Winter 2018 Korean Government Project ECCK Connect DGFEZ Celebrates its 10th Anniversary page 24
The Quarterly EU Project European Union-South Korea Magazine of the Trade Investment Relations 2018 page 26
European Chamber of Social Responsibility Médecins Sans Frontières: Commerce in Korea 2018 Year-End Campaign page 50
Cover Story Financial and Economic Outlook 2019 Page 38 SS_Expat Sales_ECCK Q2_200*264_OL.indd 1 2018. 5. 16. �� 3:51 2 Chairman's Massege
Dear Readers, The ECCK hopes the white paper becomes a constructive communication tool for the Korean and European As 2018 quickly approaches the finish line, I wish you all authorities in looking for ways to maintain a mutually happiness and relaxation over the holidays. The year-end beneficial strategic relationship. season should be dedicated to family and friends to celebrating their love and encouragements throughout the year. In addition, we organized numerous events with industry experts and government officials, including two of ECCK’s The last season of the year 2018 has continued to be biggest events: ‘EU-Korea Innovation Forum’ and ‘Korea-EU fruitful for the ECCK. Focusing on further consolidating IPR Conference’. Also, the Chamber successfully concluded our government relations, ECCK has arranged high-level its second CEO forum with the leading European business meetings with Seoul Mayor Park Won Soon as well as leaders in the country. On behalf of the Chamber, I would Foreign Investment Ombudsman Kim Sung-jin in October. like to extend my appreciation towards everyone’s kind In November, with the aim of strengthening the commercial attention and support for our events. ties between Europe and Korea, the ECCK organized another successful business delegation’s visit to the EU and EFTA. To wrap up the successful year, ECCK Connect has prepared The delegates shared the updates of the Korean business interesting sets of articles for our readers. We hope you find and regulatory environment as well as challenges and this edition of ECCK Connect enjoyable and insightful. opportunities to further develop the investment partnership between the two sides.
At the same time, the ECCK released the 4th edition of its White Paper with great support from its members and partners. With the growing recognition of the Chamber’s importance every year, the publication was very well Dimitris Psillakis received by the public as well as the government officials. Chairman, European Chamber of Commerce in Korea Concordian (Kumho Asiana HQ) EA – N Tower
4 Table of Content
임대 대행 (Leasing) 임차 대행 (Tenant Representation) Fast Five Tower
02 Chairman’s Message 전략 컨설팅 자문 (Advisory) 리서치 (Research) State Tower Namsan Concordian (Kumho Asiana HQ) ECCK News
06 New Members
08 General Events
매입매각 자문 (Capital Markets) 자산관리 (Property Management) 13 Seminars & Forums
16 Busan Chapter News Research & Insights
18 Committee News 48 Europe-Korea Innovation Forum 2018
22 ECCK Winter Network Night AMBITIONS Social Responsibility Achieve Korean Government Project 50 Médecins Sans Frontières: Sinsa Retail Logiport Icheon Join MSF’s 2018 Year-End Campaign JLL (NYSE:JLL)은 부동산 투자자, 개발자, 기업에게 24 DGFEZ Celebrates its 10th Anniversary 부동산 관련 포괄적 서비스를 제공하는 종합 부동산 서비스 회사입니다. 부동산 라이프 사이클 전반에 걸쳐 Startup News 오피스, 리테일, 주거, 물류/산업 자산 등 다양한 유형의 자산에 대해 원스탑 서비스를 제공합니다. EU Project 전세계 80개국, 300여개 지사에서 8만명 이상의 54 Project Ball Academy 직원들이 서비스를 제공하고 있는 명실상부한 세계 26 European Union – South Korea 최고의 부동산 회사입니다. 리테일 서비스 (Retail Service) 물류/산업 서비스 (Logistic Service) 75th Avenue Trade and Investment Relations 2018 Mayfair by ZAHA HADID-Melbourne, Australia Taste of Europe JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate Cover Story 56 Spanish Restaurant Terreno and investment management. Our vision is to reimagine the world of real estate, creating 38 Financial and Economic Outlook 2019 rewarding opportunities and amazing spaces Art & Culture where people can achieve their ambitions. 주거 서비스 (Residential Service) 중소형 서비스 (Mid-market Service) 40 KF-VUB: Korea-EU Economic Relations in 2019 JLL is a Fortune 500 company with operations MMC Citrix in over 80 countries and a global workforce of 58 MMCA: What Ought to Be Done? Work and Life 88,000 as of September 30, 2018. 42 Lee & Ko: Moving from one landmark to the next: What the new EU-Japan EPA means for Korea AD & Sponsorship 46 Shinhan Bank: Economic and Financial Conditions and Prospects 62 ECCK Advertisement & Sponsorship 02-3704-8888 건축 및 인테리어 프로젝트 관리 (P&DS) 통합퍼실리티 매니지먼트 (IFM)
jll.co.kr © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 6 ECCK News
BYK Korea LLC (Germany) New Members Mr. Jeongsik Shin (Managing Director) www.byk.com/kr
October- Christian Dior Couture Korea (France) Mr. David Raymond (Country Managing Director) December 2018 www.dior.com
Dassault Systems Korea (France) Mr. Youngbin Cho (Managing Director) www.3ds.com/ko
Galderma Korea (Switzerland) Mr. Rene Wipperich (General Manager) www.galderma.co.kr
Hana Tax Gangnam Branch (Korea) Mr. Giu Sup Lee (Representative) www.hanatax.net
Hanwha Total Petrochemical (Korea) Mr. Jean-Marc Otero del Val (Executive Vice President) www.hanwha-total.com
SOMUNSA (Korea) Mr. Sung-Gu Park (CEO) www.somunsa.com
The Hershey Company (USA) Mr. Manuel Amon Bossi (General Manager) www.thehersheycompany.com/ko_kr
The Leaders & Company (Korea) Mr. Daniel Hwang (CEO) www.leaders-leather.com
VISA International Asia-Pacific Korea (USA) Mr. Patrick Yoon (Country Manager) visakorea.com
WeWork Korea Yuhan Hoesa (USA) Mr. Matthew J. Shampine (General Manager) www.wework.com 8 ECCK News ECCK Connect — Winter 2018 9
ECCK Hosts Breakfast Meeting with Seoul Mayor White Paper 2018 Hand-Over Meeting with MOTIE General Park Won Soon On November 6, ECCK President Christoph Heider held an Events In the morning of October 26, the ECCK hosted a breakfast ECCK White Paper hand-over meeting with Ministry of Trade meeting with Seoul Metropolitan City Mayor Park Won Soon Industry and Energy (MOTIE) Deputy Minister Seon-min Kim at Lotte Hotel Seoul. and Director General Ho Joon Lee in Aurora room at Grand InterContinental Seoul Parnas. ECCK Vice Chairman André Schmidtgall opened the meeting and Ambassador of the EU to the Republic of Korea H.E. Michael Reiterer delivered his opening remarks. Attended by government officials, ambassadors and ECCK members, Mayor Park shared his prospects on his next 4-year Seoul city plan. After the Mayor’s speech, a Q&A session followed.
ECCK President Speaks at 2018 Seoul Startup Expo White Paper 2018 Hand-Over Meeting with MOEF On October 19, ECCK participated in the Seoul Startup Expo 2018 organized by Seoul Business Agency (SBA). Attended On November 2, ECCK handed over its newly published by government officials and startuppers including, Jong- White Paper to the Ministry of Economy and Finance wook Kim (Deputy Mayor for Political Affairs), H.E. Pēteris (MOEF) during the tax forum with Director General for Vaivars (Ambassador of Embassy of the Republic of Income & Corporation Tax Bureau Sangyool Lee. Latvia), the expo shared the trends and performances of technology based startups in Asia.
Also, ECCK President Christoph Heider delivered a keynote speech under the theme of ‘Innovative Ecosystem of Asian Market’. In his speech, President Heider addressed the changes, chances and challenges in start-ups. “Innovation is not something that can be forced simply by increasing financial investment or increased number of employees. What is needed is creativity and entrepreneurship”, said Heider. 10 ECCK News ECCK Connect — Winter 2018 11
ECCK Chairperson ECCK Delegation Visits Brussels and Geneva ECCK Supports Doing Business in Korea Seminar Receives Seoul Honorary Citizenship A delegation of ECCK Board members and representatives On November 30, the ECCK supported the Doing Business of the secretariat visited pertinent counterparts in Brussels in Korea Seminar 2018 hosted by the American Chamber ECCK Chairperson Dimitris and Geneva from November 19 to 23 to discuss the of Commerce in Korea (AMCHAM) at Grand Hyatt Seoul. Psillakis received Seoul business environment in Korea and handover the White Honorary Citizenship for Paper 2018. The leaders of major five foreign chambers of his services to business and commerce in Korea, including ECCK President Christoph charity causes in Seoul. During the trip, the delegates met with following officials Heider, AMCHAM Chairman & CEO James Kim, British and organizations: Expert staff of DG Trade, the cabinet of Chamber of Commerce in Korea (BCCK) CEO Sean Psillakis is President and DG Trade Commissioner Cecilia Malmström, the cabinet Blakeley, French Korean Chamber of Commerce and CEO of Mercedes-Benz of DG Grow Commissioner Elżbieta Bieńkowska, Korean Industry (FKCCI) Chairman David-Pierre Jalicon, Korea and in recognition of his leadership in the company’s Ambassador to the EU Hyoung-Zhin Kim, KOTRA Brussels and Korean-German Chamber of Commerce and Industry social contribution activities for the local community, he General Director Jang Hee Lee and KITA Brussels Center (KGCCI) President & CEO Barbara Zollman participated in was awarded Seoul Honorary Citizenship by the Mayor of Executive Director Youn Woo Park, EU Commissioner for the panel discussion to share insights into the Korean Seoul, Park Won Soon. Agriculture & Rural Development, Phil Hogan. the Brussels- ECCK Releases White Paper 2018 market, the Korean economic outlook, Korea’s regulatory based industry interest organizations European Automobile environment, fair trade, the Fourth Industrial Revolution Manufacturers’ Association (ACEA), spiritsEUROPE and ECCK released its 4th edition of ECCK White Paper at the and so on. BusinessEurope, Head of Cabinet of European Commission press conference held on November 27 at Lotte Hotel Seoul. Risto Artjoki, Vice President of European Commission Jyrki Also, they signed a Joint Statement committing to support Breakfast Meeting with Foreign Investment Ombudsman Katainen, Head of Unit at DG Taxation and Customs Attended by Dimitris Psillakis, Chairman of ECCK and innovation and investment in Korea and full cooperation Union Jean Michel Grave, various expert level staff at DG President & CEO of Mercedes-Benz Korea, Michael with the Korean Government to achieve a vibrant, fair and In the morning of November 16, the ECCK hosted a Grow, the Executive Director for Industrial Policy at CEFIC Reiterer, Ambassador of Delegation of the EU to the transparent economy. breakfast meeting with Foreign Investment Ombudsman Rene van Sloten, officials at the European Free Trade Republic of Korea, as well as chairpersons of ECCK Kim Sung-jin at Lotte Hotel Seoul. Association, the World Trade Organization, the World industry committees including representatives from GSK Intellectual Property Organization. Korea, Groupe SEB Korea, Louis Vuitton, MAN Truck & Bus Attended by representatives from various ECCK member Korea, Mercedes-Benz Korea, and Nestlé Korea, the press companies, the Ombudsman shared his vision and The discussions have increased the officials’ interest conference elaborated on the key industry issues and listened to the participants questions and concerns during in Korea and ECCK is looking forward to enhanced suggestions raised by the European business community the breakfast meeting. cooperation going forward. across 14 different sectors in 2018.
The press conference opened with welcoming remarks by ECCK Chairman Dimitris Psillakis. “The publication echoes the European business community’s desire to support the Korean government to develop the current regulatory framework, which will benefit both foreign companies and the Korean economy as a whole.”, said Chairman Psillakis. “We hope that the White Paper will serve as a constructive communication tool for both the Korean and European authorities in looking for ways to maintain a mutually beneficial strategic relationship. The White Paper encapsulates the ECCK’s vision and mission, at the centre Photo: Courtesy of the American Chamber of Commerce of which is advocacy”. in Korea 12 ECCK News ECCK Connect — Winter 2018 13
Breakfast Briefing Hosted by Hereditary Prince Alois of Meeting with KIPO Commissioner ECCK Successfully Hosts ‘2018 Korea-EU IPR Liechtenstein Seminars & Conference’ On December 4, ECCK met the new commissioner of the On December 4, Hereditary Prince Alois of Liechtenstein Korea Intellectual Property Office (KIPO), Won Ju Park at Forums On October 16, the ECCK hosted and organized the 6th invited the ECCK to a breakfast briefing at the Four KIPO Seoul Office. Korea-EU Intellectual Property Rights (IPR) Conference Seasons Hotel in Seoul. at the Four Seasons Hotel. This year’s conference was The meeting was attended by Christoph Heider, ECCK co-hosted by the European Patent Office (EPO), the The breakfast briefing was organized by the Swiss Embassy President, Yusun Woo, Chairperson of Intellectual Property European Union Intellectual Property Office (EUIPO) and in Seoul and attended by the Principality of Liechtenstein’s Committee, and Sven-Erik Batenburg, ECCK Director Korean Intellectual Property Office. Also, it was supported Foreign Minister Aurelia Frick, the Swiss Ambassador H.E. of Legal and International Affairs. During the meeting by Bae, Kim & Lee LLC., Hoffmann Eitle and Sonoda & Linus von Castelmur, representatives from the Swiss all discussed about the developments of the Korean IPR Kobayashi. Embassy as well as about 20 business representatives environment as well as challenges that lie ahead and from Swiss and Liechtenstein headquartered companies. expressed their commitment to further build on the Over 200 people participated in the conference, and Among those business representatives were also Jan longstanding cooperation between KIPO and ECCK. specialists from both the public and the private sectors Benggaard, Managing Director of Oerlikon Balzers and presented on pertinent developments in the field of IPR ECCK Vice-Chairman as well as ECCK President Christoph in Korea and Europe. Heider.
