers. There is a culture of paying for education ______at all levels in South Korea, from pre-school to college and university. The following includes detailed Private ‘crammer’ academies (Hagwon information on these key sectors, but in Korean) attract students as young as UKTI in Seoul publish detailed information two, and cover all subjects ranging from on more than 15 different sectors, English and maths to history and IT. highlighting the opportunities: The value of this market is estimated www.gov.uk/government/world/ at approximately US $20 billion. If you organisations/uk-trade-investment- include preschool children and adult south-korea education, this rises to more than US $22 billion. Some of the ways the FTA will influence the education sector are:

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FTA Changes Timing Non-degree adult education will be open to foreign owned entities Immediately Enhanced cultural co-operation encouraged Immediately Foreign investment is now permitted Immediately

Opportunities for UK Companies: Online Education South Korea’s e-learning market is one The South Korean government has of the most promising niche areas in the emphasised the growing importance educational tools and services industry. of English language in education and The South Korean e-learning market was unveiled a roadmap to revamp the worth approximately US $2.2 billion and nation’s public English education had an annual growth rate of 7.4% in provision. This has influenced not only 2011 according to the South Korean students but also employers who wish National IT Industry Promotion Agency to strengthen their employees’ English (NIPA). language skills as a result of globalisation. With South Korean government initiatives in IT infrastructure and support for the English Language Education development of IT industry, e-learning English education for pre-school children education has become a viable option in South Korea is carried out on an for many South Koreans. industrial, nationwide scale. This is delivered through a variety of media Over 82% of South Koreans currently own including: language institutions, group a PC and there are over 38 million South or one-to-one lessons, study materials, Korean internet users. According to NIPA, over the telephone and over the internet. in 2011 49% of internet users used some Many South Korean companies are keen form of e-learning and as many as 74% to improve their employees’ English of elementary, middle and high school language skills and help them reach students are believed to use the global standards. There is strong demand technology. for:

• English for young learners • Career-based education and training • Company training • Teaching materials (books and multi-media materials)

British schools such as the Dulwich College in Seoul (established in 2010) and North London Collegiate School on Jeju Island (2011) are notable as highly successful leaders in the market in offering a British-style of education.

In general, British educational expertise is now actively sought after by South Koreans who recognise the UK’s reputation for high quality.

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Financial Services Opportunities for UK companies:

South Korea has a highly developed and Banking profitable financial services sector There are now four strong banking groups including the second largest insurance (Shinhan, KB Kookmin, Woori & Hana) with market and third largest banking market in similar asset sizes, suggesting that this highly Asia. The stability of the banking sector is saturated sector could see competition underpinned by strong fundamentals and intensify further. Long-term strategic investors proactive regulation. At less than 1%, have moved into the market in recent years, South Korea’s non-performing loan ratio in many cases acquiring the stakes of an is low by regional standards. Foreign earlier wave of private equity buyers. The investors own some 70% of the banking FSCMA could open up new opportunities sector. for cross-selling to bank customers, including further development of Bancassurance and The relaxation of controls on cross- capital market businesses. ownership of financial services has further opened up opportunities for market entry, Asset management acquisition and business development. The market size is still small compared As international financial services groups with the size of other developed economies. look to develop their footprint in Asia, a The value of managed assets was US presence in South Korea is becoming $274.8 billion as of the end of September increasingly desirable. 2011, ranked 15th among 46 countries. The asset management sector is set for Influence of the EU-South Korea FTA rapid growth as a result of pension reform. The FTA contains a number of provisions More than a third of the country’s 52 asset on services, public procurement, managers are now solely or jointly run by intellectual property and sustainable international groups. South Korea’s development as well as the liberalisation retirement pension fund has consistently of goods tariffs. Financial services firms grown by more than 100% per year over gain substantially from the FTA. They are the past several years, while private pension now able to freely transfer data from their funds have expanded at an average of South Korean branches and affiliates to 15% per year over the same period. their headquarters overseas. FTA commitments also enable financial firms Insurance to off-shore their back office functions Insurance remains dominated by a small which previously imposed additional costs number of local players. However, foreign (in some cases of up £10-20 million) for companies have made strong inroads. such firms setting-up operations locally. Foreign entry into the market has included both acquisition of existing companies and Greenfield start-ups. Recent listings of life insurers may create new investment targets. Given the impact of the global economic crisis on the industry, there will be limited demand for insurance products over the short term.

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However, the growth scenario will likely South Korea’s largest law firm is Kim & change over the medium term because Chang. For more information on their of South Korea’s rapidly aging population. services, please click here to view their This creates ongoing demand for after- profile or visit: www.kimchang.com retirement protection products as well Currently, there are about 3-4 UK & US as health insurance products, including law firms in receipt of an operating licence accident and illness as well as medical from the Ministry of Justice to set up an expense coverage. office in South Korea. Approximately 15-16 more companies are currently Legal Services applying for the licence.

Sovereign Wealth Funds/Pension Influence of the EU-South Korea FTA Funds Particular opportunities for asset New revenue opportunities have been management and property management generated by the enhanced protection of companies exist to work alongside the Intellectual Property Rights and an likes of the National Pension Service extended copyright period the FTA has (‘NPS’). Their fund is the fourth largest brought. The legal services element of the pension fund in the world with assets of FTA identifies a three stage, time-based more than US $300 billion. In the coming process for opening up the South Korean years the NPS will have to outsource its legal system: increasing assets to more financial services companies, pushing up the • First stage: Solicitors and other EU demand for funds. law firms will have the right to establish a branch office to offer The organisation recently purchased advice on foreign and international three iconic buildings in London including law. Foreign lawyers are permitted to HSBC HQ in Canary Wharf as well as a use their home country titles in their 12% stake in Gatwick Airport. They set up home country language. By using a European headquarters in London last their home country titles, domestic year. and foreign clients can be confident that they are receiving advice from There are about 12,000 lawyers in South an attorney legally registered in a Korea of which around 7,000 work in specific jurisdiction. Seoul. Over 600 law firms (including one-man offices) and 800 in-house • Second stage: This permits a foreign lawyers operate in the country. About law firm to fee share with a South 2,500 lawyers are licensed each year. All Korean law firm, either on a project- lawyers are required to become members by-project basis or on an ongoing of the South Korea Bar Association. basis.

The number of lawyers is expected to • Third stage: This will begin no later double in the next five years as the South than July 2016. It will permit South Korean Government liberalises legal Korean and foreign lawyers to go into services. Currently South Korea still has partnership together and allow foreign the lowest number of lawyers per capita in law firms to employ South Korean the OECD, making it a potentially strong lawyers. market for UK law firms.

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Kim & Chang is Korea’s largest and most specialized law firm with a premier global practice.

Since the firm was founded in 1973, it continues to advise the world’s leading companies and financial institutions. Based in Seoul, Kim & Chang is a full service law firm with over 950 dedicated professionals including Korean, US and European licensed lawyers, tax lawyers and accountants, patent and trademark attorneys.

Over 950 Dedicated Professionals Global Reach and Expertise with and 1400 Staff In-depth Knowledge of Local Markets

The firm’s world-class professionals Kim & Chang’s success is founded on uphold the diversity of talent and expertise our commitment to meeting the needs having graduated from only the top law of clients, no matter how small the issue, schools and universities in Korea and while upholding the highest standards of around the world. Most attorneys have professionalism and integrity. Our valued practiced in major international law firms clients are start-ups, small businesses in the US and Europe, adding a global to international conglomerates. perspective to the firm’s well-respected We customize our legal advice paying practice areas. Kim & Chang places high close attention to client details such as importance on multicultural backgrounds, business size, business model, industry global legal training and quality legal and market. Kim & Chang regularly solves skills, best positioning the firm as the the most complex and challenging legal market-recognized leader in meeting issues for the world’s largest multinational the complex legal needs of our clients. corporations and international financial institutions on cross-border transactions and in doing business in Korea. Our professionals at Kim & Chang see the world from the viewpoint of our clients, big or small, building lasting relationships.

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Strategically Organized by Industry Sectors and Specialized Practice Areas

Kim & Chang is the market leader in each of the major practice areas and industry sectors in which we specialize, including corporate, mergers and acquisitions, antitrust and fair trade, banking and finance securities and capital markets, litigation and arbitration, bankruptcy/ corporate restructuring, international trade, tax and customs, product liability, labor and employment, real property and construction, environment, telecommunications and e-commerce, health and pharmaceuticals, aviation, intellectual property and technology and maritime.

Fully Integrated ‘One-Stop’ Legal Service

The dedication to our clients is reflected in Kim & Chang’s unique team-oriented approach and “one-stop” legal services. The firm leverages its multifaceted expertise and broad experience pooling together a team with the right mix of professionals for each client need. Drawing upon our strong practice areas across the board, legal specialization of our professionals with deep market knowledge and forward industry insight is invaluable to our clients in successfully navigating today’s economic challenges. At Kim & Chang, we have the legal expertise, resources and team structure flexibility to provide a fully integrated one-stop legal service for our clients.

