Business with Korea
Transcript of Business with Korea
Business with Korea
Derek Waleko Investment Consultant
Mergers & Acquisitions
KOTRA Los Angeles
August 12th, 2015
Area: 100,210 km2
Population: 50.4 million
Per Capita: $28,100
GDP (nominal): $1.4 trillion
Growth Rate: 3.3%
Trade (5th largest port): ▶ Export: $728.2 billion
▶ Import: $643.6 billion
Inflation (CPI): 1.3%
Unemployment: 3.5%
National Debt: 35.1% of GDP
FDI: $19 billion
Foreign Currency Reserves: $346.5 billion
* Short-Term External Debt: $126 billion
* Gross External Debt: $429 billion
2014
South Korea
In effect Concluded Underway On the agenda
Chile (04)
Singapore (06)
EFTA (06)
ASEAN (07)
India CEPA (10)
EU (11)
Peru (11)
United States (12)
Turkey
Colombia
Canada
Mexico
GCC
Australia
New Zealand
China
Vietnam
Indonesia
China/Japan
RCEP
Japan
Central America
MERCOSUR
Israel
Malaysia
FTA
2. Scientific Infrastructure
Source: IFPI Digital Music Report 2015, www.ifpi.org
In 2014 the recorded music market saw the strongest
overall growth from South Korea (19.2%). Globally in
2005, Korea ranked 33rd in the music market.
Among the 10 largest markets in the world.
South Korea
Ease of doing business (among 183 economies):
22nd (2007) 23rd
(2008)
19th (2009)
5th (2015)
South Korea
KOTRA
• 1962 – Founded
• 1998 – FDI
• 2013 – M&A
123 offices / 84 countries
1. Business Incubator
2. Marketing
3. Research
4. FTA Help Desk
5. Contact Korea
6. In-house Counsel
7. Investment
Current Cases
• Bainbridge is an investment
banking firm and a direct
private equity investments
company. Bainbridge works
with the top global
multinational corporations,
private equity firms, pensions,
endowments, and family offices.
• 500 million USD
• Local Motors is an American
motor vehicle manufacturing
company focused on low-
volume manufacturing of open-
source motor vehicle designs
using multiple microfactories.
They were founded in 2007
with headquarters in Phoenix,
Arizona.
• 10 million USD
M&A
Korean Clients
• Sales
$50M – 5B
• Low Middle Market
Transactions
$5M – 1B
• Controlling Stake
51%
• Manufacturing
Automotive
Biotechnologies
Pharmaceuticals
Mobile components
Corporate income tax: 100% for 5 yrs,
50% for 2 yrs
Acquisition tax, property tax: 5-15 yrs
Tariff for capital goods: 5 yrs
To finance the construction of facilities
or the purchase of equipment related to
the investment
Reduction or exemption of rent
Support for building of infrastructure
Subsidies for employment and education
Support in settling into Korea
Criteria
Manufacturing – $30 million FDI or more
Logistics & SOC – More than $10 million FDI
Tourism – More than $20 million FDI
R&D – More than $2 million FDI
FDI Incentives