South Korea: Presented by Navneesh Rihan

SOUTH KOREA
Presented by
Navneesh Rihan
Geography
Area: 98,480 sq. km. (38,023 sq. mi.)
Cities (2009): Capital--Seoul (10.5

million). Other major cities--Busan (3.6
million), Daegu (2.5 million), Incheon
(2.7 million), Gwangju (1.4 million),
Daejeon (1.4 million), Ulsan (1.1 million).
Terrain: Partially forested mountain

ranges separated by deep, narrow valleys;
cultivated plains along the coasts,
particularly in the west and south.
Climate: Temperate, with rainfall

heavier in summer than winter.
People
Nationality:--Korean(s).
Population (2010): 48,636,068 (0.258% annual

growth rate).
Ethnic groups: Korean; small Chinese minority

(about 20,000).
Religions: Christianity, Buddhism, Shamanism,

Confucianism, Chondogyo.
Language: Korean; English widely taught high

school.
Education: Literacy--98%.
Total labor force (2009): 24.37 million.
Labor force by occupation (2007): Services--67.7%;

industry--25.1%; agriculture--7.2%.
Government
Type:
Republic with powers shared between the president, the legislature, and
the courts.
Branches:
Executive--President (chief of state); Prime Minister (head of government).
Legislative--unicameral National Assembly.
Judicial--Supreme Court and appellate courts; Constitutional Court.
Subdivisions: Nine provinces, seven administratively separate cities

(Seoul, Busan, Incheon, Daegu, Gwangju, Daejeon, Ulsan).
Political parties: Grand National Party (GNP); Democratic Party (DP),

formerly known as United Democratic Party (UDP); Liberty Forward Party
(LFP); New Progressive Party (NPP); Pro-Park Alliance (PPA); Renewal
Korea Party (RKP).
Government budget (2009): Expenditures--$227.2 billion.
Defense (2008): 2.5% of GDP.

Economy
The Korean Won is the currency in South Korea
GDP (purchasing power parity in 2009): $1.364 trillion.
Unemployment rate (2009): 3.6%.
Inflation rate (consumer prices): 2008, 4.7%; 2009, 2.8%.
Natural resources: Coal, tungsten, graphite, molybdenum, lead, hydropower potential.
Agriculture: Products--rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs, fish. Arable land--
16.58% of land area.
Industry: Electronics, telecommunications, automobile production, chemicals, shipbuilding, steel.
Trade (2009):
Exports--$363.5 billion: semiconductors, wireless telecommunications equipment, motor vehicles, computers, steel,
ships, petrochemicals.
Imports-- $323.1 billion: crude oil, food, electronics and electronic equipment, machinery, transportation equipment,
steel, organic chemicals, plastics, base metals and articles.
Major export markets (2009)--China (23.2%), U.S. (10.1%), Japan (5.8%), Hong Kong (5.3%), Singapore (3.6%).
Major importers to South Korea (2009)--China (16.8%), Japan (15.3%), U.S. (9.0%), Saudi Arabia (6.1%), Australia
(4.6%).
Doing Business in South Korea
Formal introduction
Koreans want to do business with people they have a personal
connection with.
 Note that cold calling will not work.
Business cards
-A Korean business person is not comfortable until your position and
company name is known.
- Business cards should be left on the table in front of you for easy
reference.
Building relationships
- Vital that you build human relationships with the people you
are doing business with in Korea.
- Relationships are developed through informal social
gatherings that often involve a considerable amount of drinking
and eating.
Koreans do not hesitate to discuss business over dinner.
Legal documents
-legal documents are not as important in Korea as they are in Australia
as trust plays a far greater role.
Losing face
- Koreans are extremely sensitive to having and maintaining
face.
- The easiest way to cause someone to lose face is to insult them

or criticise them in front of others.
Don’t be too pushy

Be prepared to be patient, gentle but firm. Be as dignified as possible
and don’t push your position too hard.
Be prepared for the ‘price war’ but don’t give in easily as Koreans are
persistent and admire this quality in others.
Make sure you are
understood
Speak slowly and clearly and repeat any points that you want to
emphasize.
It may be worthwhile exchanging notes (minutes) after the meeting