Contact

Kim & Chang 39, Sajik-ro 8-gil, Jongno-gu, Seoul 110-720, Korea

Tel: +82-2-3703-1114 Fax: +82-2-737-9091/9092

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Opportunities for UK companies: Influence of the EU-South Korea FTA The FTA has ushered in enhanced Foreign-licenced attorneys already play protection for Intellectual Property Rights a vital role in cross-border transactions and extended copyright regulation. involving, among other areas of law, This has improved opportunities for UK mergers and acquisitions, financial and companies in service industries where the securities dealings and joint ventures. UK is traditionally strong and South Korea However, local companies dominate in weak. other areas such as litigation. There may also be opportunities in niche markets Opportunities for UK companies: such as shipping and construction where UK law firms already have considerable Product/Packaging Design and expertise. Brand Identity International collaboration is seen as Design and creative industries essential in these fields. South Korean consumers have rapidly changing tastes South Korea is an export-oriented and a strong desire for products with economy and a number of South Korean innovative designs. In addition, South manufacturing companies are currently Korean exporting companies are competing to gain a larger share of the compelled to continue to provide goods global marketplace. To succeed in this and services featuring high quality and endeavour, South Korean companies are innovative designs in order to compete making investments in developing new and differentiate themselves in the global design concepts. marketplace. There is an increasing demand for creative designs from One of the ways they are doing this is by companies operating in the electronics, establishing closer partnerships with food & drink, medical devices, and other overseas companies with a strong track consumer goods sectors. To respond to record in innovation. Many UK design these growing demands, South Korean companies such as Seymourpowell, companies, including ICT giants like Tangerine, and Kinneir Dufort already Samsung and LG, as well as large work with well-established South Korean retailers like Shinsegae, CJ, and Amore clients from a number of diverse sectors Pacific, work with UK design agencies including ICT, retail, advanced on their product/packaging design and engineering and medical device branding. manufacturing in order to provide a wide range of services. Typically these include Design Consulting product packaging, brand identity Increasing numbers of South Korean management, corporative visibility and companies seek professional advice design research. UK design firms have a and design solutions in both the local high profile in South Korea and local c and global market. However, very few ompanies appreciate Britain’s reputation domestic design consultancies possess for strong creative credentials. the necessary skills to meet this demand.

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This has generated significant The South Korea bio-pharmaceutical opportunities for UK design agencies market was forecasted to reach a value particularly for those with a proven record of £1.1 billion during 2013, with further in design research and strategy for growth expected. corporate design. Pharmaceuticals Public Design South Korea is the 13th largest The Seoul City government has shown a international pharmaceuticals market, strong desire to redesign the City since it accounting for some 1.5% of global was designated as 2010’s World Design market share in 2012. By 2020, the South Capital by the International Council of Korean government aims to become the Societies of Industrial Design (ICSID). 7th largest pharmaceutical producing It has already introduced some design nation, accounting for 4.5% of the total projects for public spaces in Seoul. global market. The South Korean Dongdaemoon Design Park & Plaza pharmaceuticals market has traditionally (one of the City’s major design projects) been generics-oriented, but recent was designed by a famous UK architect industrial investments have enabled an Zaha Hadid and opened at the end of increased focus on new drug discovery. 2013. There is a wide range of business The market was worth around £10.9 opportunities for UK design agencies billion in 2012 with an annual growth rate with expertise in areas such as of around 8%. Since 1999, South Korea architecture/landscape design, interior has developed 19 unique new drugs. design, public design and design consulting. Medical Devices The South Korean medical device market Life Sciences accounts for 1.3% of global market share. The market was worth around £2.3 billion Total domestic healthcare expenditure in 2012 with an annual growth rate of in South Korea has grown steadily from around 7%. The market is mainly serviced about 4.4% GDP in 1990 to 7.1% of in by imports, accounting for 65% of the total 2010, with an annual growth rate around market, largely from the US, Germany 9%, twice as high as the OECD average. and Japan. Part of this is a result of one of the world’s most rapidly ageing populations. In 2010, Influence of the EU-South Korea FTA the percentage of the population over 65 Since its passing in July 2011, some of was 11%. It is forecast to be over 20% by the ways the FTA has and will influence 2025. the Life Sciences sector are:

Biotechnology Item Change in Tariff Timing: Now/Later The biotech industry is one of the fastest growing industries in South Korea and Biotechnology Up to 8% 3 years has grown rapidly with a constant annual Pharmaceuticals 8% Immediately growth rate in excess of 10%. South Medicines 8% 0-3 years Korea is the 8th strongest biotechnology Medical devices 8% 0-5 years nation globally with particular technology advantages and skills in stem cell (Source: European Commission) research. The South Korean government considers biotechnology as the next new growth engine for the nation. Thus, there is strong government support for the acquisition of core technologies and the development of biotechnology infrastructure. www. SouthKorea .Doing Business Guide .co.uk 47 South_Korea:master 08/08/2014 14:39 Page 46 A E R O K Doing Business in South Korea H T U O S

Opportunities for UK companies: Global Sports

There are opportunities for R&D Sports and exercise are valued in South collaboration and technology transfer in Korean society. South Korea has a the fields of oncology, cardiology, drug tradition of excellence on the global stage discovery, metabolic diseases, vaccines, – particularly in baseball (Olympic neuroscience, stem cells, cancer champions), football, speed skating, ice theranostics, tissue engineering and skating and in multi-disciplined events. regenerative medicine. In the 2010 Asian Games, South Korea came second in terms of total medal tally. Biotechnology South Korea has hosted several iconic There is a growing demand for drugs to sporting events in the past, including the treat lifestyle related diseases such as 1988 Summer Olympics in Seoul, the hypertension, diabetes, and cancer. FIFA football World Cup in 2002, and the Korean companies are looking for over - IAAF World Athletics Championships in seas technology and experience which Daegu in 2011. they can license in and further develop. South Korea has an ambitious The clinical trials are becoming more programme to host additional major sport - commonplace locally but there is high ing events including: demand for international partnerships to conform to global standards. • Incheon Asian Games 2014: Incheon is home to 2.8 million people, and is Pharmaceuticals one hour from Seoul. In South Korea, There is a strong demand for both the Asian Games are bigger than the licensing in and out of pharmaceutical Olympics. The Games in Incheon will products/technology. South Korea has feature 36 sports held at 50 strong credentials in the traditional competition venues. 37 of the venues fermentation, antibiotics and diagnostic will be in Incheon with 13 others in industries. Global outsourcing, five co-hosting cities. 24 venues will partnerships and M&A are also becoming be new builds. a more accepted approach to R&D and product development in South Korea. There is a desire to host eco-friendly games with the emphasis on green Medical Devices building and green technologies. There is a strong demand for imported medical devices such as dental equipment (especially dental implants), radiotherapy/imaging equipment, and orthopaedic equipment.

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• Gwangju Universiade 2015: Gwangju There are opportunities for companies is home to 1.45 million people and is who excel in: 55 minutes from Seoul via the KTX fast train line, which was completed in • Marketing and ticketing 2013. The Universiade will host 7,000 • Hospitality & catering athletes from 170 countries. The • Advanced IT games will feature 21 sports. There (where not available locally) will be 77 separate facilities, including • Green building and design, including a new aquatics centre and a stadium and accommodation multipurpose hall. construction • Low carbon solutions • Pyeongchang Winter Olympics 2018: • Legacy planning The city of Pyeongchang in Gangwon Province will host the Winter Olympics in 2018. The games will be centred in two clusters – the Alpenasia cluster and the coastal cluster. No venue will be more than 30 minutes apart. There will be 13 competition venues; 7 are existing venues which will all be updated, and the other 6 will be new builds.

Opportunities for UK companies:

South Korea has established world class football and baseball leagues. They also have a proven track record of holding large scale sporting and entertainment events. Those foreign companies that succeed in Korea differentiate themselves from the local offer.

The South Korean Government has a strong focus on moving the country to a low carbon economy. Both Incheon and Gwangju have expressed a desire to host eco-friendly games, using low carbon and green building techniques.

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SOUTH KOREA Over the next five years, the South Korean economy is set to make the 10th-largest contribution to world growth. That’s as much as the UK and more than France or Italy. South Korea’s economy grew by 3.6% in 2011, the fastest in the OECD (Organisation for Economic Cooperation and Development), and despite the global economic slowdown, the economy grew by 2.8% in 2013, and is predicted by the Bank of Korea to grow 3.8% in 2014. South_Korea:master 08/08/201414:39Page49 w w w . S o u t h K o r e a . D o i n g B u s i n e s s G u i d e . c o . u k 5 1 ESTABLISHING THE RIGHT pRESENCE South_Korea:master 08/08/2014 14:39 Page 50 A E R O K Doing Business in South Korea H T U O S

Establishing The Right presence Agents and distributors

Direct sales into South Korea can be An agent is a company’s direct difficult. For most UK companies, it is representative in a market and is paid more effective to approach the market commission, whereas a distributor buys through local business partners (agents products from the manufacturer and sells and distributors) who have the ability them on to customers. The difference to distribute and provide locally based between the cost of purchasing products technical support. Licensing and and selling them on (the profit) forms the franchising are also increasingly distributor’s income. popular options. In South Korea, registered commissioned It is possible to set up a representative agents are known as “offer agents”. office, a branch office, a joint venture or a wholly foreign-owned enterprise in Many of them operate on a small scale South Korea. If you are planning to do and lack capital, but if they have the right business in South Korea, consult a lawyer contacts they can provide adequate about the possible options and how you representation, even for major projects. plan to conduct the operation. UKTI can help you to identify local and international Entering a market by working with an law and consultancy firms who can help. agent or distributor can have several advantages. It reduces time and costs, They can also provide validated lists of and companies gain the local knowledge agents/potential partners, key market and networks of the agent/distributor in players and potential customers, question. However, there are also some approach contacts on your behalf to drawbacks. Employing a third party establish if they are interested in results in an additional cost to your working with you, as well as arranging products and you may lose some control appointments and organising events. and visibility over sales and marketing. It also has implications for intellectual property rights protection, increasing the risk of your product being copied or counterfeited.

Given these considerations, you need to select agents and distributors carefully. Your local UKTI office will advise you on how to commission a tailored report for your specific needs and can also provide a list of the best potential partners. A visit to South Korea will enable you to meet some of them and appoint a local contact.

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Suggested questions to ask agents/distributors

You should also conduct due diligence to verify this information.

Background :

• Company size, history and ownership (private or state-owned) • Quality and quantity of the sales force • Customer feedback and trade/bank references

Distribution channels:

• Regional coverage • Types of outlets covered and frequency of visits • Transportation and warehousing facilities

Are they right for you?

• Does the agent/distributor have a genuine interest in representing your product? • Can they benefit from actively promoting your interests (is it a win-win)? • Do they also represent any competing companies/products? • Can you communicate effectively with your counterpart?

Once a working relationship has been established, the agent/distributor needs you to actively manage them by:

• visiting as regularly as is practicable at a senior management level. This shows interest in, and commitment to, the agent and the market. It will also provide you with an opportunity to learn about conditions in the market and see how your products are doing. • working closely with the agent to show them how they can profit from your products. • helping to prepare marketing and sales plans for the agent. • providing regular training for sales staff and after-sales training for technical staff in the UK. • linking performance to incentives and agreeing milestone targets.

