12 slides excluding reference Team C: South Korea vs North Korea (Two polar economic opposites, one people) Research each economy assigned to your Team. Compare similarities and differences between yo

Chryssa Sharp

INTL 38000.21

December 11, 2015

South Korean Business Environment

South Korea is one of the biggest business centers in Asia. Many people know the country by its popular brands, such as Samsung, Hyundai, Kia, and LG. South Korea is standing at 11th in the world, by its GDP with 1,393 billion dollars. After multiple geopolitical problems with its neighboring countries, finally South Korea found a chance to prosper. “Fifty years ago, the country was poorer than Bolivia and Mozambique; today, it is richer than New Zealand and Spain, with a per capita income of almost $23,000”(Noland). Industrial condition in South Korea has been evolving rapidly in the past years, and its shipbuilding, and car industries are well respected in the world.

Modern society in Korea is very diverse, and open to any kind of cultural ideas. People’s attitude toward democracy is very open, compare to its neighboring country North Korea where communism is powerful. Korean tradition is very respectful towards old people, and they value hard working people. However, as respect gets important, old people demand more respect, and see that as an important measure to value a person. That process sometimes can be a barrier for the people from Western countries who are looking to communicate with officials for business in South Korea. “South Korean society is based on the teachings of Confucius (551-479 B.C.), a Chinese philosopher who taught respect for authority, reverence for family and parents, the duty to do one’s best, and the importance of education”(Clark). So, the philosophy of the society can be similar to Chinese people, and that can be seen as respectful communication, and work ethic. Lately, South Korea has been trying to involve multiple ethnic groups in the country for the best result of its development. During the hard years of geopolitical uncertainty, and economic suffering, South Korea had been very dependent on foreign aid, especially from the United States. So, it is possible for the South Korean people to be friendly towards western people, as remembering their favor. Also, South Korea has the highest gender differentiation rate in the world.

Eventually, South Korean small and heavy industries grew to the substantial level that can supply the demand from other countries. As its industry and manufacturing grew, general South Korean economy evolved, and now it is ranked as one of the world leading countries. South Korea is the member of Asia-Pacific Economic Cooperation (APEC), World Trade Organization (WTO), Organization for Economic Co-operation (OECD) and G-20 major economies (G-20). Generally, the current economic environment in South Korea is very stable, and it is very adaptable for any kind of business cultures. Corporate business model has been important part of South Korea to compete with other foreign corporations, which can be seen as similar to business models in America. Since South Korea values democracy it is very convenient place to open and operate a business.

However, South Korean relation with North Korea is still unpredictable. South Korea and North Korea are still considered as at war, it never officially ended, and they have declared ceasefire condition since July 27, 1953. South Korea stays active on its military preparation with the requirement of recruiting young citizens. Law states, “Article 3.1 of the Military Draft Act states that according to the constitution and the Military Draft Act, men must faithfully serve obligatory military service as citizens of the Republic of Korea”(Kim).

South Korea has been working with equity structure, and trades to manage its domestic and foreign direct investment. Currently, its economy is considered as a convenient place to invest. “South Korea avoided a recession during the global financial crisis in 2008, though it did see a contraction of its overall GDP”(Ew World Economy Team). It was impressive economic performance, to hold its economy during the crisis, while other countries were being hit hard by the recession.

Even though South Korea has been successful in exporting and manufacturing, other neighboring competitors started to emerge. “South Korea is good at overcoming short-term crises but the manufacturing-driven economy is now facing longer-term challenges to sustain growth amid increasing competition from neighboring China”(Jung-a). Currently, China, United States and Germany are the biggest exporters in the world as South Korea follows closely.

Finally, running a business in South Korea can be very convenient, since its standard of doing business is similar to many other countries in the world. However, its unpredictable condition with North Korea can influence its economic progress, if there happens to be unrest between the two countries. Because of that, some people look at South Korea as a risky place to invest. As not considering the condition, South Korea is the world leading economy that supports businesses and its people for its own prosperous future. Also, the society’s focus toward value of the hard work, discipline and dedication is very high. So that it helps them to keep the pace of its economic, political, and societal development. Mainly, South Korean business environment is filled with opportunities of growth, friendly society, and people with ambition.

Works Cited

Clark, Donald. “South Korea.” Scholastic. Web. 09 December 2015.

Ew World Economy Team. “South Korea Economy.” Economy Watch. 30 March 2010. Web. 09 December 2015.

Jung-a, Song. “S Korea Chaebol Growth Model Hits Limits.” Financial Times. 19 November 2014. Web. 09 December 2015.

Kim, Commander. “Constitutional Court Rules Military Service Mandatory Only For Men.” Korea Bang. 26 March 2014. Web. 09 December 2015.

Noland, Marcus. “Six Markets to Watch: South Korea.” Foreign Affairs. January 2014. Web. 09 December 2015.