Taxation Seminar with KPMG Samjong
On October 11, the ECCK hosted a taxation seminar with KPMG Samjong Accounting Corp. at Lotte Hotel Seoul. Under the title of ‘2019 Tax Revision Proposal’, Dong- hoon Kim, Tai-joon Kim and Jeewon Shin from KPMG led the seminar and provided an overview of various tax laws that are subject to revision. 14 ECCK News ECCK Connect — Winter 2018 15
Information Session with MFDS ECCK Organizes EU-Korea Business Forum in Brussels Second ECCK CEO Forum First ECCK Aerospace & Defense Working Group Meeting In the afternoon of November 9, ECCK hosted an On November 22, ECCK organized the EU-Korea Business In the morning of November 27, the ECCK hosted its second information session with the Ministry of Food and Drug Forum in Brussels. Following the success of last year’s CEO Forum at Lotte Hotel Seoul. Exclusively open for the On November 29, the ECCK held a kick-off meeting of the Safety (MFDS) at Spaces. event, this second edition built on the ASEM and EU-Korea ECCK premium member CEOs, the forum provided a special Aerospace & Defense Working Group (ADWG). Summit in October and promoted business exchanges platform for the CEOs to meet and share views on specific Attended by ECCK’s Food, Beer, Wine & Spirits and Kitchen between Europe and South Korea. issues of interest, further facilitating ECCK’s core activity: The ADWG will promote closer association among its & Home Appliances committee members and the trade advocacy. members. It will facilitate the exchange of information officers from European countries to the session, Dae Insightful presentations were delivered by Francoise Lewalle, concerning the Korean market and will share items Hoon Jeon from the MFDS Food Safety Labeling and Foreign Attorney at Kim & Chang, Jang Hee Lee, Director Each CEO Forum starts with a short teaser presentation on a of interests and discuss pertinent issues related to the Certification Division gave an informative presentation General at Korea Trade Investment Promotion Agency specific topic followed by a discussion among participating aerospace and defense industry. to the participants regarding the Act on Labeling and (KOTRA), Maximilian Ernst, KF-VUB Korea Chair PhD CEOs. For this second forum, H.E. Ambassador Michael Advertisement of Food Products, etc., which will be Candidate at the Institute for European Studies (IEA) and Reiterer of the Delegation of the EU to the Republic of The ADWG represents aerospace and defense industry enacted from March 2019. ECCK’s Director of Legal and International Affairs Sven-Erik Korea joined and shared details about EU-Korea Trade issues to facilitate a better business environment for Batenburg. Relations, which included a view back on the EU-Korea its members. Also, the ADWG will promulgate balanced Summit that concluded on October 19, 2018, as well as the perspectives on constructive and competitive relationship We are honored by the support of Korean Ambassador to EU’s global trade strategy. of aerospace and defense industry among Korea, Europe the EU Hyoung-zhin Kim and his colleagues and would like to and the U.S. thank the Korean Cultural Center for their hosting of the event.
Information Session on Financial Economic Outlook 2019
On December 6, the ECCK held an information session on ‘Financial Economic Outlook 2019’ with Kyobo AXA at Kyobo Tower. 2018 IPR Capacity Building Seminars Attended by ECCK member companies, Kyobo AXA Investment Management Chief Economist Hoo Il Kim As part of its initiatives in combating the global counterfeit informed what are expected for Korean financial market industry, the ECCK IPR Committee organized its annual IPR next year. Capacity Building seminars in Seoul, Daegu and Busan from October 17 to 19.
Attended by enforcement officials from the Prosecution Service, the Korea Customs Service, the National Police Agency, the Industrial Property Investigation Division of the Korean Intellectual Property Office and local governments, the seminars saw excellent exchanges between enforcement officials and representatives of ECCK member companies in the apparel, electronics, toys and cosmetics industries. 16 ECCK News ECCK Connect — Winter 2018 17
Busan ECCK Busan HR Seminar with Kelly Services BJFEZ Investors’ Network Night in Hong Kong On October 17, the ECCK Busan Chapter hosted an HR On November 19, BJFEZ Investors’ Network Night in Hong Chapter Seminar with Kelly Services at Park Hyatt Busan. Under Kong was hosted by the Busan-Jinhae Free Economic Zone the topic of “Human Resources Resilience Strategy,” two Authority (BJFEZ) and organized by the ECCK Busan chapter. segments were prepared with a networking dinner in between, where our participants had an opportunity to In cooperation with the Chinese General Chamber of engage active discussions with other members. Commerce, Hong Kong (CGCC), Hong Kong Korea Business Council (HKKBC) and the European Chamber of Commerce You Me Jeon, Managing Director of Kelly Services in Hong Kong (ECCHK), the event was held at the Grand commenced the first segment through sharing her insight Hyatt Hong Kong. of HR management strategy in the digital era. The first guest speaker Hyung Ro Kim, an attorney at Bae, Kim & Lee Attended by Weon-jin Kim, the Consul General of the discussed about the labor strategy to cope with change, Republic of Korea in Hong Kong, the participants from Hong ECCK Busan Chapter Participates in more specifically about 52 hours working and minimum Kong based companies mostly in logistics and high-tech “Offshore Korea 2018” with Baker Tilly Sungto wage application especially for Busan-Gyeongnam manufacturing industries showed high interests in the BJFEZ. manufacturing EPC company, which was followed by The network night was proceeded by Hwonnarae Ha, From October 10 to 12, the ECCK Busan Chapter partici- an active Q&A session. During the second segment, Tae Head of ECCK Busan Chapter, with opening remarks by ECCK Busan Year-End Party 2018 pated in the “Offshore Korea 2018” at Bexco with Baker Yeon Gwak, Chief Consultant of LiB Consulting presented Yanghyun Jin, Commissioner of BJFEZ, and congratulatory Tilly Sungto. about the working habit focused on how to improve the remarks by Jonathan Choi , Chairman of CGCC. The event On December 7, the ECCK Busan Chapter hosted its annual productivity of HR System. was composed of a presentation session where the BJFEZ ECCK Busan Year-End Party with the Busan Metropolitan The three-day exhibition mainly showcased offshore presented its attractive investment environment and City (BMC) at CINE de CHEF, Centum City. plants, relevant equipment & materials, marine resources enormous potentiality followed by an introduction of Shinhan exploration & development, marine environment preserva- Bank and a successful story of Nippon Express. The session ECCK President Christoph Heider commenced the event tion & protection, etc. was then followed by a dinner and networking session. with his opening remarks followed by a welcome remark of the BMC Director of Investment Promotion Division Through participating in the event, the ECCK Busan Chap- Soobong Lee. Also, the ruby sponsor of the event WeWork ter had an opportunity to promote the organization to the prepared a short introductory video along with common companies in the marine & shipbuilding industry and to gifts for all participants. reach out proactively to our members who were partici- pating as exhibitors and visitors. The Belgian guitarist of Korean origin Denis Sungho Jans- sens performed for the attendees right before they enjoyed a three-course meal with wine. After dinner, attendees ac- tively participated in amusing party games & lucky draws!
We would like to thank again each of our generous part- ners for making the evening extra special: Busan Metropo- litan City as Title Sponsor, WeWork as Ruby Sponsor and CINE de CHEF, Grand Hyatt Seoul, Haeundae Grand Hotel, Novotel Ambassador Busan, Kunoh Seacloud Hotel, Cita- dines Haeundae Busan, Edrington Korea, The Macallan, Hilton Busan, The Party, Hotel Nongshim, Premier Hotel Centum, Park Hyatt Busan and Rexroth Korea. 18 ECCK News ECCK Connect — Winter 2018 19
Integrates regulations related to the labeling and ad- Act on Labeling and Advertisement of Food Products, etc. Committee News vertisement of food products, etc., found in 3 different → Total 31 Articles ECCK Food Committee Acts and 7 different Notifications Article 1 Purpose Article 2 Definitions Article 3 Relation to other Acts ACT Article 4 Standards for Labeling 1) Food Sanitation Act Article 5 Food Nutrition Labeling 2) Health Functional Foods Act Article 6 Indication of Compared Sodium Content 3) Livestock Products Sanitary Control Act Article 7 Standards for Advertisements Article 8 Prohibition against False Labelling and Advertisements NOTIFICATIONS Article 9 Proof on Labels and Advertisements • Food Labelling Standards Article 10 Deliberation on Labels and Advertis- • Standards for Labelling of Livestock Products ments by Independent Deliberation • Standards for Labelling of Health Functional Foods Institution or Organization • Indication and method of Compared Sodium Article 11 Establishment and Operation of Deliberation Content Committee • Standards for Deliberation on Labels or Advertisements Article 12 Consultation of Label and Advertisements regarding Functionality of health functional foods Policy • Standards for Deliberation on Labels and Advertis- Article 13 Consumer Training and Public Relations ments regarding Special Purpose Foods Article 14 Corrective Order • Regulation for Approving Reliability of Certification or Article 15 Recall and Dispositions of Discard of Harmful Assurance Agency for Labels, Advertisements of Foods Foods and Livestock Products Article 16~19 Business Suspension or the Suspension of The labeling regulations that were spread out through the Manufacturing Items or Kinds of Items Food Sanitation Act, Health Functional Foods Act and Live- Article 20 Imposition of Penalty Surcharges for False stock Products Sanitary Control Act are subjected to be in- Labeling and Advertisement Article 4 Standards for Labeling tergraded and controlled as a single act which is ‘Act on La- Article 21 Announcement of Violations beling and Advertisement of Food Products, etc.’ (Enacted Article 22~24 Entrustment of National Subsidy, Hearings, Enforcement Rules of the Act on Labeling and Advertise- March 2018, to be enforced from March 2019). Authority, etc. ment of Food Products, etc. (Draft) Article 25 Deemed Public Officials in Applying Penalty In accordance with the enactment of the new act, the cur- Provisions rent laws for labeling for foods, advertisement standards Article 26~29 Penalty Provisions
Article 9 Proof for Label and Advertisement Contents De-Regulated Part
The one who seeks to put a label and place advertisements for foods must be able to prove the contents. If the labeling Before: Pre-registration Required and advertisements need proof, one can be requested to submit the proof. Labelling or advertisements that use various acknow- ledgments or words like "Assurance", "Guarantee" or • Range of proofs: Test results, research results, experts’ "Recommendation", or similar expressions should be (organizations’ and institutions’) point of view, acade- recognized or guaranteed by foreign government or mic reference, other materials can be recognized by the the certifying organizations should be registered to the Ministry of Food and Drug Safety (MFDS) MFDS. • Requirements, submission, evaluation standards for proofs Article 8 Prohibition against False Labelling and Adver- 1. The testing (research) results as proof must be sci- tisements entific and objective and it needs to come from the After (Mar. 2019): Proof for Label Contents testing (research) institutions that are registered according to the law or private institutions that not • Private and public “Assurance”, “Guarantee” (e.g. Considered as False Labelling and Advertisements Considered as NOT False Labelling and associated with the advertisers Halal, Kosher, etc.) or “Recommendation”, or similar Advertisements 2. Names of the testing and research institutions, expressions can be used for label and advertisements 1. Labels or advertisements that may lead to miscon- submit the proof or results in writing without prior registration process to the Korean ception or confusion that such foods, etc. are valua- 1. Foods that manufactured or sold at rest restaurant e.g.) Hangover cure, Number one selling product in government. However, the business operator should ble or effective in preventing or treating diseases business, general restaurant business, bakery busi- Europe -> Must submit results as a proof meeting prepare relevant documents and submit when they 2. Labels or advertisements that may lead to misconcep- ness the requirements above are requested from the government. tion or confusion that such foods, etc. are medicine 2. Foods that do not need to be reported or registered 3. Labels or advertisements thatw may lead to miscon- to the authority (Agricultural products in the mar- If fail to provide proofs, the MFDS can order to ban the • With private or public certifications and meeting ception or confusion that such foods, etc. are func- ket) advertisement. If one doesn’t comply with the order can guaranteed requirements (e.g. Halal, Kosher, etc.) tional foods for health 3. Labels or advertisements claims to help maintain be imprisoned for a maximum of one year and fined un- can be imported without an advance registration. 4. Labels or advertisements that are false or exaggerated and develop health der 10 million won. If proof is requested, the one can submit the docu- 5. Labels or advertisements that deceive consumers 4. Labels or advertisements or such similar, etc. that re- ments related to this issue. 6. Labels or advertisements that slander other enterpri- cognized fact from food nutrition science or effect • Concern: Cannot predict what documents will be ses or their products and function of nutritional ingredient in the product accepted with vague expressions such as scientific, 7. Labels or advertisements that unfairly compares objective, etc. themselves or their food of other business operator • Concern: Unclear definition affects that the business or other business operator’s food products without operators cannot predict or define exact meaning of objective grounds False and Allowed Health or Nutrition claims. It will 8. Labels or advertisements that significantly violates be verified by the government officials whenever it is public morals and social ethics by using expressions imported. If there is no clear guideline then the result causing speculative spirit or using obscene language might be very various. 9. Labels or advertisements that have not undergo- • Preference: To have clearer vision of the business ne deliberation under Article 10 (1) or the details of environment, we prefer to have very clear guideline which are different from those passed a deliberation. from the authority. For example, possible health or nutrition claim guideline for vitamin or nutrition by its content range. 22 ECCK News ECCK Connect — Winter 2018 23
Winter Network Night
On November 28, the ECCK hosted its ‘ECCK Winter Network Night’ at Banyan Tree Club & Spa Seoul. Under the theme of ‘Be a Secret Santa – Help Bring Holiday Cheer to the Night!’, the night was filled with festive holiday cheers!
Saxophonist Richard Rho performed for the attendees right before they enjoyed tasty food and wine. Also, many have participated in the secret Santa gift exchange.
ECCK would like to thank our participants and special event partners Kyobo Life Insurance and Robert Walters Korea. Bio BM, L’escape Hotel, and Scabal.
