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.