There is additional guidance on working with South Korean partners in later sections of this guide.

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Licensing and franchising However, this has changed, thanks to the South Korean government’s continued Licensing and franchising are alternative efforts to ease regulations and encourage approaches to selling products and more foreign investors. services, but the exact business model will vary, depending on the sector and It is now possible for foreign companies to company. It is worth noting that South establish a business in South Korea, even Koreans have a different view of as sole traders, providing they follow the contractual agreements from UK correct guidelines and procedures and set companies. There is a tendency to regard themselves up as an appropriate legal them as “gentlemen’s agreements” entity. The company must also be that can be subject to renegotiation if compliant with South Korean legal and circumstances change, rather than as tax requirements. The South Korean a binding contract. It is a good idea to government website, www.korea.net exercise caution when entering into contains information about how to set licensing agreements. UKTI in South up a business in the country. Korea can advise on this, as well as other aspects of licensing and franchising. Once you have decided where you’d like to establish your business, contact the Establishing a permanent presence local government office in your target region. These offices provide help for Having a permanent in-market presence companies wishing to set up in their can have several benefits, including: locality. There are details of metropolitan and provincial governments on the • demonstrating commitment korea.net website, or alternatively • cutting out the ‘middle man’, providing consult UKTI in South Korea. direct access to the end customer/ supplier Deciding what constitutes an appropriate • giving direct control over corporate legal entity for your business depends on strategy and activities your intended scope. There are a number • enabling trading in the local currency of legal structures that allow Foreign and easing the conduct of business Invested Enterprises (FIEs) to do transactions business in South Korea, as outlined • fulfilling a legal requirement to have below. Each has its own advantages, a permanent presence (relevant in restrictions and drawbacks, so it is certain business activities and essential to choose the option best suited sectors). to your aims. Setting up an FIE is a common method of creating an operation In the past, foreign investors who wanted in Asian countries and can have a number to do business in South Korea were of legal structures. required to have a South Korean partner.

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It is usually more difficult to alter a Representative offices business structure once a legal entity has been incorporated or established, so Representative offices are often the first it is essential to seek professional advice step taken by foreign companies when during the early stages of planning. UKTI establishing a permanent presence in can offer dedicated one-to-one consulting South Korea. They provide a vehicle and incorporation services to assist UK through which the foreign investor can companies establishing various kinds undertake activities such as market of permanent presence in South Korea. research, customer liaison and support. Please contact UKTI for more details. Representative offices can also organise business visits from company Legal structures headquarters, which can make the process of obtaining business visas for Foreign invested enterprises (FIEs) in visitors much easier. Public relations South Korea are governed by the Foreign work and local administration are also Investment Promotion Act (FIPA) and the permitted. However, a representative Commercial Code of Korea. The aim of office cannot conduct sales activities. This FIPA is to create a level playing field means they cannot sign contracts, receive between South Korean investors and income or issue invoices and tax receipts. foreign investors, so that both are treated more or less equally. Branch offices

FIPA states that: Branch offices can be used for companies that do not plan to have their head office • foreign investors can invest in virtually in South Korea but need the ability to any type of business in South Korea exercise their rights, based on the South • potential foreign investors only have Korean legal system, and establish their to notify the relevant government own property there. A registration fee is authorities, rather than having to seek payable, based on the authorised share consent. capital of the parent company. A higher registration fee is payable if the parent FIEs established under FIPA are entitled company has a high authorised share to certain tax incentives provided by the capital. Special Tax Treatment Control Act of Korea. In return, they are required to Joint ventures invest 50 million Korean Won (approximately £28,000) or more in A joint venture (JV) is an organisation the local corporation. jointly owned by one or several South Korean and foreign partners. It can be The Korean National Tax Service provides formed by way of equity contribution, information about the taxation system for whereby ownership, risk and profit are foreign investors. For detailed advice on shared, based on each party’s monetary any aspect of establishing a permanent contribution. Alternatively, a JV can be presence in the country, contact UKTI incorporated, with liabilities and profit South Korea. distribution being decided by contractual agreement.

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JVs can be beneficial in a number of Foreign investment report ways. A good local partner may contribute A foreign investor, or an agent, may market knowledge and strong marketing report their investment at Invest KOREA and distribution channels, and they may (KOTRA), Korea Business Centres (KBC) help reduce the costs and risk of market of KOTRA, headquarters and branches entry. of domestic foreign exchange banks, or domestic branches of delegated foreign The challenge of establishing and running banks. a successful JV is to find and nurture the right partnership. Partners have to • Reporting person: A foreign investor overcome issues such as mismatched or an agent expectations and differences in business culture and practices. The ability to • Delegated agency: Headquarters and maintain effective communication, and branches of domestic banks, control, where necessary, is also crucial. domestic branches of delegated It is essential that you carry out corporate foreign banks, Invest KOREA and financial due diligence before you (KOTRA), or Korea Business Centres sign up to any partnership. Companies (KBC) of KOTRA should also plan an exit strategy. Like a marriage, it is better to have a pre-nuptial • Processing period of a foreign agreement than a messy divorce. investment report: Immediate (The certificate of completion of report Foreign investment procedures is issued without delay).

Foreign investment procedures consist Follow-up management of foreign of the submission of a foreign investment investment report, remittance of investment funds, Where a foreign investor or a foreign- registration of a foreign-invested company invested company has completed and registration of incorporation and payment for an investment or acquired business. Where a foreign investor existing stocks, he/she/it shall take registers a privately-owned business, procedures to register a foreign-invested ‘registration of incorporation’ is not company to the president of KOTRA or required. The procedures applied to the head of a foreign exchange bank, as foreigners are basically the same as prescribed by acts and statutes of the for South Koreans except for the two Republic of Korea. The registration may additional areas: foreign investment be cancelled for certain reasons. reports and registration of a foreign- invested company.

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Corporation establishment Domestic branch of a non-resident (a foreign company) under the Foreign There are four ways that a UK company Exchange Transactions Act can establish a business in South Korea: A ‘branch’ that operates its business and generates profits in South Korea is not 1) a local corporation recognised as foreign direct investment. An ‘office’ can be defined in that it does 2) a private business set up by a not carry out business that generates foreigner or a foreign corporation profits in South Korea, but instead under - (both recognised as a foreign takes a non-sales function such as market investment) research, R&D etc. An ‘office’ is granted a distinct number (equivalent to business 3) a local branch, and: registration), at a jurisdictional tax office in South Korea without the need for 4) a local office in South Korea set registration, which is different from up by a foreign corporation (both a ‘branch.’ categorised as a domestic branch of the foreign corporation). For further details on incorporating in South Korea, contact UKTI South Korea Comparison of a foreign-invested or visit the offices of the Korean Trade Promotion Agency (KOTRA). company and a domestic branch

A foreign-invested company under the Foreign Investment Promotion Act Establishment of a local corporation in South Korea by a foreign national or a foreign corporation is regulated by the Foreign Investment Promotion Act and the Commercial Act. A foreigner shall invest not less than 100 million Korean Won for the local corporation concerned to be recognised as foreign investment under the Foreign Investment Promotion Act.

Private business established by a foreigner with the investment of not less than 100 million Korean Won, is also recognised as foreign investment under the Foreign Investment Promotion Act.

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SOUTH KOREA

Korean is the official business language of South Korea. However, English is widely spoken amongst senior business people and government officials. While high-level business meetings may be conducted mainly in English, your hosts will appreciate it if you use their language whenever possible. South_Korea:master 08/08/201414:39Page57 5 4 1 9 GETTING STARTED South_Korea:master 08/08/2014 14:39 Page 58 A E R O K Doing Business in South Korea H T U O S

Getting Started Due Diligence

Finding a customer or partner Many of the problems that foreign companies encounter when doing Once you have identified the best business in South Korea could have market-entry option for your company been avoided by carrying out some in South Korea, the next step is to find due diligence at the outset. potential customers or partners. There are different levels of due diligence, Tried and trusted methods include: appropriate for different situations. If your sole interest is in exporting, the best proof • Overseas Market Introduction of a South Korean company’s ability to Service: UKTI’s Overseas Market pay is a letter of credit from the bank. If Introduction Service (OMIS) can a company can produce this, you do not tailor-make a list of potential need to check its financial standing as customers, agents, distributors or the bank will have already done so. partners and arrange a programme of meetings with them when you visit A very simple piece of due diligence is to South Korea. OMIS can also be used obtain a copy of a company’s business to arrange a seminar or product licence. This will tell you the following: introduction event in South Korea, which can be an effective way of • the legal representative of the getting your message across to a company number of potential customers. • the name and address of the company • Trade shows and exhibitions: Trade • the amount of registered capital, shows and exhibitions take place in which is also its limited liability South Korea throughout the year and • the type of company can be an excellent way to meet • the business scope potential customers face-to-face. • the date the company was Arranging appointments in advance established and; with pre-identified contacts is • the period covered by the licence. essential if you want to make effective use of your time. You should check that the information contained in the business licence • UKTI-supported trade missions: UKTI matches what you already know and, if it supports a large number of trade doesn’t, then find out why. You will have missions to South Korea, organised more security if you know who the legally by trade associations and local responsible person is, so find out who you chambers of commerce. They are dealing with. The shareholders of the provide an excellent opportunity for company are responsible for the amount companies to visit the country to of liability as stated as registered capital find out how business is done and on the business licence. generate valuable sales leads.

