Guide to Living in Korea 2010

Guide to Living in Korea 2010

Guide to Living in Korea 2010

Guide to Living in Korea 2010

Quick Reference

Korean Key Phrases

Exchange Rates (Basic) Nation

Currency Name

Oct. 2009

Korean Won(￦)

United States

USD

Japan

JPY 100

1170.50

China

CNY

171.46

European Union

EUR

1721.69

1326.5

Business Hours Banks

9:30~16:00 Mon~Fri

Post offices 9:00~18:00 Postal Service 9:00~16:30 Financial Service 9:00~13:00 Saturday

Useful Phone Numbers Ambulance

119

Fire Brigade

119

Police

112

Telephone Codes Seoul Gyeonggi Incheon Gangwon Chungnam Daejeon Chungbuk Pusan Ulsan Daegu Gyeongbuk Gyeongnam Jeonnam Gwangju Jeonbuk Jeju

02 031 032 033 041 042 043 051 052 053 054 055 061 062 063 064

The international access codes to call abroad from South Korea are 001(through KT), 002(through Dacom), 00700(through SKTelink), 00365(through Onse) or 00321(through Naray)

Tourist advice & help 1330

Metric Conversions

Telephone directory assistance 82-1588-5644

Temperature

Invest KOREA

82-1600-7119 Distance

Weight

Volume

Area

˚C=(˚F-32)÷1.8 ˚F=(˚C1.8)+32 1inch=2.54cm 1cm=0.3937inch 1m=3.2808ft=1.0936yd 1ft=0.3048m 1km=0.6213miles 1mile=1.6093km 1kg=2.2046lb 1lb=0.4535kg 1g=0.0353oz 1oz=28.3495g 1L=0.2642 US gallons 1 US gallon = 3.7854L 1L=0.22 imperial gallons 1imperial gallons=4.55L 1m2=10.764ft2=1.1958yd2 1py=3.3058m2=35.5836ft2 1a=100m2=1076.4ft2 1ft2=0.0929m2=0.1111yd2 1acre=43560ft2 = 4840yd2

Disease/Injury

•Hello

[ annyeong haseyo ]

•Excuse me

[ sillye hamnida ]

•Is there a doctor who speaks English? [ youngeoreul hal jul aneun uisaga isseumnigga? ]

•Please

[ butak hamnida ]

•Thank you

[ gamsa hamnida ]

•Is there a pharmacy nearby? [ geuncheoe yakgugi isseumnigga? ]

•How much?

[ eolmayeyo? ]

Shopping

•Sorry

[ miahn hamnida ]

•Yes/No

[ ye/aniyo ]

•What is this? [ igeoseun mueotimnigga? ] •How much is it? [ eolmaeyo? ]

When you need help.

•I’ll take this one [ igeoseuro hagesseumnida ]

•Help! [ dowa juseyo ]

Food

•Please lend me your phone [ jeonhwa-reul billyeo jusipsio ]

•Please give me some water [ Muljom juseyo ]

Expressing yourself

•That was delicious [ aju masisseosseumnida ]

•I don’t know [ jeoneun jal moreugesseumnida ]

•Please make it mild [ maepjianke haejuseyo ]

•Really? [ jeongmarimnika? ]

•What do you call this in Korean? [ igeoseul han-gungmallo mworago hamnigga? ]

•Do you speak English? [ yeongeo hal jul asimnigga? ]

Transportation

Greetings

•How long does it take to get to ( ) ? [ ( ) ggaji eolmana geollimnigga? ]

•I’m pleased to meet you [ cheom boepgesseumnida ]

•Where is the bus stop? [ bus jeongnyujangi eodi imnigga? ]

•My name is ( ) [ Je ireumun ( ) imnida ]

•Please take me to ( ) (to taxi driver) [ ( ) ggaji butak hamnida ]

•You are welcome [ cheonmaneyo ]

•How long does it take to get to ( ) ? [ ( ) ggaji sigani eolmana geollimnigga? ]

•Goodbye (to person going) [ annyeonghi gaseyo ]

Time

•Goodbye (to person staying) [ annyeonghi gyeseyo ]

•Excuse me, but what time is it? [ mian hajiman, jigeum myeossi imnigga? ]

Apologies, asking again

Leisure/Touring

•My apologies [ joesong hamnida ]

•Where is a/the ? [ neun eodie isseumnigga? ]

•Could you explain that again? [ dasi hanbeon seolmyeonghae jusipsiyo ]

•Would you take my/our picture? [ sajinjom jjigeo jusigesseumnigga? ]

