EXIM: SOUTH KOREA

Local Competition: What Are the Challenges of Doing Business in South Korea?
(nhglobalpartners.com)

Foreign companies frequently face intense competition from domestic companies that
might apply pressure and force costs down. One sector where this issue is especially
pervasive is in pharmaceutical sales. The Drug Expenditure Rationalization Plan
controls costs, which might make it hard for companies that have a concentrated focus
on research and development to make a profit on their licensed drugs.

Also, South Korea is home to some of the world's major companies, including
Samsung, LG Electronics, and Hyundai Motor Company. Foreign businesses might
experience issues infiltrating the market where these businesses and others have such
a great percentage of it. Companies that are expecting to venture into South Korea
should consider the competition and if they will actually want to secure a portion of
the market prior to making the investment in setting up a business there.

Risk Factors: South Korea: Risk Assessment >> globalEDGE: Your source for
Global Business Knowledge (msu.edu)

 Competition from China (steel, shipbuilding, gadgets/electronics)

 High level of domestic debt
 Aging populace
 High youth joblessness
 Net goods and service importer
 Overrepresentation of chaebols in the economy
 Propinquity to North Korea
 Increasing stiffnesses with Japan

Major Exports and Imports of the country: South Korea (KOR) Exports,
Imports, and Trade Partners | OEC - The Observatory of Economic Complexity

Top Exports:
Integrated circuits, cyclic hydrocarbons, styrene polymers, synthetic rubber,
polycarboxylic acids, cars, refined petroleum, electrical machinery and equipment and
parts, nuclear reactors, nuclear boilers, nuclear machinery and mechanical, plastics
and articles, mineral fuels, mineral oils and products, vehicle parts, and passenger and
cargo ships.
These are mainly exported to China, United States, Vietnam, Hong Kong, and Japan.
Top Imports:
Crude petroleum, integrated circuits, petroleum gas, refined petroleum, and coal
briquettes, carbonates, inorganic compounds, starch residue, cobalt oxides and
hydroxides and other carbon paper, ores, slag and ash, mineral fuels, mineral oils and
products, electrical machinery and equipment and parts, nuclear reactors, boilers,
machinery and mechanical and vehicles (excluding tramway or railway).
Major importers are China, United States, Vietnam, Saudi Arabia, and Japan.