Investment Climate of Korea

Transcription

1 Investment Climate of Korea

2 Growth of Korea

3 GDP (nominal) Nominal GDP between 2003 and 2012 (Unit: USD Billion) , , , , Nominal GDP between 1970 and 2012 $1,049 billion (2010) $1.1 trillion (2012) $573 billion (1996) $8 billion (1970) Source: Bank of Korea

4 GDP (PPP) GDP per capita between 2003 and 2012 (Unit: USD Billion) , , , , , , , , ,538.7 GDP (PPP) between 1970 and 2012 $1.5 trillion (2012) $678 billion (1997) $19.7 billion (1970) Source: Bank of Korea

5 GDP per capita (PPP) GDP per capita between 2002 and 2013E (Unit: USD) E 2013E 18,858 19,696 21,138 22,783 24,617 26,501 27,513 27,709 29,717 31,220 32,272 33,580 GDP per capita between 1980 and 2013E $31,220 $33,580 (2011) (2013E) $14,175 (1997) $ 2,302 (1980) Source: IMF

6 Trade Volume Trade volume ranking by country in 2012 (Unit: USD 100 million) United States China Germany Japan Netherland s France U.K. Korea Italy Hong Kong 38,824 38,668 25,757 16,844 12,474 12,439 11,494 10,675 9,859 9,479 Trade volume between 1957 and 2012 (Unit: USD) $1.06 trillion (2012) $85.7 billion (2008) $28 billion (1996) $0.46 billion (1957) Source: KITA

7 Inward FDI* Notification (Unit: USD billion) Arrival * Flow data with equity & long-term loan Source: Ministry of Trade, Industry and Energy

8 Inward FDI (Stock) $131.7 billion (2011) Source: UNCTAD Stat. Inward Foreign Direct Investment Stock, Annual (as of )

9 Number of Foreign-Invested Companies 14,764 (2012) 1,678 (1990) Source: KOTRA

10 Foreign Companies in Korea 14,764 Companies (as of )

11 Going Global

12 From an ODA recipient to a donor Korea is the first country in the world to go from being an ODA recipient to an ODA donor. Korea joined the DAC (Development Assistance Committee) in Korea ranked 1 st last year for rate of ODA increase. Official Development Assistance (ODA) in (Among OECD DAC members) Country Rate of Increase (unit: %) Amount of ODA (2012/2011) (unit: USD mil.) Korea ,551 / 1,325 Luxembourg / 409 Australia 9.1 5,440 / 4,983 Germany ,108 / 14,093 France ,000 / 12,997 Japan ,494 / 10,831 United States ,460 / 30,783 Source: Ministry of Strategy and Finance

13 Global Events in Korea Four major global sporting events in Korea since 1988 Ranks 6 th globally as a host of major world events. (France - Germany - Italy - Japan Russia - Korea)

14 Korean Wave Goes Global Italy Search volume according to Google Trends K-pop Brazil Korean Drama USA Australia

15 Competitiveness

16 Competitiveness - Manufacturing Industries -

17 Global Manufacturing Competitiveness Source: Deloitte and U.S. Council on Competitiveness 2013 Global Manufacturing Competitiveness Index

18 13 Korean Companies in Samsung Electronics SK Holdings Hyundai Motor POSCO LG Electronics Hyundai Heavy Industries GS Caltex Korea Electric Power KIA Motors S-Oil Korea Gas Woori Finance Holdings Hyundai Mobis

19 Mobile 1 st 30.4% 8 th 3.8% Source: ( )

20 Display 1st 24.5% 2nd 23.4% Source: Displaysearch (2013.2)

21 Lithium Battery 1 st 26% 3 rd 17.5% Source: B3, a Japanese market researcher (2013.3)

22 DRAM 1 st 42% 2 nd 26% Source: isuppli (2012 Q4)

23 Shipbuilding 1st 35% 2012 Source: Clarkson

24 Automobile 5th 5.4% 2012 Source: KAMA

25 Steel 4 th 39.1 MT 20th 16.3 MT Source: (2012)

26 Competitiveness - Creative Industries -

27 Potential of Korean cultural goods (2012) 119 (unit: USD bil.) $68.7 billion Contents Source: Korea Customs Service, Korea Creative Contents Agency