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You can check whether or not the Employing Staff registered capital has been paid up by using a firm of accountants to get South Korea has a motivated and highly a Capital Verification Report. educated workforce that leads the world in a range of hi-tech disciplines. 7% of the If you want to establish a business country’s GDP is spent on education and relationship that goes beyond exporting, 74% of South Koreans undertake you will need to carry out further research. postgraduate-level education. You will It is not enough simply to obtain a copy of find workers here to be disciplined, hard a company’s accounts, as they may not working and keen to undergo training. be accurate. Accounts in South Korea are unlikely to be audited to the standards South Korea greatly values its workforce routinely expected in the UK, and and is keen to attract high-quality skills companies may have different sets of from overseas. It has recently relaxed accounts for different audiences, so it is restrictions on visas for overseas workers. advisable to use such data in conjunction The organisation Contact Korea, has with information obtained from elsewhere. Korean Business Centres in 29 countries around the world, including the UK, Good-quality consultancy and assistance dedicated to attracting talented people is available from firms resident in South to work in South Korea. Korea and the UK. These companies can For further information visit: carry out operational, financial, legal and www.contactkorea.go.kr/en technical due diligence checks, typically by looking at the actual operation of Skills development the business, and building up a more South Korea is keen to promote ongoing accurate picture by carefully interviewing skills development. South Korea’s people who work in and with the firm. Employee Skills Development Act exists to promote employee skills development UKTI has lists of consultancies based in and improve the productivity of the coun - the UK and South Korea that can provide try’s businesses. For further details visit: due diligence checks on South Korean www.moel.go.kr/english/topic/laborlaw_ companies. view.jsp?idx=220&tab=Skills

The Ministry of Employment and Labour (MOEL) in South Korea is the body that oversees issues such as employment conditions, industrial relations, accident protection, welfare promotion, job security and vocational training. For more information visit: www.moel.go.kr/english

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Recruitment channels Recruitment companies There are several channels for recruiting South Korea is a member of the staff in South Korea. It is worth International Confederation of Private remembering that South Korea is one of Employment Agencies (CIETT). There the most internet-enabled countries in the are many experienced domestic and world – 9 out of 10 homes have access international recruitment agencies to the internet and the country has the operating across the country’s main highest rates of broadband usage – so business regions. Companies like the internet is an ideal way of publicising Manpower, Heidrick & Struggles and job vacancies. See below for the most Adecco have a permanent base in South used channels for recruiting staff: Korea. Contact the British Embassy, British Chamber of Commerce or • Advertise jobs to UK graduates on the educational institutes. UK’s official graduate careers website: www.prospects.ac.uk/south_korea_ Recruitment process job_market.htm When you are recruiting in South Korea, make sure that you carry out all the • Online job services, such as normal steps that you would if recruiting www.contactkorea.go.kr/en and in the UK: http://jobs.asiabot.com • Ensure that candidates’ technical and • Classified adverts for jobs in English linguistic capabilities match their are available in English daily claims and that you hire staff at the newspapers, such as The Korea right level for the role. Times and The Korea Herald. • Carry out due diligence. This includes • Other newspapers (many of which conducting personal background have English-language pages) checks and checking all references include: Chosun Ilbo, Dong-a Ilbo, before offering the position. Korea Economic Daily, Maeil Business, Hangyore Sinmun, and • Offer appropriate remuneration. It can JoongAng Ilbo. be difficult to find up-to-date statistics on the going rate of pay for certain • Trade journals for key industry types of employment. Engineers, for sectors, such as Fashionbiz, M&M, example, can earn between 5 million VM Space, GG Game, Monthly KRW (US $4,500) a month and Design and Monthly Motors. 8 million KRW (US $7,200). Talk to UKTI South Korea for advice on • For industry-specific periodicals, salary levels. please contact the relevant UKTI Commercial Officer in South Korea.

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Overseas training Working hours Offering employees the opportunity to South Korea has one of the longest train overseas is also very attractive at all weeks in the world. Recent legislation levels, although make sure that in return limits the average working week in any for providing such training employees two-week period to 40 hours and prevents make a commitment to stay with your workers being required to work a 12-hour company for a specified period of time. day. However, this is not widely observed and most people still work late into the A word of caution evening. Standard working hours in the A lot of smaller companies setting up country are 09.00-18.00, Monday to an office in South Korea may well just Friday. employ one person to deal with all aspects of running the company. Although Public holidays this may be convenient and cost-effective, There are 15 national holidays in South it might not be the best way to run your Korea and most of them are observed by operation. the majority of offices and businesses. In addition, workers accrue leave based on If your employee is not familiar with their attendance record and the number the rules and regulations pertaining to of years with a company. running an international office or business in South Korea, then you may soon have to deal with issues of non-compliance, which could prove very costly. Moreover, having one person in control of all financial and legal aspects of the business is obviously risky.

Public holidays are:

January 1st: New Year’s Day 1st day of 1st lunar month: The Lunar New Year (Seolal) is the most important of the traditional Korean holidays and lasts three days March 1st: Independence Movement Day 8th day of 4th lunar month: Buddha’s Birthday (Seokka Tanshin-il) May 5th: Children’s Day June 6th: Memorial Day July 17th: Constitution Day 15th day of 8th lunar month: Mid-autumn Festival (Chuseok). This is also a three-day holiday

August 15th: Liberation Day October 3rd: National Foundation Day December 25th: Christmas Day

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Language English Korean

South Korea has its own language Good morning An nyeong ha se yo (Korean) and alphabet (Hangul). Hangul Good afternoon An nyeong ha se yo consists of 10 vowels and 14 basic consonants. You will find a basic Good evening An nyeong ha se yo explanation of Korean vowels and Good night An nyeong hi ju mu consonants on the Korea.net website; se yo www.korea.net

Korean is the official business language Goodbye An nyeong hi ga se of South Korea. However, English is yo widely spoken amongst senior business people and government officials. While high-level business meetings may be See you again To man na yo conducted mainly in English, your hosts Yes Ne will appreciate it if you use their language whenever possible. No Ah Ni Yo Please Bu tak ham ni da When speaking in English, remember to talk slowly and repeat key points. In order Thank you Gam Sa Ham Ni Da to save face, your Korean hosts will not Please sit down An ja Jeu Se Yo necessarily say that they don’t under - Please come in Tu ro ose yo stand something. Interpreters may be required for business meetings, Excuse me Sil ley ham ni da particularly outside Seoul and other major I come from Eso wat seub ni da cities. All important negotiations should be My name is... Je ireum eun carried out with an interpreter present so as to avoid doubt. It is also advisable to have all written documents translated What is your Ireum i mu eot ip ni into Korean. UKTI can help you find a name? ka? translator or interpreter.

Can you speak Young eo ha se yo? English?

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Marketing The media – South Korea is one of the few Asian nations where there is genuine To reflect the fast-paced nature of the news pluralism. The country has more South Korean marketplace, and its highly than 100 national and local daily sophisticated media, your marketing newspapers and readership is high. strategy will need to be continually There are several terrestrial TV networks reassessed, polished and refined. and most of the population subscribes to digital, cable and satellite. The country Sales literature – Trade shows and leads the world in high-speed and exhibitions are a good way of meeting wireless internet. You may wish to work potential new customers, but you still with local marketing specialists who will need to persuade them to buy your understand the most appropriate product. To be most effective, sales channels for reaching your target market. literature should be in Korean and in English and you need to decide what UKTI in South Korea can provide contact kind of advertising is appropriate. details.

Product and service adaptations – TV and radio – South Korea has four You may need to adapt your product or main broadcasting companies: Korean service to meet the needs of the South Broadcasting System (KBS), Munhwa Korean market. Marketing research can Broadcasting Corporation (MBC), Seoul help you to identify any adaptations you Broadcasting System (SBS) and need to make. Education Broadcasting System (EBS). Most broadcast in Korean only. There are Brands – South Koreans are brand-savvy also many cable and satellite channels, and price-conscious. They associate including Arirang TV, Donga TV, On imported brand names and higher prices Game Net and MNET. with superior quality. Consequently, South Koreans will pay close attention to country Arirang TV is the main English of origin, particularly when shopping for broadcaster and some foreign news clothes. They tend to prefer fashion channels are available, including the BBC brands imported from Europe and the US and CNN. KBS runs six radio networks, over imports from other Asian countries, including KBS World Radio, while such as China. Luxury brands are viewed Munhwa Broadcasting Corporation also as a mark of wealth and social status. has its own radio stations. TBS eFM is the Seoul-based English-language network. Sales promotion – Companies that appoint local partners can usually be Newspapers – Among the main daily guided by them with regards to the type newspapers are: Chosun Ilbo, JoongAng of advertising and sales promotion that Ilbo, Dong-a Ilbo, Hangyore Sinmun; would suit the launch of their product/s. Hankook Ilbo and Munhwa Ilbo. There UKTI in South Korea can advise on using are three main English-language the residence of the British Embassy in newspapers: The Korea Herald, The Seoul to announce the launch or Korea Times and The JoonAng Daily, presence of UK goods and services in which comes bundled with The the country. International Herald Tribune.

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News agency – The news agency for Interpreters South Korea is Yonhap News Agency. While English is widely spoken among Internet – According to Internet World international businesses in South Korea, Statistics, nearly 37.5 million South you will generally need to employ Koreans were online in June 2009. The interpreters during formal meetings and country leads the world in wireless and negotiations to prevent any high-speed internet. misunderstandings.

Day-to-day communications There are two forms of interpreting.

Once you have made contact with a Consecutive interpreting means you South Korean company, it is likely that speak and then your interpreter speaks: your day-to-day phone and email this is the usual form for meetings, communication will be in English with one discussions and negotiations. of the firm’s English-speaking members of staff. If you do not think the standard Simultaneous interpreting involves the of English is up to scratch, you might immediate translation of your words as wish to ask for parallel texts in Korean you speak them. This requires special and get them translated. This could form equipment and can be expensive. It is a valuable investment. generally used only for large seminars and conferences. If you are going to sign anything – as obvious as it sounds – make sure you get Interpreting is a skill requiring professional it translated first – and by an independent training. Just because someone is fluent translator. Do not rely on your suppliers’ in English and Korean, it does not translation and do not be pressurised into necessarily mean that they will make signing anything that you do not fully a good interpreter. understand. Most breakdowns in over - seas business relations occur because If you are giving a speech or presentation, of fractured communications and mutual remember that the need to interpret misunderstandings. everything will cut your speaking time approximately in half (unless using If South Korea is likely to become a simultaneous interpreting). It is essential significant part of your business, you may to ensure that the interpreter can cope wish to consider hiring a Korean-speaking with any technical or specialist terms member of staff. You might also consider in the presentation. If you are giving taking up the challenge of learning a speech, give the interpreter the text Korean yourself. However, even if you do well in advance and forewarn them of achieve a level of fluency, an interpreter any changes. or Korean-speaking member of staff is still an essential for business meetings.