Our Event Partners
Any inquiry for the event and partnership opportunity, please contact Ms Hyewon Shim. ([email protected], 02-6261-2711) 24 Korean Government Project 26 EU Project ECCK Connect — Winter 2018 27
our agendas. The EU has recently concluded far-reaching investment". Inflation is projected to rise toward the 2% European Union- and comprehensive FTAs with Canada and Japan which target, while the current account surplus narrows to 4% are state of the art agreements. of GDP. The Korean government projected a real GDP growth of 3% early 2018 but this has since been reveiwed South Korea In addition, as major trading partners we want to downwards to 2.9%. cooperate with like-minded global actors like Korea to make sure that the rules-based multilateral trading In 2017, Korea’s exports increased by 15.8% to 573.7 billion Trade And system of the World Trade Organisation (WTO) continues USD thanks to a recovery in global trade. China was to function into the future, as it is the backbone of our Korea’s largest export partner and accounted for about security and prosperity. 18% of total exports. Other major export destinations Investment of Korea included the United States (14% of share), EU The strategic partnership between the EU and the (11%), Vietnam (6%), Hong Kong (6%), and Japan (5%). Republic of Korea has grown consistently over the last 55 Meanwhile, Korea’s imports rose by 17.8% to 478.5 billion Relations 2018 Michael Reiterer Ambassador of the European Union to years – we are celebrating this anniversary this year. We USD in 2017. Major sources of imports to Korea were the Republic of Korea shall continue in all areas: politics, economics, research China (20%), EU (14%), Japan (14%) and the United and innovation and people-to-people contacts – our States (13%)3). trading relationship between the world wide largest Foreword economic bloc, the EU, and the world's eleven largest Total trade in goods between the European Union economy, Korea , will also make a contribution to much and South Korea grew about 16% in 2017, which has During the last months, the news has been dominated needed peace and stability. consolidated the EU's position as South Korea's 3rd by the ever-changing security situation on the Korean largest trade partner in goods, only behind China and the Peninsula, the successful Pyeongchang Olympics and United States; however, bilateral EU-South Korea trade the increasing summitry, which started with the historic in services was stagnant in 2016 (last data available): bilateral summit by President Moon Jae-in and Chairman the EU's exports to Korea decreased by 3.6% and the Kim. Trade and economics have been back stage for a EU's imports from Korea decreased by 3.3%4). On the while. However, prosperity and employment depend on other hand, the EU is by far the largest source of FDI trade. These political goals are high on the agenda of the stock in South Korea (32% of total FDI stock), ahead of Korean government and shared by the European Union. Japan (26%) and the United States (19%). According to In Korea, the European Union remains by far the biggest Eurostat, in 2016 the European Union's FDI stock in Korea investor and therefore makes a major contribution to this Overview reached 50 billion euros, which was 12% more than the goal, a fact which passes often unnoticed. previous year. South Korea is nowadays one of the most dynamic The same applies to trade. The EU and Korea are both economies in the world. With a GDP1) of over 1,538 billion All these data illustrate the very important economic making good use of the seven-year-old Free Trade USD2), it is ranked the 4th economy in Asia, and the 11th links that exist between the European Union and South Agreement: the EU is the third largest trading partner largest economy in the world. Korea. In this regard, it is important to point out that and second biggest supplier of imports while in 2017, the bilateral trade and investment relationship has Korea achieved a trade surplus in its trade with the EU, The Korean economy expanded by 3.1% in 2017, driven significantly deepened over the past few years, following which is also a sign of the improved economic situation mainly by an increase in fixed investment due to the entry into force of the FTA on July 1st, 2011. in the European Union. In order to maintain and further strong growth in facilities investment. The OECD improve this situation, we would like to modernise the forecasts economic growth to remain around 3% through 1) Current prices FTA. It is working well, but it could work even better. After 2019, "supported by stronger export growth and fiscal 2) Source: IMF seven years a face-lift is warranted, not least to ensure stimulus that offset the impact of tighter regulations on 3) Source: KITA that EU-Korean economic relations remain at the top of housing/ mortgage lending, which will slow construction 4) Eurostat data EUROPEAN UNION – SOUTH KOREA 06 / 07 TRADE AND INVESTMENT RELATIONS 2018 EUROPEAN UNION – SOUTH KOREA 06 / 07 TRADE AND INVESTMENT RELATIONS 2018 EU-SOUTH KOREA TRADE IN28 EUGOODS Project ECCK Connect — Winter 2018 29 EU-SOUTH KOREA TRADE IN GOODS
Accounting for 17% of global imports and EU-Singapore FTA and the EU-Vietnam FTA. For South Korea, the EU has consolidated its hand, the European Union is the 3rd largest exports, the EU is the world's largest trading position as the country's 2nd largest supplier market of South Korea, after China and the rd block5).Accounting In recent years, for 17% the ofEU global has further imports andThe FTAEU-Singapore has provided FTA an and outstanding the EU-Vietnam result. FTA. of importsFor South(i.e. accounting Korea, the for EU 14%has consolidated of total United its hand, States. the The European share ofUnion the Europeanis the 3 largest nd rd EU-SOUTHdevelopedexports, KOREA its leading TRADE the EU INposition isGOODS the world'sin international largest trading Thanks to trade liberalisation, EU-South Korea imports).Forposition South As we Korea, as can thethe see EUcountry's hasin theconsolidated graph 2 largest below,its position supplier asUnion's the Onmarket imports the otherhand, of with South regard the Korea, European to the after Uniontotal China Southis the and 3 largest the 5) country's 2nd largest supplier of imports (i.e. accounting for market of South Korea, after China and the United States. trade, thanksblock . inIn partrecent to years,its ability the to EU put has in further trade flowsThe FTA have has increasedprovided an considerably, outstanding result. the Europeanof imports Union's (i.e. market accounting share hasfor 14%grown of totalKorea's United exports States. has also The been share growing of the since European Accountingdeveloped for 17% of global its leading imports positionand exports, in internationalthe EU The FTA hasThanks provided to an trade outstanding liberalisation, result. Thanks EU-South to trade Korea 14%imports). of total imports). As we Ascan we seecan seein inthe the graph graph below, below, the TheUnion's share of imports the European with Union's regard imports to the with total regard South to the is placethe world's new largest agreements trading block with5). In recent emerging years, the and EU liberalisation,boosting EU-Southcompetitiveness Korea trade flowsof companies have increased steadilyEuropean over Union'sthe past market years. share hasOn grown the steadilyother overthe the FTAtotal entered South Korea'sinto force. exports has also been growing since the hasdeveloped furthertrade, developed countries. thanks its leading in part position to itsin internationalability to putconsiderably,and in providingtrade boosting flows a competitivenesswider, have cheaper increased of companies choice considerably, toand pastthe years. European Union's market share has grown FTAKorea's entered exports into force. has also been growing since trade, thanksplace in partnew to agreements its ability to put with in placeemerging new andprovidingconsumers aboosting wider, both cheaper in competitivenessSouth choice Koreato consumers and inboth of Europe. incompanies South steadily over the past years. On the other the FTA entered into force. agreements with emerging and developed countries. Korea and in Europe. The EU-Southdeveloped Korea countries. FTA was the first of a and providing a wider, cheaper choice to 2017 SOUTH KOREA2017 TRADE SOUTH INKOREA GOODS TRADE WITH IN GOODS MAIN WITH TRADE MAIN TRADEPARTNERS PARTNERS (million (million €) €) consumers both in South Korea and in Europe. Theseries EU-South of ‘new-generation Korea FTA was the FTAs’first of negotiated a series of ‘new- by SinceSince 2011, 2011, bilateral bilateral trade in goods trade between in goods the European between Union Total Korea million share Korea Imports million share Korea million share The EU-South Korea FTA was the first of a N° 2017 SOUTH KOREA TRADE IN GOODS WITH MAIN TRADE PARTNERS (million €) generationthe EU. FTAs’ It remains negotiated without by the EU. any It remains doubt without one anyof andthe South European Korea has Union been andconstantly South growing Korea and has reached been a Trade with… euro (%) from… euro (%) Exports to… euro (%) doubtthe onemost seriesof theambitious mostof ‘new-generation ambitious and comprehensive and comprehensive FTAs’ negotiated trade trade recordconstantly by levelSince of moregrowing 2011, than 99 andbilateral billion reached euros trade in 2017.a inrecord Ingoods 2017, level South between Total Korea million share Korea Imports million share Korea million share th th WorldN° 814,788 100 World 366,819 100 World 447,969 100 dealsdeals put putinthe place in EU. placeby theIt remainsEU.by Itthe has EU. providedwithout It has a benchmark anyprovided doubt for a oneKoreaof of more wasthe thethan EU'sEuropean 99 8 billionlargest Union suppliereuros and forin 2017.Southimports InKoreaand 2017, the has 8 been Trade with… euro (%) from… euro (%) Exports to… euro (%) the EU's later FTAs, including the EU-Canada Comprehensive largest export market, ahead of other major economic powers benchmarkthe most for the ambitious EU's later and FTAs, comprehensive including tradeSouth Koreaconstantly was growingthe EU's and8th largestreached supplier a record level 1 China 190,996 23.4 China 78,572 21.4 China 112,424 25.1 Economic Trade Agreement (CETA), the EU-Japan Economic such as India and Canada. World 814,788 100 World 366,819 100 World 447,969 100 deals put in place by the EU. It has provided a of more than 99th billion euros in 2017. In 2017, 2 USA 99,506 12.2 EU28 46,848 12.8 USA 60,307 13.5 Partnershipthe EU-Canada Agreement (EPA),Comprehensive the EU-Singapore Economic FTA and the for imports and the 8 largest export market, benchmark for the EU's later FTAs, including South Korea was the EU's 8th largest supplier 1 China 190,996 23.4 China 78,572 21.4 China 112,424 25.1 EU-VietnamTrade Agreement FTA. (CETA), the EU-Japan ahead of other major economic powers such 3 EU28 88,785 10.9 Japan 42,878 11.7 EU28 41,937 9.4 the EU-Canada Comprehensive Economic for imports and the 8th largest export market, 2 USA 99,506 12.2 EU28 46,848 12.8 USA 60,307 13.5 Economic Partnership Agreement (EPA), the as India and Canada. 4 Japan 64,888 8 USA 39,199 10.7 Hong Kong 29,550 6.6 Trade Agreement (CETA), the EU-Japan ahead of other major economic powers such 3 EU28 88,785 10.9 Japan 42,878 11.7 EU28 41,937 9.4 5 Vietnam 40,869 5 Taiwan 14,816 4 Vietnam 29,546 6.6 Economic Partnership2017 EU TRADE Agreement IN GOODS WITH (EPA), MAIN the TRADE as PARTNERS India and (million Canada. €) 4 Japan 64,888 8 USA 39,199 10.7 Hong Kong 29,550 6.6 2017 EU TRADE IN GOODS WITH MAIN TRADE PARTNERS (million €) 6 Hong Kong 31,050 3.8 Saudi Arabia 14,184 3.9 Japan 22,010 4.9 5 Vietnam 40,869 5 Taiwan 14,816 4 Vietnam 29,546 6.6 7 Taiwan 25,798 3.2 Australia 13,672 3.7 Singapore 11,583 2.6 Total2017 EU EU TRADEmillion IN shareGOODS EU WITH Imports MAIN million TRADE sharePARTNERS EU Exports (million €)million share 6 Hong Kong 31,050 3.8 Saudi Arabia 14,184 3.9 Japan 22,010 4.9 Trade with… euro (%) from… euro (%) to… euro (%) 8 Australia 20,443 2.5 Vietnam 11,324 3.1 Taiwan 10,983 2.5 7 Taiwan 25,798 3.2 Australia 13,672 3.7 Singapore 11,583 2.6 Total EU million share EU Imports million share EU Exports million share 9 Saudi Arabia 19,283 2.4 Qatar 9,066 2.5 India 10,275 2.3 Extra EU28 3,737,794 100.0 Extra EU28 1,858,636 100.0 Extra EU28 1,879,159 100.0 Trade with… euro (%) from… euro (%) to… euro (%) 8 Australia 20,443 2.5 Vietnam 11,324 3.1 Taiwan 10,983 2.5 10 Singapore 17,496 2.1 Russia 7,809 2.1 Mexico 8,716 1.9 1 USA 632,692 16.9 China 374,827 20.2 USA 375,851 20.0 9 Saudi Arabia 19,283 2.4 Qatar 9,066 2.5 India 10,275 2.3 Extra EU28 3,737,794 100.0 Extra EU28 1,858,636 100.0 Extra EU28 1,879,159 100.0 Source: Eurostat 2 China 573,016 15.3 USA 256,842 13.8 China 198,189 10.5 10 Singapore 17,496 2.1 Russia 7,809 2.1 Mexico 8,716 1.9 1 USA 632,692 16.9 China 374,827 20.2 USA 375,851 20.0 3 Switzerland 260,789 7.0 Russia 145,112 7.8 Switzerland 150,379 8.0 Trade betweenSource: Eurostat the European Union and South held trade deficit with Korea turned into a 2 China 573,016 15.3 USA 256,842 13.8 China 198,189 10.5 Source: Eurostat 4 Russia 231,296 6.2 Switzerland 110,410 5.9 Russia 86,184 4.6 Korea has grown steadily since 2010 (16% surplus. In 2017, Korea obtained again a trade 3 Switzerland 260,789 7.0 Russia 145,112 7.8 Switzerland 150,379 8.0 Trade between the European Union and South held trade deficit with Korea turned into a 5 Turkey 154,257 4.1 Norway 77,435 4.2 Turkey 84,496 4.5 in 2017), except for the period of the global surplus due to a substantial increase of exports 4 Russia 231,296 6.2 Switzerland 110,410 5.9 Russia 86,184 4.6 TradeKorea between has the grown European steadily Union and since South Korea2010 has (16% grown 9%surplus. whereas In average 2017, annualKorea import obtained growth again from aKorea trade into 6 Japan 129,546 3.5 Turkey 69,761 3.8 Japan 60,670 3.2 financial crisis in 2008-2009. of 20% into the EU, in context marked by the 5 Turkey 154,257 4.1 Norway 77,435 4.2 Turkey 84,496 4.5 steadilyin 2017), since 2010except (16% forin 2017), the exceptperiod for ofthe theperiod global ofeconomic the thesurplus EUrecovery have due also into increased thea substantial European for 3.8%. AsincreaseUnion. a result, fromof exports 2013 until 7 Norway 128,142 3.4 Japan 68,876 3.7 Norway 50,707 2.7 global financial crisis in 2008-2009. 