2010 KUBS INVESTMENT FAIR

Transcription

1 2010 KUBS INVESTMENT FAIR Voyage into the Opportunities of Denmark Se Hoon Lee Milda Vaitiekunaite Hoi Eun Chung Dong Hoon Kang Ji Won Bang

2 . Agenda General Information Attractiveness of Danish Economy Investment Opportunities: R&D / Green Cars On-line Game Hotel Overall Business Guide Quiz Q&A Page 2

3 GENERAL INFORMATION Kingdom of Denmark GDP: $55,942 Capital: Copenhagen EU Accession: January, 1973 Population: 5,534,738 Constitutional Monarchy Land Area: 43,094 sq km Language: Danish Page 3

4 Denmark, an Attractive Market #1 flexible labor market in Europe World Bank Group #1 free financial markets in EU-15 OECD Danish Economy 9 th freest economy out of 162 countries WSJ, The Heritage Foundation 3 rd freest among 43 countries in Europe - WSJ, The Heritage Foundation Page 4

5 Denmark, an Attractive Market Rank Country Overall 1 Ireland Switzerland Denmark United Kingdom Luxembourg The Netherlands 75 7 Estonia Finland Iceland Sweden 72.4 Page 5

6 INVESTMENT OPPORTUNITIES: R&D, ON-LINE GAME, HOTEL Page 6

7 R&D opportunities in Denmark: Overview Networked Readiness Index : Denmark 3 rd Propensity for countries to exploit the opportunities offered by information and communications technology. Environment for ICT offered by the country The readiness of individuals, businesses, and the government to use ICT The usage of ICT amongst these stakeholders Highly developed infrastructure for resource accessibility The Big H Kastrup airport Billund airport 124 seaports Page 7

8 R&D opportunities in Denmark: Overview Intellectual property protection IPR Law Trade Related Aspects of Intellectual Property Rights (TRIPS) Government plan for further R&D sector expansion 3% GDP expenditure by 2010 Higher education reaching 50% by 2015 Favourable green technology R&D environment Page 8

9 Automobile industry R&D: Green technology Government support Collaboration of public and private sector in: Innovation and Research Consultancy and knowledge sharing Eco-efficient technology promotion in the EU Green Labs project (28.2 million euro in 3 years) Universities Businesses Local authorities Korea-Denmark Cooperation 10th March, 2010 Summit Page 9

10 Automobile industry R&D: Green technology Government support Government s Support for Increasing Demand in Electric Cars Dong Energy and Better Place collaboration project of building a nation-wide electric cars support grid 0% tax on zero-emission vehicles purchase Up to 180% tax on petrol based cars purchase Free parking for electric car drivers in Copenhagen Page 10

11 Automobile industry R&D: Green technology Future Market Prospects Electric car sales will exceed that of combustion-engine cars in Denmark by 2020 Reuters: The majority of the South Korean automakers posted improved sales in both the domestic and overseas market Significant boost in demand noticed in Denmark by Toyota s competitors after the vehicle re-calls Global warming awareness and concerns increasing in Denmark (Copenhagen summit 2009) Green car demand continues to increase. Frost & Sullivan report: ~ 80% of the European vehicle sales is expected to be in the less than 150 g/km CO 2 emission band by Currently ~171g/km Page 11

12 ON-LINE GAME INDUSTRY The Danish have the characteristics to enjoy computer games Consumer Analysis Descendents of the Vikings - innate desire for victory - fierce competition A lot of free time spent at home % of Danish Families have TV - 28 % of them have more than 2 TVs - average watching time per day : 3 hrs (8 th in the world) Page 12

13 ON-LINE GAME INDUSTRY Denmark is maturing as a market for game consumption Danish Families access to ICT goods Access to Internet at Danish Homes Statistics Denmark Basic infrastructure ready for product introduction Statistics Denmark Page 13

14 ON-LINE GAME INDUSTRY An attractive market condition for online game provider Competitor Analysis 5 major game developers in 2005 (i.e. IO Interactive, Interactive Television Entertainment) Only 1 out of the 5 companies thrive in the PC games business (IO Interactive) Institutional Analysis Appropriate for new entrants from abroad No discrimination towards foreign companies in terms of regulations Danish citizens acknowledge foreign companies that do business in Denmark as Danish companies Page 14

15 ON-LINE GAME INDUSTRY An attractive climate condition for game consumption Climate Analysis Average of 121 days per year with precipitation - a total of 712 mm per year Short days from late autumn(late Oct) until early spring(beginning of Apr) - sunrise : 09:00 am / sunset : 04:30 pm Plentiful time spent indoors Adequate condition to enjoy computer games Page 15

