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Doing Business in Korea: 2019 Country Commercial Guide for U.S

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Doing Business in Korea: 2019 Country Commercial Guide for U.S Doing Business in Korea: 2019 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. and FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2019. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Korea _________________________________________________ 6 Market Overview ____________________________________________________________ 6 Market Challenges __________________________________________________________ 8 Market Entry Strategy _______________________________________________________ 8 Political Environment _________________________________________________ 10 Political Environment _______________________________________________________ 10 Selling U.S. Products and Services________________________________________ 11 Using an Agent to Sell U.S. Products and Services _______________________________ 11 Establishing an Office _______________________________________________________ 12 Franchising _______________________________________________________________ 14 Direct Marketing ___________________________________________________________ 15 Joint Ventures and Licensing _________________________________________________ 17 Selling to the Government ___________________________________________________ 19 Distribution and Sales Channels ______________________________________________ 21 Express Delivery ___________________________________________________________ 22 Selling Factors and Techniques _______________________________________________ 23 e-Commerce ______________________________________________________________ 23 Internet Penetration ______________________________________________________________ 24 Current Market Trends ___________________________________________________________ 24 Domestic e-Commerce (B2C) ______________________________________________________ 25 Cross Border e-Commerce ________________________________________________________ 25 Business to Business (B2B) e-Commerce ____________________________________________ 25 e-Commerce Services ____________________________________________________________ 25 e-Commerce Intellectual Property Rights _____________________________________________ 25 Business to Government (B2G) e-Commerce _________________________________________ 26 Online Payment _________________________________________________________________ 26 Mobile e-Commerce _____________________________________________________________ 26 Digital Marketing ________________________________________________________________ 26 Major Buying Holidays ___________________________________________________________ 27 2 Korea Country Commercial Guide, June 2019 Social Media ___________________________________________________________________ 27 Opportunities ___________________________________________________________________ 27 Trade Promotion and Advertising ____________________________________________ 28 Pricing ___________________________________________________________________ 30 Sales Service and Customer Support __________________________________________ 31 Protecting Intellectual Property ______________________________________________ 32 Due Diligence _____________________________________________________________ 32 Local Professional Services __________________________________________________ 33 Principal Business Associations _______________________________________________ 33 Limitations on Selling U.S. Products and Services _______________________________ 33 Web Resources ____________________________________________________________ 33 Leading Sectors for U.S. Exports and Investment ____________________________ 36 Best Prospect Overview _____________________________________________________ 36 Defense Industry Equipment _______________________________________________________ 36 Overview ___________________________________________________________ 36 Market Demand _______________________________________________________ 36 Market Access and Obstacles ______________________________________________ 38 Best Prospects and Opportunities ___________________________________________ 41 Resources ___________________________________________________________ 41 Energy: New and Renewable (NRE) ________________________________________________ 42 Overview ___________________________________________________________ 42 Sub-Sector Best Prospects ________________________________________________ 44 Opportunities ________________________________________________________ 45 Web Resources _______________________________________________________ 46 Cyber Security __________________________________________________________________ 47 Overview ___________________________________________________________ 47 Sub-Sector Best Prospects ________________________________________________48 Opportunities ________________________________________________________48 Web Resources _______________________________________________________48 Aerospace Industry ______________________________________________________________ 50 Overview ___________________________________________________________ 50 Best Products/Services __________________________________________________ 52 Opportunities ________________________________________________________ 52 Resources ___________________________________________________________ 52 Local Contact ________________________________________________________ 53 Air Pollution Control _____________________________________________________________ 53 Overview ___________________________________________________________ 53 Sub-Sector Best Prospects ________________________________________________ 55 Opportunities ________________________________________________________ 55 Web Resources _______________________________________________________ 56 Medical Equipment and Devices ____________________________________________________ 57 Overview ___________________________________________________________ 57 Sub-Sector Best Prospects ________________________________________________ 58 Opportunities ________________________________________________________ 58 Web Resources _______________________________________________________ 58 Travel and Tourism ______________________________________________________________ 60 Overview __________________________________________________________ 60 3 Korea Country Commercial Guide, June 2019 Sub-Sector Best Prospects ________________________________________________ 61 Opportunities ________________________________________________________ 61 Web Resources _______________________________________________________ 62 Cosmetics _____________________________________________________________________ 64 Overview ___________________________________________________________ 64 Distribution Channels ___________________________________________________ 64 Best Prospects/Services _________________________________________________ 65 Opportunities and Challenges _____________________________________________ 65 Regulatory Environment _________________________________________________ 66 Resources ___________________________________________________________ 66 Entertainment and Media _________________________________________________________ 68 Overview ___________________________________________________________68 Sub-Sector Best Prospects ________________________________________________68 Resources ___________________________________________________________ 69 Education Services ______________________________________________________________ 71 Overview ___________________________________________________________ 71 Sub-Sector Best Prospects ________________________________________________ 72 Opportunities ________________________________________________________ 72 Web Resources _______________________________________________________ 72 Manufacturing Technology - Smart Factory ___________________________________________ 74 Overview ___________________________________________________________ 74 Sub-Sector Best Prospects ________________________________________________ 76 Opportunities ________________________________________________________ 76 Web Resources _______________________________________________________ 76 Architectural Design Services ______________________________________________________ 79 Overview ___________________________________________________________ 79 Best Prospects _______________________________________________________ 80 Opportunities _______________________________________________________ 80 Resources ___________________________________________________________ 81 Agriculture _____________________________________________________________________ 82 Overview ___________________________________________________________ 82 Contact _____________________________________________________________82 Customs, Regulations and Standards ______________________________________ 85 Trade Barriers _____________________________________________________________ 85 Import Tariffs _____________________________________________________________ 85 Import Requirements and Documentation ______________________________________ 86 U.S. Export Controls ________________________________________________________ 89 Temporary Entry ___________________________________________________________ 89 Labeling/Marking Requirements ______________________________________________ 90 Prohibited and Restricted Imports ____________________________________________ 91 Customs Regulations ________________________________________________________ 91 Standards for Trade ________________________________________________________
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