2016 the EU's long-held trade deficit with Korea turned into a 6 Japan 129,546 3.5 Turkey 69,761 3.8 Japan 60,670 3.2 Since thefinancial FTA entered crisis in into 2008-2009. force in 2011, the of 20% into the EU, in context marked by the 8 South Korea 99,717 2.7 South Korea 50,018 2.7 South Korea 49,698 2.6 surplus.economic In 2017, recovery Korea obtained in the again European a trade surplusUnion. due to a 7 Norway 128,142 3.4 Japan 68,876 3.7 Norway 50,707 2.7 EU's exportsSince the FTAto Southentered intoKorea force increased in 2011, the byEU's aexports to substantial increase of exports of 20% into the EU, in context United Arab SouthSince Korea the increased FTA entered by a year-on-year into force growth in 2011, of average the marked by the economic recovery in the European Union. 9 India8 South Korea85,949 99,7172.3 2.7IndiaSouth Korea44,225 50,0182.4 2.7 South Korea42,618 49,6982.3 2.6 year-on-year growth of average 9% whereas Emirates averageEU's annual exports import to South growth Korea from increased Korea by a United Arab 10 Canada9 India69,194 85,9491.9 Vietnam2.3 India37,018 44,2252.0 2.4India 41,723 42,6182.2 2.3 year-on-year growth of average 9% whereas Emirates into the EU have also increased for 3.8%. As Source: Eurostat a result,average from 2013 annual until import 2016 thegrowth EU's long-from Korea Source: Eurostat10 Canada 69,194 1.9 Vietnam 37,018 2.0 India 41,723 2.2 into the EU have also increased for 3.8%. As 5) OECD data 5) OECD dataSource: Eurostat a result, from 2013 until 2016 the EU's long-
5) OECD data 30 EU Project ECCK Connect — Winter 2018 31 EUROPEAN UNION – SOUTH KOREA EUROPEAN UNION – SOUTH KOREA 08 / 09 TRADE AND INVESTMENT EUROPEANRELATIONS 2018 UNION08 – SOUTH/ 09 KOREA 08 / 09 TRADE AND INVESTMENTTRADE RELATIONS AND INVESTMENT 2018 RELATIONS 2018
2007-2017 EU-SOUTH KOREA BILATERAL TRADE (million €) 2015-2017 EU MERCHANDISE TRADE BY PRODUCT CATEGORY 2007-2017 EU-SOUTH KOREA BILATERAL TRADE (million €) 2015-2017 EU MERCHANDISE TRADE BY PRODUCT CATEGORY 2007-2017 EU-SOUTH2007-2017 KOREA EU-SOUTH BILATERAL KOREA TRADE BILATERAL (million TRADE€) (million €) 2015-2017 EU 2015-2017MERCHANDISE EU MERCHANDISE TRADE BY PRODUCT TRADE CATEGORY BY PRODUCT CATEGORY Annualised EU merchandise trade 2015-2017 EU MERCHANDISE TRADE BY PRODUCT CATEGORY ▶ Annualised EU merchandise trade ▶ EU28 Merchandise trade 2015-2017 by product category with South Korea (million €) ▶Partner Annualised: South EUKorea▶ merchandise Annualised Product: TotaltradeEU merchandise all goods trade ▶ EU28 Merchandise▶ EU28 trade Merchandise 2015-2017 bytrade product 2015-2017 category by product with South category Korea with (million South €) Korea (million €) Partner: South KoreaPartner Product: South: TotalKorea all goods Product: Total all goods EU28 EU28 EU28 trade Period Trade flow EU28 EU28 EU28 EU28 EU28 trade EU28 trade Period Trade flow Imports Sector imports exports balance From To ImportsPeriod Exports BalanceTrade flow imports exports balance From To Imports Exports Balance Imports Imports Sector Sector imports exports balance 12-monthFrom sumsTo (million €) Imports ExportsExportsBalance 2015 2016 2017 16/15 17/16 2015 2016 2017 16/15 17/16 2015 2016 2017 12-month sums (million €) Exports Exports 2015 2016 2017 16/15 17/16 2015 2016 2017 16/15 17/16 2015 2016 2017 Jan-07 Dec-07 41,676 12-month 24,719 sums -16,957 (million €) 2015 2016 2017 16/15 17/16 2015 2016 2017 16/15 17/16 2015 2016 2017 Jan-08Jan-07 Dec-08Dec-07 Jan-07 39,74041,676 Dec-07 25,49524,719 41,676 -14,245-16,957 24,719 -16,957 TOTAL 42,366 41,643 49,940 -1.7% 19.9% 47,794 44,112 49,797 -7.7% 12.9% 5,428 2,468 -143 TOTAL 42,366 41,643 49,940 -1.7% 19.9% 47,794 44,112 49,797 -7.7% 12.9% 5,428 2,468 -143 Jan-09Jan-08 Dec-09Dec-08 Jan-08 32,47239,740 Dec-08 21,59925,495 39,740 -10,873-14,245 25,495 -14,245 TOTAL 42,366 41,643 49,940 -1.7% 19.9% 47,794 44,112 49,797 -7.7% 12.9% 5,428 2,468 -143 Jan-09 Dec-09 32,472 21,599 -10,873 Food and live Jan-10 Dec-10 Jan-09 39,534 Dec-09 27,961 32,472 -11,573 21,599 -10,873 Food and live 219 253 286 15.3% 13.2% 1,684 1,874 2,098 11.3% 12.0% 1,465 1,621 1,812 Jan-10 Dec-10 39,534 27,961 -11,573 animals Food219 and 253live 286 15.3% 13.2% 1,684 1,874 2,098 11.3% 12.0% 1,465 1,621 1,812 Jan-11 Dec-11 Jan-10 36,312 Dec-10 32,515 39,534 -3,797 27,961 -11,573 animals 219 253 286 15.3% 13.2% 1,684 1,874 2,098 11.3% 12.0% 1,465 1,621 1,812 Jan-11 Dec-11 36,312 32,515 -3,797 animals Jan-12 Dec-12 Jan-11 38,014 Dec-11 37,815 36,312 -199 32,515 -3,797 Beverages and Jan-12 Dec-12 38,014 37,815 -199 Beverages and 33 35 39 5.0% 11.6% 435 509 620 17.0% 21.9% 401 474 581 Jan-13 Dec-13 Jan-12 35,837 Dec-12 39,911 38,014 4,074 37,815 -199 tobacco Beverages33 35and 39 5.0% 11.6% 435 509 620 17.0% 21.9% 401 474 581 Jan-13 Dec-13 35,837 39,911 4,074 33 35 39 5.0% 11.6% 435 509 620 17.0% 21.9% 401 474 581 Jan-14 Dec-14 Jan-13 38,772 Dec-13 43,192 35,837 4,421 39,911 4,074 tobacco tobacco Jan-14 Dec-14 38,772 43,192 4,421 Crude materials, Jan-15 Dec-15 Jan-14 42,366 Dec-14 47,794 38,772 5,428 43,192 4,421 Crude materials, Jan-15 Dec-15 42,366 47,794 5,428 inedible, except Crude575 materials,551 590 -4.2% 7.0% 1,007 813 909 -19.2% 11.8% 431 262 319 Jan-16 Dec-16 Jan-15 41,643 Dec-15 44,112 42,366 2,468 47,794 5,428 inedible, except 575 551 590 -4.2% 7.0% 1,007 813 909 -19.2% 11.8% 431 262 319 Jan-16 Dec-16 41,643 44,112 2,468 fuels inedible, except 575 551 590 -4.2% 7.0% 1,007 813 909 -19.2% 11.8% 431 262 319 Jan-17 Dec-17 Jan-16 49,940 Dec-16 49,797 41,643 -143 44,112 2,468 fuels Jan-17 Dec-17 49,940 49,797 -143 fuels Source: Eurostat Jan-17 Dec-17 49,940 49,797 -143 Mineral fuels, Mineral fuels, Source: Eurostat Source: Eurostat lubricants and M1,528ineral 1,382fuels, 1,481 -9.6% 7.1% 2,852 1,344 2,869 -52.9% 113.5% 1,323 -38 1,388 relatedlubricants and lubricants1,528 1,382 and 1,481 1,528-9.6%1,3827.1%1,4812,852-9.6%1,3447.1%2,8692,852-52.9%1,344113.5%2,8691,323-52.9%-38113.5%1,3881,323 -38 1,388 Monthly EU28 merchandise trade with South Korea (Jan 06-Dec 17) related related ▶ Monthly EU28 merchandise trade with South Korea (Jan 06-Dec 17) Animal and ▶ Monthly6,000 EU28 ▶merchandise Monthly EU28 trade merchandise with South tradeKorea with (Jan South 06-Dec Korea 17) (Jan 06-Dec 17) Animal and 6,000 6,000 Total all goods vegetable oils, Animal2 and 4 3 55.9% -10.1% 109 107 115 -1.7% 7.3% 107 104 112 Total all goods Total all goods fatsvegetable and waxes oils, vegetable2 oils,4 3 55.9%2 -10.1%4 310955.9%107-10.1%115 109-1.7% 1077.3% 115107-1.7%1047.3%112 107 104 112 fats and waxes fats and waxes 5,000 Chemicals and 5,000 4,723 5,192 6,913 9.9% 33.1% 6,524 6,999 7,323 7.3% 4.6% 1,801 1,807 411 5,000 relatedChemicals prod, and n.e.s. Chemicals and 4,723 5,192 6,913 4,7239.9%5,19233.1%6,9136,5249.9%6,99933.1%7,3236,5247.3%6,9994.6%7,3231,8017.3%1,8074.6%4111,801 1,807 411 related prod, n.e.s. related prod, n.e.s. 4,000 Manufactures Manufactures 4,000 4,000 classified chiefly Manufactures5,310 5,732 6,394 8.0% 11.5% 3,910 3,644 3,717 -6.8% 2.0% -1,400 -2,088 -2,677 byclassified material chiefly classified5,310 5,732 chiefly6,394 5,3108.0%5,73211.5%6,3943,9108.0%3,64411.5%3,7173,910-6.8%3,6442.0%3,717-1,400-6.8%-2,0882.0%-2,677-1,400 -2,088 -2,677 3,000 by material by material Machinery and 3,000 3,000 transportMachinery and 26,418Machinery25,076 and31,200 -5.1% 24.4% 24,302 22,025 24,582 -9.4% 11.6% -2,116 -3,051 -6,618
Million euro equipmenttransport 26,418transport25,076 31,20026,418-5.1%25,07624.4%31,20024,302-5.1%22,02524.4%24,58224,302-9.4%22,02511.6%24,582-2,116-9.4%-3,05111.6%-6,618-2,116 -3,051 -6,618 Million euro 2,000 Million euro equipment 2,000 equipment 2,000 Miscellaneous Miscellaneousmanufactured Miscellaneous3,262 2,986 2,710 -8.5% -9.2% 5,216 5,540 6,386 6.2% 15.3% 1,954 2,554 3,675 1,000 articlesmanufactured manufactured3,262 2,986 2,710 3,262-8.5%2,986-9.2%2,7105,216-8.5%5,540-9.2%6,3865,2166.2%5,54015.3%6,3861,9546.2%2,55415.3%3,6751,954 2,554 3,675 1,000 1,000 articles articles Commodities and 174 295 238 69.7% -19.4% 1,201 802 630 -33.3% -21.5% 1,027 507 392 transactionsCommodities n.c.e. and Commodities and 174 295 238 17469.7% -19.4%295 2381,20169.7%802-19.4%6301,201-33.3% -21.5%802 6301,027-33.3%507-21.5%3921,027 507 392 transactions n.c.e. transactions n.c.e. Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Other 121 137 86 13.6% -37.2% 555 454 548 -18.1% 20.7% 434 317 461 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 MonthJan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Other 121 137 86 13.6% -37.2% 555 454 548 -18.1% 20.7% 434 317 461 Jan-06 Jan-07 Jan-08 Jan-09 Month Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Other 121 137 86 13.6% -37.2% 555 454 548 -18.1% 20.7% 434 317 461 EU28 imports EU28 exports EU28 imports (moving 12 month average) MonthEU28 exports (moving 12 month average) EU28 imports EU28 exports EU28 imports (moving 12 month average) EU28 exports (moving 12 month average) Source: Eurostat COMEXT R4 15-Feb-2018 EU28 imports EU28 exports EU28 imports (moving 12 month average) EU28 exports (moving 12 month average) Source: Eurostat COMEXT/ISDB Prepared by DG Trade-Chief Economic Unit-Statistics sector Source: Eurostat COMEXTSource: R4 Eurostat15-Feb-2018 COMEXT R4 15-Feb-2018 Source:Source: Eurostat Eurostat COMEXT/ISDB COMEXT/ISDBSource: Eurostat COMEXT/ISDB PreparedPrepared by DG by Trade-Chief DG Trade-ChiefPrepared Economic Economic by DG Unit-StatisticsTrade-Chief Unit-Statistics Economic sectorsector Unit-Statistics sector Source: Eurostat COMEXT R4 15-Feb-2018 In 2017, bilateral trade between the EU and articles’. In 2017, regarding South Korea's Among the Member States of the European followed by the United Kingdom (i.e. 10% of In 2017,In 2017,bilateral bilateral trade between trade betweenthe EU and the South EU andKorea articles’.2017, regarding In 2017, South regardingKorea's exports South to the Korea's EU, there was Among the AmongMemberAmong the StatesMember the Memberof States the of European the States European of the Union,followed European Germany by theis followedUnitedKingdom Kingdom (i.e.by the10% United of(i.e. total 10% importsKingdom of and (i.e. 13% 10%of total of exports) continuedSouth to Koreabe concentrated continuedIn 2017, in atobilateral few be sectors, concentrated trade namely between on exportsathe substantial EU andto the increase articles’.EU, ofthere transport In was 2017, aequipment substantial regarding (cars Southof a Korea's Union, Germanythe largest is the trade largest partner trade of Southpartner Korea of in thetotal European imports Union and and 13% the Netherlandsof total exports) (i.e. 9% ofand total imports and 11% of total South Korea continued to be concentrated exports to the EU, there was a substantial Union, GermanyUnion, is the largestGermany trade is the partner largest of tradetotal partner imports of andtotal 13% imports of total and exports) 13% of and total exports) and ‘Machineryin a few and sectors,TransportSouth namely equipment’ Korea on ‘Machinery(overcontinued 50% of toand total be concentratedincreasecylinder capacity of transport notexports exceeding equipment to 1,000the EU,cc vessels(cars there transportof was a a ofsubstantial South Korea (i.e.in the19% Europeanof total imports Union of the(i.e. European 19% Unionthe Netherlandsand 36% of (i.e.exports). 9% of total imports and in a few sectors, namely on ‘Machinery and increase of transport equipment (cars of a South Korea in the European Union (i.e. 19% the Netherlands (i.e. 9% of total imports and trade) and on ’Chemicalsin a and few Manufactured sectors, namely articles’. on In‘Machinery both persons and and goods).increase of transport equipment (cars of a of total importstotalSouth exportsof the Korea ofEuropean the inEuropean the Union European Union), and followed Union11% by(i.e. theof 19% totalUnited exports). the Netherlands (i.e. 9% of total imports and Transport equipment’ (over 50% of total cylinder capacity not exceeding 1,000 cc of total imports of the European Union and 11% of total exports). Transport equipment’Transport (over equipment’ 50% of total(over 50%cylinder of total capacity cylinder not exceeding capacity not1,000 exceeding cc 1,000 cc 36% of total exportsof total of theimports European of the Union), European Union and 11% of total exports). trade) and on ’Chemicals and Manufactured vessels transport of both persons and goods). 36% of total exports of the European Union), trade) and on ’Chemicalstrade) and andon ’ChemicalsManufactured and Manufacturedvessels transport vessels of both transport persons ofand both goods). persons and goods). 36% of total exports of the European Union), EUROPEAN UNION – SOUTH KOREA 10 / 11 TRADE AND INVESTMENT RELATIONS 2018 EUROPEAN UNION – SOUTH KOREA 10 / 11 TRADE AND INVESTMENT RELATIONS 2018 2017 EU-SOUTH KOREA BILATERAL TRADE BY EU MEMBER STATE (million €) EU-SOUTH KOREA TRADE IN SERVICES 2017 EU-SOUTH KOREA BILATERAL TRADE BY EU MEMBER STATE (million €) 32 EU Project EU-SOUTH KOREAECCK Connect TRADE — Winter 2018 IN 33 SERVICES