16 HOTEL INDUSTRY As a gateway city to connect Scandinavia and continental Europe, it is often expressed as Paris of Northern Europe or The entrance to Nordic sky Page 16

17 HOTEL INDUSTRY World's Best Design City 2008 The cleanest city in Europe The most visited city of the Nordic countries Ranked 5th among the 31 Places to Go in 2010 Page 17

18 HOTEL INDUSTRY Political, social and security situation is good and stable. Various festivals and leisure sports Rank Country GPI 1 New Zealand Denmark Norway Iceland Austria No Endemic diseases and free medical services to travelers Aarhus Festival Rosklide Festival 2009 Nordic Windsurfing Championships Page 18

19 HOTEL INDUSTRY The city ranks as the 5th most popular city in the world for international meetings and conferences. Source: UIA, cumulative Its strategic location and excellent infrastructure with the largest airport in Scandinavia located 14 minutes by train from the city centre, has made it a regional hub and a popular location for international conventions and conferences. Page 19

20 HOTEL INDUSTRY Travel & Tourism (US$bn) Personal T&T Business T&T Travel & Tourism (US$bn) consumption Demand Page 20

21 HOTEL INDUSTRY Vienna Area Km 2 Paris Only 5 hotels are searched that is ranked Area Km 2 Copenhagen Area Km 2 No. of Hotels 269 No. of Hotels 1542 No. of Hotels 116 Source: Hotels.com, searched with same criteria Wikepedia High demand for top-quality business hotels Page 21

22 OVERALL BUSINESS GUIDE Page 22

23 OVERALL BUSINESS GUIDE <Business Environment Best 10> 2005~2009 Ranking Country 1 Denmark(6) 2 Canada(1) 3 U.S(2) 4 Singapore (4) 5 Hongkong(5) 6 Dutch(3) 7 Finland(9) 8 England(7) 9 Swiss(8) 10 Ireland (10) -EIU(Economist Intelligence Unit) Page 23

24 OVERALL BUSINESS GUIDE Regional Investment Trend Europe > America > Asia (DKK billion) Europe Asia America Africa Service Oceania > Transportation > Manufacture Etc 0.2 Industries 0.2,%FDI, Outward 5.8 Inward Total 51.4 Financial 43.4 business 15.8service Transport, Port Manufacturing Other sectors Denmark National Bank 2006 Page 24

25 OVERALL BUSINESS GUIDE Labor market Flexible Well-educated Financial policy Public service Sound finance Geographic Setting Distribution hub - Openness - Transit system - Highly developed ICT infrastructure Page 25

26 OVERALL BUSINESS GUIDE High labor cost High Prices High Taxes - corporate tax 25% - individual income tax 50% Page 26

27 QUIZ Which of the following is not true? 1. Denmark is a constitutional monarchy 2. Greenland is part of the Kingdom of Denmark 3. Denmark has more GDP and population than Germany 4. Danish government is emphasizing green growth

28 Rule No.1 is never lose money. Rule No.2 is never forget rule number one. - Warren Buffett Opportunities are never lost; someone will take the one that you miss. - Unknown Author Page 28

29 Thank you. Q&A

30 Index 1. GENERAL INFORMATION 2. R&D opportunities in Denmark: Overview 3. ON-LINE GAME INDUSTRY 4. HOTEL INDUSTRY 5. OVERALL GUIDE Page 30

31 Quiz? Q. You want to meet the representatives of the department you are dealing with. What will you do? A. Call the representative directly and make an appointment B. Ask your friend to introduce him to you C. Send an official document to make an appointment A is an affordable way but it would not work well, unless you know the secretary. B could be an effective way in Korea but not in Denmark. It s an official matter and personal relationship is not that helpful. The Best answer is C. If you provide a specific and justifiable reason, you could meet the CEO or even a minister of the country.

32 Quiz? Q. Your tax returns comes back with significant changes. The Denmark tax office thought that you hided the earnings and leak the assets overseas. What will you do? A. Hiring a Competent tax lawyer to solve the problem B. Send a letter to the tax office and make them fix the problem C. In order not to be expelled from Denmark, just pay the unpaid tax right then. C will not happen in Denmark unless you are a criminal of long-term custody. In case of A, you may be able to use the local legal counsel system. The best answer is B. Don t be afraid to claim against the authorities. Danish think that this is a natural thing.