COUNTRY BACKGROUND

Republic of Korea is an east asian country that occupies the southern region of
the Korean Peninsula and shares a land boundary with North Korea. The Yellow Sea
marks is a western border, while the Sea of Japan marks is an eastern border. This
country capital is Seoul and around 25 million citizens, or half of the nations which
consist of 51 million persons live there.

The Korean War began in 1950 with a North Korean attack. The United State
America went out of its way to protect South Korea, while China interfered by assisting
North Korea with Military support. The country's economy took off since the war ended
in 1953 and recorded the fastest growth in average GDP per capita than any other
country between 1980 and 1990. After the conflict, autocratic rule came to an end in
1987, and the nation is today recognized one of Asia's most established democracies
with the ultimate level of media freedom. However, past South Korean presidents who
have been convicted to prison for offences ranging as abuse of power, bribery, and
embezzlement have made corruption and political scandals an increasing attention in a
recent year.

South Korea and North Korea are separated by a 2.5-mile-wide demilitarised

zone established by the provisions of the 1953 ceasefire that concluded the Korean
War, which lasted from 1950 to 1953. The demilitarised zone is stretches for about 150
miles and generally follows the Han River upon the west coast of the Korean peninsula
to a south of the North Korean town of Kosong. Despite the fact that the country is
separated between South Korea and North Korea, most of South Korea citizens see
that the nation as one nation that could be not divided.

The geographic surface of the South Korea nation is mostly hilly, with short
coastal plains and few mountains. Winter, spring, summer, and autumn are the four
seasons of South Korea nation. Spring seems to last from late March until early May,
summertime from middle of May until early September, autumn are through the middle
of September until middle of November, and winter through middle of November until
middle of March.
MAIN BODY

POLITIC

The Republic of Korea's politics are conducted within the context of a presidential
system which represent the democratic republic. Whereby, the President serves as the
head of nation, and a multiple party system. Executive authority is exercised by the
government, while legislative power is distributed by the government and the National
Parliament. Their judicial system which includes a Supreme Court, appeals court, as
well as a Constitutional Court, are separate from the executive and legislative branches.
Since 1948, the constitutional has been revised five times, each time denoting a new
republic. The present 6 Republic is established in 1987, after the most recent major
constitutional amendment. By the year of 2020, the economist recognized South Korea
as a genuine democracy region.

The Parliament of the Republic of Korea is organised by the representative

democratic house of the parliament, which reflects the views and problem of their
citizens. The Parliament is responsible for enacting all of the region legislation. On May
31, 1948, the first Parliament assembled, and the latest general elections is on April 15,
2020, which lead to the formation of the 21st National Parliament cabinet. The
members of Parliament of South Korea region serve their citizens for the period of 4-
year terms.

The Parliamentary Hall is located in Yeouido, just beside Seoul's Hangang River.
The parliamentary system is made up of 253 representatives who are elected via
general election along with 47 representatives who are appointed using proportional
system. This intended to bring people into the parliament who have specialized
knowledge and skills. Based to their majority in the government, the Democratic Party of
Korea are the elected government and since September 2020. The People Power Party
is the strongest opposition party.
 The Executive Branch is lead by the President who is in charge of exercising
executive authority. The President is selected by the citizens in a general, fair, straight,
and private vote, according to the Constitution. The Presidents tenure of services
toward the region is 5 years, and the president whether he is a men or women are not
eligible for any re-election. Upon securing the presidential election, President Moon Jae
In started to serve his service toward the region by May 10, 2017.

The State Council of Republic of Korea often known as the Ministerial meeting
which responsible for discussing on major issues that are under the Executive's
authority. The State Council will be led by the president, which is chairman or
chairperson, with the support of prime minister as vice chairman/chairperson. If
somehow the president is abandoned his job or even the president seems incapable to
carry out his or her responsibilities, the prime minister takes charge of the government.
The Executive Branch of the government now oversees 23 ministry, 18 administrative
bodies, two boards, four offices, and seven committees as of August 2020.