The services sector is the fastest-growing increased demand for specialised services. The sector of the global economy, as a resultincreased growth demand in export for ofspecialised services inservices. both directions The 2017 EU-SOUTH KOREA BILATERAL TRADE BY EU MEMBER STATE (million €) The services sector is the fastest-growing sectorof of the the development global economy, of information as a result andgrowth indicates in export that of specialisation services in both is occurring directions within imports exports of thecommunication development technologies. of information The andservices indicates the servicethat specialisation industries isleading occurring to withineconomic communicationsector contributes technologies. more to Theeconomic services growth the servicegains. Economies industries of leading scale and to economicinnovation are imports exports EU-SOUTH KOREA TRADE IN SERVICES 30,000 sectorand contributes job-creation more in to the economic EU than growth any other gains. important Economies elements of scale of andgreater innovation trade in servicesare 30,000 and Thejob-creationsector. services It sector accounts in is thethe fastest-growing forEU somethan any three-quarterssector other of the globalimportant increasedfor both elements demand parties. for of specialised greater services. trade Thein servicesgrowth in export sector.economy,of Itthe accounts asgross a result domestic for of the some development product three-quarters of informationfor the EU. andfor bothof services parties. in both directions indicates that specialisation is of thecommunicationAdditionally, gross domestic technologies. over three-quartersproduct The services for sectorthe of EU.contributesEU jobs occurringDespite withinthe overall the service positive industries trend, leading in 2016 to economic (latest more to economic growth and job-creation in the EU than gains. Economies of scale and innovation are important 25,000 Additionally,are in the over services three-quarters sector. In ofterms EU jobsof trade Despite figures) the overall we saw positive a stagnation trend, in 2016in the (latest trade in anyin services,other sector. the It accounts EU is the for someworld three-quarters leader, with of thea elementsservices of greaterbetween trade thein services European for both parties.Union and 25,000 are ingross the domestic services product sector. for the In EU. terms Additionally, of trade over three-figures) we saw a stagnation in the trade in in services,quarterssurplus ofthe of EU more EUjobs isare thanthe in the world130 services billion leader, sector. euros Inwith terms in a 2016.of tradeservices DespiteSouth between theKorea. overall The thepositive European European trend, in Union's2016 Union (latest exports andfigures) of we surplusin services, of more the thanEU is the130 world billion leader, euros with ina surplus 2016. of moreSouth sawservices Korea. a stagnation toThe South inEuropean the tradeKorea in servicesUnion's dropped between exports 3.7%, the Europeanof from than 130 billion euros in 2016. Union and South Korea. The European Union's exports of The FTA between the EU and South Korea hadservices 13.06 to billionSouth eurosKorea to dropped 12.57 billion 3.7%, euros from while 20,000 a positive impact on trade in services as total servicesimports to Southdecreased Korea dropped from 3.7%,6.82 from billion 13.06 eurosbillion euros to The FTAThe FTAbetween between the the EU EU andand South Korea Korea had had a positive 13.06 to 12.57billion billion euros euros to while 12.57 imports billion decreased euros from while 6.82 billion bilateral trade in services increased about 46% 6.6 billion euros. As a result, the EU's surplus in 20,000 a positiveimpact impacton trade inon services trade as in total services bilateral astrade total in services imports euros decreasedto 6.6 billion euros. from As 6.82a result, billion the EU's eurossurplus into trade in over the last six years. trade in services with South Korea dropped 4%, bilateralincreased trade about in services 46% over increasedthe last six years. about 46% 6.6 billionservices euros.with South As Koreaa result, dropped the 4%, EU's from surplus 6.23 billion in euros infrom 2015 to6.23 5.98 billionbillion euros euros in 2016. in 2015 to 5.98 billion over the last six years. trade in services with South Korea dropped 4%, TheThe impact impact of the of FTA the has FTA resulted has inresulted greater trade in greater in goods, euros in 2016. 15,000 from 6.23 billion euros in 2015 to 5.98 billion servicestrade andin investmentgoods, servicesbetween the and EU andinvestment South Korea, In the years to come, market conditions are expected to The impactthereby increasing of the FTAthe demand has resulted for specialised in greater cross- bordereuros further in 2016. improve thanks to the liberalization, deregulation and 15,000 between the EU and South Korea, thereby In the years to come, market conditions are tradeand in support goods, services. services Thus, the and FTA investmentindirectly supports the re-regulation processes as both South Korea and the EU are increasing the demand for specialised cross- expected to further improve thanks to the betweenexpansion the of EU services, and becauseSouth Korea,the growth thereby of trade andIn themoving years toward to come, gradual marketliberalization conditions to spur competition are in investmentborder and between support the EU andservices. South Korea Thus, results the in FTA theliberalization, service sector. deregulation and re-regulation increasing the demand for specialised cross- expected to further improve thanks to the 10,000 indirectly supports the expansion of services, processes as both South Korea and the EU are border and support services. Thus, the FTA liberalization, deregulation and re-regulation because the growth of trade and investment moving toward gradual liberalization to spur 10,000 indirectly supports the expansion of services, processes as both South Korea and the EU are between the EU and South Korea results in competition in the service sector. because the growth of trade and investment moving toward gradual liberalization to spur between the EU and South2011-2016 Korea EU-SOUTHresults in KOREA competition TRADE IN SERVICES in the service (million sector. €) 5,000 2011-2016 EU-SOUTH KOREA TRADE IN SERVICES (million €) 2011-2016 EU-SOUTH KOREAMillion TRADE Euro IN SERVICES (million €) Year-on-year growth % 5,000 Year Debit Credit Net Total Debit Credit Net Total Million Euro Year-on-year growth % Year 2011 4,697 7,899 3,202 12,595 -2% 7% 21% 3% Debit Credit Net Total Debit Credit Net Total 0 2012 5,023 9,028 4,005 14,050 7% 14% 25% 12% 2011 4,697 7,899 3,202 12,595 -2% 7% 21% 3% Italy Malta Spain Latvia
France 2013 5,703 10,787 5,084 16,491 14% 19% 27% 17% Poland Ireland Croatia 0 Cyprus Austria Greece Finland Estonia Slovakia Bulgaria Sweden Portugal Belgium Slovenia Hungary 2012 5,023 9,028 4,005 14,050 7% 14% 25% 12% Romania Lithuania Germany Denmark
Italy 2014 6,286 11,888 5,602 18,173 10% 10% 10% 10% Netherlands Malta Spain Luxembourg Latvia
France 2013 5,703 10,787 5,084 16,491 14% 19% 27% 17% Poland Ireland Croatia Cyprus Austria Greece Finland Estonia Slovakia Bulgaria Sweden Portugal Belgium Slovenia Hungary Czech Republic Romania Lithuania Germany Denmark United Kingdom United 2015 6,829 13,060 6,231 19,888 9% 10% 11% 9% 2014 6,286 11,888 5,602 18,173 10% 10% 10% 10% Netherlands Luxembourg Source: Eurostat 2016 6,600 12,587 5,987 19,187 -3% -4% -4% -4% Czech Republic
United Kingdom United 2015 6,829 13,060 6,231 19,888 9% 10% 11% 9% Source: Eurostat / (b) = break in series: data from 2010 are calculated according to the new BPM6 methodology. Source: Eurostat / (b) = break in series: data from 2010 are calculated according to the new BPM6 methodology. Source: Eurostat 2016 6,600 12,587 5,987 19,187 -3% -4% -4% -4% Source: Eurostat / (b) = break in series: data from 2010 are calculated according to the new BPM6 methodology. 34 EU Project ECCK Connect — Winter 2018 35 EUROPEAN UNION – SOUTH KOREA 12 / 13 TRADE AND INVESTMENT RELATIONS 2018
The EU's exports to South Korea are highly Korea exports to the EU are also concentrated 2013-2016 EU-SOUTH2013-2016 EU-SOUTH KOREA KOREA TRADE TRADE IN SERVICES IN SERVICES BY BY MEMBERMEMBER STATE STATE (million (million €) €) concentrated on a few sectors, in particular: on business services (39%) and sea transport Million Euro business services (23%), sea transport (21%), (34%). EUROPEAN UNION – SOUTH KOREA 12 / 13 EU28 Debit (imports)TRADE AND INVESTMENT RELATIONSEU28 credit 2018 (exports) The EU's exportsand to South royalties Korea areand highly license concentrated fees (18%). on a South few sectors, in particular: business services (23%), sea transport 2013 2014 2015 2016 2013 2014 2015 2016 (21%),The and EU's royalties exports and license to South fees (18%). Korea South are Korea highly exports Korea exports to the EU are also concentrated 2013-2016EU-28 EU-SOUTH KOREA5,703 TRADE IN6,286 SERVICES6,829 BY MEMBER6,600 10,787 STATE (million11,888 €)13,060 12,587 to the EU are also2013-2016 concentrated EU-SOUTHon business services KOREA (39%) andTRADE IN SERVICES BY SECTOR (million €) seaconcentrated transport (34%). on a few sectors, in particular: on business services (39%) and sea transport Austria 53 59 66 73 111 113 113 116 2013 2014 2015 2016 Million Euro business services (23%), sea transport (21%), (34%). Belgium 96 94 143 131 206 273 345 285 and royalties and license fees (18%). SouthImports Exports Imports Exports Imports Exports Imports Exports EU28 Debit (imports) EU28 credit (exports) Bulgaria 7 3 3 4 16 11 11 11 Total 5,703 10,787 6,286 11,888 6,829 13,060 6,600 12,587 2013 2014 2015 2016 2013 2014 2015 2016 2013-2016 EU-SOUTH KOREA TRADE IN SERVICES BY SECTOR (million €) Croatia 1 2 1 2 19 23 36 43 Manufacturing services 60 357 108 272 64 306 77 213 EU-28 5,703 6,286 6,829 6,600 10,787 11,888 13,060 12,587 2013-2016 EU-SOUTH KOREA TRADE IN SERVICES BY SECTOR (million €) Cyprus 2 2 4 4 Maintenance and repair services 113 104 145 97 178 153 190 171 Austria 53 59 66 73 111 113 113 116 2013 2014 2015 2016 Czech R. 175 185 326 359 33 34 107 129 Transport 2,427 3,043 2,282 3,022 2,320 3,025 2,244 2,628 Belgium 96 94 143 131 206 273 345 285 Imports Exports Imports Exports Imports Exports Imports Exports Denmark 338 301 354 249 846 792 702 582 Travel 241 855 270 1,071 277 1,270 301 1,255 Bulgaria 7 3 3 4 16 11 11 11 Total 5,703 10,787 6,286 11,888 6,829 13,060 6,600 12,587 Estonia 2 3 3 3 6 11 24 24 Construction 54 118 93 203 68 302 63 418 Croatia 1 2 1 2 19 23 36 43 Manufacturing services 60 357 108 272 64 306 77 213 Finland 71 79 572 698 Insurance and pension services 102 416 70 103 81 150 106 296 Cyprus 2 2 4 4 Maintenance and repair services 113 104 145 97 178 153 190 171 France 802 1,251 1,109 739 1,624 1,893 2,080 2,131 Financial services 243 440 250 432 247 552 234 504 Czech R. 175 185 326 359 33 34 107 129 Transport 2,427 3,043 2,282 3,022 2,320 3,025 2,244 2,628 Germany 1,805 1,939 2,116 2,219 2,028 2,300 2,646 2,529 Intellectual property 552 1,884 402 1,897 870 2,246 446 2,343 Denmark 338 301 354 249 846 792 702 582 Travel 241 855 270 1,071 277 1,270 301 1,255 Greece 53 73 51 30 265 285 175 78 Telecommunications, computer, Estonia 2 3 3 3 6 11 24 24 Construction 54 118391 93720 203357 68787 302214 63980 418241 994 Hungary 85 104 118 116 240 320 310 314 etc. Finland 71 79 572 698 Insurance and pension services 102 416 70 103 81 150 106 296 Ireland 75 61 47 57 552 641 645 767 Other business services 1,415 2,504 2,263 3,537 2,472 3,374 2,592 2,891 France 802 1,251 1,109 739 1,624 1,893 2,080 2,131 Financial services 243 440 250 432 247 552 234 504 Italy 234 226 260 212 368 375 320 322 Personal, cultural and recreational 9 35 12 42 11 291 10 441 Germany 1,805 1,939 2,116 2,219 2,028 2,300 2,646 2,529 Intellectual property 552 1,884 402 1,897 870 2,246 446 2,343 Latvia 4 6 6 4 3 3 2 3 Government goods and services 87 41 31 44 11 47 78 46 Greece 53 73 51 30 265 285 175 78 Telecommunications, computer, Lithuania 1 1 1 1 10 13 24 18 Services not allocated 391 720 8 357269 787 1 214381 98015 241362 994 7 385 Hungary 85 104 118 116 240 320 310 314 etc. Source: Eurostat Luxembourg 45 53 54 53 191 171 322 261 Ireland 75 61 47 57 552 641 645 767 Other business services 1,415 2,504 2,263 3,537 2,472 3,374 2,592 2,891 Malta 3 4 3 5 3 1 Italy 234 226 260 212 368 375 320 322 Personal, culturalAmong and the recreational EU Member States,9 35Germany12 is followed42 11 by France291 (i.e. 17%10 of441 total imports Netherlands 541 646 715 701 873 1,007 1,229 1,042 Latvia 4 6 6 4 3 3 2 3 Governmentthe goods largest and tradeservices partner of87 South 41Korea in31 the and44 11%11 of total47 exports)78 and the46 Netherlands Poland 78 88 91 84 154 237 243 230 service sector (i.e. 33% of total imports of the (i.e. 10% of total imports and 8% of total Lithuania 1 1 1 1 10 13 24 18 Services not allocated 8 269 1 381 15 362 7 385 Portugal 46 43 48 50 37 16 22 24 European Union and 20% of total exports), exports). Luxembourg 45 53 54 53 191 171 322 261 Source:Source: EurostatEurostat Romania 15 19 24 37 8 13 12 12 Malta 3 4 3 5 3 1 Slovakia 315 331 346 376 8 18 25 19 Among the EU Member States, Germany is followed by France (i.e. 17% of total imports Netherlands 541 646 715 701 873 1,007 1,229 1,042 the largest trade partner of South Korea in the Amongand 11% the EUof Membertotal exports) States, Germanyand the is Netherlands the largest trade Slovenia 5 4 8 7 18 46 66 78 partner of South Korea in the service sector (i.e. 33% of total Poland 78 88 91 84 154 237 243 230 service sector (i.e. 33% of total imports of the (i.e. 10% of total imports and 8% of total Spain 98 197 211 407 453 545 imports of the European Union and 20% of total exports), Portugal 46 43 48 50 37 16 22 24 European Union and 20% of total exports), followedexports). by France (i.e. 17% of total imports and 11% of total Sweden 131 144 168 147 759 526 656 498 Romania 15 19 24 37 8 13 12 12 exports) and the Netherlands (i.e. 10% of total imports and 8% United Kingdom 692 510 496 647 1,886 2,046 1,892 1,801 of total exports). Slovakia 315 331 346 376 8 18 25 19 Source: Eurostat Slovenia 5 4 8 7 18 46 66 78 Spain 98 197 211 407 453 545 Sweden 131 144 168 147 759 526 656 498 United Kingdom 692 510 496 647 1,886 2,046 1,892 1,801 Source: Eurostat EUROPEAN UNION – SOUTH KOREA 14 / 15 TRADE AND INVESTMENT RELATIONS 2018
