Korea, your business partner
52
Korea, your business partner Korea Trade-Investment Promotion Agency (Commercial Section of Korean Embassy in Israel)
-
Upload
meda-conferences -
Category
Business
-
view
715 -
download
2
description
Transcript of Korea, your business partner
Korea, your business partner
Korea Trade-Investment Promotion Agency
(Commercial Section of Korean Embassy in Israel)
I. Some facts about the Korean economy
II. What happened in Korea in 2011
III. Businesses between Korea and Israel
IV. The four seasons in Korea
V. Korea’s attraction as an investment
destination
Contents
Part I.
Some Facts about the
Korean Economy
CHINA
JAPAN
of
global GDP
25%
※ Source: The Bank of Korea, Ministry of Strategy & Finance of KOREA
Area: 100,000km2 (108th)
Population: 50 million (24th)
GDP (nominal): $1,014 billion (15th)
GDP (ppp): $1,459 billion (12th)
Per Capita: $29,836 (26th)
GDP Growth Rate: 6.2% (2010)
Trade (2010): ▶ Export: $466BN
▶ Import: $425BN
Foreign Exchange Reserves: $312 billion (Aug. 2011)
* Short-term External Debt: $150 BN (Jun. 2011)
* Gross External Debt: $398 BN (Jun. 2011)
Inflation (CPI): 2.9% (2010)
Unemployment: 3.7% (2010)
Fiscal Deficit: 2.4% of GDP (2010)
National Debt: 33.5% of GDP (2010)
Credit Rating (2010) :
A
A1
A+
20,000
25,000
30,000
35,000
40,000
0
[22] [55] [82] [161] [171] [220] [238]
[271] [321] [333] [440] [489] [492] [498]
1. Hyundai Heavy, HHI
2. Daewoo, DSME
3. Samsung
4. Imabari
5. Hyundai Mipo, HMD
※ Source:
1) World Yard Statistics, in CGT Terms (2009)
2) Gartner, DRAM revenue (2010 1st half)
3) Ranking by Volume, World Steel Association (2010)
4) IDC (2011, Q2)
5) IDA Desalination Yearbook (2011)
6) Ranking by capacity
7) World Ranking of Manufacturers, OICA (2010)
1. Samsung Electronics
2. Hynix Semiconductors
3. Elpida Memory
4. Micron Technology
5. Nanya
1. Dupont/Teijin
2. Toray
3. Mitsubishi
4. SKC
5. 3M
1. Whirlpool
2. Electrolux
3. LG
4. Samsung
5. Philips
1. Arcelor Mittal
2. Hebei
3. Baosteel
4. Wuhan
5. POSCO
1. Toyota
2. GM
3. Volkswagen
4. Hyundai
5. Ford
1. Nokia
2. Samsung
3. LG
4. Apple
5. ZTE
1. Veolia
2. Doosan
3. GE
4. Fisia Italimpianti
5. Suez/Degremont
Company Item Remarks
HJC Motorcycle Helmet - 22% of world market share
- 56% of N. America market share
Young An Hat - 40% of world market share
Univera Aloe - 50% of world market share
Nanux Cycling Shoes - 40% of world market share
Welcron Microfiber Cleaner - 25% of world market share
FS Korea Make-up Brush - 45% of world market share
Sunil Safe Fireproof Safe - 40% of world market share
iRevo Digital Door Lock - 40% of world market share
Company Item Remarks
Kortek Casino Monitor - 50% of world market share
IDIS DVR (Digital Video
Recorder) - 15% of world market share
Neofidelity Digital Audio
Amplifier - 50% of world market share
Taekwang Industrial Fitting - 4% of world market share
LMS Small Prism Sheet - 60% of world market share
Moatech Stepping Motors - 54% of world market share
Amotech Chip Varistor - 30% of world market share
RF Semi ECM Chip - 43% of world market share
Entered into force
Concluded Underway On the agenda/
Joint Study
Chile (April ‟04), Singapore (Mar. ‟06),
EFTA (Sep. ‟06), ASEAN (Goods - June ‟07
/ Service - May ‟09 / Investment - Sep. ‟09),
India (CEPA) (Jan. ‟10), EU
USA, Peru
Canada, Mexico, GCC, Australia,
New Zealand, Columbia, Turkey
Israel, Japan, China, „Korea-China-Japan‟ MERCOSUR, Turkey,
Russia, SACU
Source: www.fta.go.kr, Ministry of Foreign Affairs and Trade
Korea will conclude FTAs with 2/3 of the world markets or almost 1/2 the world’s population.
*Korea-EU FTA to Take Effect July 1
The goal set for 2011 is US$ 15 billion.
In 2010, the total amount was US$ 13.1 billion.
