March 2018 www.kotra.or.kr www.investkorea.org EXPRESS Read on page 10 >> A Platform for Dialogue AMCHAM is at the forefront of strengthening the Korea-U.S. alliance by serving as a vital communication channel between the two countries James Kim Chairman and CEO American Chamber of Commerce in Korea No. of new No. of cases corporate declared bodies Jangan 1,623 542 1,727 509 7 879 259 Economic 5pIndustry 8pOlympics 12p Zone 13p Analysis JANGAN FOREIGN INVESTMENT ZONE ECONOMIC EXCHANGE PROVES TO BE AND MAJOR AREAS OF THE OLYMPICS AND COOPERATION BETWEEN PYEONGCHANG FRIENDLY HOST FOR KOREA’S KOREA AND OLYMPICS IN HIGH-TECH FOREIGN TRANSFORMATION THE UNITED STATES NUMBERS INVESTORS Event 6p KOTRA News 3p Overview Korea News 4p Trade News, Government & Policy Investment News 7p MEXICO SEEKS TO WORK WITH KOREAN PARTNERS KOTRA's Services 14p THROUGH KOTRA’S KNOWLEDGE SHARING Introducing Korea's 14p PROGRAM SMEs Economic Indicators Greetings From KOTRA Dear Readers, Since the establishment of our agency, Invest KOREA has successfully launched projects that connect foreign investors with promising Korean companies and investment opportuni- ties. To start off, there’s Invest Korea Week, the country’s largest international investment promotion event. Then there’s the Job Fair for Foreign-Invested Companies, which helps international companies recruit talent Korean jobseekers. Of course we have Get To Know Korea, a cultural event where we take members of the foreign business communi- ty and their family members around Korea. And we have now proudly added one more achievement to our resume—the launch of Invest Korea Market Place, also known as IKMP. So what is IKMP? It’s a platform that connects investors to over 200 Korean projects looking to receive for- eign investment through M&A or equity investments in Korea. It also contains a list of public development proj- ects led by local governments and Free Economic Zones. Each project has been carefully monitored and evaluat- ed by a team of consultants. These experts are well versed in industry trends and have screened each project to make sure that they meet the standards of IKMP. Furthermore, we’re working together with external organiza- tions like banks and financial institutions to locate projects with potential so that we can identity 500 projects by the end of the year. Through this process, Invest KOREA is playing a more active role in identifying and responding to current market trends for foreign investors. If you’re interested in learning more about IKMP, you can access the database on Invest KOREA’s website (www.investkorea.org) at any time. Through this platform, we hope that you’ll find doing business easier than ever. Thank you. Sincerely, Yong Kook Kim Head of Invest KOREA 02 KOTRA News KOTRA HOLDS SEMINAR KOTRA held a seminar for Korean beneficial way,” said Geun-oh Park from companies to discuss significant changes the Mission of the Republic of Korea to ON MARKET ENTRY in strategic markets to help them enter ASEAN. STRATEGIES IN the global market. In line with the India is another promising market for RESPONSE TO NEW Korean government’s push for the New Korean firms, as the country is actively SOUTHERN & Southern Policy and the New Northern nurturing the manufacturing sector and NORTHERN POLICY Policy, Korean businesses need to active- boosting investment in infrastructure as ly explore emerging economies as a new part of “Modinomics.” Its business envi- market. Attended by officials from about ronment has remarkably improved with 250 Korean firms, the seminar invited the government’s massive deregulation former and incumbent director generals efforts. Such unique characteristics of the of Korea Business Centers (KBCs) in the market need to be considered in devising ASEAN, Indian and CIS regions and market entry strategies. Large companies trade officials at diplomatic missions of and SMEs can form a joint project to the Republic of Korea. enter the market. As of 2016, ASEAN was Korea’s sec- Russia and CIS also provide plenty of ond largest trading partner. However, opportunities in trade and investment. growing competition with Japan and The governments have implemented pol- China has increased the need for Korea icy measures to bolster their consumer to set up new cooperation strategies. market and strengthen their industrial Chul-ho Park, Director General of KBC foundation, particularly by fostering the in Hanoi and Byungsam Kim, Director manufacturing sector. Korean companies General of KBC in Jakarta, noted that can boost technological cooperation with local suppliers in Vietnam and Indonesia local firms in the machinery and equip- warrant attention of Korean firms. ment, healthcare and medicine, ship- “Korea will be able to gain a competitive building and materials, information tech- edge over China and Japan by enhancing nology, and agriculture and fisheries. cooperation