REPUBLIC OF KOREA (DAEHAN MINGUK)Presented to:- Presented by:-Assistant Professor (SG) Lakshmi Pratap SinghVimal Mathur & MBA-IB MBA-IB 2nd Sem Roll No: 16
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)
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
Brief History1. 13th and 16th century invaded by Mangols, Japan2. 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.
Geographical Location:-China to west, Japan to east, N. Korea to north, and East China Sea to south.
War and politics1. Refers to conflict between North and South Korea2. 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 conflict5. 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.
Social System1. Official language –Korean2. Official Script –Hanja, Hangul.3. Ethnicity distribution – 99.99% korean4. 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.
Culture1. 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.
Culture continue.. Pointing your index fingure is rude action. Gifts ( Red, Yellow ) People refuse gift a couple of times to show the modesty.
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.
Business Etiquettes Continue Meeting Etiquettes1. Hands-shake with expatriates after the bow2. High rank/status person initiate handshake and low status will bow. Kibun and Nunchi:-1. In business, a managers kibun is damaged if his subordinates do not show proper respect.2. A subordinates Kibun is damaged if his manager criticizes him in public.3. Maintain an element of modesty and humanity (Extremely important in Korean culture)
Foreign Relations1. 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 general4. South Korea has 5 FTAs in effect5. 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.
List of South Koreas 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)
Government structure1. A president headed republican , president is the commander in chief of all three forces.2. Lives in Blue House3. The Govt. is devided in three branches : Executive, Judicial, and Legislative.
EconomyGDP (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%
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
Samsung Electronic :- 1st IT Heavy Industries:- 2nd Samsung Engineering:-35th Samsung C&T:- 72 Life Insurance:- 14th Cheil Worldwide Everland2nd largest memorychip maker
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)
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 by2015.•Cooperation between scientists and technicians to operateScience and Technology Fund of $ 10 million.
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)
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