This presentation provides an over view of South korea from a economist's point of view.

1. REPUBLIC OF KOREA
(DAEHAN MINGUK)
Presented to:- Presented by:-
Assistant Professor (SG) Lakshmi Pratap Singh
Vimal Mathur & MBA-IB MBA-IB 2nd Sem
Roll No: 16

2. The name "Korea" is derived from Goryeo.
1. Total area -99,392 km2 (109th ).
2. Population - 48,875,000.
3. Growth rate - 0.20 (2012 est.)
4. Density - 491/km2 (21th)
5. Capital - Seoul (2nd Largest metropolitan)

3. Currency - South Korean won (100 jeon)
• 1 South Korean won = 0.000884 U.S. dollars
• 1 South Korean won = 0.04 52081416 Indian
rupees
• single currency peg (SCP) systemfrom 1964
• foreign exchange certificate system

4. Brief History
1. 13th and 16th century invaded by Mangols, Japan
2. 1377 Korea produce Jikji. Oldest metal print doc.
3. 15th century developed first ironclads, turtle ships.
4. 1910 Japan invaded , remained occupied till 1945.
5. Us and Soviet Union split Korea into Soviet got North and
US got South. Split at the 38th parallel.
6. Proclaimed in August 1948 after war of more than 50
years and invaded by North in June 25 1950.

5. Jikji (Oldest metal print doc):-

6. Turtle Ship

7. Geographical Location:-
China to west, Japan to east, N. Korea to north, and East
China Sea to south.

9. War and politics
1. Refers to conflict between North and South Korea
2. Started in June25, 1950 when N Korea crossed the 38
parallel in to S Korea.
3. On june 27 President Truman told US air and sea forces to
give aid to S korea.
4. June 27 1950 china entered the conflict
5. The US soldier were pushed back close to 38th parellel and
the war halted when not one army had a clear advantage.
6. In 1953 a 4 km range has been established according to 38th
p. between N and South Korea as official boarder line.
7. “Park Chunghee” rised 17times the per capita income.

10. Social System
1. Official language –Korean
2. Official Script –Hanja, Hangul.
3. Ethnicity distribution – 99.99% korean
4. no affiliation 46%, Christian 26%, Buddhist
26%, Confucianists 1%, other 1%
5. Approx. 1 million prostitutes.
6. Couldn’t file for divorce until 1970’s.
 Women are forced by the companies to leave the job at
the time of pregnancy
 even if it’s illegal.

11. Culture
1. Have a very good education system (97.7% LR)
2. Dress up often American style but many still wear traditional
Asian dresses. Strict for women.
3. Great respect to age.
4. Family and values oriented people (Chusok, New Year).
5. Family and relation bound business.
6. Trust and respect is everything.

12. Culture continue..
 Pointing your index fingure is rude action.
 Gifts ( Red, Yellow )
 People refuse gift a couple of times to show the modesty.

13. Business Etiquettes
 Personal connection matters.
 3rd party (introducer) influence.
 Contracts as loosely structured consensus statements.
 South Koreans are extremely direct communicators.
 "less is more“
 Tendency to say “YES”. So ask directly.
 Dress etiquettes.
 Business card etiquettes.

14. Business Etiquettes Continue
Meeting Etiquettes
1. Hands-shake with expatriates after the bow
2. High rank/status person initiate handshake and low status will
bow.
Kibun and Nunchi:-
1. In business, a manager's kibun is damaged if his subordinates do
not show proper respect.
2. A subordinate's Kibun is damaged if his manager criticizes him in
public.
3. Maintain an element of modesty and humanity (Extremely
important in Korean culture)

15. Foreign Relations
1. South Korea maintains relations with approx 170 countries.
2. Country has also been member of United Nations since 1991.
3. On 1 Jan, 2007, S. Korean Foreign Minister Ban Ki Moon
assumed the post of UN secretary general
4. South Korea has 5 FTAs in effect
5. 3 FTAs have concluded discussions.
6. 19 Free Trade Agreement in negotiation (with EU, the second
largest importer of Korean goods).
7. S.K. is also negotiating a FTA with Canada.

16. List of South Korea's FTA
 Korea-US FTA
Korea-EU FTA
Korea-Peru FTA
Korea-Chile FTA
Korea-Singapore FTA
Korea-India CEPA FTA
Korea-ASEAN FTA
Korea-EFTA (European Free Trade Area)

17. Government structure
1. A president headed republican , president is the
commander in chief of all three forces.
2. Lives in Blue House
3. The Govt. is devided in three branches :
Executive, Judicial, and Legislative.