36 EU Project ECCK Connect — Winter 2018 37 EU-SOUTH KOREA FOREIGN DIRECT INVESTMENT
The EU is by far the largest source of FDI stock 2013-2016 EU-SOUTH KOREA FDI (million €) in South Korea (32% of total South Korea FDI Million Euro Year-on-year growth % stock)EU-SOUTH ahead KOREA of JapanFOREIGN (26%) DIRECT and INVESTMENT the United Among EU Member States, in 2016, the Netherlands was the States (19%). According to Eurostat, in 2016 Yearlargest investor in SouthStocks Korea, holding about 37%Flows of the EU's Stocks Flows theThe EUEU's is by FDIfar the stock largest in source South of FDI Korea stock in reachedSouth Korea total FDI stockInward in South Korea,Outward followed byInward Germany (overOutward 16%) Inward Outward Inward Outward (32% of total South Korea FDI stock) ahead of Japan (26%) and and the United Kingdom (15%). On the other hand, Germany EUROPEAN UNION – SOUTH KOREA 50the billionUnited States euros, (19%). which According was to Eurostat,12% morein 2016 thethan EU's 2013is the top destination15,517 for South32,097 Korean FDI1,853 in the EU (about873 -8% -9% -57% 14 / 15 TRADE AND INVESTMENT RELATIONS 2018 theFDI stockprevious in South Koreayear. reached South 50 Korea'sbillion euros, FDI which in was the 12% 25% of total stock), followed by Slovakia (15%) and the Czech 2014 17,928 42,936 4,326 7,766 16% 34% 133% 790% EUmore also than increased the previous inyear. 2016, South Korea'sexpanding FDI in theby EU 3% also Republic (12%). increased in 2016, expanding by 3% compared to the previous compared to the previous year, and reaching 2015 18,666 44,853 1,811 -4,287 4% 4% -58% year, andEU-SOUTH reaching 20 billion euros. KOREA FOREIGN DIRECT INVESTMENT 20 billion euros. 2016 19,232 50,339 989 3,426 3% 12% -45%
2013-2016 EU-SOUTH KOREA FDI (million €) Source: Eurostat (bop_fdi_main(<-2012): bop_fdi6_geo2013-2016 (2013->)) EU-SOUTH Break KOREA in series FDI in (million2013 €) 2018.01.11 2013-2016The EU EU-SOUTH is by far the KOREAlargest source FDI (million of FDI stock€) Data until2013-2016 2012 calculated EU-SOUTH according to BPM5, KOREA data FDIfrom 2013(million calculated €) according to BPM6 in South Korea (32% of total South Korea FDI Million Euro Year-on-year growth % stock) ahead of JapanFDI (26%) between and theEU28 United and South Korea AmongYear EU Member StocksStates, in 2016, theFlows Stocks Flows States60,000 (19%). According to Eurostat, in 2016 10,000 the EU's FDI stock in South Korea reached Netherlands wasInward the largestOutward investorInward in Outward Inward Outward Inward Outward South Korea, holding about 37% of the EU's 50 billion euros, which was 12% more than 8,000 2013 15,517 32,097 1,853 873 -8% -9% -57% the50,000 previous year. South Korea's FDI in the total FDI stock in South Korea, followed by 2014 17,928 42,936 4,326 7,766 16% 34% 133% 790% EU also increased in 2016, expanding by 3% 6,000 Germany (over 16%) and the United Kingdom
compared to the previous year, and reaching FDI flows (million euro) (15%). 2015On the other18,666 hand, 44,853Germany is1,811 the -4,287 4% 4% -58% 40,000 20 billion euros. 4,000 top destination for South Korean FDI in the 2016 19,232 50,339 989 3,426 3% 12% -45% EU (about 25% of total stock), followed Source: Eurostat (bop_fdi_main(<-2012): bop_fdi6_geo (2013->)) Break in series in 2013 2018.01.11 30,000 2,000 by SlovakiaSource: Eurostat(15%) (bop_fdi_main(<-2012): and the Czech Republic bop_fdi6_geo (2013->)) Break in series in 2013 2018.01.11 2013-2016 EU-SOUTH KOREA FDI (million €) (12%).DataData until until 2012 2012 calculated calculated according according to BPM5, to BPM5, data datafrom 2013from calculated2013 calculated according according to BPM6 to BPM6
FDI stocks (million euro) FDI stocks 20,000 FDI between EU28 and South Korea -2,000 Among EU Member States, in 2016, the 60,000 10,000 Netherlands was the largest investor in 10,000 South Korea, holding about 37% of the EU's -4,000 8,000 50,000 total FDI stock in South Korea, followed by Source -6,000 6,000 Germany (over 16%) and the United Kingdom 2008 2009 2010 2011 2012 2013 2014 2015 2016 Delegation of the European Union to the Republic of Korea
FDI flows (million euro) (15%). On the other hand, Germany is the 40,000 top destination for South Korean FDI in the Stocks Inward Stocks Outward Flows Inward Flows Outward 4,000 11th Floor, Seoul Square, 416, Hangang-daero, Jung-gu, Seoul, EU (about 25% of total stock), followed 04637 Korea 30,000 2,000 by Slovakia (15%) and the Czech Republic Tel (82-2) 3704-1700 Source:Source: Eurostat Eurostat (bop_fdi_main( (bop_fdi_main(<-2012):bop_fdi6_geo<-2012):bop_fdi6_geo (2013 ->(2013->)))) Break inBreak series in inseries 2013 in 2013 11-Jan-1811-Jan-18 (12%). Fax (82-2) 735-1211 eeas.europa.eu/delegations/south_korea
FDI stocks (million euro) FDI stocks 20,000
-2,000
10,000 -4,000
-6,000 2008 2009 2010 2011 2012 2013 2014 2015 2016
Stocks Inward Stocks Outward Flows Inward Flows Outward
Source: Eurostat (bop_fdi_main(<-2012):bop_fdi6_geo (2013->)) Break in series in 2013 11-Jan-18 38 Cover Story
From the renegotiation of the U.S.–Korea Free Trade Financial and Agreement (KORUS) to inter-Korean summit, it has been quite a year for Korea. Furthermore, Korea has re- confirmed the importance of its strategic partnership Economic with the EU through the 9th EU-Korea Summit held in October.
Outlook 2019 Keeping all these factors in mind, looking ahead is the key to success for gearing up for upcoming year. This edition’s Cover Story will feature various aspects of financial and economic outlook 2019 including EU-Korea economic relations to how EU-Japan EPA would affect Korea. KB-VUB, Lee & Ko and Shinhan Bank contributed to this topic. 40 Cover Story ECCK Connect — Winter 2018 41
We can expect bilateral economic links to continue to Korea-EU strengthen in 2019. On the Korean side, the economic situation is nowhere as bad as the headlines would suggest. The economy is expected to grow by 2.5 to Economic 3 percent next year, the jobless rate currently hovers around the rather low 4 percent mark, and real wages are projected to receive a boost thanks to the rise in Relations in 2019 the minimum wage. Few developed countries can boast these figures.
Notwithstanding low business and consumer confidence figures, German cars, French luxury goods and Spanish fashion will continue to be sought after items. Taking a step back to reflect, the contrast with ten years ago is rather astonishing. From having to travel all the way to Itaewon to find expensive French or Italian wine to being able to buy cheaper brands in your corner mom-and-pop shop might seem a minor change. But it symbolizes the growing popularity of European products.
As for the EU, migration, populism and Brexit might dominate the headlines. Average growth across member states above 2 percent this year and average unemployment rates below 8 percent do not. But they are the reason why Korean cars and mobile phones continue to sell well, higher-end Korean restaurants are popping up from Madrid to Prague, and BTS sells out venues in London But there is an area where politics and economics directly each other in 2019. This would also create more business or Amsterdam. With Korean culture finally cracking most merge where we should expect more cooperation between opportunities and jobs in both of them. of Europe, Korean exports should benefit as Europe’s Korea and the EU. This area is sustainable development, a economy continues to grow in 2019. priority for both Seoul and Brussels. The impact of ageing All in all, Korea-EU economic relations are poised to Economic relations between Korea and the EU have grown societies, the challenge of climate change or how to continue to improve next year. After all, consumers on exponentially since the bilateral FTA first entered into Stronger economic relations, however, are unlikely to rely support low-skilled workers left behind by globalization is both sides want the products and services that the other force in 2011. Trade in goods went up from 66 billion on a re-negotiated FTA. The EU will be busy with European a challenge that both Korea and the EU will continue to has to offer. With the FTA having created a framework for EUR in 2010 to 94 billion EUR in 2017. Korean exports Parliament elections and negotiations to form a new face in 2019. better relations and growth continuing in both Korea and in services grew by 38 percent between 2010 and 2016, European Commission. Meanwhile, Korea has taken a the EU, the outlook for 2019 is positive. while European exports went up by 70 percent during wait-and-see attitude towards renegotiation of the EU- Cooperation in this area should come from knowledge this period. Bilateral investment, even though not Korea FTA now that the United States-Korea FTA (KORUS) and best-practice sharing. The popularization of bicycle- covered by a separate chapter in the FTA, reached 4.4 has been successfully renegotiated and while the final sharing systems or sustainable energy transition are two billion EUR in 2016. Bilateral bodies set up to ensure shape of Brexit becomes clear. Simply put, there is little examples of areas in which several European countries smooth adjustments and make improvements meet willingness to come to an agreement on issues including and cities excel. Korea, meanwhile, is a leader in the use of Written by regularly and for the most part work well. The FTA has the export of European goods produced outside of the smart technology to collect and make use of data. It also Professor Dr. Ramon Pacheco Pardo not been the only reason behind stronger Korea-EU EU, labour rights concerns or intellectual property rights has one of the highest recycling rates in the world. In other KF-VUB Korea Chair Holder economic ties, but it supports and symbolizes them. differences at this point. words, Korea and the EU should continue to learn from E. [email protected] ECCK Connect — Winter 2018 43
Moving from 1. A Trade Deal of Its Time On December 8th, 2017, the trade agreement between the EU and Japan was concluded. After four years of one landmark to negotiation, the agreement is now on track for ratification and expected to enter into force in 2019. the next: The agreement has been a subject of near-universal praise as a beacon of light in the midst of pronounced mercantilism – and rightly so. The EU Trade Commissioner What the new Malmström calls the agreement “the biggest and most advanced bilateral agreement ever negotiated by the European Union”. Factually speaking, it is indeed the EU-Japan EPA first-ever FTA concluded amongst the world’s top five economies. It is still the biggest in terms of both GDP and population, ahead of the recently revamped NAFTA (the means for Korea USMCA agreement).
It may be the biggest – but is it the most advanced?
As Japan already maintained one of the lowest average tariff rates in the OECD and G20, it eliminates customs duties on 97% of tariff lines without much effort, with 90% upon entry into force. Japan maintained tariffs on some of Europe’s primary export interests, e.g. cosmetics, chemicals, clothing or the culturally sensitive leather and footwear (where a 30% tariff peak is phased out over ten years).
On agriculture, Europe’s most offensive interests, e.g. cheese, pork, beef, wine, pasta and chocolates are either phased out through staging or quotas (TRQs), providing half of the export gains in this agreement. Meanwhile, tariff protection on Japan’s ‘sacred’ farm produces – like rice and other crops – will remain.