with ASEAN in a mutually JAEHONG KIM RETIRES On Feb. 12, the retirement ceremony export remains as the key driver of eco- AS PRESIDENT AND honoring Jaehong Kim who served as nomic growth and job creation. KOTRA’s president and CEO for nearly According to Kim, Korea needs to play CEO OF KOTRA three years was held at KOTRA’s head- a greater role on the global stage by quarters. In his remarks, Kim noted the enhancing mutually beneficial coopera- importance of exploring the global market tion with major trading partners. He said especially when the domestic economy is that KOTRA must continue its efforts to faced with several challenges. “I’ve been fundamentally change the country’s abroad for about a third of the last three export structure, create a new coopera- years,” he said. “And I’ve seen for myself tion model for sustainable growth in that the answer for Korean firms lies in trade, and to effectively carry out the the global market.” He also explained that “Make With Korea” strategy. KOTRA PUBLISHES Starting a business abroad has become of business and nudges them into utiliz- the new norm since the late 1990s, when ing diverse assistance programs. This REPORT ON OVERSEAS small and medium-sized tech firms began will thus create new jobs, respond to the ENTREPRENEURSHIP to witness a record level of overseas sales changes caused by the Fourth Industrial AND JOB CREATION revenues. Many advanced countries Revolution and bolster mutually benefi- including the U.S., China and the U.K. cial cooperation. Through this program, are pushing forward with policies to fos- companies that lack capacity for exports ter startups and spur innovation as an can fully tap into online and offline over- engine for growth. seas network. In Korea, only a few startups have suc- “It is hard for startups to survive the cessfully entered the global market. rapidly changing era of the Fourth Systematic assistance is required to help Industrial Revolution,” said Wonsok startups raised through various channels Yun. He explained that the government survive and thrive on the global stage. and relevant agencies need to actively KOTRA has launched a ‘Nudge support them through customized policy Platform’ that promotes advantages of measures and to create an ecosystem globalization among firms in early stages conducive to entrepreneurship. 03 Korea News Trade News South Korean chip exports are expected for a single item to surpass the USD 90 bil- to continue to post solid growth this year, lion mark in exports in one year. S.KOREA'S CHIP though its pace may slow down from last Samsung Electronics Co. and SK hynix EXPORTS FORECAST year's exponential expansion. Inc. have been enjoying sharp increases in TO CONTINUE The Korea Institute for Industrial their chip earnings due to the global boom STRONG GROWTH IN Economics & Trade (KIET) forecast the in the industry. country's exports will increase 18.6 percent "This year's increase rate is expected to 2018:REPORT in 2018, lower than the 60.2 percent posted slow down as last year's tally was extraor- last year. dinarily high, but it will still be very high In 2017, USD 99.68 billion worth of compared to other years," the report said. chips were exported, marking the first time FISHERY PRODUCT South Korea's exports of fishery products 55.5 percent on-year to USD 26 million, with EXPORTS JUMP 51 soared by more than 50 percent in January shipments to Japan and China rising 14.2 per- from a year earlier on strong demand for cent and 125.4 percent, respectively, to USD PCT IN JANUARY dried laver and tuna. 54 million and USD 33 million. Shipments of fishery goods came to USD By products, exports of tuna gained 70 201 million last month, 50.8 percent higher percent on-year to USD 59 million last than the USD 130 million tallied a year ear- month. Outbound shipments of dried laver, lier, the Ministry of Oceans and Fisheries called "gim" in Korean, came to USD 37 said in a statement. million, an increase of 42.1 percent from a The latest tally marks the second highest year earlier. for any January figure since USD 210 mil- Gim is usually roasted with sesame oil lion reported for the first month of 2013, and fine salt. It is served as side dish. Snacks according to the ministry. made with laver have been gaining populari- Seafood exports to the United States surged ty among foreigners in recent years. Government & Policy South Korea will invest KRW 35 trillion ner with businesses, such as Hyundai Motor (USD 32.4 billion) in developing electric, Group, to develop an all-electric car that can S.KOREA TO INVEST autonomous and other future vehicles by travel more than 500 kilometers on a single 35 TLN WON IN 2022 to secure a new growth engine in the charge and increase the number of rapid FUTURE VEHICLES IN rapidly changing automobile market, the charging stations to 10,000, similar to the NEXT 5 YEARS transport ministry said on Feb 2.