How to establish business in South Korea

How doing business in South Korea?

Gyeongbok-gung palace in Seoul. Image: globaltravelmate.com

South Korea encourages foreigners to invest directly or indirectly in its economy. This emerging country provided foreign investors with many incentives, such as tax relief, cash grants, support of industrial sites, financial support, and so on. 

South Korea is the world’s 12th-largest economy. It has a GDP of over U.S. $ 1 trillion - Per capita purchasing power is some U.S. $ 30,000. It's a very attractive market to market various products and services. Perhaps South Korea is a good choice for your business expansion. 

South Korea is a high - tech economy, so if you are building a new business or expand in this state, you will not be a problem with skilled labor in the field of technology. Physical infrastructure and information technology are also very advanced and one of the best in the world.

You must have been very familiar with South Korean products such as the Samsung Galaxy, LG Ultra HD TV, Hyundai cars, construction companies and a wide range of products that are very advanced and well-known all over the world, even the products and technology they are able to compete with Japan and the United States. Although in this country have a lot of big and global companies, however, you can still look for a business partner of medium-sized businesses. Entrepreneurial spirit in this country is very strong and they dare to compete with foreign companies, especially Japanese. They want to beat Japan in business competition. This of course sparked the spirit of the history of the Japanese occupation of Korea. You can make them as inspiration to the spirit of working together with employers or South Korean companies.  

The spirit of Korea. Image: dailymail.co.uk

South Korea manufacturing industries are particularly successful. These include semiconductors, automobiles, and digital electronics as well as construction and shipbuilding. South Korean government has taken measures to attract foreign investment and promote exports. You can avail the benefits of the import and export business benefits from free special economic zones. These were established to attract international capital, foreign firms, and expertise. The free economic zones are self-contained living and business districts.

Korean culture is important for you to understand

Before you want to run a business or business expansion in South Korea, you should take the time to learn Korean culture. We know that South Korea is a great place to do business, but the Korean saying - make a friend first, and do business second - Tells you much about the need to understand Korean business culture. With this understanding we cannot run a business with a Western style for granted, although the Koreans also greatly admire the spirit of business from Western countries like the United States and Europe.

The South Korean democratic models operates under a two-party system, Characterized by efficient decision-making. Internal feuds within parties are rare, presumably Because of the Korean way of respecting the decisions of Superiors. Seniority in the workplace and business culture is also very strong, but they are also very concerned about the achievements in the fields of education, skills and work experience. An understanding of Korean-style management is also very important, so you can run the business smoothly.

The population is highly educated. Seven per cent of the country's entire GDP is spent on education and nearly three-quarters around 74 per cent of South Koreans undertake postgraduate-level study. If you are a shortage of skilled labor, for instance for factory, you may invite skilled workers from Indonesia. The South Korean government has had good cooperation in the field of employment with the Government of Indonesia. These facts led to too many South Korean companies are expanding their business in Indonesia, and they export their products from Indonesia to Korea.

Although workers in South Korea are not the cheapest labor such as in China, Thailand or Myanmar, but they have unique advantages compared to other nations in the world. Koreans possess a remarkably ambitious mindset. Having a high-reaching long-term target is of great importance in Korean culture, reflected not only in national and corporate targets setting but on all levels of society. Koreans use the word 'han’ to describe this urge to overcome obstacles and injustices suffered, reaching out for victory. The combination of morale in this unique culture will produce a very high quality product. Perhaps we can also learn a lot with the spirit of 'han' to develop our personality.

 

Night view in Seoul. Image: blacktomato.com

Please remember well, that no matter how progressive this country appears Confucian ethics still persist. Implementing changes can take quite a while, as both the harmony of the group and respect for authority are highly valued. 

Your South Korean business partners will want to a make sure that you are trustworthy and honorable before actually doing business with you. Thus, patience and negotiation skills are crucial when you are trying to close a business deal.

Sources of information to learn about various aspects of how to build a business or to expand business in South Korea you can visit the site "Angloinfo". Of course you have to visit the embassy or consulate of South Korea in your country to seek information early, so you get a good understanding of the particular business opportunity that is open for investors and foreign companies, legal requirements and so on. It is very nice if you come as a tourist to Seoul, Jeju Island and areas or special economic zones in various cities in South Korea.

Other websites are also recommended for you to see are: export.gov and "The Internationalist". Of course you can also discuss with business colleagues who have been successful doing business in South Korea, so that you get first-hand information.