28 Culture A Promising Korean Industry World s 10 th cultural industry, according to market size (2011) United States Japan China Germany U.K. France Italy Canada Brazil Korea 36.3 Entertainment & Media Market Size in Korea (unit: USD bil.) p Source: PWC (2012), Global Entertainment and Media Outlook

29 Scientific Infrastructure

30 IMD World Competitiveness 31 st ( 08) -> 22 nd ( 12) ECONOMIC PERFORMANCE GOVERNMENT EFFICIENCY BUSINESS EFFICIENCY INFRASTRUCTURE Source: IMD World Competitiveness Yearbook 2012

31 Bloomberg Innovation Index Korea 1 st 3rd 3rd 5 th 4th 8th 32nd R&D intensity Productivity High-tech Researcher Manufacturing Tertiary Patent activity density concentration capability efficiency

32 Patent Applications (2010) 0 100, , , , ,000 USA (1) China (2) Japan (3) Korea (4) Taiwan (5) Germany (6) Russia (7) Canada (8) India (9) Australia (10) * Source: IMD World Competitiveness Yearbook 2012

33 National R&D Spending 33

34 R&D Expenditure of Korea Total R&D Expenditure (USD 100 mil.) USD 1 = KRW 1100 Of GDP (%) Source: National Institute of Science & Technology Evaluation and Planning (KISTEP)

35 Wireless Broadband Usage 120 OECD wireless broadband subscriptions per 100 inhabitants, by technology, June Dedicated mobile data subscriptions Standard mobile broadband subscriptions Terrestrial fixed wireless Satellite Source: OECD, June 2012

36 Business Environment

37 Doing Business in Korea Singapore Hong Kong New Zealand United States Denmark Norway U.K. Korea Georgia Australia 8 th 8 th (14) Resolving Insolvency (24) Starting a Business (26) Dealing with Construction Permits (2) Enforcing Contracts (3) Getting Electricity 19 th 16 th (3) Trading Across Borders (75) Registering Property 23 rd Paying Taxes (30) Protecting Investors (49) Getting Credit (12) Source: World Bank Doing Business 2013

38 The Global Financial Centres Index By z/yen (Since 2007) 6th ( ) 43rd ( )

39 Logistics Infrastructure Incheon Intl Airport No.1 in passenger service for 8 years Door-to-door delivery Busan Port World s best same-day delivery system 5 th largest for cargo handling

40 Human Resources: Population (25-34) w/ Tertiary Education (unit: %) Singapore Korea Taiwan Japan Canada Ireland Norway Lithuania New Zealand United Kingdom Luxembourg Israel Belgium Australia Hong Kong Source: IMD World Competitiveness Yearbook 2012

41 Profitability in Korea All countries Korea (unit: %) * Source: U.S. Department of Commerce, Bureau of Economic Analysis * Rate: Direct Investment Income / Direct Investment Position

42 FTA

43 FTA: The present 61% EFTA EU Turkey USA Korea India Singapore ASEAN Peru Colombia Chile

44 Tariff Concession for Manufactured Goods Korea-EU FTA Korea-US FTA Level of concession % of items Korea EU Korea US Amount of import (%) % of items Amount of import (%) % of items Amount of import (%) % of Items Amount of import (%) Instantly (A) Over 3 years (B) (A+B) Over 5 years Over 7 years Over 10 years Total

45 Korea China Japan FTA EU Market U.S. Market Korea FTA Hub -> Business Hub Solid Industrial Infrastructure High Technology Sophisticated Market IP Protection Advanced Logistical Infrastructure Locational Advantages ASEAN Market World s 3 rd largest economic bloc Trade Volume: $1.294 trillion (1999) $6.838 trillion (2011) GDP: $ trillion (20.5% of global GDP) Population: 1.52 billion (21.8% of the world population)