CONTENTS _

Guide to Living in Korea 2010

KOTRA, IK ・09

Telecommunication and Media ・121

・KOTRA ・Invest KOREA

・Telecommunication ・Media

Business ・19

Medical Services ・133

・Investment Environment ・Foreign Direct Investment ・Business Support ・Policies for the Favorable Treatment of Foreign Investors ・Visa ・Business Manners in Korea

・Introduction ・Emergencies ・Hospitals ・Oriental Hospitals: ・Insurance

Accommodation ・63 ・Major Foreigner’s Town in Seoul ・Renting a House ・Purchasing a Home - Procedures ・Moving ・Utilities

Financial Services ・145 ・Banks ・Foreign Exchange ・Postal Services

Directory List ・155

Education・87 ・Foreign Schools in Korea ・Korean Language Programs ・Libraries and Book Stores

Transportation ・97 ・Public Transportation ・Driving

Appendix ・215 ・Provinces in Korea ・Time Differences ・Subway Maps ・Calendar, Holidays ・Investment Service Team ・Map of Korea ・Korea Business Centers (KBCs) of KOTRA

Guide to Living in Korea 2010

KOTRA

・KOTRA ・Invest KOREA

KOTRA

KOTRA Academy was launched in 2003

ment manpower, armed with relevant

as a professional learning center for

theoretical and practical knowledge, will

international business. In the long run,

bolster the nation's trade and invest-

KOTRA’s well-trained trade and invest-

ment infrastructure.

2. Head Office •Location

KOTRA

Korea Investment Service Center (KISC) in 1998, the agency was renamed as Invest KOREA in November 2003 to

1. Introduction

support foreign investors by offering more powerful incentives and an

KOTRA, initially the Korea Trade Promo-

expanded range of services.

tion Corporation, was established in 1962 as a national trade promotion

KOTRA is now well-equipped to pursue

organization. Since then, it has success-

its twin mandates of trade and invest-

fully facilitated Korea’s rapid export-led

ment promotion to enhance national

economic development through various

prosperity and competitiveness, with the

trade promotion activities such as over-

ultimate goal of positioning Korea as the

seas market surveys and business

business and economic hub of North-

matchmaking.

east Asia. With its long-term experience and expertise, KOTRA serves and

In August 1995, cross-border invest-

assists all interested parties worldwide

ment promotion and support for techno-

to do business with Korea.

logical and industrial cooperation projects was added to KOTRA’s mandate,

In order to execute its mandates more

and it was renamed the Korea Trade-

efficiently, KOTRA has opened an exten-

Investment Promotion Agency (KOTRA).

sive worldwide network of overseas

Adress

Tel.(rep) Fax.(rep)

KOTRA 13, Heolleungno, Seocho-gu, Seoul, 137-749, Republic of Korea (Former Address : 300-9, Yomgok-dong, Seocho-gu, Seoul, 137-749, Republic of Korea) (82-2) 3460-7114 (82-2) 3460-7777

Korea Business Centers (KBC).

3. Overseas Office

KOREA, the national investment promo-

As of 2009, 98 KBCs are operating in

The extensive international network of

tion agency. Originally initiated as the

71 countries.

KOTRA you can find in the directory. (P.157)

KOTRA currently operates Invest

10

•Guide to Living in Korea 2010

KOTRA• 11

Invest KOREA

1. Invest KOREA Overview

ing in labor disputes. Invest KOREA is

bolstered by specialists from specific

dedicated to providing the kind of com-

industrial sectors to provide faster and

prehensive, seamless, one-stop service

more accurate investment-related ser-

that allows foreign investors to put down

vices to foreign investors.

roots in Korea and join the thousands of

•Vision & Mandate

others who are operating successfully

Invest KOREA is the Korean national

and profitably here.

2. Services

lished with the sole purpose of facilitat-

•Who & what we are

■ Information

ing the entry and successful establish-

Invest KOREA is the new name of the

Invest KOREA provides information and

ment of foreign business into Korea. Nor

former Korea Investment Service Center

consulting services free of charge,

does our involvement halt there, since

(KISC), which was established in 1998

including the provision of data for feasi-

our agency delivers an extensive post-

as part of a radical liberalization of

bility studies and professional advice in

establishment service designed to pro-

Korea’s investment regime under the

the areas of investment procedures,

mote the rapid settlement of foreign cor-

Foreign Investment Promotion Act of the

legal issues, tax, and accounting. The

porations in Korea and ensure they

same year. Major recent revisions to the

agency also helps foreign corporate per-

assistance ranging from research and

maximize the benefits of the Korean

Act empowered Invest KOREA to act as

sonnel in matters of day-to-day life such

planning to implementation. The agency

investment environment to the fullest

a far more efficient, practical and inte-

as healthcare, schooling and accommo-

also provides substantive feedback from

extent.

