World Country Guide

Business Profile

Economy
Korea (Rep) is one of the so-called ‘tiger economies’ of the Pacific Rim, which underwent rapid growth and industrialisation from the 1960s onwards and forged a major presence in world export markets. The Republic of Korea’s strength came from four main areas: shipbuilding, steel, consumer goods and construction. The agricultural sector, dominated by rice-growing and fisheries, is an important export earner as well as meeting domestic demand. Tourism dominates the service sector, which is still relatively small but received a boost from the success of the 2002 World Cup football competition, which Korea (Rep) co-hosted. Compared with the North, which has extensive coal and mineral deposits, the South is relatively poor in natural resources, although there have been recent offshore discoveries of natural gas which should help to reduce South Korea’s dependence on imported energy. The financial crisis which struck Asia in the autumn of 1997 had a very serious effect on the South Korean economy and raised major concerns about the long-term viability of the chaebol – the large conglomerates that form the foundations of Korea (Rep)’s industrial economy – and the stability of the finance sector, which had assumed increasing importance. The economy was saved from further damage at the beginning of 1998 by a US$60 billion financial rescue package put together by the IMF which kick-started a strong recovery by the South Korean economy. After settling down, the economy is now accelerating again: growth in 2002 increased to 6.3 per cent on the back of an increase in exports and investment, although a partial slowdown is expected in 2003/4. Inflation and unemployment for 2002 were 2.8 and 3.1 per cent. The government has successfully dealt with important structural weaknesses in the financial sector, but has yet to tackle the chaebol. The USA, Japan, China, Hong Kong and Saudi Arabia are Korea (Rep)’s main trading partners. The slow thaw in relations with the North has also seen a growth of economic links between th two parts of Korea.

Business
Businessmen are expected to wear a suit and tie. English is widely spoken in commercial and official circles. Prior appointments are necessary and business cards are widely used. The use of the right hand when giving and receiving particularly applies to business cards. Best months for business visits are February to June. Office hours: Mon-Fri 0900-1800, Sat 0900-1300.

Commercial Information
The following organisations can offer advice: Korean Chamber of Commerce and Industry (KCCI), PO Box 25, 45 4-ga, Namdaemun-ro, Chung-gu, Seoul 100-743 (tel: (2) 316 3114; fax: (2) 771 3267; e-mail: trade@kcci.or.kr; website: www.kcci.or.kr); or Korea Trade Centre, 5th Floor, 39 St James’s Street, London SW1A 1JD, UK (tel: (020) 7491 8057; fax: (020) 7491 7913; e-mail: kotra@kotra.co.uk; website: www.kotra.or.kr/london).

Conferences/Conventions
The following organisations can offer advice: Korea Exhibition Centre (COEX), World Trade Center, 159 Samsong-dong, Kangnam-ku, Seoul 135-731 (tel: (2) 6000 0114; fax: (2) 6000 1302; website: www.coex.co.kr); or Korea Convention and Coordinating Committee, PO Box 903, c/o Korea National Tourism Organisation (see Contact Addresses section), which can also offer advice and information on meeting facilities in the Republic of Korea. There is also a new convention centre, the International Convention Centre Jeju, in the island of Jeju (2700 Jungmun-dong, Seoguipo City, 697-120 Jeju, Korea; e-mail: webmaster@iccjeju.co.kr; website: www.iccjeju.co.kr).