(US
$ b
illi
on
)
1991 1992 1993
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
※ Source : Ministry of Knowledge Economy
2009 2010
The number of projects between Jan. 2003 and Feb. 2010.
Source: FDI Intelligence from Financial Times Ltd
Sector Total
Software & IT services 85
Automobiles (Automotive Components +Automotive OEM) 79
Electronic Components 61
Financial Services 51
Semiconductors 46
Chemicals 41
Textiles 36
Communications 27
Plastics 25
Other Sectors 250
Overall Total 701
(US
$ b
illi
on
)
5
10
15
20
25
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
30
35 •In 2010, the total amount
recorded US$23.1 billion.
By Sector
Part II.
What happened in
Korea in 2011
In 2011, South Korea’s trade volume is expected to surpass US$ 1
trillion for the first time.
Korea will be the 9th country in the world to reach that amount
Free Trade Agreement with US was ratified by Korean National
Assembly and US Parliament after more than 5 years of negotiations.
The two companies have been confronting each other with the
IP right issues since April 2011, and the legal disputes have spread
to numerous countries including USA, Japan and UK.
Samsung Electronics overtook Apple as the world’s top smart phone
maker in 3Q 2011, with 23.8% market share.
South Korean financial regulators suspended 16 saving banks due to
their weak finances.
South Korean saving banks saw an aggregate loss of millions of dollars
from Jul 2010 due to sluggish property market and an intensifying
competition in the consumer
financing industry.
The four major rivers restoration project, which is a multi-purpose
green growth project on the Han, Nakdong, Geum and Yeonsan
river, was declared completed.
The project’s aims were to improve
water security, flood control
and ecosystem vitality and was first
announced in 2009.
South Korean navy commandos rescued Samho Jewelry, with its 21
crew members from pirates in the Arabian Sea on January.
There has been a rising interest about K-pop and Korean
dramas in Europe, North America and Middle East.
Mr. Ahn Chul-Soo, a medical doctor-turned-software company CEO
and currently a Seoul national university professor, emerged as a
real dark horse in politics.
A serious outbreak of foot-and-mouth disease occurred.
The disease has been confirmed at 118 farms across the country,
leading to the slaughter of 1.7 million farm animals.
25
Part III.
Businesses
Between Korea and Israel
※ Source : Korea International Trade Association
2001 2008 2009 2010 2011 (1~10)
Export(Korea → Israel) 450 1,011 726 1,059 1,575 (+78.7%)
Import(Israel → Korea) 341 895 691 769 580 (-7.7%)
Total 791 1,906 1,417 1,828 2,155 (+42.8%)
(단위 :
Million $)
Rank Item Amount(2011)
1 Semiconductors 82,999
2 Semiconductor Equip. 38,344
3 Copper and Scrap 37,834
4 Aluminum and Scrap 29,825
5 Measurement Equip. 27,708
Rank Item Amount(2011)
1 Automobile 394,344
2 Ship 278,723
3 Mobile Phones 117,113
4 Synthetic Resins 84,298
5 Industrial Machinery 40,203
(Unit: 1,000 $) (Unit : 1,000 $)
Bilateral Trade, Investment
(Unit : Mil. $)
Korea’s Main Export Item to Israel Korea’s Main Import Item from Israel
Israeli Automobile Sales 2011(1-10)
Rank Company Private SUV VAN Pick-Up TOTAL
1 Hyundai 24,452 3,077 314 - 27,843
2 Mazda 19,124 - - - 19,124
3 Toyota 15,109 1,126 39 373 16,647
4 KIA 10,493 1,785 1,016 - 13,294
5 Chevrolet 11,050 655 519 - 12,224
6 Suzuki 11,050 415 - - 11,034
7 Volkswagen 8,155 320 881 797 10,153
※ 자료원 : 이스라엘자동차 수입 협회
Hyundai Main Models : i800, i10, i20, Getz, i25, i30, i35,
Veloster, ix35, SantaFe
KIA Main Models : Picanto, Rio, Forte, Soul, Ceed < Hyundai’s Best Seller, I30 >
< T-50 Gold Eagle, Korean super-sonic jet trainer >
Project :
- Supply of jet trainer to Israel
Company :
- Korea Aerospace Industries
Performance :
- Maximum Speed : 1.5 Mach +
- Range : 1,851 km
General Characteristics :
- Crew : 2
- Length : 12.98m
- Wingspan : 9.17m
- Height : 4.78m
- Empty weight : 6,450 kg
- Max takeoff weight : 13,500 kg
※ Source : Wikipedia
Partners : Korean M-Ventures Investment
Israeli CBG Partners
Funding Amount : US$ 33.3 Million
Investment Target : Promising Korean / Israeli SMEs
“Korea Venture Investment Corp”(Korea fund of funds)
is backing this program
31
Part IV.