grated Investment Promotion Agency

dation.

investors to policymakers in order to

The scope of our activities on behalf of

(IPA).

investment promotion agency, estab-

Service

constantly improve the investment envi-

•Invest KOREA Online

foreign businesses ranges from busi-

ronment.

ness consultation, market research and

•Who makes our agency work

(http://www.investkorea.org) provides a

partner searches to accessing grants,

Invest KOREA is staffed with KOTRA

wealth of detailed information on invest-

•IK’s experts

administrative processing and resolving

employees who have extensive exper-

ment in Korea on top of its extensive on-

- Research and provide information

difficulties with government and mediat-

tise and experience in supporting

line consulting service for interested

inbound foreign direct investment (FDI),

investors. We hope you take advantage

public servants from other related gov-

of the information on IK’s constantly

ernment agencies, and experts from the

updated website.

•Guide to Living in Korea 2010

- Assist investors to identify emerging investment opportunities - Answer questions on legal, taxation and accounting matters

private sector in fields such as account-

12

about Korea as a business location

ing, law (including tax and labor law), as

■ Attracting

Foreign Investment

well as mergers and acquisitions (M&A).

• Invest KOREA provides support

Invest KOREA staffs have become pro-

throughout each stage of the investment

gressively more specialized to meet the

project, from international promotion of

increasingly specific needs of our clients.

Korea’s image and identification of tar-

Accordingly, the agency’s staff will be

get companies to delivery of customized

- Advise investors on how to take advantage of tax incentives - Offer free site analysis service to investors - Help investors identify potential joint venture partners

KOTRA• 13

- Offer comprehensive service for the entire investment process

tors are experts in different fields of for-

in Korea, from selecting plant sites and

eign investment who act as liaisons,

forging alliances with Korean partners,

- Including administrative matters

submitting proposals to the govern-

to education and accommodation.

- Handle civil affairs in 11 areas includ-

ment’s highest foreign-investment related organ, the Foreign Investment Com-

Additional business-related assistance

mittee. They report to the Committee on

will be provided by officials seconded

grievances that require changes to for-

from the Ministry of Justice, the National

eign investment policy, requesting inter-

Tax Service, the Korea Customs Office,

vention on the part of relevant govern-

and the courts of law, all of whom offer

■ Invest

ment bodies and ministries, and inform-

a broad range of administrative support

•Introduction

ing them of notable aspects of individual

and respond to complaints made by for-

Invest Korea Plaza (IKP) is the first busi-

cases for their review. More can be

eign investors. All services provided by

ness incubation complex in Korea for

learned about the Ombudsman and

the ISC are available in English and

foreign investors.

•Investment Ombudsman

the Aftercare Team by browsing at

Japanese.

As part of efforts to improve the environ-

The Investment Ombudsman was creat-

(http://www.i-ombudsman.or.kr).

ing visa, tariff, and taxation - Coordinate meetings with relevant official authorities and institutions - Resolve difficulties experienced by investors in the course of doing - Business through the Investment Ombudsman ■ Aftercare

Service

Korea Plaza

ment for foreign investment in Korea, the

ed within KISC in 1999 and has since

Ministry of Knowledge Economy devised

helped hundreds of foreign-invested

■ ISC

the initial plan for the IKP project and

companies overcome a myriad of obsta-

The range of services offered by Invest

placed KOTRA (the Korea Trade-

cles they have encountered in the

KOREA has been significantly enhanced

Investment Promotion Agency) in charge

course of doing business. Problems that

following the opening of the Investor

of execution.

the Ombudsman has helped resolve on

Support Center (ISC) within Invest Korea

Designed to meet 21st century business

behalf of clients vary from obtaining

Plaza.

planning permission, removing embar-

•Advisory hot-line

needs, IKP offers furnished office space,

- Visa inquiry: 02-3497-1062~65

cutting edge conference facilities, in

goes and helping investors qualify for

The center provides information and

- Tariff inquiry: 02-3497-1059

addition to on-site comprehensive ser-

benefits, to bringing the full weight of the

assistance on a variety of matters relat-

- Taxation inquiry: 02-3497-1061

vices ranging from investment consulta-

government to bear in assisting disput-

ing to foreign investment and daily living

tion provided by representatives of

ing parties to arrive at a satisfactory con-

•Office hours

Invest KOREA, numerous government

clusion.