18. Economy
GDP (PPP) -$1.556 trillion (12th)
Growth Rate- 3.95%(10th)
Per capita -$31,753 (26th )
1. Exports-to-GDP ratio: 44,6 % (2010)
2. Imports-to-GDP ratio: 40,6 % (2010)
3. Trade-to-GDP ratio: 85,3 % (2010)
4. Inflation rate % : 4.5 (2010)
Composition Of GDP:
1. Agriculture, value added (% of GDP): 2.6%
2. Industry, value added (% of GDP): 39.3%
3. Services, value added (% of GDP): 58.2%

19. Industry Strength:-
1. S.Korea is leading in Science and Technology.
2. Possess advanced infrastructure and is a world leader in Info.
Tech. such as : electronics, semiconductor, LCD
display, computers, and mobile phones, led by Samsung and
LG.
3. World’s 3rd largest steel producer (POSCO).
4. World’s largest ship builder.
5. World’s 4th largest oil refinery.
6. One of worlds top 5 automobile producer (Hyundai and Kia).
7. Also leading country in
Biotech, construction, engineering, machinery, petrochemica

20. Samsung Electronic :- 1st IT
Heavy Industries:- 2nd
Samsung Engineering:-35th
Samsung C&T:- 72
Life Insurance:- 14th
Cheil Worldwide
Everland
2nd largest memorychip maker

21. International Trade: S.Korea VS World
 Total value of exports: US$466.3 billion
 Primary export - commodities: Semiconductors, wireless
telecommunications equipment, motor vehicles, computers, steel
ships, petrochemicals
 Primary export partners: China (23.2 percent of total exports), US (10.1
percent), Japan (5.8 percent), Hong Kong (5.3 percent)
 Total imports: US$ 417.9 billion
 Primary imports - commodities: machinery, electronics and electronic
equipment, oil, steel, transport equipment, organic chemicals, plastics.
 4th largest oil importer with 3.074 million barrels /day.
 Primary import partners: China(16.8 percent), Japan (15.3 percent), US (9
percent), Saudi Arabia (6.1 percent), Australia (4.6 percent)

22. India Korea trade
•Comprehensive Convention on International Terrorism (UN)
•Comprehensive Economic Partnership Agreement (CEPA)
January 1, 2010
•Bilateral Trade rose by 65% over past 2 years.
•New target to double the bilateral trade up to $ 40 billion by
2015.
•Cooperation between scientists and technicians to operate
Science and Technology Fund of $ 10 million.

23. India-South Korea Trade
Trade 2009-10 2010-11 % Change % share
Export 3,421.05 4,140.37 + 21.03 % 1.65
Import 8,576.07 10,475.29 + 22.15 % 2.83
India’s Trade -109,621.45 -118,633.24 - 8.22 %
balance (deficit increased)

24.  Import from India:- cotton, oil cakes, iron ore, iron &
steel, organic and inorganic chemicals, and electrical
machinery & equipments.
 Import potential commodities:- Iron ore, chemicals &
allied products, marine products, processed food; cotton
yarn fabrics, gems & jewellery and leather .
 Exports to India:- machinery and equipment (Due to
investment in transportation, construction and infrastructure sectors)

25. Investment:-
Korea accounts for about 2.64% of total FDI
inflows, amounting to US$ 2.601 billion(5th largest).
( transportation 1/3, electrical equipment , chemicals, commercial, office & household
equipments.)
 Recently NHDP given 9 projects to Korean companies.
 Recently, Hyundai Heavy Industries got two mega
projects including one pipeline project worth US$ 600
million.
 Tata Motors, Mumbai signed an agreement for acquiring
Daewoo Commercial Vehicles, Kunsan (South Korea) at a
cost of US$ 102 million

26. http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113448.pdf
http://www.authorstream.com/Presentation/pjh009-122370-south-korea-
1225412268187155-9-education-ppt-powerpoint/
http://www.kwintessential.co.uk/resources/global-etiquette/south-korea-country-
profile.html
http://en.wikipedia.org/wiki/Confucianism
http://www.google.co.in/url?sa=t&rct=j&q=south%20korea&source=web&cd=2&
ved=0CEUQFjAB&url=http%3A%2F%2Fwww.lonelyplanet.com%2Fsouth-
korea&ei=e318T6TJDYnprQekoczvDA&usg=AFQjCNFvt9Iu5MVDGqbulbpvP8HKogt
6cA

27. Thank you !!