Investment in korea presentation

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Investment in korea presentation

  1. 1. Korea’s economy is the 15th largest economy in the world by GDP, after the world’s financial-economic crisis in 1997Fast growing, solid long-term policy, stable economyEducated labor forceAdvantage in locationHigh export and import rate INTRODUCTION
  2. 2. 1.Domestic Economy2. Export and Import3. Fields of Industry i. Steel ii. Electronic iii. Automobile iv. Shipbuilding OVERVIEW OF THE ECONOMY
  3. 3. Domestic economy Statistic Jan/ 2011 Interest rate 2.75% Inflation rate 3.5% Unemloyment rate 3.7% Growth rate 0.50% OVERVIEW
  4. 4. Export and Import OVERVIEW
  5. 5. KOREA’S BALANCE OF TRADE Export $44340.0 million Import $40600.0 million OVERVIEW
  6. 6. i. Steel INDUSTRIES6th largest steel producer world-wideHigh domestic demand ii. ElectronicHigh growth rate in 20th centuryDecline later due to competitive pressures from Japan and South-East Asia iii. AutomobileWorld largest producerOne of most important industries to promote export iv. ShipbuildingWorld leaderDeveloping additional services – oil supertankers, oil drilling platform, etc. OVERVIEW
  7. 7. Foreign Investment Promotion Act • Foreign investors will have accesses to invest in virtually all types of business in Korea • Potential foreign investors only have to ‘notify’ the relevant government authorities rather than to ‘seek’ for a consent. ENVIRONMENT
  8. 8. • 1,148 industrial sectors, only 31 sectors remain closed• 7% appreciation in 2010 to over $10 billion• Tight monetary policy to curb hot money inflows and foster financial system stability ENVIRONMENT
  9. 9. INVESTING
  10. 10. HARDWARE- Advantage location- Infrastructure- Developed ship-building- industrySOFTWARE- Educated labor force- Supporting policies- Up-coming industry- Low operating cost INTERNAL ADVANTAGES
  11. 11. Busan portJinhae Free Economic Zone
  12. 12. INCHEON AIRPORT
  13. 13. Globalisation- World new economic trend- Economic organizations member: APEC, AFTA + 3- Emerging of logistic markets 350 300 250 200 150 $ billion 100 50 0 Korea China Japan Singapore Hongkong Taiwan EXTERNAL FACTORS
  14. 14. • ChinaStrengths: cheap labor force, large market, high purchasing powerWeaknesses: tight policies and information censors, high corruption rate• TaiwanStrengths: developed information technologyWeaknesses: political risk• JapanStrengths: advantage locations, reliable labor forceWeaknesses: elderly populations COMPETITORS ANALYSIS
  15. 15. SUPPORTING REGULATION & POLICIES- Free economic zones- Tax break: 7 years tax break in 2009 for free economic zone- Open policy- Vision: 2020 global logistic powerhouse –To create power health throw logistic industryBuild and update hardware infrastructuresStrengthen software oriented logistics systemsActivate the logistic industryEstablish national logistics base system
  16. 16. Strengths Opportunities-Well equiped facilities and educated -Asian high growth rate lead to high labor force growth- Highly supporting policy rate of demand for logistic services- Geography advantage -Shift of industry – from large- Developed shipbuilding industry enterprises- Strong legal system to third-party logistic firms.- Low rate of risks - Government supporting policies - AFTA +3 and APEC members Weaknesses Threats- Number of competitors in North East War and natural disastersAsiaCost of operating due to high exchangerateHigh rate of domestic enterpriseprotections SWOT ANALYSIS
  17. 17. - Setting transportation and supply network: warehouse, port, airport, etc.,- Purchase freight vehicles, vessels and air-crafts.- Build-up technology and information center- Corporate with others logistic firms to set up the networkServices:- Offer trans-pacific flight and shipment- Provide storage facilities and bounded-ware houses- Provide urgently shipment between East Asia and America Receive Storage Send out OPERATING AND SETTING NETWORK
  18. 18. INVESTING – HOW TO? Notification Capital remittance Registration FDI company Paid-in Capital registration transfer
  19. 19. FINANCIAL EXPECTANCY35000300002500020000 Sales revenue15000 Expenses Net income10000 5000 0 1st year 2nd year 3rd year 4th year 5th year Growth rate approximate: 8.7% Growth rate in 4 years: 43.8%
  20. 20. 0 1 2 3 4 5 YearMillion Bath (200) 108 125 114 99 84 NET PRESENT VALUE Total: 530 million ThB NPV: 330 million ThB
  21. 21. THE END

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