- 09:00~18:00

agencies and ministries, to programs to

(Lunch break 12:00~13:00)

•Investment Aftercare Team

- The center will be closed on the fol-

orient clients on Korea’s business culture and information on daily living in

In all cases where the Ombudsman is

lowing holidays besides weekends

Korea.

asked to intervene, a specialist “Home

(Saturdays and Sundays): national hol-

With the aim of helping foreign compa-

Doctor” is designated to provide one-

idays, Labor Day (May 1st), KOTRA

nies locate to Korea, attain success and

on-one service to the client until the diffi-

foundation day (June 21st), and other

expand their business, Invest Korea

culty in question is resolved. Home Doc-

holidays designated by KOTRA.

Plaza’s staff combined their expertise

14

•Guide to Living in Korea 2010

KOTRA• 15

and knowledge of Korea’s investment

■ Q&A

are also available. The services are avail-

(KBC) are eligible to rent office space

environment to assist international com-

Q1. What is the purpose of Invest Korea Plaza (IKP)?

able in English and Japanese, and each

at IKP.

panies with all aspects of doing busi-

secretary is in charge of providing effec-

You can find further information on eligi-

ness in Korea. By utilizing resources at

The need for exclusive foreign invest-

tive and professional secretarial services

bility requirements on-line

IKP, Korea’s one-stop business incuba-

ment services has grown as Korea com-

to 5~6 companies at IKP.

(www.ikp.or.kr - On-line application).

tion center, foreign companies may rent

petes increasingly with other Asian

office space at reasonable rates and

countries to attract FDI. Recognizing this

improve efficiency, saving time and

fact, Korea’s Ministry of Commerce,

Q3. Is IKP available for all companies?

3. Publications

avoiding costly mistakes.

Industry and Energy (MOCIE) announced

The original goal for the IKP project was

a plan in April 2002 to construct a One-

to provide services to foreign investors

IK publishes an “Invest Korea Journal”

•Location

Stop Service facility called Invest Korea

in order to improve investment environ-

on a bimonthly basis, as well as a

IKP offers direct and easy access to

Plaza for foreign investing companies.

ment in Korea. Therefore, IKP will be

newsletter on a monthly basis.

open to any foreign companies that are

Moreover, Invest Korea publishes pre-

transportation. Conveniently situated minutes from the Gyeongbu Highway,

IKP will support foreign investors in their

interested in investing in Korea or to

sentations, books and video materials

IKP is just a short drive from Yangjae

settlement process in Korea and

companies currently invested in Korea.

about Investment climate, Korea’s

Subway Station located on line 3 of

improve the overall investment environ-

Seoul’s extensive underground railway

ment in Korea. Using the Plaza's com-

Foreign companies who have received

basis. All these publications can be

system.

prehensive range of services, foreign

a written recommendation from one of

found on Invest KOREA’s website

- Strategically located adjacent to

investors will simply need to contact a

KOTRA’s overseas business centers

(www.investkorea.org - library).

KOTRA - Minutes from the Yangjae Exit of the Gyeongbu Expressway - One hour from Incheon International Airport

industries, living guides etc. on a regular

single project manager to access investment counseling, get an application approval, get help with family education, and get support with medical services and housing.

- 10 minute drive from Yangjae subway (line number 3)

Q2. What kinds of secretarial services does IKP provide?

Tel: 82-2-3497-1000 / Fax: 82-2-3497-1616

Our basic services cover living service,

www.ikp.or.kr

administrative service, private secretary

station

service, etc. For the more professional service areas, we provide translation & interpretation service, document creation & filing service, and conference & seminar support service. Marketing, PR, accounting and legal consulting services

16

•Guide to Living in Korea 2010

KOTRA• 17

Guide to Living in Korea 2010

Business

・Investment Environment ・Business Support ・Policies for the Favorable Treatment of Foreign Investors ・Visa ・Business Manners in Korea

Business Investment Environment

1. About Korea

Overall, plans are in place to organize

ic zone, currently receive varying reduc-

the implementation of an array of mea-

tion on corporate, income, and local tax.