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To get the best out of your interpreter:

• Hire a well-briefed professional interpreter. Though this is likely to be expensive, it will be money well spent.

• Have your own interpreter available, even if your South Korean counterparts have one for their side. With your own interpreter, you should also be able to get some post-meeting feedback concerning the nuances of what was said (and – just as importantly – not said).

• Try to involve your interpreter at every stage of your pre-meeting arrangements. The quality of interpretation will improve greatly if you provide adequate briefing on the subject matter.

• Ensure your interpreter understands what you are trying to achieve.

• Speak clearly and evenly with regular breaks for interpretation.

• Don’t ramble on for several paragraphs without pause. Your interpreter will find it hard to remember everything you have said, let alone interpret all your points.

• Conversely, don’t speak in short phrases and unfinished sentences. Your interpreter may find it impossible to translate the meaning if you have left a sentence hanging.

• Avoid jargon, unless you know your interpreter is familiar with the terminology.

• Listen to how your interpreter interprets what you have just said. If you have given a lengthy explanation but the interpreter translates it into only a few words, it may be that they have not fully understood, or they may be wary of passing on a message that is too blunt and will not be well-received by the audience.

• Make sure that your message is getting through clearly and in a tone that will not cause resentment.

A list of translators and interpreters is available on request from UKTI in South Korea.

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SOUTH KOREA The South Korean government has transformed the country into one of the top 10 business-friendly economies in the world. It is keen to encourage foreign investors and has been making stringent efforts to ease excessive regulations and provide incentives for FDI. South_Korea:master 08/08/201414:39Page67 w w w . S o u t h K o r e a . D o i n g B u s i n e s s G u i d e . c o . u k 6 9 BUSINESS ISSUES AND CONSIDERATIONS South_Korea:master 08/08/2014 14:39 Page 68 A E R O K Doing Business in South Korea H T U O S

Business Issues And Considerations procurement

Intellectual property Rights (IpR) The Republic of Korea is a member of the World Trade Organization (WTO) and has It is recommended that you register your signed subsidiary agreements including patents and trademarks with the Korean TRIPs (Trade Related Aspects of Intellectual Property Office (KIPO) before Intellectual Property) and the Government you commit to any important deals with Procurement Agreement (GPA). South Korean companies. In principle, the patent and trademark registration system The Public Procurement Service (PPS) – in South Korea is based on which was the handles the purchase of goods and first company to register successfully with incidental services required by central KIPO. Therefore, the sooner you register, and sub-central government bodies, the better. Companies that do not register government construction contracts and in South Korea will be disadvantaged in stockpiling raw materials. any future disputes over IPR. However, not all GPA-covered UKTI in South Korea can provide a list of procurement is handled by the PPS. local lawyers for UK companies requiring South Korean government-invested professional legal advice on business corporations handle procurement issues. in-house using the same open and formal procedures required by the GPA. Korean Intellectual Property Office Potential bidders must register with the PPS at least one business day before the International Co-operation Division date the bid begins. Foreign bidders are Government Complex allowed to register with the PPS prior to Daejeon entering into a contract. Failure to register Dunsan-dong can mean your bid is rejected so it is a Seo-gu good idea to register promptly. Daejeon Metropolitan City Korea South Korea uses the Government e-Procurement System (GePS), which Tel: +82 42 481 5208 publishes details of all public procurement Fax: +82 42 471 7140 contracts. Bids can be viewed on the PPS website and are valid for at least 45 days Website: after the bid opening date. www.kipo.go.kr/kpo/user.tdf?a=user. english.main.BoardApp&c=1001 UKTI in South Korea can also offer advice on procurement.

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Regulations, incentives and tax Exchange controls South Korea has liberalised foreign- With the exception of high-risk items exchange controls in line with OECD related to public health and sanitation, benchmarks. national security and the environment, which often require additional An overseas firm that invests under the documentation and technical tests, goods terms of the Foreign Capital Promotion imported into South Korea by companies Act (FCPA) is permitted to remit a with no record of trade-law violations substantial portion of its profits, providing don’t require customs inspection. it submits an audited financial statement to its foreign exchange bank. Importers can make an import declaration online using the Korean Customs To withdraw capital, firms must present Service’s (KCS) Electronic Data a stock valuation report issued by a Interchange (EDI) system for paperless recognised securities company or the import clearance. There is no need to Korean Appraisal Board. Foreign visit the customs house. companies not investing under the FCPA must repatriate funds through authorised Import declarations may be filed at the foreign-exchange banks, once they have customs house before a vessel enters obtained South Korean government a port or before the goods are unloaded approval. into bonded areas. Goods don’t have to be stored in the bonded area if the South Korea does not routinely limit the import declaration is accepted. repatriation of funds, except in highly exceptional circumstances. Exporters can file an export notice to South Korean Customs by computer- The Bank of Korea ( http://eng.bok.or.kr ) based shipping documents at the time of has detailed information about foreign- export clearance. All commodities can be exchange control policies in the country. freely exported unless they are included on the negative list. Restrictions Most imported goods no longer require South Korean Customs allows free South Korean government approval, but customs entry to goods brought into some products, mostly agricultural, face South Korea that are hand-carried by import restrictions, such as TRQs oreign business people (such as laptop (Tariff-Rate Quotas) with prohibitive personal computers) for use during their over-quota tariffs. stay in the country. There are some exceptions, but this is rare. Generally, South Korea implements quantitative South Korean Customs makes a note restrictions through its import licensing on the traveller’s passport which requires system. them to take the item/s out of South Korea when they depart.

To view South Korean customs regulations, visit: www.customs.go.kr/eng

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Investment rules and incentives The incentives include: Definition of FDI – The South Korean government describes foreign direct • Tax support – corporate and income investment (FDI) as “an investment tax on business income, dividends, made by a foreigner for the purpose technology introduction of establishing a continued economic considerations and earned income relationship with a corporation in the have been reduced for foreign firms Republic of Korea or a business owned and investors. Acquisition tax, by a citizen of the Republic of Korea”. registration tax and property tax have also been lowered. FDI includes the acquisition of shares or equity from a South Korean corporation • Cash grants – central and local or business, providing long-term loans governments provide grants to foreign to Korean corporations, contributing to investors to build new factories, as non-profit organisations and other similar long as they meet certain criteria. activities. FDI differs from a portfolio Among the factors taken into account investment, the purpose of which is to are whether it is a hi-tech industry or earn margins from stock transactions involves technology transfer and the for short-term profits. number of jobs created.

Rules relating to FDI – FDI in South • Site location support – foreign Korea are covered by the Foreign investment zones are designated to Investment Promotion Act (FIPA). This attract FDI. Businesses that locate states that a foreigner may carry out in these zones receive certain investment activities in South Korea incentives. without restriction unless the investment is deemed harmful to national security, • Other support – land, factories and public order, the health and wellbeing other national or public properties of South Korean nationals or Korea’s owned by central or local government environment, or unless it goes against may be used, leased or sold to established social morals, customs or foreign-invested companies through a laws. private contract, with a lease period of up to 50 years. At the end of the lease FDI incentives – The South Korean period, the contract may be renewed government has transformed the country for up to a further 50 years. into one of the top 10 business-friendly economies in the world. It is keen to Further information about FDI incentives encourage foreign investors and has is available at www.investkorea.org been making stringent efforts to ease excessive regulations and provide incentives for FDI.

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Customs and regulations There are two methods of determining a duty amount: Declaration & Payment, and Notice of Assessment. In Declaration & Payment, the person wanting to import goods makes a declaration on the payment of the customs duties direct British Chamber of Commerce in to the customs house. In Notice of Korea (BCCK) Assessment, the customs house imposes The BCCK has around 200 members, and collects customs duties. In most of which approximately a quarter are cases, businesses use the Declaration South Korean. Its aims are to promote the & Payment method. The Notice of development of British trade, commerce Assessment system is mainly used for and investment in South Korea, to the imposition of minor customs duties, represent the opinion of the British such as on passengers’ and crews’ business community in South Korea on goods, unaccompanied baggage and trade, commerce, finance and industry, to postal matters. help create better understanding between the South Korean and British business Related information and customs forms communities and to provide opportunities can be found on the Korea Customs for members to meet for business and Service website: social networking. http://english.customs.go.kr

British Chamber of Commerce in Korea Export documentation 20th Floor Regus Business Centre If you are exporting to South Korea, you Korea First Bank Building will need the following documents to clear 100 Gongpyrong-dong South Korean Customs: commercial Jongro-gu invoice, certificate of origin, packing lists, Seoul bill of lading and maritime insurance. Korea 110-702 As an exporter of goods you need to Tel: +82 2 720 9407 develop an understanding of various Fax: +82 2 720 9411 issues, such as: Email: [email protected] Website: www.bcck.or.kr • the legal and regulatory requirements your consignments have to comply with Free economic zones • the paperwork involved The South Korean government has • the right mode of transport, i.e. road, established special zones, called free air, rail and sea economic zones, in certain areas to • packaging and labelling encourage FDI. These are self-contained • how freight forwarders can help you living and business districts, with air and • rules for dangerous goods. sea transport, logistics, international business centres, financial services, houses, schools, hospitals, shopping and entertainment. There are currently six free economic zones in South Korea, including: Incheon, Yellow Sea, Saemangum/Gunsan, Daegu/Gyeongbuk, Gwangyang, and Busan/Jinhae.

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UKTI in South Korea can provide The Certificate of Origin should indicate guidance and information. the item’s description, quantity, price, Labelling and packaging regulations place of origin, exporter and importer, and Country-of-origin labelling is required for be written in English, Korean or French. commercial shipments entering South For items shipped directly to South Korea Korea. Further labelling and marking from their country of origin, the Certificate requirements for specific products, such of Origin should be issued by the relevant as pharmaceuticals and food, are covered customs authorities or Chamber of by specific regulations from the South Commerce. The items themselves should Korean government agencies responsible be clearly marked with their country of for these items. origin.

