HOW TO DO BUSINESS WITH SOUTH KOREA. GIL STAUFFER BRINGS YOU CLOSER TO THIS MARKET THROUGH THE CHAMBER OF MADRID.

How to do business with South Korea? Find out in our tour

03/12/2019

Hand in hand with the Chamber of Commerce and Industry of Madridat an event held on 28 November entitled "South Korea: Business opportunities with its strategic industries"., Charo ÁlvaroCommunication Director of Gil Stauffertakes us to this exotic country to delve into its essence and the indigenous style of the Koreans when it comes to doing business.

The session was moderated by Esther Calvo Ruiz, international manager of Camera Madridspeaking first of all, Augusto Castañeda García-Manfredi, Vice-President of the Chamber of Madrid; Hong jo Chun, South Korean ambassador to Spain; y Sang Hyung Chang, Chairman of Invest Korea. After welcoming remarks and a short introductory overview of the country, he spoke, Jaewon LyuThe General Director of Kotra Madrid to talk about the business climate in Korea. Later, Sae Hoon Kimrepresentative of Gwangyang FEZpresented the current scenario on the chemical industry and its components in this country; Hye Ryeun Jungrepresentative of Incheon FEZ approached us to the particularities of the ICT industry and its components; Snag Bong Hanrepresentative of YES FEZ spoke about materials and components for industries And, to top it all off, Gonzalo Ortiz, former Spanish Ambassador to Korea held an exhibition based on the experience in the Korean market.

The following is a summary of some of the most important aspects of doing business with South Korea, which, as a guide, can serve as orientation for doing business with South Korea:

ECONOMIC ASPECTS:

With almost 52 million inhabitantsis the eleventh largest economy in the world and the fourth largest among Asian powers with growth rates above the average of OECD countries, according to the IMF. The bilateral trade between South Korea and Spain in 2018 exceeded by far in global terms the 5 billion eurosThis figure rises to 6 billion if we include trade in services. Spanish engineering companies and contractors participate jointly in consortia, subcontracting and project supervision, even in third countries.

Your economy is a clear example of economic development and rapid and sustained growth over six decades. It has become an advanced high-income country (31,345 US$ of income per capita in 2018). It is also the world's ninth largest importer of goods and the third largest importer in Asia. It is also the world's sixth largest exporter of goods, the world's seventeenth largest exporter of services and the world's tenth largest importer of services. In terms of investment, Korea is the world's twelfth-largest investor.

South Korea has one of the most advanced industries in the world, standing out for its high level of competitiveness. Korea is, likewise, a leading exporter and developer of technology goods. Its industrial leadership is mainly manifested in the following sectors: automotive, electronics, 5G technology, industrial materials and parts, chemical materials, shipbuilding, steel, pharmaceutical and biotechnology industries.

HISTORICAL-GEOGRAPHICAL NOTES:

It is necessary to know a little about the History of this country in order to have a small x-ray of their idiosyncrasies. Its inhabitants are vassals of the Chinese Empire, but Korea is a country that has always been jealous of its autonomy and identity. In 1897 the Empire was declared, from 1910 to 1945 the country was subject to the Japanese Empire, in 1945 Korea gained independence, but the country split in two, and in 1950 the Korean War broke out and lasted three years.

GeographicallySouth Korea is a peninsular country with a some isolationThe island is relatively insular and can only be reached by plane or boat, with the "..." also being present.bunkerisation"North Korea.

In other words, despite its historical vicissitudes, Korea has managed to maintain its identity. Geography has made it a distant country for Spaniardsbut really is a town very close by personality.

SOCIO-CULTURAL CHARACTERISTICS:

Koreans like to climb mountains. They love the trekkingnature and the challenges. That is to say, implicit in its character is the the desire to overcome challenges.

They are also predisposed to doing things very wellbut quickly (They say: "Palli, palli"which means something like "Hurry up, hurry up").

And another characteristic is that the Korean people boast a sharp industrial creativity and a passion for new technologies. (smart citiesmobile telephony, etc.). Korea is one of the four hubs The world's leading technology companies, along with the United States, China and Japan.

Korea's success is probably the result of their high level of education. They have a competitive, demanding and universal education. Also, there is a prevailing powerful entrepreneurial classwhich has borne fruit for the "Chaebols"These are large conglomerates with a presence in different economic sectors with rapid development and which have given rise to this business model that emerged in this country.

The Koreans also exude a high level of demand in quality, presentation, processing, packaging, etc., and a halo of protectionism The business world, despite the dynamism of the private sector.

There is also a Confucian patriotism which involves a clear modernityKorea, although Korea remains a respectful societyThe group's commitment and group obligation, which facilitates relations in spite of strong trade unions.

BILATERAL RELATIONS:

In 2018, the figure of 500.00 visitors from Korea to our country and, apparently, it is an amount that is going to in crescendoKoreans love our way of life, our gastronomy, the Spanish culture, etc.

In 2020 it will be 70 years years of diplomatic relations. Spain was one of the first countries to recognise the Republic of Korea, and there has always been a strategic dialogue. There is a forum which is a Spanish-Korean Tribune; there is a Korean fishing fleet in the Canary Islands, a container terminal in Algeciras, a lubricant base plant in Cartagena (SK), etc.

There are more and more more Korean companies in Spain and greater presence of Spanish businesses in Korea. Korean brands are better known than a few years ago and vice versa.

It has also instituted a programme called "Working holidays agreement"This is certainly interesting for the future of relations between the two cultures.

HOW TO ENTER THE KOREAN MARKET?

Fortunately, there is the Free Trade Agreement with Europe and certain non-tariff barriers have to be overcome. The Trade Office prepares specific trips for this purpose and there is also the financial support of COFIDES for private projects of up to 30 million euros. The honorary consuls in the cities of Pusan and Incheon are also an added gateway and, of course, ESCCK and the Korean-Spanish Chamber of Commerce.

SUPPORT AGENCIES AND ORGANISATIONS:

• Chamber of Commerce and Industry of Madrid

• Embassy of the Republic of Korea in Spain

• Spanish Embassy in Korea

• Korean-Spanish Chamber of Commerce

• ESCCK, Spanish Chamber of Commerce in Korea

• INVEST KoreaKorea's national investment promotion agency, which was established as part of the Korea Trade Investment Promotion Agency (KOTRA) to support the entry and establishment of foreign businesses in South Korea.

• KOTRA MadridTrade Office of the Government of Korea in Madrid.

• GWANGYANG FEZThe city is an international commercial city, located on the main route of the Pacific Ocean, which harmonises new industries and cultural tourism.

• INCHEON FEZThe city is becoming a business centre in northwest Asia in its own right.

• YES FEZ, Yellow Sea Free Economic Zone - Poseoung Districta high-tech industrial cluster in the Yellow Sea region.

• COFIDESSpanish Development Finance Company (Compañía Española de Financiación del Desarrollo)

And if you decide to do business with South Korea and needs support for Mobility Services (national or international removals, relocation services(e.g., custody or management of archives, storage, etc.) is provided with GIL STAUFFER. We have been specialists since 1905.

Since 1905, our greatest satisfaction has been your satisfaction.