sures designed to create an optimal

Requests for tax relief are made with the

investment environment, promote a

Ministry of Strategy and Finance which

social atmosphere that is more foreign

typically notifies foreign investors of its

investment-friendly, enhance the living

financial decisions within 20 days from

environment for international residents,

the date of filing. Prospective investors

and to reduce language barriers. The

can find out in advance whether their

government will be leveraging these

line of business is eligible for the current

efforts by sharpening the competitive-

tax relief program (in other words,

active in its efforts to attract foreign

ness of Korea’s free economic zones

whether they qualify as an industry sup-

direct investment to Korea, and the For-

and incorporating them into its vision to

port service or high-tech business) and

eign Investment Promotion Act, passed

develop a regional financial hub in

the extent of the tax benefits they will

in 1998, has greatly facilitated these

Northeast Asia.

receive so that they may make an

efforts.

informed decision. Customs duty reduc■

Over the past four decades, Korea’s

Incentives for Foreign Investment

tion or exemption is also available on

impressive economic growth was part of

In 2007, on the occasion of the 10th

The purpose of FDI incentives is to com-

capital goods whose import declaration

what has been described as the “East

anniversary of Korea’s pro-FDI policy,

pensate foreign companies investing in

is completed within three years from the

Asian miracle.” Intensive growth trans-

the government has initiated a new goal

Korea for their economic contributions

date of investment notification, as long

formed Korea into the 15th largest

of increasing high value-added invest-

and to assist them with costs related to

as their intended use is directly related

economy and 10th biggest exporting

ments and established an action plan to

establishing new business operations in

to the principal business of the foreign

nation in the world. It was driven by high

support the national effort to attract for-

the country. The government currently

investor.

savings and investment rates and a

eign companies and expand FDI-related

offers tax relief to foreign companies

strong emphasis on education, which

infrastructure. These initiatives are aimed

with the potential to make major contri-

boosted the number of young people

at improving the efficiency and scope of

butions to the Korean economy, pro-

enrolled in a college or university to one

the current FDI promotion system by

vides them with industrial sites or assists

of the highest levels in the world

selecting high-priority industrial sectors

them with site location and acquisition,

(82.1% in 2005).

and creating cooperation mechanisms

and provides cash grants and other

between relevant government agencies.

types of financial support.

To this end, the extent of the govern-

2. Korea’s Strengths ■

Policy Direction for Inbound FDI

Since the onset of the financial crisis in 1997, the Korean government has been

20

•Guide to Living in Korea 2010

ment’s drive includes stepping up

•Tax Relief

investment incentives as well as upgrad-

Foreign companies engaged in industry

ing the current one-stop service system

support services or sectors involving

and foreign investor support system.

high technology, or that are based in a foreign investment zone or free econom-

Business• 21

•Cash Grants

amount of investment is less than the

above a certain threshold are eligible to

Under the cash grant program which is

minimum set under this program.

receive various types of tax breaks.

high economic effects, eligible compa-

•Supply of Industrial Sites

-

nies receive from the government a

The Korean government makes available

from a special customs regime,

grant corresponding to 5 percent or

industrial sites within specially-designat-

designed to provide an optimal degree

more of their total investment in Korea.

ed zones to all foreign-invested firms

of freedom to manufacturers, logistics

The exact amount of the cash grant is

meeting a certain minimum set of

firms, distributors and traders operating

determined through negotiations

requirements. Land within these zones

within. They are generally located in the

between the investor and the govern-

is provided either free of charge or at a

hinterland of an airport or sea port, or

ment. To be eligible for cash grants, a

low cost. Individual-type foreign invest-

areas near a warehousing/distribution or

foreign company must invest US$10

ment zones, complex-type foreign

cargo terminal. All zones designated as

million or more in a Korea-based firm

investment zones, free trade zones and

free trade zones benefit from reduction

engaged in an industry support service

free economic zones make up the four

or exemption in rent and taxes in addi-

or high-tech business, or in a greenfield

main categories of such zones.

tion to customs duty exemption.

manufacturing. The percentage of for-

-

-

eign equity, furthermore, must be no less than 30 percent. R&D labs and

aimed at attracting FDI with potentially Free Trade Zones are zones benefiting

training, the cost of hiring staff, and pro-

investment project in parts and materials Individual-Type Foreign Investment

Free Economic Zones (FEZs) are spe-

jects to build infrastructure within a for-

Zones are industrial sites used by single

cial administrative districts providing for-

eign investment zone or to enhance the

firms engaged in manufacturing, tourism

eign-invested firms with an extensive

living environment within it. Aid under

construction or expansion projects for

businesses, logistics or R&D, involving

suite of support and assistance,

this program is currently extended to

nonprofit R&D corporations are also eli-

an investment exceeding a certain

addressing their industrial activities as

companies in which the foreign equity

gible for the grant program.

