South Korea, the fourth largest economy in Asia, is famous in the world for its export of electronics, automobiles, machinery, and robotics. In the past two decades, South Korea has progressed to be among the top 20 economies of the world. It is highly developed in terms of infrastructure, housing facilities, technology and standard of living. For a larger part of the two decades, South Korea was a closed frontier as far as foreign investments are concerned. Recent changes in policies have seen South Korea opening up its economy to foreign investments. High-end gadgets, superior technology cars, and machines rank highest among the exports in Korean list.
A business opportunity
in South Korea can be exciting
as well as challenging at the
same time.
South Korea offers
its business partners
a plethora of options to explore. Being a leader in technology, you can partner with a South Korean company to provide with technological know-how
required. The Korean
business directory will
provide a list of companies that you can strike a deal with.
Businessmen are enamored
with the business opportunities that
are available in
South Korea; however,
you need to tread a bit carefully for a successful business setup.
The Foreign Investment
Promotion Act is
aimed at getting more businessmen
and companies to
invest in South Korea. The Act provides benefits like subsidies, tax benefits and financial support as well.
How to
Set up a Business in South Korea?
Any individual or
company looking to set up
business in South
Korea has to procure either
1) D-8 Visa
(Corporate Investment).
2) F-5 Visa
(Permanent Residence ).
3) F-6 Visa
(Marriage Immigration).
You can either
set up a Private business or Corporate business.
Legal Formalities: As per the Foreign Investment Promotion Act, there are a number of formalities that have to be completed. All information can be found on the government website. South Koreans are quite precise with their procedures and websites give all the information to potential businessmen.
Know your
market: Before registering your business,
you need to have a good research done about where exactly you want to invest. You can either partner with a firm in South Korea to import their products and services
or start a business that will sell your products in their market. If you decide on partnering with a South Korean company to import their products,
then searching for a list of companies in South Korea will help you. You can then shortlist the ones that you want to conduct business with and go ahead with your deal. It is better to deal with 3-4 suppliers so that you can increase your product range. Be rest assured that South Koreans are the masters of producing quality products. If you want to
set up a business where you
would be selling
your products in
South Korea, then
carry off an extensive research.
South Koreans are
high spending individuals,
obsessed with quality.
Hence you need to make sure that whatever your product may be, it has to excel in quality. Do not try and influx products that the South Koreans are already a master at. For Eg, Mobiles and automobiles are manufactured in Korean
which is at the top the of range. There is no point in introducing a second string of these products as there is no market for them.
Things to consider
while doing business in South Korea-.
• South Koreans take the development of the country quite seriously. Every
elected president announces
a five-year vision
which the entire
country whole-heartedly supports. The major companies in South Korea try and contribute to this vision. South Koreans will love and respect those companies/businessmen who also
contribute to this vision in some way.
• Another major aspect of doing business in South Korea is to understand their business ethics.
South Koreans invest
a lot in personal relationships which
forms the basis of business relationships
as well. Hence start investing in your contacts. This does not mean monetary investment but getting to know
them personally, inviting
for dinners and get together etc. Also, South Koreans give a lot of importance
to age and rank. Try to emulate the same ethics in your dealings as well.
• South Korea has one of the highest levels of education in the world. South Koreans lay a lot of
emphasis on completing
their education. Hence
you should keep in mind
that the concept
of low wages is not there in South Korea. The main advantage of investing in South Korea is having a highly talented workforce
at your disposal.
South Koreans are highly efficient with a desire to succeed in all endeavors. This could mean that they will give their 100% towards work and try to achieve the goals and vision you have set for your company. In the same vein, South Koreans are extremely attached to their organizations with a majority of them working for long years in the same company. In case you are looking for experienced staff for your company you may face some difficulties in the hiring process.
• The level of competition in South Korea is extremely high. The local companies compete
not only amongst
themselves but also
with the foreign
entrants. Therefore you
need to be fully prepared to counter them. If you seek the South Korean companies list you will know that a number of international brands
have failed to make a mark in the South Korean market due to stiff competition.
• Lastly, you need to hire quality interpreter as soon as possible. English is widely spoken and understood by a majority of Koreans but the main language is Korean. You may find it tough to find clients for your company if you do not know the language. South Koreans though open to international companies still prefer
to deal with homegrown companies
a lot more. Majority of the deals are dependent on interpersonal relationships and
hence right contacts
and knowledge of
Korean language are
seen as requisites for foreign
business entrants.
