South Korea

Why South Korea?

At almost US$1 trillion, Korea is the fourth largest economy in Asia and 12th globally. Just a little smaller than all South East Asian nations combined.

A high value market made up of affluent middle class consumers willing to spend on world-class brands and product.

The most penetrated broadband market in the world with world-beating broadband speeds.

The EU-Korea Free Trade Agreement came in to force on 1 July 2011. 97% of all tariffs affecting almost all sectors will be eliminated within three years.

Key sectors of opportunity

Automotive - Korea has been the world’s fifth-biggest automotive producer for three consecutive years and offers wide-ranging opportunities for auto supply, component and design companies.

Consumer Products - A sophisticated market with high levels of disposable income. Total retail sales were US$220 billion in the year to June 2008. Most major luxury brands are represented in the market, with many rating Korea as one of their most profitable markets.

Design - Korea’s overall design market is worth £10.6 billion (2006). Seoul is the World Design Capital for 2010, and keen to encourage new and creative design concepts in and around the city. Korean companies value UK design.

Education - Korea invests almost 7 per cent of its GDP in education expenditure, one of the largest proportions in the world. E-learning offers particular promise, as does English language training.

Energy - Korea imports the majority of its fuel. Huge opportunities exist in the field of renewable energies, including wind, solar, wave and CCS. Environment - President Lee is committed under the “New Green Deal” announced in September 2009 to making Korea a “low carbon-green growth” economy. Korea will spend 2% of its GDP in green growth. Multiple opportunities exist in green building and design (where critical skills are lacking), green technologies and waste management.

Financial Services - The Capital Markets Consolidation Act (February 2009), is likely to deregulate Korea’s capital markets. There are particular opportunities for asset management companies to work alongside Korean sovereign wealth funds, including the Korean National Pension Service (fifth largest in the world), and other pension funds.

ICT - High tech Korea leads the world in many applications including digital media broadcasting (DMB). A vast array of opportunities exist for companies involved in embedded software, 4G mobile telephony, games including mobile games, bio-recognition systems and internet security, and green ICT to name but a few.

Life Sciences - Korea, with one of the fastest ageing populations in the world, is one of the most attractive pharmaceutical markets in the Asia-Pacific region

Click here to view the South Korea page on the UK Trade & Investment website

Click here to watch a short video about the business opportunities in South Korea