amount. The designation as an individ-

well as management and living-related

stake is at least 30 percent or in which a

※Cash grants are extended to non-

ual-type foreign investment zone pro-

concerns. There are currently three such

foreign company or individual investor is

profit R&D corporations in accordance

vides the company with tax breaks and

zones situated in Incheon, Busan/Jinhae

the largest shareholder.

with a recent amendment to the Foreign

full exemption of rent on land usage.

and Gwangyang. FEZs offer numerous benefits for foreign business people and

•Other Incentives

Complex-type Foreign Investment

their families, and a special regime has

To support R&D activities by foreign

Investment Promotion Act scheduled to enter into force on October 28, 2009.

-

Zones are areas within an existing

been created encompassing education,

invested companies in Korea, the gov-

FDI regarding the establishment of the

industrial complex which are reserved

health care, housing and administrative

ernment commissioned Invest KOREA

regional headquarters of a multinational

for use by foreign-invested companies.

support, to provide an optimal environ-

to operate the R&D Human Resources

corporation or a business pertaining to a

The use of land is on a lease-only basis,

ment for them.

Development Program. Through this

regionally strategic industry with the

and the rent is highly affordable, usually

potential to make a significant contribu-

in the range of 1% of the purchase

•Financial Support

toward the wages and compensation of

tion to the local economy may be con-

price. Tenants of a complex-type foreign

Financial support refers to financial aid

R&D staff employed by eligible compa-

sidered for such a grant, even if the total

investment zone investing an amount

toward the cost of staff education and

nies. Meanwhile, a special human

22

•Guide to Living in Korea 2010

program, the government contributes

Business• 23

resource support center has been set

the country’s GDP. As the world’s 10th

cities with a population of 1 million or

up to help foreign-invested companies

largest trading nation with China, US

more, such Tokyo and Beijing, among

to meet their recruitment needs. The

and Japan as its major trading partners,

many others.

center also provides financial assistance

Korea sells to and buys from over 220

Meanwhile, the conclusion of the Korea-

toward the cost of recruitment.

countries around the globe. Korea’s

US FTA in April 2007 has set the stage

trade with its Asian neighbors is particu-

for further improvements in access by

larly active, representing over half of the

Korea based businesses to the world’s

The world’s 15th largest economy in

country’s total trade volume. In 2008,

largest consumer market. FTA talks are

terms of GDP and home to 48.7 million

Korea's top five exported goods were

currently under way with other major

people (2008), Korea offers an attractive

petroleum products ($ 36.6 Billion), ves-

markets like the EU. Once these FTA

marketplace for businesses worldwide.

sels ($ 34.4 Billion), wireless communi-

negotiations are brought to a successful

Along with its large, fast-growing econo-

cation equipment ($ 34.4 Billion), auto-

outcome, any remaining regulatory

my (average annual GDP growth of 4.4

mobiles ($ 31.3 Billion) and semiconduc-

obstacles to business activities will be

percent in the years 2001-2008), the

tors ($ 25.8 Billion), while crude oil,

dismantled, thereby further enhancing

broad base of sophisticated consumers

semiconductors, natural gas, petroleum

the openness and competitiveness of

with a strong purchasing power is

products, and Steel Products made up

the Korean market and making it even

another factor that makes companies

the top five imports.

more attractive to global business.

•High Educational Zeal and Achievement Koreans have earned a global reputation

500 firms have already established their

•Dynamic and Competitive Market Players

business presence in Korea. Firms

The competitiveness of Korea-based

commitment to learning has often been

which made initial or additional invest-

firms on the global scene ranks high in

cited as the secret behind Korea’s sur-

ments in Korea during 2006 include

terms of Korea’s attractiveness to interna-

prising overnight transformation into the

BNP Paribas, Standard Chartered Bank,

tional business. Korean companies have

world’s 10th largest trading nation.

Allianz, 3M, Google, Boeing and Alcatel.

achieved the top global market share in

According to the IMD World Competi-

■

Dynamic Markets

turn to Korea for an overseas business base. Over half of the Global Fortune

■

Well-Educated Human Resources

for their educational fervor. The strong

shipbuilding, DRAM semiconductors and

tiveness Yearbook 2009, the percentage

•A Big Trading Nation

TFT-LCD displays, and count themselves

of the Korean population aged 25-34

In 2008, yearly values of Korean imports

among the top five in automobiles, steel,

that has attained at least tertiary educa-

and exports totaled US$ 435 billion and

petrochemicals, textiles and consumer

tion is as high as 59 percent. This is

US$ 422 billion, respectively, equivalent

electronics. Fourteen Korean firms made

above the corresponding figures for

to 46 percent and 45 percent in terms of

•Gateway to Northeast Asia

the 2009 Fortune Magazine’s Global 500,

most OECD nations, excluding Japan,

their import-to-GDP and export-to-GDP

Strategically poised between China and

including Samsung Electronics, LG,

which tend to hover in the 30-percent

ratios.

