Why Set Up Business in South Korea?
South Korea (officially known as Republic of Korea) is a sovereign state in East Asia. As a country nestled between Japan and China, South Korea is quite well-known of its rapidly growing prosperous economy.
Home to a population of 50 million, South Korea possesses a large domestic market which is close to the bigger Asian markets of China and Japan. South Korea is a hi-tech economy where it is a leading role in electronics manufacturing in the world, including semiconductor chips, flat-screen TVs and mobile phones. The global top player, Samsung, one of the world’s largest electronics companies is originated in South Korea. The organisation has a turnover greater than that of Apple, Google and Microsoft combined. Furthermore, South Korea
Moreover, the country has a highly developed and profitable financial services sector including the second-largest insurance market and third-largest banking market in Asia. The stability of the banking sector is backed by strong legislative systems. However, many foreign companies have little knowledge about South Korea, let alone its economic potential. Yet, the unique characteristics of this market provide interesting learning opportunities and it is often considered as a gateway to the larger Asian markets. What’s more, South Korea is a country that provides an open access to a highly educated and ambitious staff, which has contributed to its booming economy.
Strengths of the Korean economy are as below:
- Global player in electronics, shipbuilding, steel and automotive manufacturing
- Highly educated population: 74% of South Koreans undertake postgraduate-level education, with 7% of Gross Domestic Product (GDP) spent on education
- highest level of broadband penetration in the world, with speeds of 100 megabytes
Aims to transform the country into one of the business-friendly economies in the world, South Korean government has a welcome attitude to all foreign investors with the ease excessive regulations and incentives for FDI. The government incentives include:
- tax support
- cash grants
- site location support
The South Korean economy is often characterized by moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income. As the country continues to strive to maintain its global competitiveness, South Korea is open to various employment opportunities in various industries. All these are factors contributed to attracting more and more foreign investors to expand their business overseas as well as to reach out to the other Asian markets.