Korean language labels, except for Tax country-of-origin markings that must be The South Korean government website, shown at the time of customs clearance, www.korea.net contains a list of district can be attached locally on products in tax offices which have foreign taxpayer the bonded area, either before or after service desks. Further information on clearance. the country’s taxation system is available from the National Tax Service The Korea Food & Drug Administration www.nts.go.kr/eng or from UKTI (http://eng.kfda.go.kr ) is responsible for in South Korea. setting and enforcing Korean labels for food products, other than livestock Getting your goods to South Korea products. These are regulated by the Ministry of Food, Agriculture, Forestry By sea: South Korea has extensive and and Fisheries ( http://english.mifaff.go.kr ) modern infrastructure, including major which also has its own set of standards port and airport facilities. Busan is the for markings for the country-of-origin country’s largest port and the fifth-largest labelling of agricultural products. in the world. It is located on the south eastern-most tip of the Korean peninsula, The Korean Customs Service facing the Korean Strait. Busan is well (http://english.customs.go.kr ) publishes connected to Seoul and the rest of South a list of the country-of-origin labelling Korea by the KTX high-speed rail system. requirements by Harmonised System Incheon also has a major international Code number. Local importers usually port at Yeongjong. print Korean language labels when imported quantities are not large, and can By air: Incheon International Airport is the consult with the Korean Customs Service main gateway to South Korea. Located as to where they can be attached to the just over an hour west of Seoul, the product. airport is one of the most technologically advanced in Asia. Other international airports include Gimpo Airport, near Seoul, and Gimhae Airport, for Busan and other major cities.

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Freight forwarding: Sea and air freight South Koreans usually like to deal in services to South Korea are provided by US dollars because this is still the a range of companies. Freight forwarding predominant currency in Asia. Sterling companies can provide advice on the is an acceptable currency, but for price best way to ship goods to South Korea. comparison purposes a sterling price It takes approximately two to three weeks will invariably be converted to US dollars, to ship goods from the UK to South Korea usually at a rate that is beneficial to the by sea, but this will depend upon the level buyer. You may consider it appropriate, of service and the company providing it. therefore, to quote in US dollars in the first instance. Courier: There are many companies providing courier services to South Korea. South Koreans are formidable UKTI in South Korea can provide more negotiators, but they will pay a fair and information. competitive price. The price quoted should be on a FOB (Freight on Board) Postal parcel/express mail service: basis. South Koreans usually like to The main South Korean postal service organise the shipping themselves on provider is Seoul-based Korea Post, part the basis that they can negotiate more of the Ministry of Knowledge Economy. competitive rates. It provides postal, banking and insurance services. www.koreapost.go.kr/eng Banking

Getting paid and financial issues Opening hours: Banks in South Korea are open between Incoterms 09.00 and 16.00, Monday to Friday. Exporters will find Incoterms 2000 a The country’s central bank is the Bank useful guide for specifying their of Korea. obligations for delivering goods safely in international contracts. Incoterms provide Local commercial banks include: guidance on the commonly used terms in Hana Bank, Kookmin Bank, Korea international trade. It is a ‘must read’ for Exchange Bank, Shinhan Bank, Woori a company’s marketing and sales team. Bank

Terms of payment Foreign commercial banks include: The payment terms you can normally ABN AMRO, Bank of America, Bank of expect in South Korea are “100% Tokyo-Mitsubishi, Citibank, Deutsche Confirmed Irrevocable Letter of Credit,” Bank, HSBC, Mizuho Corporate Bank, and these are the terms you should SC First Bank quote. You are unlikely to obtain deposits with order, or prior to shipment, and it Merchant banks include: may be counterproductive to try to insist Kumho Investment Bank, Meritz, on them. Letters of Credit are normally Tong Yang Securities Inc. opened four to six weeks prior to the shipment date. All commercial banks are authorised foreign-exchange dealers. Licensed The expiry date of the Letter of Credit money changers are also found in urban will be geared very much to the promised centres, ports, airports and major delivery date. It is important, therefore, shopping complexes. that delivery promises are fulfilled or the Letter of Credit will expire.

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Currency Export Finance Department The currency of South Korea is the (formerly Export Credits Guarantee Korean won (KRW). A single won is Department, ECGD), a separate UK divided into 100 jeon. The jeon is no Government department that reports longer used for everyday transactions, to the Secretary of State for Business, and appears only in foreign exchange Innovation and Skills, provides a range rates. of products for exporters of such goods and services. Under exchange-control rules travellers may import or export up to US $10,000 UK Export Finance per person without prior approval. There are no limits on the amount of foreign Tel: +44 (0)20 7512 7000 currency (notes and/or traveller’s Website: www.gov.uk/government/ cheques) travellers may import. organisations/uk-export-finance

Insurance Management, control and quality assurance The private sector in the UK provides credit insurance for exports of consumer UK companies use a variety of quality products, raw materials and other similar assurance and management control goods. Speak to your banker or insurance techniques in South Korea. These include broker for more information, or contact the extensive travelling by UK personnel, a British Insurance Brokers’ Association for controlling or liaison presence in South impartial advice. Korea and providing extensive training and management for South Korean staff. British Insurance Brokers’ Association It is important not to allow milestones Tel: +44 (0)870 950 1790 to slip by, whether these are attending (consumer helpline) a board meeting in a joint venture or arranging a quality audit at a supplier. Email: [email protected] Particular attention to detail should Website: www.biba.org.uk be paid when sourcing products from South Korea. Specifications can be Private-sector insurance has some easily misunderstood, so they need to limitations, particularly for sales of capital be very clearly explained and agreed, goods, major services and construction and a quality management system put projects that require longer credit in place with the South Korean company. packages or that are in riskier markets. Consultancies can undertake all or part of this process on your behalf.

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Bribery and corruption Travelling within South Korea South Korea has a well-developed Corruption remains an issue in South transport network, with good road, rail Korea. In 2010, the country was ranked and air links. Most domestic destinations 39th on Transparency International’s are within an hour’s flight of Seoul. corruption perception index. This is up from 40th place in 2008 and 43rd in 2007, Korea Air, Asiana Airlines and a few so the country is moving in the right domestic discount carriers handle flights direction. Nevertheless, as the 12th- within the country. Gimpo Airport, located largest economy in the world, one might between the western area of Seoul and expect South Korea’s business economy the newer Incheon International Airport, to be more transparent than it is. handles most domestic flights, as well as short-haul flights to Japan and China. Although the number of cases of corruption in the public arena has Gimpo Airport is easily accessible via decreased, the authorities have yet Subway Line 5 from Seoul, a journey that to stamp out bribery and corruption takes around 45 minutes. The capital has completely. an excellent subway system, as well as plentiful buses and taxis. Gimpo Airport Our advice to companies encountering also has its own bus service. corruption is simple - don’t get involved. Not only are there issues of business Places to stay, eat and shop integrity to bear in mind, but also, of As well as advising on business issues, course, it is illegal. Invariably, corruption the UKTI team in Seoul can offer is related to lack of professionalism and practical, on-the-ground assistance with control, both of which are damaging to all aspects of your business trip, from long-term business. where to stay through to good places to eat or hold product launches. Getting to South Korea Visas By air There are different types of visa for South Korea has international airports people who want to work or invest in at Incheon, Gimpo and Gimhae. South Korea: Two airlines, Korean Air and Asiana Airlines, operate daily direct flights from Foreign investors need to apply for a London to Seoul (flight time around Foreign Investment Visa, known as a D-8. 11 hours), with British Airways also To obtain a D-8 you will need to apply to operating the route 6 times a week. the South Korean Embassy in London. Incheon International Airport handles Before you do so, you will need to appoint all international flights whereas Gimpo a South Korean taxation accountant to act Airport handles all domestic flights and as your tax agent, to ensure that your short flights to/from Tokyo, Osaka, taxes are paid on time. Your agent will fill Shanghai and Nagoya. in a form that has to be submitted to the immigration authorities. Getting to and from the airport Incheon International Airport’s website Anyone staying in South Korea for more contains detailed information about than 90 days must apply for an alien buses, trains and taxis from the airport, registration card. including estimated times and fares to major destinations: www.airport.kr/airport/traffic/bus/ busList.iia?flag=E

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South Korean Embassy

60 Buckingham Gate London SW1E 6AJ

Tel: +44 (0)20 7227 5500 Fax: +44 (0)20 7227 5504 Website: http://korea.embassyhome page.com/

Time zone South Korea is nine hours ahead of Greenwich Mean Time.

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South Korean Culture Confucian values: South Korean society operates according to Confucian values. In a highly competitive business These state that people should respect environment, it is more important than authority, respect the collective, behave ever to understand the business culture virtuously, work hard and learn hard, of your target markets. Understanding avoid extremes and live moderately. business culture helps you to understand, You will find that, if you can demonstrate anticipate and respond to unexpected these qualities, you will be more behaviour. It also ensures that you successful in your business relationships. behave in an acceptable way and avoid misunderstandings. Kibun: There is also the concept of “face” (kibun), which is found in so many Asian The South Korean market is a favourite societies. South Koreans strive for among foreign direct investors. However, harmony in their business and personal while the country’s thriving economy, relationships. To prevent loss of face, they liberalising marketplace and widespread will avoid confrontation or will tell others use of English in business make it an what they want to hear rather than appealing choice to UK investors, there tackling issues head on. For example, are some significant cultural differences rather than say “no”, they might say “I’ll and challenges to be aware of. try.” This allows both the person making the request, and the person turning it down, to save face and maintain harmony in the relationship. Some Westerners can find this approach confusing.

Try rephrasing the question in different ways so you can compare the answers you get. South Koreans are very protective of their kibun, or personal dignity. If you threaten it, you risk being excluded from future decision-making, so be very careful in your business negotiations and always be respectful and mindful of kibun.