The four seasons in
Korea
40
Part V.
Korea’s attractions as an
Investment destination
CHINA
JAPAN
79% of high school graduates were admitted to universities in 2010.
3rd largest foreign-student group in the
U.S.
Largest in China
PISA (The Programme for International Student Assessment) ranks Korea, according to OECD statistics:
2nd in the world for reading
3rd in the world for math
5th in the world for science
Source: “Patents are a virtue: Which countries file for most international patents?” Feb 8th 2010 | From The Economist online
National R&D: US$12 bil. (2000) → 31 bil. (2008)
World’s No. 1 in Patent Productivity (IMD)
300,000 R&D workforce
[Countries with most international-patent applications]
R&D Expenditure
Rank Country Percentage of
GDP
1 Israel 4.60
2 Sweden 3.60
3 Finland 3.47
4 Japan 3.44
5 Korea 3.21 6 Switzerland 2.90
7 Taiwan 2.62
8 USA 2.62
9 Austria 2.56
10 Denmark 2.55
* Research targets: all countries * The basic year: 2007 (most recent data available) * Source: IMD World Competitiveness Online
Gangwon Province Gyeonggi
Province
North Gyeongsang Province
South Gyeongsang Province
North Chungcheong Province
North Jeolla Province
South Jeolla Province
South Chungcheong Province
Incheon Int’l Airport
• Best in passenger service by ACI for 6 years (since 2005)
• World’s No.2 in cargo volume
Busan Port
5th largest cargo handling
World’s 5th high-speed train
: KTX
Well-organized Highway
The total
extension:
3000 miles
Source: KOSIS
Gwangyang Port
World’s 17th (182M ton, 2008)
*Image Courtesy: www.entrepreneurshipinabox.com, lssacademy.com
Rank Country 1 Singapore 4 Malaysia
15 Korea 18 China 21 Hong Kong 23 Indonesia 24 Taiwan 35 USA 36 Japan 40 India
Government Efficiency - Government decisions “Government decisions are effectively implemented.” (2010)
Source: IMD World Competitiveness Online
Pikes Peak International Hill Climb Championship
Long-lasting lithium battery
• Green Industry • Energy Independence
--- Green Government --- $90 billion for five years
= 2% of annual average GDP
Household Consumption Expenditure (US$ billion)
Early adopters as a test market for new
products
The buying power of Korea’s brand-savvy
consumers is increasing quickly
Large Market with Sophisticated Consumers
※ Source: IMD World Competitiveness Online_ Last updated: May 2010
______ _______ _____
0
100
200
300
400
500
600
2005 2006 2007 2008 2009
Korea’s Free Economic Zone (FEZs) are self-contained living and business districts featuring air and
sea transportation, logistics complex, international business center, financial services, residences,
schools and hospitals, shopping and entertainment.
Incheon FEZ
Yellow Sea FEZ
Gwangyang FEZ
Busan-Jinhae FEZ
Saemangeum/ Gunsan FEZ
Daegu/ Gyeongbuk FEZ
Songdo, Cheongna,
and Yeongjong are
positioned to become
the Asian center of
logistics, int’l business,
tourism and leisure.
BJFEZ offers direct
access to Busan Port
and world-class
shipbuilding, auto parts,
machinery, and
components industries.
GYFEZ is well-suited
for the steel, petro-
chemical and logistics
industries with direct
access to China,
Japan, and ASEAN.
is located in the center
of Korea with the cheap
ground price . /
Songak, Inju, Poseung,
and Hangnam Districts
has 11 zones that are
well-equipped with the
necessary infrastructure
for knowledge-based
industries and services.
benefits from having a
logistics hub located in
the center of the zone
and the largest
development land.
JDC
Corporate tax, income tax:
100% for 5 yrs, 50% for 2 yrs
Acquisition tax, registration tax, property tax:
5-15 yrs
Tariff for capital goods: 3 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 for the improvement of living and
management environment
Amended in Nov. 2007
Criteria
Manufacturing – More than US$30 million FDI
Logistics & SOC – More than US$10 million FDI
Tourism Industry – More than US$20 million FDI
R&D Sector – More than US$2 million FDI
51
Established in 1995.4.1
Address : 8th Fl. Beit Amot,
Menachem Begin Rd. Tel Aviv 66184
Tel : 03-639-6488
Fax : 03-639-6489
Name Position Email
Yung-Sun Lee Director [email protected]
Jun-Young Wohn Deputy Director [email protected]
Sarah Bensoussan Marketing Manager [email protected]
Jang-Bum Heo Marketing Manager [email protected]
Yoni Shkolnik Marketing Manager [email protected]
Maria Levin Marketing Assistant [email protected]
“Connecting Korean and Israeli Company to Make Business”
Thank you
