2. Korea’s economy is the 15th largest economy in the world by
GDP, after the world’s financial-economic crisis in 1997
Fast growing, solid long-term policy, stable economy
Educated labor force
Advantage in location
High export and import rate
INTRODUCTION

3. 1.Domestic Economy
2. Export and Import
3. Fields of Industry
i. Steel
ii. Electronic
iii. Automobile
iv. Shipbuilding
OVERVIEW OF THE
ECONOMY

4. Domestic economy
Statistic
Jan/ 2011
Interest rate 2.75%
Inflation rate 3.5%
Unemloyment rate 3.7%
Growth rate 0.50%
OVERVIEW

5. Export and Import
OVERVIEW

6. KOREA’S BALANCE OF TRADE
Export $44340.0 million
Import $40600.0 million
OVERVIEW

7. i. Steel INDUSTRIES
6th largest steel producer world-wide
High domestic demand
ii. Electronic
High growth rate in 20th century
Decline later due to competitive pressures from Japan and South-East Asia
iii. Automobile
World largest producer
One of most important industries to promote export
iv. Shipbuilding
World leader
Developing additional services – oil supertankers, oil drilling platform, etc.
OVERVIEW

8. 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

9. • 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

10. INVESTING

11. HARDWARE
- Advantage location
- Infrastructure
- Developed ship-building
- industry
SOFTWARE
- Educated labor force
- Supporting policies
- Up-coming industry
- Low operating cost
INTERNAL
ADVANTAGES

12. Busan port
Jinhae Free Economic Zone

13. INCHEON AIRPORT

14. 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

15. • China
Strengths: cheap labor force, large market, high purchasing power
Weaknesses: tight policies and information censors, high corruption rate
• Taiwan
Strengths: developed information technology
Weaknesses: political risk
• Japan
Strengths: advantage locations, reliable labor force
Weaknesses: elderly populations
COMPETITORS
ANALYSIS

16. 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 industry
Build and update hardware infrastructures
Strengthen software oriented logistics systems
Activate the logistic industry
Establish national logistics base system

17. 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 disasters
Asia
Cost of operating due to high exchange
rate
High rate of domestic enterprise
protections
SWOT ANALYSIS

18. - 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 network
Services:
- 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

19. INVESTING – HOW TO?
Notification Capital
remittance
Registration
FDI company Paid-in Capital
registration transfer

20. FINANCIAL EXPECTANCY
35000
30000
25000
20000 Sales revenue
15000 Expenses
Net income
10000
5000
0
1st year 2nd year 3rd year 4th year 5th year
Growth rate approximate: 8.7%
Growth rate in 4 years:
43.8%

21. 0 1 2 3 4 5 Year
Million Bath
(200)
108
125
114
99
84
NET PRESENT VALUE
Total: 530 million ThB
NPV: 330 million ThB

22. THE END