2. The Logic Of The Agreement
As a whole, the EU-Japan EPA is in parity with what Japan initially offered the US and its ten partners in the original TPP agreement, and this has good reasons. Japan negotiated the two agreements in parallel and was keen 44 Cover Story ECCK Connect — Winter 2018 45
not to suffer the fate of Korea, who renegotiated KORUS competition between Korea and Japan, even seemingly 4. Trading Access Against Relevance thereby extending its relevance. The implications are not after the completion of the EU-Korea FTA. insignificant differences can be decisive. least evident through Japan’s trilateral dialogue with the Similar to the side agreements on data, the Japanese US and the EU on ‘global level playing field’, effectively Prime Minister Abe may have even intended to offer The auto industry is central in this regard: As tariffs private railway operators entered into a voluntary led by Japan's Ministry of Economy, Trade and Industry Brussels what he had already liberalised for US farmers against Japan-made cars are reduced over seven years, undertaking to involve more European subcontractors, in (METI). under TPP. The EU deal replaces rice for cheeses, resulting rather than five under EU-Korea FTA, Korean auto an attempt to appease French engineering firms opposing in a quid-pro-quo between European luxury items in manufacturers will have enjoyed ten years of duty-free the agreement. In addition, much of public procurement And it is here – at the nexus between Europe's short-term exchange for car parts destined for Japanese car plants trade, before their Japanese competitors reach the same negotiations aimed at opening up the regional railways mercantilism and an Asian country’s long-term objective located in Eastern Europe. point. and public transport sector for these interests. to maintain regional balance – where we once again recognise the legacy of the EU-Korea FTA. However, the access barrier between the EU and Japan However, Japan also aligns itself closer to the EU Much of the negotiation efforts went into negotiating are regulatory divergences rather than tariffs. Both dominated UNECE standards on car parts through both market access for defensive interests in Europe who Japan and Europe are expensive markets – where costs of unilateral measures and EPA commitments. Also, the are hesitant towards more competition from Asia. Yet, regulatory compliance further add to prohibitive market tariff cuts on the most valuable components destined for whether the European auto and railway manufacturers entry costs. The EPA attempts sector-specific annexes Japanese plants in Europe will take place immediately. As actually plan to make use of the hardearned access in to keep these costs down on motor vehicles, cosmetics, both Korean and Japanese auto manufacturers produce Japan is unclear. Nonetheless, side agreements on data textiles and sanitary issues on food items (SPS) through most of their EU sales locally, the playing field is already and tariff cuts for European retailers put competitive conformity assessments in a typical fashion to create levelled from day one. pressure for Korea to conclude its own privacy talks with rudimental regulatory coherence. In financial services the EU – and bring also some new rationale to liberalise and digital trade, it preempts some basic trade barriers, There are also two more broadly horizontal commitments with Japan through CPTPP. albeit with the usual generous exceptions. with significant bearing on Korea. The EU-Japan EPA explores a new approach to business mobility, covering Perhaps the bottom line on this new agreement is in its To those of us familiar with the EU-Korea FTA, the pillars not just intra-corporate transferees, investors and service name – ‘the EU-Japan Economic Partnership Agreement’. of the Japan agreement are immediately recognisable. In providers – but also their spouses and children, which will The name combines the habit of Europeans of putting fact, the EU-Japan EPA is not a radical departure from facilitate relocation. Another new commitment is on themselves first, and Japan’s tradition of building what the EU signed in 2010 with Korea under its older digital trade and international transfer of data. partnerships with stronger economic powers. Much of ‘constitution’, which notably precluded negotiations that partnership builds on industrial standards. Indeed, on investments. Eight years later, any comprehensive The EPA itself is void of any meaningful disciplines on data in the past two decades, Japanese industrial planners investment protection and enforcement are once again flows compared to what Japan championed in CPTPP, or have been awe-struck by how their national standards absent from EU FTAs – although an investment treaty later revisions under USMCA. However, the EU and Japan on cars, televisions and telecoms have been swept away Written by Dr. Hosuk Lee is negotiated separately between Japan, the European agree to a mutual adequacy decision on privacy which by Europe’s capability to set global standards. Director of ECIPE (European Centre Commission and the EU member states. will authorise their businesses to transfer customers and for International Political Economy) employee data without any prior authorisation or user Also, the EPA establishes the first regulatory cooperation (Brussels) Meanwhile, some evolutions since EU-Korea may be consent. The adequacy decisions allow their multinationals committee designated to cooperate on future regulations principally important (such as a negative list binding on to operate one IT system globally for the entire organisation, based on good regulatory practice. Other chapters of the Senior Fellow of London School of services schedules) but does not result in new access for thereby avoiding multiple overhead costs. EPA – such as the disciplines on state-owned enterprises, Economics either party. competition and state aid – seem to be aiming at a China Finally, Europe’s preferential access to Japan’s textile and rather than the signatories themselves, similarly to the Advisor for Lee & Ko Global clothing market is another matter of concern. Even in a CPTPP disciplines from where they draw their inspiration. Commerce Institute 3. The Pressure On Korea sector where gross profit margins are as high as 30~40%, E. [email protected] the EPA creates a doubling of financial headroom for The EPA itself may not be potent enough in a manner like The EU-Japan EPA owes much to its Korean precursor European competitors to invest in further expansion the TPP to change the global agenda. But the EPA brings This is an excerpt from the Issue Brief Vol.2, 2018 from Lee and builds on its template. However, given the industrial against Korean retailers or clothing. Japan back to the high table of economic diplomacy, & Ko Global Commerce Institute. 46 Cover Story ECCK Connect — Winter 2018 47
Monetary Policy Conditions view to this issue between South Korea and the USA. Pro- Economic Global manufacturing PMI and OECD CLI going While Trump is criticizing the Fed’s interest rate rises, the cesses to verify denuclearization and procedural obstacles sluggish bank does not seem to give in and plans to stick to its direc- seem unavoidable, implying that this issue should be seen tion to gradually increase the rate, guided by the employ- from a far-sighted view. and Financial ment market and inflation as indicators for its monetary policy. However, the nation’s monetary policy may change if US-China Trade Conflict the US stock market, which has experienced a long-lasting The conflict between the two economies, after all, should be Conditions and bull market, underperforms due to concerns about over- seen as a struggle for hegemonic power. The USA is clutching valuation, weakened momentum for the US economy and China’s throat not to simply shake off its trade deficits. It is labor and other cost rises, burdens coming from the trade forcing Beijing to give up on the existing frame of state ca- Prospects conflict with China, and worsened profitability of multinati- pitalism and follow the rule of fair market economy. Europe onals affected by the strong dollar. The ECB is treating of a and other advanced countries share the same view to China’s rate rise in the second half of 2019, but the sluggish recovery habitual intellectual property theft and forceful demand on and the Italian issue would be sources of trouble for setting companies entering Chinese markets for technical transfer, its monetary policy. The prolonged economic slowdown in and they are urging China to change its stance. Finally the China and American protectionism may negatively affect USA has expanded the conflict into a confrontation between Source: Thomson Reuters exports from the Euro zone, which may drive the ECB to set the market economy and the non-market economy, and up a detour in its monetary policy normalization plan. With Washington is holding back Beijing’s attempt to promote its domestic demands going bearish and export slowing advanced technology. It may be seen as a move to upset down, Korea, too, faces not so favorable conditions to keep China’s destiny to challenge the US-dominated global order, sticking to rate increases. which would not be resolved in the short run. Global Economic Conditions Financial Market and FX Trends in 2018 Global manufacturing is slowing down, and advanced Conditions in Emerging Economies Financial Market and US Dollar Prospects In 2018, the German and Korean stock markets, commonly countries’ composite leading indices are declining, which China’s continued deleveraging since 2016 has weakened the Compared to what it looked like one year ago, the perspec- known as DAX and KOSPI, reached their respective peak in implies formidable conditions in the coming days. As the economy’s growth momentum. This, combined with incre- tive to the financial market has turned negative, influenced January followed by sluggish movements. Momentum for year’s stand-out economy, the US’ economic growth would ased pressure from the trade conflict with the USA, would by the downturn trend in the global economy, soring asset the overall global economy weakened, except for the USA of go bearish as the effect of its tax exemption policy beco- put a burden on the Chinese real economy. This would lead prices, and the US-China conflict. There is more room for the which growth has been driven by the Trump administration’s mes faint. Recently, the Fed presented an outlook that the Beijing to changing its stance from controlling the tone of USA to further increase the interest rate, while Germany and tax exemption and other fiscal policies, which in turn put a economy’s growth would slow down from its peak of 3.1% the market by easing its monetary policy to pursuing pump- Korea would face upward rigidity of interest rates. Players burden on the stock markets. This was also reflected in the in 2018 to 2.5% in 2019, and 2.0% in 2020. The U.S. President priming efforts and aggressive fiscal policies including tax in the stock market now have not so high expectations for national bond markets. Interest rates for the German and Trump revealed his intention to seek further tax cuts for the cuts. Emerging economies, burdened with excessive debts as stock price rises, and the resilience of the US stock market, Korean government bonds showed a short-term rise in the middle class, but it is not very likely to turn into concrete an aftermath of failure in controlling debt increases following burdened by concerns about overvaluation, would heavily in- beginning of the year, but the rates were put back after- actions due to concerns about increased budget deficits. the global financial crisis, should focus on controlling financi- fluence the overall risk asset market. The relatively well-doing wards. The European Central Bank, ECB, was pursuing to According to an IMF prospect (October), the German eco- al risks, unavoidably blunting their growth. economy of the USA and negative conditions in the financial put its quantitative easing to an end by the year end but nomy, which grew by 2.5% in 2017, is expected to grow by market could lead to sustained dollar preference. ended up freezing the benchmark rate, and the Bank of Ko- 1.9% in 2018 and 2019, respectively, which is a decline com- North Korean Denuclearization rea, too, had kept its benchmark rate frozen until it held the pared to its previous prospects. Korea, too, is expected to Despite intervention of the South, it remains doubtful if last monetary policy meeting of the year on November 30. experience sluggish economic growth, 2.8% in 2018 and the USA and North Korea have the same definition about Written by Baek Seok-hyeon In Europe, Italy’s populist government has become a vexati- 2.6% in 2019, after reaching the peak of 3.1% in 2017. The denuclearization, and some are still suspicious about Economist, Shinhan Bank on for the Euro zone. Korea had an elevated hope for North IMF spoke about an increasing downward risk from these Pyongyang’s true intention. While the priority in Seoul is im- Korean denuclearization but the progress has been slow so baseline prospects for the global economy, pointing out the proving the South-North relationship, Washington intends far. In the FX market, dollar has gone strong to Euro and financial market conditions turning negative affected by to sustain strict sanctions against North Korea unless the Korean won since April 2018. the U.S.-China trade conflicts. North gives up on nukes, meaning there is a difference in 48 Reaserch & Insights ECCK Connect — Winter 2018 49
Europe-Korea Innovation Forum 2018
Also, H.E. Michael Reiterer, Ambassador of the European After the coffee break, the second part of the forum Union Delegation to the Republic of Korea and Sun Min dedicated to transformation of manufacturing sector Kim, Deputy Minister for MOTIE delivered congratulatory and Industry 4.0 resumed with renowned speakers from remarks. Siemens Korea, SAP Korea, and Dassault Systèmes Korea. Moderated by Sangwon Jeong, Professor of Seoul The event was composed of two sessions, focusing on two National University, the discussion was joined by Bong distinct topics: Mobility and Production. Both sessions were Sung Bum, General Manager of Digital Portfolio of followed by panel discussions to share deeper insights on Power Generation Services of Siemens Korea, Yong Wan successful solutions to the challenges of creating a better Jo, Head of Digital Platform of SAP Korea, Janghee and sustainable future with emerging technologies and Lee, Senior Sales Representative of Dassault Systèmes practices. Korea, and Changwon Ahn, Principal Researcher of While representing only 10% of the world population, Europe Under the theme of Industry 4.0 and Its Impact on Business, Big Data Intelligence Division of ETRI (Electronics & is a world leader in science and technology, responsible the forum was supported by Delegation of the European The first session of the forum featured presentations on Telecommunications Research Institute). for over a quarter of global expenditure on research and Union to the Republic of Korea (EUD) and Ministry of Shaping the Future of Mobility and Green Mobility by development. At the same time, Korea is ranked first among Trade, Industry and Energy (MOTIE). The forum focused industry experts from Mercedes-Benz Korea Ltd. and All in all, the forum has served as a prime platform for all nations such as research and development capability, on the latest trends and developments in Industry 4.0 and Solvay, respectively. information exchange among European and Korean productivity, tech density and patent activity. its overall impact on business operations and on society. companies and reminded the participants that On top of that, business representatives, researchers and Mercedes-Benz Korea Director of Planning, Price and innovations cannot be implemented into everyday life Furthermore, Europe and Korea have long been close academics experienced the unique opportunity to gather Product Strategy of Johannes Schoen mentioned, “In without active engagement of private entrepreneurs partners in economic and political cooperation, and together and exchange their knowledge and experience in the future, strengthened connectivity and increased self- taking the lead and commercializing new technologies. through signing of the EU-Korea and EFTA-Korea Free various areas of expertise. driving cars etc., would lead to commercialized car sharing Also, the solutions to challenges can only be possible by Trade Agreements, this strategic partnership strengthened, services.” Also, Solvay R&I Director Seung-Eun Lee shared international information exchange and collaboration. creating a momentum for further cooperation in various The forum was commenced with an opening remarks by the growth potential for lithium-ion battery. fields including research and innovation areas. Dimitris Psillakis, Chairman of ECCK and welcoming remarks ECCK would like to express deep gratitude for all by Homin Kang, Senior Vice President of KCCI. During his Bloomberg NEF Head of Intelligent Mobility Ali Izadi- participants to attend this informative event. We hope In this connection, Europe-Korea Innovation Forum 2018 speech, Chairman Psillakis said “We all need to take part Najafabadi moderated the first panel discussion joined to continue to promote cooperation between Korean and was jointly organized by European Chamber of Commerce in developing the new paradigms in industry in the era for by Seunghak Yoo, Automobile Engineering Professor European businesses, which will bring more opportunities in Korea (ECCK) and Korea Chamber of Commerce & the fourth industrial revolution through scientific innovation of Joongbu University, and Joochan Sohn, Committee on both sides, deepen interaction, and increase mutual Industry (KCCI) on November 13 at the Grand Hall, KCCI. and endless economic growth”. Member, Autonomous Vehicle Future Forum of MOLIT. benefits. 50 Social Responsibility ECCK Connect — Winter 2018 51
needs for vulnerable people such as clean water, sanitation Help Save Lives and malnutrition.