further ensuring that each other has been understood.
Gifts
corporate gifts (ties, pens, etc) are often exchanged after
courtesy calls between senior managers.
Business Opportunities
Vegetation and land
Utilization
Land use:
arable land: 19%
permanent crops: 2%
permanent pastures: 1%
forests and woodland: 65%
other: 13%
Opportunities
Levels of self-sufficiency in food production are declining,
which may open the door for greater imports.
Since 2000, the import volume for fruits & Vegetable is

increasing an average of five per cent each year. As of 2008,
Korea imported US$511 million of fresh fruit.
Australia is well placed to supply fruits from July-October when

the northern hemisphere supply stops.
Competitive environment
China is the major supplier of fresh vegetables due to its
geographical proximity and its capacity to grow similar varieties
that are in demand in Korea.
Market Entry
- Steer away from competing in produce sectors dominated by lower-cost Chinese
producers .
Focus on providing quality fresh Western-style vegetables such as iceberg lettuce,

broccoli and asparagus.
Product preference and seasonality are also important.
The counter-seasonal supply opportunities also improve prospects for southern

hemisphere suppliers such as Australia.
Korea’s summer weather, with high levels of humidity and occasional typhoons,
can sometimes provide lucrative market opportunities for foreign suppliers.
You should also keep up-to-date with the supply situation of local produce in
Korea.
Focus on
Supporting your agent or representative and keeping them up-
to-date with supply capacity on a regular basis as this will
ensure you are able to move quickly when opportunity arrives.
 Capitalizing on Australia’s image of being a safe, clean and

green supplier.
Ensuring you focus on guaranteeing delivery quality and have

adequate back-up strategies to counter spoilage.
Good presentation of fresh produce as this is critical to attract a

premium price.
Links and industry
contacts
Agricultural and Fishery Marketing Corporation – www.at.or.kr
Ministry for Food, Agriculture, Forestry and Fisheries – www.mifaff.go.kr
National Agricultural Cooperative Federation – www.nonghyup.com

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SOUTH KOREA

Cities (2009): Capital--Seoul (10.5

Terrain: Partially forested mountain

Climate: Temperate, with rainfall

Population (2010): 48,636,068 (0.258% annual

Ethnic groups: Korean; small Chinese minority

Religions: Christianity, Buddhism, Shamanism,

Language: Korean; English widely taught high

Total labor force (2009): 24.37 million.

Labor force by occupation (2007): Services--67.7%;

Subdivisions: Nine provinces, seven administratively separate cities

Political parties: Grand National Party (GNP); Democratic Party (DP),

Government budget (2009): Expenditures--$227.2 billion.

Defense (2008): 2.5% of GDP.

GDP (purchasing power parity in 2009): $1.364 trillion.

Unemployment rate (2009): 3.6%.

Inflation rate (consumer prices): 2008, 4.7%; 2009, 2.8%.

Natural resources: Coal, tungsten, graphite, molybdenum, lead, hydropower potential.

Industry: Electronics, telecommunications, automobile production, chemicals, shipbuilding, steel.

 Note that cold calling will not work.

- The easiest way to cause someone to lose face is to insult them

Don’t be too pushy

It may be worthwhile exchanging notes (minutes) after the meeting

Since 2000, the import volume for fruits & Vegetable is

Australia is well placed to supply fruits from July-October when

Focus on providing quality fresh Western-style vegetables such as iceberg lettuce,

Product preference and seasonality are also important.

The counter-seasonal supply opportunities also improve prospects for southern

 Capitalizing on Australia’s image of being a safe, clean and

Ensuring you focus on guaranteeing delivery quality and have

Good presentation of fresh produce as this is critical to attract a

Ministry for Food, Agriculture, Forestry and Fisheries – www.mifaff.go.kr

National Agricultural Cooperative Federation – www.nonghyup.com

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