Japan -- two of the world’s largest mar-

Hyundai Motor, SK, Samsung Life Insur-

range, effectively testifying to the never-

Korean imports and exports, when com-

kets -- Korea is located within an aver-

ance, POSCO etc.

ending desire for higher education

bined, account for up to 91 percent of

age air travel time of three hours from 61

24

•Guide to Living in Korea 2010

among Koreans.

Business• 25

•Passion for Work

•Technological Competitiveness

Industriousness is a feature as distinc-

Korea has demonstrated impressive

tively Korean as educational fervor.

track records in patent related indices,

Korea is among the world’s top coun-

as reported in the IND world competitive

tries in terms of the number of annual

yearbook 2008. Korea ranked third

hours worked per worker. In 2007,

globally, after Japan and the U.S. in the

according to the OECD Factbook 2009,

number of patents granted to residents,

Korean workers put an average 2,316

and second in patent productivity, cor-

hours into work, far more than the

responding to the ratio of the number of

OECD average of 1,737 hours. Further-

patents to R&D spending, following Tai-

more, Korea is among the top OECD

wan. In information technology skills,

economies not just in working hours, but

Korea came in third after Iceland and

also in labor productivity. According to

Israel.

an OECD survey, the growth in labor

Moreover, Korea’s shipbuilding and

productivity in Korea over the period

electronics industries and fast-growing

2002~2004 ranked second only to Slo-

automotive industry are all technology-

■

vakia (OECD Factbook 2006: Econom-

intensive manufacturing sectors.

Korea was ranked at the top among the

technology front. WiBro, or “Wireless

ics, Environment and Social Statistics).

Notably, the stunning strides made in

181 economies considered in the Digital

Broadband”-- a high-speed portable

the Korean shipbuilding industry in

Opportunity Index (DOI) published by the

Internet system; terrestrial wave DMB;

recent years have been the result of

International Telecommunication Union

intelligent integrated information broad-

bold facility investment coupled with a

in 2007. The index is based on compre-

casting; standard embedded software

highly-skilled labor force and an extend-

hensive indicators including Internet

integration technology; low-power SoC

ed period free of labor disputes.

penetration rate, telecom spending-to-

(System on Chip) for interactive DMB;

To maximize the contribution of skilled

income ratio, and rate of Internet use.

and telematics wireless telecommunica-

technicians, Korean companies have

To further upgrade its ICT infrastructure,

tion integration technology are just some

recently introduced a peak wage sys-

Korea is currently constructing BcN

of the impressive technologies in the

tem. Under this system, the wages of

(Broadband Convergence Networks),

country’s arsenal. These innovative

workers who are past a certain age are

the completion of which is expected to

technologies are expected to succeed

progressively reduced annually, in

be a major stride toward achieving ubiq-

Korea’s CDMA technology, whose total

exchange for the guarantee of lifetime

uitous networking in Korea, as the new

economic effect has been estimated at

employment or an extension of the

networks will enable QoS (Quality of

56 trillion won, as powerful new engines

retirement age. Its implementation by LG

Service) guaranteed broadband multi-

of growth for the country’s ICT sectors.

Electronics in February 2007 had posi-

media services that are nearly ubiqui-

tive impact on the industry, encouraging

tously accessible from anywhere in the

other companies to follow suit.

country.

26

•Guide to Living in Korea 2010

IT Wonderland

Korea is also highly competitive on the

Business• 27

Potrait of Future FEZs

3. FEZ (Free Economic Zone)

■

(Source : www.fez.go.kr)

•Epicenter of Northeast Asian network

first-rate airports, ports, TSR and TCR.

FEZ’s in Korea, visit the website

- FEZs will offer a venue for win-win

•Hub of value-added service industries

A Free Economic Zone (FEZ) is an area

development in Northeast Asia where

- FEZs will provide an optimal business

specially designated to provide compa-

people, information and technology

and living environment to rise as the

nies with an optimal environment to

converge. They will provide an optimal

center of business support services

engage in global business activities.

business environment based on poli-

such as international finance, legal

- A cluster of global companies is formed

cies of global standards, multicultural

service, accounting, information sys-

by providing advanced socio-economic

and multinational communities, and an

tems and strategic consulting, as well

systems and diverse incentives.

innovative and pleasant living environ-

as home to headquarters of multina-

ment.

tional corporations. They will also

■

What is a Free Economic Zone?

- World-class cities are built through

If you want to know more about the

development of cutting-edge airports,

www.fez.go.kr for more information.

boast premier education, medical,

harbours and office facilities as well as

•Logistics hub of Northeast Asia

shopping, tourism and leisure ser-

high quality schools, hospitals and

- FEZs will emerge as the logistics cen-

vices.

ter of Northeast Asia by capitalizing on

tourist facilities.

Korea’s geographical position and

•Hub of cutting-edge industries - FEZs will develop into the R&D and manufacturing center of cutting edge

Name

technologies and knowledge-based

Completion date

Area

Focus industries

industries such as IT, BT, NT and CT

Incheon

Incheon

2020

209㎢

Business, IT, BT, international finance. tourism & leisure

by utilizing Korea’s advanced technol-

Busan/ Jinhae

Busan, Gyeongsangnamdo

104㎢

Maritime logistics, automobiles, machinery, shipbuilding

will offer a pleasant living environment

2020

Gwangyang Bay Area

Jeollanamdo, Gyeongsangnamdo

2020

90㎢

Maritime logistics, materials

■

Yellow Sea

Gyeonggido, chungeongnamdo

2025

55㎢

Automobile components, IT, BT,value-added logistics

A total of 6 FEZs have been designated

Daegu/ Gyeongbuk

Daegu, Gyeongsangnamdo

2020

39㎢

Education, medical service, fashion, IT, components, aterials

Saemangeu/ Gunsan

28

Location

Jeollabukdo

•Guide to Living in Korea 2010

2030

66㎢

Automobiles, shipbuilding components & materials, green industries

ogy and production capabilities. They to attract the best people.

Designation Status (as of September 2008)

and are under operation: 1st phase - 3 zones (2003: Incheon, Busan/Jinhae, Gwangyang Bay Area), 2nd phase - 3 zones (2008: Yellow Sea, Daegu/Gyeongbuk Knowledge Creation, Saemangeum/Gunsan)

Business• 29

4. Industrial Complexes in Korea

- Namdong Complex is becoming an international complex specializing in small and medium-sized businesses,

KOREA INDUSTRIAL COMPLEX CORP

while Bupyeong and Juan Complexes

(Source : www.kicox.or.kr)

are also currently in operation.

•Central Region

•Southwest Region

- Gumi Complex is nurturing semicon-

- Yeosu Complex, the largest integrated

ductor, information & telecommunica-

petrochemical industrial complex in

tion, electronics and textile industries.

Korea, and Gwangyang Complex,

43 national industrial complexes have

- Paju Complex for Publishing, Paju-

Neighboring Daegu is expected to

with POSCO Gwangyang Works relat-

been designated as national basic

Tanhyeon Complex for small & medi-

become a world-class center for fash-

ed industries, play a key role in build-

industries and high-tech industries for

um enterprises are currently under

ion and advanced textile industries.

ing advanced industrial societies.

development. 277 local industrial com-

construction.

With the construction of the fourth

plexes have been designated to support

complex in the Gumi Complex, which

- Gwangju High-tech Complex, a center

the local economy as well as enhance

- Bupyeong Complex is newly emerging

will host computer and semiconductor

for the photonics & High-tech indus-

the decentralization of the industry. Agri-

outpost for trading with northern

industries, the region is taking steps to

tries, and Daebul complex are await-

cultural and industrial complexes have

countries in the 21st century.

realize the dream of becoming “The

ing investment.

been built to increase farmers’ income, and 372 complexes are located in the rural areas. 43 national industrial complexes span-

Silicon Valley of Korea”

•Western Region

ning 278,000,000 sq. meters under the

- Banwol Complex is Korea’s largest

Korean Industrial Complex Corp. have

complex for small and medium-sized

35,057 companies and 764,000 work-

companies.

each year. ■



30

Ulsan> - Changwon Complex, the base of Korea’s machinery industry, Ulsan

- Sihwa Complex was established as

shipbuilding and petrochemical indus-

the second largest complex for small

tries, and Onsan Complex come

and medium-sized companies.

together to form a horizontally inte-

Industrial complexes by region

•Gyeong-in Region