OVERVIEW OF ECONOMY COMPARISON BETWEEN SINGAPORE AND SOUTH KOREA South Korea Economy Singapore Economy Population: 48.8 million 5.1 million GDP (PPP): • USD$1.4 trillion • USD$240.0 billion • USD$27,978 per • USD$50,523 per capita capita Unemployment 3.2% in January 2012 2.0% in Fourth quarter 2011 : Inflation (CPI): 3.4% in January 2012 4.8% in January 2012 FDI Inflow: USD$5.8 billion USD$16.8 billion
KOREAN WAVE OR HALLYU• Refers to the spread of South Korean Culture around the world. • phenomenal success of Korean television dramas fuels the robust growth of Korea’s culture-based industry • Provided the world with a better understanding towards Korea Culture through the subtle embedment of traditional values such as the centrality of communal life, filial responsibility, disciplined work ethics, and empathy toward social minorities
KOREAN WAVE OR HALLYU• largely responsible for achieving over one billion dollars in revenue annually for South Korea through cultural exports. • predicted to reach up to $3.8 billion in revenue in 2011, a 14% increase from the previous year.• boost the number of foreign tourists travelling to South Korea from 2.8 million in 2003 to 3.7 million in 2004. The• What is the impact of Hallyu on Singapore? • Social impact? • Economic impact?
FREE TRADE AGREEMENT BETWEEN SINGAPORE AND SOUTH KOREA• The Korea-Singapore Free Trade Agreement (KSFTA) was signed on 4 August 2005. The KSFTA came into force on 2 March 2006• Koreas first free trade agreement with an Asian country• Almost 75% of Singapores domestic exports to Korea enjoy an immediate tariff elimination which provides them a cost advantage and first mover advantage into the Koreas market.
FREE TRADE AGREEMENT BETWEEN SINGAPORE AND SOUTH KOREA• Korean manufacturers sourcing for intermediate products like IT components from Singapore for their finished goods will also benefit from reduced costs resulting from tariff benefits accruing to these imports into Korea.• Thus boost trade between Singapore and Korea
INTERNATIONAL ENTERPRISE (IE) SINGAPORE (KOREA)• IE Singapores Overseas Center in Seoul has been established since 1990.• involved in catalyzing investments into Korea and partnerships between Singapore-based and Korean companies venturing beyond Korea.
INTERNATIONAL ENTERPRISE (IE) SINGAPORE (KOREA)• It constantly seeks to multiply these channels for investments and partnerships through collaborations with strategic partners. • Example: Memoranda of Understanding (MOU) have been signed on a governmental level with KOTRA (Korea Trade- Investment Promotion Agency) and the Busan & Jinhae Free Economic Zone (BJFEZ) to expand the opportunities for collaborations between Singapore based and Korean enterprises.