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Business Etiquette Cultural differences also influence communication. Traditional culture Relationship building favours harmony rather than confrontation Everything depends on personal often causing Westerners to understand relationships so it is important to spend silence as acceptance. time establishing a good working relationship and building trust with South Negative questions are understood Koreans. Sport, families and hobbies are differently and ‘yes/no’ questions are all good topics of conversation. South unreliable. Ask questions from several Koreans may enquire about your personal directions to verify that the message has life, in an attempt to establish your age been successfully communicated. and status, and to build a relationship with Your counterpart is unlikely to request you. You should answer these questions clarification even if understanding is honestly and openly, but without being not complete. boastful. When making presentations, minimise One can ‘borrow’ relationships, and words and maximise graphs, charts and introductions are very helpful but visuals that can communicate across successful business requires one to build languages and cultures. ones’ own relationships. Devote time getting to know your counterparts both South Korea is a country where things professionally and personally. Work on can happen extremely quickly. Same day developing your relationships just as response is the norm. A week without you would your professional skills. Mix communication is interpreted as lack of business with pleasure. Develop, sustain interest and/or termination of a project. and grow your personal network. You will find being introduced to a company by a trusted third party, such as the British Embassy, more effective than going in cold – UKTI in South Korea can help you here. If you make a mistake in business, always own up to it and demonstrate what you are doing to put it right.

Communication While many South Koreans are comfortable communicating in English, many talented and capable South Koreans are not. Accommodate your language to your audience. Speak in clear, basic English. Do not rely solely on verbal communication but reiterate your messages in writing.

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Meetings Handshakes You will need to book meetings well A slight bow, followed by a handshake, in advance and make sure you arrive is the preferred way of greeting somebody punctually, even if your host does not. in South Korea. More junior personnel Your approach should be formal but will bow first to their senior colleagues. friendly, although avoid making jokes You should wait for more senior personnel as this could be interpreted as a lack to offer their hand first. of respect for your host. South Koreans prefer a softer handshake The top-down management style of South and, during the handshake, you may Korean companies means it is important support your right forearm with your to show respect for authority. Ideally, the left hand. Some senior South Koreans most senior person in the team should consider eye contact as rude, but that’s enter the room first and greet the most not the norm. It is advisable to make senior South Korean representative. direct eye contact when addressing In general, you should introduce older South Korean business professionals people to younger people and women in order to show honesty and interest. to men. Make sure that you show due A man greeting a South Korean business respect and use people’s titles correctly. woman should wait for her to initiate Leaders should sit opposite one another a handshake, as some women prefer around the table. to bow instead. Never use your index finger to point at somebody. Remember that the aim of initial meetings is usually to get to know one another, Body language so don’t expect to begin business Body language is an important way of negotiations right away. showing respect towards someone older or a more senior person in South Korea, You will always be offered ‘Tea’ (which as is using their honorific title when can also be coffee, juice, water or greeting them. Keeping your legs straight something else); it is awkward to refuse and your upper body in a slight stoop so better to accept even if not consumed. denotes respect. A slight bow is also Wait until these rituals have been used when expressing an apology (for completed to commence business example, if you tread on somebody’s discussions. foot). You should also bow deeply when saying goodbye and say Annyeong- Allow your counterpart plenty of time to hee-gaseyo. Sneezing and blowing express his opinion; avoid dominating the your nose in public is considered rude conversation but try to listen and under - (and sometimes funny). If you have to stand what your counterpart is thinking. sneeze, try to make it quiet. If you do This is particularly true if your counterpart sneeze in front of somebody, make sure is weak at English. you apologise. Use both hands when giving or receiving anything (including business cards), as it is regarded as polite.

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Attire While this is very considerate and South Koreans tend to dress convenient for Westerners, fellow South appropriately for their work surroundings, Koreans often will not be aware of the as you would expect in the UK. Black, Anglicised name so may not know who is blue and brown-coloured suits are being discussed. Titles are very important recommended. Tight skirts, low necklines among South Koreans and are used and sleeveless tops should be avoided, when addressing individuals. The most as should shorts. common address in Korean is title followed by surname, for example Hierarchy “Director Lee”. Hierarchy is an important concept in South Korean business. See ‘Meetings’ Women in business section in this guide for details of how you Although South Korean attitudes to should conduct business meetings with women in business are changing slowly, due regard for people’s experience and it is still very rare for women to hold senior seniority. positions in South Korea. Consequently, the opportunity to work with a foreign All South Korean relationships are company, with more enlightened attitudes hierarchical. The individual in the towards equality, tends to be welcomed ‘superior’ position is treated with by many professional women in the respect while the ‘junior’ is subservient country. (sometimes to the point of rudeness by Western values). Age, position in the Punctuality company, education, and marital status As has already been stated, you should all determine one’s ‘rank’ in society. be punctual for meetings and leave plenty of time for your journey to avoid arriving Westerners are often surprised that late. When engaged in a business they are asked very specific and even relationship, you should ensure that personal questions when they first meet delivery times are clear and that you a South Korean. Your counterpart is act quickly to remedy any problems. trying to determine where you fit in the hierarchy. Your ‘rank’ can have a major impact on who is willing to meet you and the nature of the dialogue (relative position). Titles are hierarchical rather than functional in South Korean companies. Know your counterpart and how he fits within his organisation.

Names and titles When addressing someone in business you should use their professional (for example professor, doctor, engineer) and honorific titles.

Korean names are written Surname, and then Given Name. Often in communication with Westerners, the order is reversed to accommodate our culture. Initials and Anglicised names are sometimes used to facilitate communication with Westerners.

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Business cards Giving small gifts is part of the process You will need to have a good supply of of building a business relationship in business cards as it is customary to South Korea. Items from the UK or your exchange these (using both hands) when particular region will be especially well- meeting a business person for the first received, as will items branded with your time. Your business cards should be company logo. It is customary for South translated on one side into Korean. Koreans to refuse the gift once or twice as a gesture of humility. You should give Be sure to treat someone’s business and receive a gift with both hands. Gifts card with respect as to do otherwise risks should be wrapped and it is customary insulting them. Examine the card before to wait until the giver is out of sight before putting it away, or place it face up on the opening them. Gifts should always be table in front of you during a meeting. reciprocated at the same level. Never write on someone’s card in their presence unless they are happy for you to Hospitality do so. One good tip is to ask a question Hospitality is an important part of South based on the information on the card. Korean business culture. You may be invited out to dinner in a restaurant or, Treat cards with respect; they represent occasionally, in someone’s home. your counterparts’ ‘face’, provide This is considered a great honour. important clues as to their importance and You should always remove your shoes, are a key tool for managing relationships. and remember to point them towards the front door. Negotiations South Koreans like to spend time getting Drinking to know their business associates, so Health consciousness has supplanted don’t expect important decisions to be heavy drinking with golf and other reached in the initial meeting. Avoid pursuits, but eating and drinking remain becoming visibly frustrated or irritated as important parts of relationship building, this could insult your host. Be patient, but particularly among the over 50 age group firm, allow plenty of time for negotiations – and drinking is serious not casual. and remain dignified throughout. While it is not common to drink at lunch, often beer or wine will be served Gift giving to accommodate “Western” habits. The culture of gift giving persists in Korea, particularly for formal meetings and South Korea has one of the highest rates meetings between very senior people. of alcohol consumption in the world and Also, when travelling overseas, taking a men are expected to partake in the gift for your host (and reciprocating) is not country’s drinking culture. Serious uncommon. For working level business drinking is done at night and is often a meetings, gifts are rare. However, hosting drawn-out affair demonstrating prowess meals is expected. and stamina.

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Be careful! Often, key commercial Caution with Numbers information is revealed at the very end of a drinking session so one needs to Simple things like numbers can lead to a be alert enough to catch the message. breakdown in business relations. Korean However, although drinking and dining counting indicates the units of time that a relationships are still important, condition existed. As a result, the practice increasingly the specifics of deals and is to start counting at one (you are one contracts are signed in a usual business year old when you are born, an overnight style and situation familiar to Western trip is a two-day trip etc). firms. Large numbers are confusing as If you’ve had enough to drink, avoid Northeast Asia counts in groups of four emptying your glass. If you don’t want digits (10,000, 100,000,000) rather than to drink, excuse yourself on medical or in thousands. religious grounds. It is considered polite to fill other people’s glasses rather than This makes converting large numbers your own. between English and Korean quite challenging. To a Korean, 5 million is Dining 500 ten thousands. When clarity is critical, Eating is an important component of write out the entire number with all its building relationships and ‘bonding’ in digits or use specific dates and times for Korea. It's rare for a meeting that ends starting and ending. near mealtime not to result in an invitation by the ‘host’, and it's common for the host Avoid culture-bound references to time to pay for the meal - sharing the cost such as Easter, which may not be familiar of the meal (in a business setting) is to South Koreans. Likewise, South unheard of in South Korea. Seminars Koreans may refer to events in the lunar and workshops always include a meal – calendar (Lunar New Year, Chuseok) that usually hosted by the event sponsor. will be unfamiliar to Westerners. Seek clarification when you are unsure. There are a number of rules you should observe when dining. Most of them are basic good table manners, but there are a few that are specific to South Korea. For example, you should not hold your rice or soup bowl in your hand during the meal. Spoons and chopsticks should not be rested on any bowl or dish and you should not hold them together in one hand. When an elderly person gets up, you should also get up. Younger people should not pick up their tableware before older people.