46 ASEAN + 6 (ASEAN: Singapore, Vietnam, Malaysia, Brunei, Cambodia, Laos, Myanmar, Indonesia, Philippines, Thailand) Regional Comprehensive Economic Partnership for East Asia (RCEP) ASEAN + Korea, China, Japan, India, Australia, New Zealand Trade Volume: $ trillion (27.7% of world trade volume) GDP: $ trillion (28.4% of global GDP) Population: billion (48.7% of world population)

47 FTA: In the future 90% EFTA Canada Mongolia EU GCC Turkey Israel India Singapore China Korea Vietnam ASEAN Malaysia Indonesia Japan Mexico USA Central America Colombia Peru MERCOSUR Australia Chile New Zealand : In effect or concluded : Under negotiation : Under consideration

48 Success Cases

49 FDI in Korea by Industry ( ) (unit: %) Finance & Insurance (16) Business services (13) Chemicals (7.3) Automobile (7.6) Real Estate & Lease (12) Distribution industry (11) Electronics (11) Source: Ministry of Trade, Industry & Energy

50 Case 1: Axa General Insurance Co., Ltd. (USD 1 = KRW 1100) Unit: USD million Xavier Veyry, President, AXA General Insurance Co., Ltd. in Korea Korean people are extremely curious but also they are a technologically savvy people Korean consumers know what they want and have high expectations regarding service and prices.

51 Case 2: Adecco Group (USD 1 = KRW 1100) Unit: USD million

52 Case 3: International Business Machines Corp. (USD 1 = KRW 1100) Unit: USD billion Joseph Kern, CFO, IBM Korea I would say that Korea is one of the most IT literate [countries] and boasts infrastructure which makes it one of the most advanced IT societies in the world. Korea is the first place a lot of companies can test new technologies and new ways of doing business.

53 Case 4: Deutsche Post DHL (USD 1 = KRW 1100) Unit: USD million Frank Appel, CEO, Deutsche Post DHL I believe there were no difficulties doing or expanding business in Korea. The business environment of Korea is good for foreign investors. I'm sure that speed is the key to gaining opportunities over your competitors, and Korea can be the best answer for speed.

54 Case 5: Volvo Group Eric Nielsen, President and CEO, Volvo Group Korea (USD 1 = KRW 1100) Unit: USD billion We have R&D operations in Germany, and the United States, but all those activities are actually controlled and their agendas set by our Korean organization. We aim to leverage our activities here in Korea on a global level by pursuing a single standard in the way we work, and that standard is managed out of Korea. We selected Korea to be the core competency center for excavators."

55 Case 6: SUMITOMO CHEMICAL COMPANY, LIMITED (USD 1 = KRW 1100) Unit: USD billion Tadashi Kobayashi, President and CEO, Sumitomo Corporation Korea These facts tell us Korea is one of the most important countries as business base for Japanese trading company working in global market.

56 Invest KOREA

57 Korea s FDI Promotion Regime Ministry of Trade, Industry & Energy Foreign Investment Committee KOTRA Korea Trade-Investment Promotion Agency Strategic Marketing SME Support Global Business Information

58 KOTRA s Global Business Network 119 Business Centers in 81 Countries

59 Invest KOREA s One-Stop Service Government agencies Overseas Network 42 Business Centers Local governments Execution Aftercare Grievance resolution Pre-Investment Provision of information and administrative services Support for site surveys, partner search and incentive negotiations

60 GAPS(Global Alliance Project Series) Customized supporting program for global corporations who are keen to establish business alliance with Korean companies or R&D institutes Strategic Investment Start-ups Joint Venture Medium Large Corporations Universities Technology Alliance Marketing Alliance Joint R&D Global Corporation Research Institutes R&D Outsourcing Technology Commercialization

61 GAPS: Global Partners April 2009 Nov March 2010 June 2010 June 2009 May 2010 Sept Jan Dec Sept Aug Dec. 2012

62 Thank you