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12/10/2014Presentation title1 SOUTH KOREA: DOING BUSINESS Clifford Bebb Head of Trade, Seoul.

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Presentation on theme: "12/10/2014Presentation title1 SOUTH KOREA: DOING BUSINESS Clifford Bebb Head of Trade, Seoul."— Presentation transcript:

1 12/10/2014Presentation title1 SOUTH KOREA: DOING BUSINESS Clifford Bebb Head of Trade, Seoul

2 2 Themes of the presentation South Korea Now Trade/Economic Background History, Politics and Culture Golden Rules for Success How UKTI can help you?

3 3 South Korea Now Developed country and economy Population: 50 million (2010) Disciplined, Orderly, but Rapidly-ageing society Highly-educated, Hard-working but stressed workforce Modern, high-tech infrastructure

4 4 Trade/Economic Background World’s 15 th largest economy (IMF 2010) 12 th based on PPP; >$29,790 (2010) Recovery from global downturn: No recession: GDP growth 6.2% in 2010; 4.5% growth forecast for 2011 Stable markets, low unemployment Exports and projects: shipbuilding, steel, automotive, electronics, ICT, etc.. Free Trade Agreements with key partners and key partners of the future: EU

5 Source: Invest Korea

6 6 EU-Korea Free Trade Agreement FTA to enter into provisional force 1 July 2011 Euro 32bn of increased trade 97% of tariffs will go within 3 years Even more value in NTBs coming down Current commercial relationship: EU is the largest investor in Korea EU is Korea’s 2 nd largest export market after China Korea is EU’s 8 th largest trading partner (2008)

7 7 EU-Korea Free Trade Agreement UKTI report “100 Opportunities for UK Companies arising from the FTA” Launched on 15 March 2010 with CBI support, events in UK and Asia to disseminate Updated in April 2011 Easy to read and navigate Available on USB sticks and (registration required)

8 8 EU-Korea Free Trade Agreement Export sectors to benefit include: Financial & Legal services Automotive Food & drink (whisky and other alcoholic beverages) Pharmaceuticals High end fashion & textiles Construction: infrastructure, buildings including sports venues Cross-cutting focus on “Green Growth” (low carbon technology and design), including in collaboration in third markets like the Middle East

9 9 EU-Korea Free Trade Agreement If you are exporting visible goods (materials, products, equipment) to Korea, and your consignments are valued at over Euros6000, to take advantage of the FTA’s tariff concessions you must be registered with HMRC as an approved exporter: Paul Robbins HMRC Excise, Customs, Stamps & Money Customs Duty Liability 10th Floor South East Alexander House 21 Victoria Avenue Southend-on-Sea SS99 1AA Email: Tel: 0845 010 9000, Fax: 01702 367342

10 10 Trade/Economic Background Trade flows 2010: UK  Korea export £2.2bn of goods, up 2% ProductValue (£) Industrial machinery268m, up 29% Medicines and pharma200m, up 11% Beverages156m, up 37% Road vehicles136m Inorganic chemicals130m, up 7%

11 11 Trade/Economic Background Trade flows 2010: Korea  UK import £2.4bn of goods, down 16% ProductValue (£) Electrical machinery/applicances477m Telecoms appliances453m Road vehicles410m

12 12 Historical & Political Background An ancient, 5000 year old homogenous civilisation Social & ethical values based on Confucianism National pride and Rising confidence, culminating in G20 Summit hosting last year Donor and peace-keeper

13 13 Historical & Political Background Fast-changing inter-Korean relations An armistice signed in 1953 formally divided the country into the North and South Conditionality on economic support for DPRK, hard-line stance on nuclear issues Current administration’s refusal to follow former Presidents’ “sunshine diplomacy” Remaining issues; Cheonan and Yeongpyong incidents, the North’s withdrawal from the Six Party Talks, nuclear facilities and missile tests etc.. NONE OF THIS AFFECTS YOUR BUSINESS

14 14 Historical & Political Background President Lee, Myung-bak Former CEO of Hyundai Group Former mayor of Seoul City An open market supporter; FTAs the way forward “Green Growth" stimulus policy, spending 2% of GDP from 09/14: developing Emissions Trading Scheme and Carbon Tax policies Instrumental in “national” bids for major overseas Nuclear, Defence and Railway projects

15 Culture: Golden Rules for Success Formal, facilitated introductions Respect for seniority in age and rank Business relationships are based on personal relationships Mixing business with social life Invest to know your contacts Entertainment; drinking, gifts, golf, etc.. Professional and personal connections (alumni) 15

16 Culture: Golden Rules for Success Negotiations: Temper use of Western Logic Contracts vs Handshakes? Be prepared for twists and turns: all may not be what it seems! Ensure your meaning (English?) is fully understood Write down numbers Bargain hard but be seen to concede to forge early trust 16

17 Last Golden Rule- use UKTI? OMIS: Market research, identifying representatives, end users (and competitors) Arranging and accompanying visit programmes, interpreters and post-meeting follow-up Promotional events- Aston Hall, HMA’s Residence and “outside” functions 14 full time staff in Seoul 17

18 18 Design Capital 2010: Seoul >20m people in City & Commuter belt 1988 Olympics & 2002 World Cup changed the game for foreign visitors World-leading communications infrastructure: getting around generally quick, cheap and easy; fastest average broadband speeds

19 19 Upcoming trade missions  Fashion, wc 20 June  Nuclear energy, 11 July  Oil & Gas, September  Legal services, October  Design, October (Design Korea 2011)  Marine, October (KorMarine 2011)  Green Building and Renewable energy, November  Chemicals, materials & printed electronics, February 2012  Lifestyle showcase, March

20 12/10/2014UKTI Work in Korea20 Thank you! Clifford Bebb Head of Trade

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