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For fee paying services including the acceptance of:

• notarial applications • birth registrations etc. • and for pre-booked appointments (marriage, notarial, citizenship ceremonies) British Embassy Seoul General enquiries: Scott Wightman - Monday-Friday: 14:00-16:30 British Ambassador to the Republic of Korea At these times we are open for general enquires and non-fee paying services only. Address: Please note, we only accept non- British Embassy Seoul emergency enquiry phone calls in the Sejong-daero 19-gil 24 afternoon. Jung-gu, Seoul 100-120, South Korea The Honorary Consulate in Busan Email: [email protected] Address: Telephone: (+82) (2) 3210 5500 British Honorary Consulate Facsmile: (+82) (2) 725 1738 c/o Michael Trade & Engineering, 1707, Ocean Tower, Haewoondae Office hours (Local time): Busan, South Korea Monday-Thursday: 09:00-12:30 / 13:30-17:15 Switchboard: (+82) (51) 740 5787 Friday: 09:00-12:30 / 13:30-17:00 Facsimile: (+82) (51) 740 5754 Consular information The Honorary British Consul in Busan provides the following consular services Address: for British nationals: Consular Section British Embassy in Seoul • Provision of certain fee-bearing Sejong-daero 19-gil 24 notarial services. For example, Jung-gu, Seoul, certifying signatures, legalisation 100-120 of documents, conducting Republic of Korea affadavits and administering oaths South Korea • Provision of assistance to British Email: [email protected] nationals in distress within the Telephone: (+82) (2) 3210 5500 Busan area Facsmile: (+82) (2) 3210 5653 • Provision of support to British Fee-paying services: nationals in the Busan area in the Monday-Friday: 09:30-12:00 event of a major crisis

Office hours: Monday-Friday: Source - www.gov.uk/government/world/ 09.30-12.00 / 14.00-16.30 organisations/british-embassy-seoul Saturday/Sunday: Closed

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We develop and maintain relations Please note that our embassy cannot between the UK and the Republic deal with individual enquiries about visa of Korea. We deal with a wide range applications. For all visa enquiries, please of political, commercial, security and contact the UK Border Agency or VFS economic questions of interest to the UK Global South Korea. and Korea. The embassy and its honorary consulate in Busan provide consular Notarial and documentary services assistance to British nationals in Korea. Information about official documents, certificates available at British Embassy Our services in South Korea. UK law says we have to charge for some services. See our list of Out-of-hours emergency assistance consular fees. British nationals who need emergency assistance outside normal office hours Registering a birth or death should call +82 (0)2 3210 5500 where Information on how you can register a they will be given details on how to birth or death which occurred overseas. proceed to contact Consular staff at the Global Response Centre. They will be List of lawyers and interpreters able to offer advice on urgent issues. A list of English speaking lawyers, translators and interpreters who may be Make a Consular appointment able to help you with official translations For all notarial and documentary services, in Korea. Please note that inclusion in you need to make an appointment. this list does not constitute official You can do so by visiting our Clickbook. endorsement by the British Embassy or the UK government. Emergency travel documents An emergency travel document enables Prisoner pack British nationals abroad whose passport Korea - Prisoner Pack explanation of is lost/stolen or unavailable because it is the legal and prison system to British being renewed or has been sent for visa nationals. application, to make a single or return journey to the UK or another country of Travel advice residence, via a maximum of five transit Travel advice for Korea: Information, countries. news and updates to ensure you stay safe, avoid problems, and make informed Passport renewal decisions when living or travelling in For information on how to apply for Korea. your first passport or renew an existing passport, please visit the overseas Living in South Korea passport section of this website. We also produce a guide for British nationals who live in South Korea who Please note that our embassy cannot need information about services that are deal with individual enquiries about not provided by our Embassy, but that you passport applications. may find useful in specific circumstances.

Visas For information on whether you require a visa for the United Kingdom and how to apply, go to the UK Border Agency website.

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How else we can help What our consulates cannot do for you

In addition to the services listed we can Although we try to help British nationals also: in a wide range of situations, we cannot:

• provide information about transferring • get you out of prison, prevent the funds local authorities from deporting you after your prison sentence, or • provide appropriate help if you have interfere in criminal or civil court suffered rape or serious assault, are a proceedings victim of other crime, or are in hospital • help you enter a country, for example, • help people with mental illness if you do not have a visa or your passport is not valid, as we cannot • do all we properly can to contact you interfere in another country’s within 24 hours of being told that you immigration policy or procedures have been detained • give you legal advice, investigate • offer support and help in a range of crimes or carry out searches for other cases, such as child abductions, missing people, although we can death of relatives overseas, missing give you details of people who may people and kidnapping be able to help you in these cases, such as English-speaking lawyers • contact family or friends for you if you want • get you better treatment in hospital or prison than is given to local people • make special arrangements in cases of terrorism, civil disturbances or • pay any bills or give you money (in natural disasters very exceptional circumstances we may lend you some money from UK law says we have to charge for some public funds, which you will have services. Details of our current fees and to pay back) the standards of service you can expect to receive are on display in all our • make travel arrangements for you, consular offices. (If you want to pay by or find you work or accommodation credit card you can use our Credit Card Authorisation Form) • make business arrangements on your behalf

Visit the Website and download the free Mobile App Resources:

Contact Details

If you have a specific export enquiry about the South Korean market which is not answered by the information in this guide, you can contact: Address:

British Chamber of Commerce in Korea 215th Floor Kyobo Building Jongno-1 Jongno-gu, Seoul Korea 110-714 UK Trade & Investment Enquiry Service Tel: +82-2-2010-8963 Tel: +44 (0) 20 7215 8000 Fax: +82-2-2010-8991 Fax: +44 (0)141 228 3693 Email: [email protected] Email: [email protected] / [email protected] You will be signposted to the appropriate section on our website, or transferred Website: www.bcck.or.kr directly to the British Embassy in Seoul.

Alternatively, you may contact the British Embassy directly:

UKTI South Korea

British Embassy Sejong-daero 19-gil 24 Jung-gu Seoul 100-120 South Korea

David Slatter UKTI South Korea Marketing Manager

Tel: +82 (0)2 3210 5647 Email: [email protected]

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Useful Links Market access:

Country information: Market access database for tariffs (for non-EU markets only): The British Chambers of Commerce http://madb.europa.eu/mkaccdb2/ in South Korea: www.bcck.or.kr indexPubli.htm

BBC website: SOLVIT – Overcoming Trade Barriers http://news.bbc.co.uk/1/hi/country_profiles (EU markets only): www.gov.uk Foreign & Commonwealth Office country profile: Standards and Technical Regulations: www.gov.uk/government/organisations/ British Standards Institution: foreign-commonwealth-office www.bsigroup.com/en/sectorsand services/Disciplines/ImportExport Culture and communications: National Physical Laboratory: CILT – National Centre for Languages – www.npl.co.uk Regional Language Network in your area: www.cilt.org.uk Intellectual Property Office: www.ipo.gov.uk Culture guides: www.kwintessential.co.uk Trade statistics:

Customs & regulations: National Statistics Information: www.statistics.gov.uk/hub HM Revenue & Customs: www.hmrc.gov.uk UK trade information: www.gov.uk/government/organisations/ Economic information: uk-trade-investment

The Economist: Travel advice: www.economist.com/countries Foreign & Commonwealth Office: Export control: www.gov.uk/browse/abroad

Export Control Organisation: NHS Healthcare abroad: www.gov.uk/beginners-guide-to- www.nhs.uk/nhsengland/ export-controls Healthcareabroad

Export finance and insurance: Travel health: UK Export Finance: www.gov.uk/ www.travelhealth.co.uk government/organisations/uk-export- finance

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Additional Useful Links Trade Shows

UK Trade & Investment: A trade show is a method of promoting a www.gov.uk/government/organisations/ business through the exhibition of goods uk-trade-investment and services, an organised exhibition of products, based on a central theme, Foreign & Commonwealth Office: where manufacturers meet to show www.gov.uk/government/organisations/ their products to potential buyers. foreign-commonwealth-office Taking part in overseas exhibitions is British Council: an effective way for you to test markets, www.britishcouncil.org attract customers, appoint agents or distributors and make sales. Trade Tariff: www.gov.uk/trade-tariff UKTI's Tradeshow Access Programme (TAP) provides grant support for eligible Middle East Association: SME firms to attend trade shows www.the-mea.co.uk overseas.

British Chambers of Commerce: Participation is usually as part of a group, www.britishchambers.org.uk a great advantage for inexperienced businesses, and is usually led by one IoD (Institute of Directors): of UKTI's Accredited Trade Association www.iod.com (ATOs). ATOs work with UKTI to raise the profile of UK groups and sectors at key CBI (Confederation of British Industry): exhibitions. www.cbi.org.uk 10 Times Institute of Export (IOE): (previously BizTradeShows.com) www.export.org.uk online database: www.10times.com British Expertise: www.britishexpertise.org British Expertise Events: www.britishexpertise.org Department for Business, Innovation & Skills (BIS): EventsEye.com online database: www.gov.uk/government/organisations/ www.eventseye.com department-for-business-innovation-skills UKTI South Korea related events: www.gov.uk/ukti

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H T U O S

Disclaimer

Whereas every effort has been made to No liability is accepted by IMA, UKTI, ensure that the information given in this the FCO or BIS for any loss or damage Guide is accurate, neither International (whether consequential or otherwise) Market Advisor (IMA), UK Trade & which may arise out of or in connection Investment (UKTI) nor its parent with the report. No warranty is given, or Departments, the Department for responsibility accepted as to the standing Business, Innovation & Skills (BIS) or the of any individual, firm, company or other Foreign & Commonwealth Office (FCO), organisation mentioned. accept liability for any errors, omissions or misleading statements and no warranty is A range of UK Government support is given or responsibility accepted as to the available from a portfolio of initiatives standing of any individual, firm, company called Solutions for Business. The or other organisation mentioned. "solutions" are available to qualifying businesses and cover everything from The purpose of the Doing Business investment and grants through to Guides, prepared by International Market specialist advice, collaborations and Advisor (IMA) in association with UK partnerships. UK Trade & Investment is Trade & Investment (UKTI), is to provide the government organisation that helps information to help recipients form their UK-based companies succeed in the own judgments about making business global economy and also helps overseas decisions as to whether to invest or companies bring their high-quality operate in a particular country. investment to the UK's dynamic economy - acknowledged as Europe's best place The Report's contents were believed from which to succeed in global business. (at the time that the Report was prepared) to be reliable, but no representations UK Trade & Investment offers expertise or warranties, express or implied, are and contacts through its extensive network made or given by IMA, UKTI or its of specialists in the UK, and in British parent Departments (the Foreign and Embassies and other diplomatic offices Commonwealth Office (FCO) and the around the world. UKTI provides (BIS) Department for Business, companies with the tools they require Innovation and Skills) as to the accuracy to be competitive on the world stage. of the Report, its completeness or its suitability for any purpose. In particular, none of the Report's contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument.