Dr Lee The Contemporary Korean Economy and its Env

Slide1: 

Economic Environment and Investing in Korea 2006 Korea Institute for International Economic Policy

Slide2: 

Introduction to Korea

Introduction to Korea: 

Introduction to Korea China North Korea Japan Pacific Ocean East Sea Republic of Korea Mongolia Vietnam Philippines Thailand Burma Laos Hongkong Indonesia India Population : 48 million Industry Breakdown :

Economic Overview: 

Source: Bank of Korea Economic Overview Foreign currency reserves in 2004: US$ 199 bn (WR: 4TH 28% )

Slide5: 

Economic Environment: The Korean Advantage

Geographical Advantage: 

Source: 1. Incheon International Airport Corporation 2. IMD World Competitiveness Yearbook 2004, Korea International Trade Association 3. ASEAN, Korea International Trade Association 44 cities with populations of more than 1 million are within 4 hours’ flying time1 Geographical Advantage

High Quality Human Resources: 

High Quality Human Resources Source: 1 IMD World Competitiveness Yearbook 2004 2 OECD Fact Book 2005

Superb Infrastructure: 

Logistical Infrastructure ICT Infrastructure Source: ITU, IMD World Competitiveness Yearbook 2004 , World Telecommunication Indicator Superb Infrastructure

R&D Capability: 

R&D Capability Patent Related Figures Source: IMD World Competitiveness Yearbook 2004 Legal Framework and Enforceable Judgement in Support of Intellectual Property Protection R&D Capability

Improving Investment Environment: 

Deregulation Restructuring Balanced Development International Schools International Hospitals 5 Year Plan to Improve Foreigners’ Living Conditions Bilingual Public Services Improving Investment Environment

Slide11: 

Overview of FDI

Slide12: 

FDI Overview Total FDI amount of US$ 12.8 billion (98% increase from 2003) 1.2 4.8 8.6

FDI Breakdown: 

FDI Breakdown Note: Total amount accumulated between 1962 and 2004 China figures include Hong Kong Source: Ministry of Commerce, Industry, and Energy

Major Investors: 

Major Investors

Slide15: 

Business Opportunities

Automotive and Automotive Parts: 

Automotive and Automotive Parts

Semiconductor and Display: 

Semiconductor and Display

Other Major Industries: 

Shipbuilding Steel Petrochemicals Other Major Industries

Information Communication Technology: 

World leader in mobile phone manufacturing World leader in VDSL use Internet & telecom infrastructure – one of world’s most advanced Satellite DMB services to be commercialized in July 2005 Information Communication Technology

SOC Logistics & Real Estates: 

SOC Logistics & Real Estates

Finance: 

Finance

Bio-Technology: 

Synergies with IT Strong Gov’t Support Industrial clusters designated for bio-technology companies Various incentives such as site support and tax exemptions Bio-Technology First cloned canine, Snuppy the puppy Aug. 2005 First ever cloning and extracting of embryonic stem cells by Prof. Hwang’s team . Seoul National University Feb. 2004

Slide23: 

Incentives and Support

Extensive Incentives: 

Extensive Incentives Corporate Income Tax Local Tax : Acquisition, registration, property & aggregate land tax Exemption or reduction of leasing costs for national or local government properties - almost free of charge Employment and/or training National R&D Projects Development for Basic Facilities Tax Holidays Other Financial Support Leasing Various incentives provided depending on business area and investment size

Site Support: 

Jeju Island Gangwon Province Gyeonggi Province North Gyeongsang Province South Gyeongsang Province South Jeolla Province North Jeolla Province South Chungcheong Province North Chungcheong Province Incheon Seoul Busan Gwangju Daejeon Daegu Foreign Investment Zones Site Support Gwangyang

Slide26: 

Invest KOREA

Organization: 

Investment Promotion Regime Organization ※ Invest KOREA is the investment promotion arm of KOTRA

Services: 

Services PM provides full support to potential foreign investors Provide necessary information on Korean markets and industries Help on selecting appropriate plant sites Assist in seeking and meeting potential business partners Consult on FDI incentives available for investors’ projects and procedures to obtain them Arrange meetings with investment related government entity Provide administrative support - visa extension, registration documents, etc

Aftercare: 

Aftercare OIO Office of the Investment Ombudsman Appointed by President - Resolve difficulties experienced by foreign-invested companies - Create a more favorable overall investment environment

Slide30: 

Thank You www.kiep.go.kr 300-4, Yomgok-dong, Seocho-gu, Seoul, Korea Tel:(82-2) 3460-1001 Fax:(82-2) 3460-1122 This presentation is reproduced with a support from Invest KOREA.