South Korea Innovation Opportunities
Why should I read this document?
Opportunities and tips for innovation and doing business in Korea
- South Korea’s enormous consumer base and dynamic market make the country an ideal place for testing novel products and ideas.
- The country has a world-class IT industry infrastructure and excellent human resources for the high tech and IT sectors.
- Due to EU-South Korea Free Trade Agreement (2011), many non-tariff trade barriers have been addressed, particularly in automotive, medical, pharmaceutical and electronics sectors. In addition, South Korea is a great location for doing business in East Asia, in particular with China and Japan.
- The South Korean government attracts foreign investment through incentives (specified in the Foreign Investment Promotion Act), such as tax support, cash grants and industrial site support.
- In 2013, the South Korean government introduced an initiative “Creative economy”, which links public research institutions and private sector, focuses on innovative technological ideas and digital economy. Thus, entrepreneurs can enjoy a favourable climate for innovation development and gain various benefits from the initiative.
- The growing aging population of South Korea creates a demand for health care services, expansion of the insurance and financial sectors.
- South Korea is one of the largest automobile innovators and producers in the world. The companies which develop innovative solutions in the automotive industry, such as low carbon vehicles and driverless technology, could get many novel ideas in South Korea. An eco-friendly vehicle programme has been created by the Korean government to support the development of advanced automotive technologies. South Korea aims to be among the global top 4 nations for low carbon and green vehicles.
- The South Korean government is leading the way in the Asia-Pacific region on green energy with an ambitious low carbon strategy, which offers opportunities for green energy companies.
- The South Korean government is currently easing regulations, which hinder the growth of financial technology, and eliminates barriers for e-commerce. As a result, the fin-tech sector is providing favourable conditions for innovators/entrepreneurs.
- Since the country undergoes rapid industrialisation the agricultural sector has been declining in the last decade. Hence, South Koreans strongly rely on food import, particularly for meat products (especially, pork), oils, chocolate, fruits, nuts and cheese. In addition, ready meals are becoming increasing popular for many South Koreans.
Innovation ecosystem
Innovation sectors and technology
Innovation culture and practices
What is the country known for?
Sectors
Iconic products
How easy is it to do business in Korea?
Korea | EU Average | Emerging Markets Average | |
Overall - ease of doing business | 5 | 30 | 83 |
South Korea has a very good climate for doing business, which is better than in most European countries. Connecting a warehouse to electricity is quick and inexpensive, the costs of contract enforcement are low, and the associated bureaucratic processes are quite simple, due to facilitated online case filing systems. The efficient and well-established legal system ensures good protection of minority investors.
Business trends in Korea
More hands-on info
- Invest KOREA (in 2017: http://www.investkorea.org/en/index.do)
- Foreign Investment Ombudsman (in 2017: http://ombudsman.kotra.or.kr/eng/index.do)
- Korean Intellectual Property Office (in 2017: http://www.kipo.go.kr/kpo/user.tdf?a=user.english.main.BoardApp&c=1001)
- National Tax Service (in 2017: http://www.nts.go.kr/eng/)
- Human Resources Development Service of Korea (in 2017: http://www.hrdkorea.or.kr/ENG/4/1)
- Trade shows in Korea: http://www.eventseye.com/fairs/c1_trade-shows_korea-south.html
Bibliography
Level 1:
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Level 2:
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Level 3:
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