Introduction to KoreaLike the Phoenix rising from the ashes of fire, so too has The Republic of Korea risen from the ashes of war to become the 12th most influential economy in the world. In 60 short years, Korea has transformed itself from a developing country whose existence was based on the charity of others to one whose GDP is now at $1.64 trillion and with a GDP per capita of $32,800. Koreans have strong purchasing power and have been recognized as global trend-setters for high-end products. Korea is a member of the G-20 major economies and a leading member of the OECD.

Why Do Business in Korea? The Korean Government is dedicated to increase foreign investment in the country. They have established 9 Free Economic Zones which are improving the living condition and business environment for foreigners in South Korea. The Korean government provides a variety of tax benefits for foreign-invested firms and foreigners, as well as ease of regulatory measures, a favorable living environment, and swift administrative services. KFEZ endeavors to attract as many multinational corporations as possible by establishing economic and social institutions that lead global trends and by providing a variety of incentives. According to the World Bank’s Doing Business 2012 study, Korea ranked 8th easiest place in the world to do business.

Market Situation in KoreaKorea’s current account balance is driving the country’s record current account surplus at around $10 billion USD. Korea has improved its competitiveness by strengthening its fiscal fundamentals, having a vibrant private sector, a well-educated work force and a high development for innovation allows Korea to continue to be globally competitive for trade and investment. Free Trade agreements with the United States and the European Union have bolstered import and export of products and services. Korea ranks third in the National Technology Innovation Index and 5.7% of the world’s patent applications are filed by Korea.

Korean Talent MarketEvery year approximately 470,000 university graduates join the workforce adding to the already 25.5 million employed in 2012. Some 98% of 25 – 34 year-olds now complete an upper secondary education ~ the highest in any of the OECD. Almost half or 47.8% of the population fall into the 25 – 54 age range with a median age of 39.7 years. Around 63% of the population has university degrees and the majority of graduates majored in science followed by engineering, manufacturing and construction. Currently Korea’s unemployment rate stands at about 3% and the employment rate is around 64%. Koreans generally start their professional careers in their mid to late 20s and work until their early 50s. Today, that trend is changing and people are working longer and retiring later.

Women on the other hand are a different story in Korea. It has been the culture standard that a female, if employed, would work until she is either married and/or becomes pregnant. At which time her duties are mainly focused on the children and home. Although this trend is changing and more women are staying or returning to the workforce, still about 20% of all women who are working will resign once married. However, once the child reaches university level, many women are looking to return to the workforce in their mid 40s. In

the entire population of employed women in Korea only about 1% hold an executive level position and only 53% of Korean women are employed in a paid position. Men are expected to work long hours while women take care of the children and home. This type of arrangement suites employers who prefer that a limited number of employees work longer hours instead of increasing the headcount and reducing the number of hours an employee spends at the company. The government of Korea realizes that this is a problem with society and has stepped in to make changes. They are stepping up efforts to reduce the maximum working hours per week from the current 68 hours to 52 hours and including weekend work as overtime. It hopes that these changes will spark a better “work-life” balance and allow workers more time to spend with their families, taking a more active part in rearing their children and assisting in household related duties.

Korean Titles & AgeAlthough a modern society, Korean culture is still very deeply rooted in tradition and Confucianism. Koreans regard age as a factor in hierarchy, experience and respect. It is imbedded into the language as well as into business. There are approximately 13 different levels of Korean business titles that correspond to the person’s age, experience and company structure & culture. Korean titles are used within most Korean companies while multinational and some larger Korean companies are adopting the western style of business titles not based on age but rather on performance of the individual.

Korea – For the FutureGeographically Korea is centrally located in Northeast Asia and is within 5 hours from half of the world’s population. Situated between China and Japan, with a combined GDP of about $14 trillion USD, the three nations support about 17.6% of the total world trade and have a population that exceeds 1.52 billion people. The workforce is highly educated, innovative and continues to evolve. Cultural changes in business practices are becoming on par with other industrial nations and government support for multinational companies is a high priority. The image of Korea is changing on a global scale due to the popularity of music, films and cultural aspects as well as the brand images of some the world’s most successful companies. Now is a great time to invest in the “Phoenix of Asia” we call home – Korea.