12/10/2014Presentation title1 SOUTH KOREA: DOING BUSINESS Clifford Bebb Head of Trade, Seoul.
-
Upload
jazmyn-perks -
Category
Documents
-
view
228 -
download
1
Transcript of 12/10/2014Presentation title1 SOUTH KOREA: DOING BUSINESS Clifford Bebb Head of Trade, Seoul.
11/04/23 Presentation title 1
SOUTH KOREA: DOING BUSINESS
Clifford BebbHead of Trade, Seoul
2
Themes of the presentation
• South Korea Now• Trade/Economic Background• History, Politics and Culture• Golden Rules for Success• How UKTI can help you?
3
South Korea Now
• Developed country and economy• Population: 50 million (2010)• Disciplined, Orderly, but Rapidly-ageing society• Highly-educated, Hard-working but stressed workforce• Modern, high-tech infrastructure
4
Trade/Economic Background
• World’s 15th largest economy (IMF 2010)• 12th based on PPP; >$29,790 (2010)• Recovery from global downturn:
No recession: GDP growth 6.2% in 2010; 4.5% growth forecast for 2011 Stable markets, low unemployment Exports and projects: shipbuilding, steel, automotive,
electronics, ICT, etc.. Free Trade Agreements with key partners and key partners
of the future: EU
Source: Invest Korea
6
EU-Korea Free Trade Agreement
• FTA to enter into provisional force 1 July 2011• Euro 32bn of increased trade • 97% of tariffs will go within 3 years• Even more value in NTBs coming down • Current commercial relationship:
EU is the largest investor in Korea EU is Korea’s 2nd largest export market after China Korea is EU’s 8th largest trading partner (2008)
7
EU-Korea Free Trade Agreement
• UKTI report “100 Opportunities for UK Companies arising from the FTA”• Launched on 15 March 2010 with CBI support, events in UK and Asia to disseminate • Updated in April 2011• Easy to read and navigate• Available on USB sticks and @www.ukti.gov.uk (registration required)
8
EU-Korea Free Trade AgreementExport sectors to benefit include:
Financial & Legal servicesAutomotiveFood & drink (whisky and other alcoholic beverages)PharmaceuticalsHigh end fashion & textilesConstruction: infrastructure, buildings including sports venues
Cross-cutting focus on “Green Growth” (low carbon technology and design), including in collaboration in third markets like the Middle East
9
EU-Korea Free Trade AgreementIf you are exporting visible goods (materials, products, equipment) to Korea, and your consignments are valued at over Euros6000, to take advantage of the FTA’s tariff concessions you must be registered with HMRC as an approved exporter:
Paul Robbins HMRC Excise, Customs, Stamps & Money Customs Duty Liability10th Floor South East Alexander House 21 Victoria Avenue Southend-on-Sea SS99 1AA Email: [email protected]
Tel: 0845 010 9000, Fax: 01702 367342
10
Trade/Economic Background
• Trade flows 2010: UK Korea export• £2.2bn of goods, up 2%
Product Value (£)
Industrial machinery 268m, up 29%
Medicines and pharma 200m, up 11%
Beverages 156m, up 37%
Road vehicles 136m
Inorganic chemicals 130m, up 7%
11
Trade/Economic Background
• Trade flows 2010: Korea UK import• £2.4bn of goods, down 16%
Product Value (£)
Electrical machinery/applicances 477m
Telecoms appliances 453m
Road vehicles 410m
12
Historical & Political Background
• An ancient, 5000 year old homogenous civilisation • Social & ethical values based on Confucianism• National pride and Rising confidence, culminating in G20 Summit hosting last year• Donor and peace-keeper
13
Historical & Political Background
• Fast-changing inter-Korean relations An armistice signed in 1953 formally divided the country
into the North and South Conditionality on economic support for DPRK, hard-line
stance on nuclear issues Current administration’s refusal to follow former
Presidents’ “sunshine diplomacy” Remaining issues; Cheonan and Yeongpyong incidents, the
North’s withdrawal from the Six Party Talks, nuclear facilities and missile tests etc..
NONE OF THIS AFFECTS YOUR BUSINESS
14
Historical & Political Background
• President Lee, Myung-bak Former CEO of Hyundai Group Former mayor of Seoul City An open market supporter; FTAs the way forward “Green Growth" stimulus policy, spending 2% of GDP
from 09/14: developing Emissions Trading Scheme and Carbon Tax policies
Instrumental in “national” bids for major overseas Nuclear, Defence and Railway projects
Culture: Golden Rules for Success
• Formal, facilitated introductions• Respect for seniority in age and rank• Business relationships are based on personal relationships
Mixing business with social life Invest to know your contacts Entertainment; drinking, gifts, golf, etc.. Professional and personal connections (alumni)
15
Culture: Golden Rules for Success
• Negotiations: Temper use of Western Logic Contracts vs Handshakes? Be prepared for twists and turns: all may not be what it seems! Ensure your meaning (English?) is fully understood Write down numbers Bargain hard but be seen to concede to forge early trust
16
Last Golden Rule- use UKTI?
• OMIS: Market research, identifying representatives, end users (and competitors)• Arranging and accompanying visit programmes, interpreters and post-meeting follow-up• Promotional events- Aston Hall, HMA’s Residence and “outside” functions• 14 full time staff in Seoul
17
18
Design Capital 2010: Seoul
• >20m people in City & Commuter belt• 1988 Olympics & 2002 World Cup changed the game for foreign visitors• World-leading communications infrastructure: getting around generally quick, cheap and easy; fastest average broadband speeds
19
Upcoming trade missions Fashion, wc 20 June Nuclear energy, 11 July Oil & Gas, September Legal services, October Design, October (Design Korea 2011) Marine, October (KorMarine 2011) Green Building and Renewable energy, November Chemicals, materials & printed electronics, February 2012 Lifestyle showcase, March