MSF is the largest non-governmental provider of tuberculosis Join MSF’s worldwide. MSF treated over 3,000 patients for drug- 2018 Year-End resistant forms of the disease in 2017. We Need Your Help MSF Korea is seeking corporate and community leaders Campaign to help spread the value of humanity and humanitarian medical aid. Funds will support MSF’s medical humanitarian activities in over 70 countries worldwide. Partners will not © MSF/Pierre-Yves Bernard © MSF/Maxime Fossat only make an impact on patient lives, but will also help Malnutrition screening at vaccination centre in the Central A 4 year-old with drug-resistant tuberculosis (DR-TB), raise awareness about humanitarian aid in Korea. Thanks African Republic (CAR). Since early 2015, MSF has been and MSF health worker at TB paediatric hospital in Osh, to your support, MSF will continue to provide medical aid to implementing a mass vaccination campaign for children Kyrghyzstan. MSF provides outpatient and hospital care vulnerable people in need. under 5 in CAR. for people with DR-TB.
Médecins Sans Frontières / Doctors Without Borders (MSF) Médecins Sans Frontières (MSF) is an international, independent, medical humanitarian organisation, founded in 1971. In over 70 countries around the world, MSF provides Médecins Sans Frontières (MSF) provides humanitarian urgent medical humanitarian assistance for people in need medical aid in more than 70 countries around the world caught in conflict zones, epidemics, natural disasters, or exclusion from health care. Today, 65 million people are displaced by conflict, violence and natural hazards. The high level of violence of crises throws Over 40,000 MSF aid workers work in extremely difficult hundreds of thousands of human beings on dangerous and and neglected places around the world. MSF aid workers risky routes seeking refuge in a safer environment. are professionals in various fields such as doctors, nurses, © MSF/Louise Annaud © MSF/Pablo Tosco/Angular logisticians, administrators and mental health specialists. MSF health worker treating patients in an Ebola treatment A woman and her infant son at MSF hospital in MSF provides assistance to populations caught in war MSF actions are based on medical ethics and delivery of center in Bikoro, Democratic Republic of Congo (DRC) in Goyalmara, Cox’s Bazar, Bangladesh. Since August 2017 and to people on the move fleeing repression, poverty or medical aid to people, regardless of their race, religion, 2018. more than 693,000 Rohingya refugees have arrived violence. Our teams respond to other emergencies caused gender or political affiliation based on an independent in settlements and camps in Cox’s Bazar after fleeing by outbreaks such as Ebola and natural disasters and assessment of people’s needs. violence in Myanmar’s Rakhine State. provide care and treatment for patients with diseases such as tuberculosis and HIV. Our independence is facilitated by our policy to allow only a very small portion of our funds to come from governments 10 million outpatients seen by MSF in 2017 and intergovernmental organisations. Ninety-five percent Despite volatile environments, MSF’s dedicated teams care of MSF's funding comes from individual donors and private Contact [email protected] for pregnant women and newborns, treat the wounded corporations. MSF Korea is calling for special donors for the 2018 year- [email protected] and people with medical emergencies, manage chronic end campaign running now until the end of January 2019. +82 (0)2 3703 3573 illnesses, and respond to disease outbreaks, notably through MSF was awarded the Seoul Peace Prize in 1996 and the If you are interested in supporting MSF’s work, please Shinhan bank 140-009-508856 vaccination campaigns. MSF also works to meet other vital Nobel Peace Prize in 1999. contact Hanna Shin, Partnership Specialist at www.msf.or.kr The ECCK serves as the public voice for European companies conducting business in or related to Korea
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For Membership Inquiries: T +82-2-6261-2700 / E [email protected] 54 Startup News ECCK Connect — Winter 2018 55
Since my earliest memory, basketball has been a huge time with no real instruction. Our classes provide a way part of my life. My first word was two as in two points for students to progress and develop their basketball Project Ball Academy for making a basket. When I was four or five, I used to skills while having fun at the same time. Additionally, our bug my dad after he returned home from work to play classes provide a setting for students to practice using Provides Interactive basketball with me. One day I even asked him if he could English outside the classroom. do half basketball half dinner (he was eating dinner at the time). Hardships and Where it’s Headed Basketball Training Not everything has been easy for us at Project Ball As I grew older and older and lost interest in things I Academy. Our main struggle has been finding a gym to Across Seoul enjoyed when I was younger, my interest in basketball rent that is not too far for interested parents. We have grew exponentially. I played for my middle school, high had the most success holding classes outside during the school and at the University of Cape Town. Even that spring and fall months when the weather is not too hot wasn’t enough for me as I started coaching younger kids or cold. during high school and university. After graduating from university, I decided to move to Korea to teach English Still, we are moving in the right direction with weekend and immediately started looking for groups or people classes at Dulwich College Seoul, Chadwick International to play basketball with. After about two months I found in Incheon, and weekend classes in the Gangnam area. Project Ball on Facebook. Ultimately, we would like to get big enough to build our own sports complex and provide a space for families to What is Project Ball and Project Ball Academy? get together and play basketball with people from all Project Ball is a community created by Hindson Her that over the world. brings people together through the game of basketball. It was started in 2013 with just a handful of members, but If you have a love of basketball, coaching, or would like now consists of over 2,700 members online. I joined in more information about how to get involved with Project 2015 and played in a plethora of leagues for two years. In Ball Academy, please refer to the information below. 2017, I sat down with Hindson to discuss possibly starting an academy and a year later we launched Project Ball Academy.
We created Project Ball Academy to provide instruction to students of all levels of basketball abilities while emphasizing the use of English phrases. In Korea, there are many academies, both academic and physical, but a lot of the academies that specialize in English focus on rote memorization and do not offer a lot of active, Written by Robbie Pollard (Co-Founder) engaging ways to learn English. Contact Project Ball Academy provides a fun, interactive way Robbie Pollard (Co-CEO & Co-Founder) to learn English. Through previous experience working E: [email protected] with and observing some of the basketball schools and T: +82.10.7481.4242 academies around Seoul, we noticed that they tend to www.projectball.co emphasize either a strict regimen of basketball training Facebook: Project Ball Academy & Project Ball-Seoul, Korea or just let their students play for an extended period of Instagram: Project Ball 56 Taste of Europe ECCK Connect — Winter 2018 57
Spanish Restaurant Terreno
Located in the cozy corner of Bukchon Korean Village, philosophy. It’s a colorful Spanish course meal containing Spanish Restaurant Terreno is already a well-known hot 6~9 courses from amuse-bouche to desserts. Through spot for authentic Spanish food amongst food lovers. in-season ingredients, the diners can enjoy the fresh and quality Spanish cuisine. Terreno means ‘ground, field’ in Spanish. Just like its name implies, the restaurant is all about bringing nature to the Other main menus include bacalao (salted cod), rice table. As an exquisite Spanish fine dining restaurant, it dish with squid ink and hanwoo (premium Korean beef) has been featured in the Michelin Guide Seoul in 2018 and steak and ice cream made from scratch, that all result in 2019 consecutively. Terreno is the only Spanish restaurant fantastic meal experience not only catches your eyes but in Korea that has made it to the guide, which proves its also satisfies your taste buds. quality and consistency. Along with the dishes, the in-house wine expert pairs and Business Info. Head chef Carlos Shin, who has worked in many cities suggests wines that best complement the menu. Terrono Closed on Mondays around the world including San Sebastian, Dubai, Sydney, has a fabulous wine list including famous Spanish wines in Lunch: 12:00~15:00 (Last order: 14:00) etc., focuses on showcasing the ingredients’ original various price ranges. Dinner: 17:30~22:00 (Last order: 20:30) flavors that results in natural and delicate dishes. The chef forages herbs and vegetables from the small garden on his The simple and modern interior design of the restaurant Contact restaurant’s roof top. features open space and it’s suitable for many occasions Spanish Restaurant Terreno: from special dates to corporate parties and so on. Also, it Address: 2F, 71 Bukchon-ro, Jongno-gu, Seoul Menu Degustacion is the main dish that captures the chef’s has a private room for those who seek to have a quiet dinner. Tel: 02-332-5525 58 Art & Culture ECCK Connect — Winter 2018 59
What Ought to Be Done? Work and Life
1. Labour in a Single Shot A project by Antje Ehmann and Harun Farocki in Cooperation with the Goethe Institut, 16-Channel 1 Video Projection, Color, Sound, 2011~2017
Since 2015, the National Museum of Modern and Farocki’s research and analysis of media and images offer Workers Leaving the Factory in Eleven Decades (2006) is project since 2017. Labour in a Single Shot produces videos Contemporary Art, Korea (MMCA) has programmed new perspectives onto other aspects of labor, war, and a 12-channel video installation from Workers Leaving the of labor in progress around the world, each taken in one exhibitions and programs that express the intense technology. Factory. The world’s first documentary film (lasting 46 continuous, uncut shot. relationship between art and cinema as one of the most seconds), Workers Leaving the Lumière Factory in Lyon, prolific areas of creativity and aesthetic impact that The Parallel I-IV (2012-2014) series takes an epistemological made in 1895 by the Lumière brothers, shows workers This solo show displays works produced in 16 cities, define our time and culture. Artists have always sought approach to the relationship between reality and images coming out of a factory. Taking this first publicly available including the recent addition of Vilnius, Lithuania. Workers new possibilities for innovative uses of film and images in by analyzing representation technologies such as motion picture as a motif, Farocki incorporates another Leaving Their Workplaces is another project carried out general. After the exhibitions of Philippe Garrel – A Dazzling computer graphics. Starting with graphic images used eleven scenes of workers leaving their workplaces, selected in 17 cities, recording workers exiting their workplaces Despair (2015) and Jonas Mekas – Again, Again, It All in early computer games, then moving on to images from thousands of films and items of footage shot during like those in the Lumières’ Workers Leaving the Lumière Comes Back to Me in Brief Glimpses (2017), we are proud almost as detailed as their actual counterparts and even the 110-year history of cinematography. Comparison Factory in Lyon. This work suggests the possibility of to introduce the work of Harun Farocki (1944 – 2014). the construction of virtual reality, this series juxtaposes a via a Third (2009) describes various types of labor that contemplating our own era, region, history and moments range of images of different standards. coexisted during the Industrial Revolution. The invention of through the act of shooting video. Offering insights into the way images are used to manufacturing machines transformed manual industries understand and control the world, Farocki criticizes the Interface (1995), the first video installation made for an into mass production systems, leading to the replacement This exhibition, curated by Eunhee Kim with the collaboration violence of media and industrial technology toward art exhibition, compares and analyzes the arrangement of manpower by machines. of Antje Ehmann, has been accompanied by the screenings humanity. Exploring the background of sociocultural and editing of images, as well as the relationship between of Farocki’s 48 films at the MMCA Film and Video theater. phenomena and tracing the identity of images that two images in parallel, by playing Farocki’s own essay Initiated by Antje Ehmann and Harun Farocki in 2011, accompany the powers that rule the world today, his documentaries on two monitors in an editing room. Harun the workshop project Labour in a Single Shot was filmed For more information, visit the website of the National work conveys the hope that cinema plays an important Farocki took an archeological approach to examining the continuously in 15 cities worldwide until Farocki's sudden Museum of Modern and Contemporary Art, Korea: role in restoring rationality in an age of anti-rationalism. handling of labor-related images. death in 2014. Three more cities have been added to the www.mmca.go.kr 60 Art & Culture ECCK Connect — Winter 2018 61
2 3
2. Parallel I (Parallelel I) Harun Farocki, Harun Farocki Filmproduktion, 2 Channel Video Projection, Color, Sound, 16 min. (Loop), Germany, 2012
3. Comparison via a Third (Vergleich über ein Drittes) Harun Farocki, Harun Farocki Filmproduktion, 2-Channel Video Projection, Color, Sound, 24 min. (Loop), Germany, 2007
4. Labour in a Single Shot A project by Antje Ehmann and Harun Farocki in Cooperation with the Goethe Institut, 16-Channel Video Projection, Color, Sound, 2011~2017
What Ought to Be Done? Work and Life Exhibition Dates: October 27, 2018 – April 7, 2019 Special Screenings(Harun Farocki Retrospective) Dates: October 14, 2018 – February 24, 2019 Venue: Galleries 6,7 at MMCA Seoul, MMCA Film & Video 4 http://www.mmca.go.kr/eng 62 AD & Sponsorship ADVERTISE WITH ECCK
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ECCK MEMBERSHIP DIRECTORY 2018
Advertisers (in alphabetical order) The ECCK Membership ECCK Connect BMW Korea Directory provides a full Daegu-Gyeongbuk Free Economic Zone Jones Lang Lasalle (JLL) listing of its member Vol. 22 ––– Mercedes-Benz Korea Samil PWC companies and associations Winter 2018 Seoul Square Yoon & Yang with respective executives and contact information. Contributors (in alphabetical order) Delegation of the EU to the Republic of Korea Staff Writers Daegu-Gyeongbuk Free Economic Zone For Sale Jeong Hyun Kim KF-VUB So Hyeun Cho Lee & Ko Members: KRW 100,000 Médecins Sans Frontières Non-Members: KRW 200,000 Art Direction & Design National Museum of Modern and Contemporary Art Gute Form Project Ball Academy Shinhan Bank Printing Agency Terreno Mac Media European Chamber of Photo Credits Commerce in Korea (ECCK) (Main Cover) 5F, Seoul Square, 416 Hangang Daero, Achmad Fahmi Rosyad © 123RF.COM Jung-gu, Seoul 04637 (Cover Story) +82 2 6261 2700 THANANIT SUNTIVIRIYANON © 123RF.COM [email protected] | www.ecck.eu C o n t a c t : s o h y e u n . c h o @ e c c k . e u / + 8 2 . 2 . 6 2 6 1 . 2 7 1 4