The Supreme Court, appeals courts, district courts, family courts, administrative
courts, and the patent court are all part of the government of Republic of Korea judicial
system. The president appoints the Supreme Court head justice with the parliament
approval, and the president nominates additional Supreme Court judges based on the
head justice’s suggestion. The head justice and the associates are each appointed for a
6 year tenure.

ECONOMIC

Republic of Korea has experienced significant development in a short amount of

time. For instance, in the context of cell phones, electronics, automotive, chemistry, and
steel production has shown that the country is globally competing. During past years, its
cultural output, such as entertainment has grown into a major business in South Korea,
gaining the lead in the economy. The Republic of South Korea is focused on a market
economy system, which enables individuals and corporations to engage in economic
activity effectively while also ensuring their income and property. The government, on
the other hand, does not promise an unrestricted development of a capitalism free
economy. The government guarantees that an unlawful circumstance to be corrected if
it is discovered that capital abuse is causing harm to individuals. This acts as a
fundamental tool for addressing problems concerning the free market economy.

The Republic of South Korea has made tremendous economic success. This
nation performed a "Miracle on the Hangang River," according to the analyst. Despite
the fact, the most of the nations economic industries are collapsed all along the 3 years
of Korean War between North Korea and South Korea, and indeed the county was lack
of capital and raw materials and resources.

The nation gets along on export-oriented economic growth initiatives in the early
1960s. Initially, the nation's main exports were small commercial products produced in
small organizations, as well as natural resources. The nation decided to engage in wide
range of chemical infrastructure in the year of 1970, forming the set up for huge
manufacturing product exports. The country is presently at the top of the chip and
display industries. South Korea region exports increased from USD 32.82 million in
1960 to USD 10 billion by 1977 as well as USD 542.2 billion in the year of 2019. The
nation GNI per capita was an insignificant of USD 67 in 1953, somewhere at the
moment the government was formed, but it has now risen to USD 32,115 in 2019.

A foreign exchange issue afflicted the nation during November 1997, requiring it
to seek help from the International Monetory Fund (IMF). This was the nation's early
huge test ensuing years of fast economic recovery. The nation took the brave move of
pulling bankrupt firms from the industry, followed by industrial reform. The economy
returned its old pace of growth and market prices, as well as a current account balance
surplus, in just two years. Approximately 3.5 million citizens participated in the effort of
collecting gold to support the government in repaying the IMF loan. The citizens of
South Korea willing commitment in the deliberate attempt to recover their national debts
stunned the entire globe. Finally, they success in overcoming the economy crisis.

Following its recovery from the economic downturn, the South Korean economy
has continued to develop steadily. From USD 504.6 billion in the year of 2001 to USD
1,646.3 billion in the year of 2019, the nation GDP has more than quadrupled making it
the nation's 12th greatest. By reality, the nation had an amazing growth in the economy
of 6.3 percent between the year of 2008 and 2010, while rest of the region was suffering
an extreme economic disaster.

South Korea had risen to become the world's seventh largest exporter by 2010.
The country's economic efficiency was over USD 1 trillion throughout four years in a row
during 2011 until 2014. During the year of 2015 and 2016, economic output fell
significantly, yet returned to USD 1 trillion by 2017. South Korea foreign currency
reserves were USD 408.8 billion by 2019, as well as its short-term foreign debt ratio
was 32.9 percent, which would be in the median for the G20 nations level. The
international credit history of the nation has remained constant.

On the basis of high exports and rising consumption, South Korea's economy
has grown at its greatest rate in a decade throughout the second quarter. However, it
has gotten worse in the last two years, specifically in the years of 2020 as well as 2019,
due to the conflict between the United States and China, as well as the worldwide
impacts of the Covid-19 outbreak. Inactive investment as well as an inability to transmit
the chip sector's success to certain other sectors have already slowed economic growth
to a forecasted 2% in 2019, with a drop to -1% in 2020. GDP growth rate is expected to
return to 3.6 percent in 2021 and stable at 2.8 percent in 2022, as per the IMF
prediction on April 2021, depending to a post pandemic global economic recovery.

SOCIAL CULTURE

Korean culture is among the world's oldest continuously existing cultures.

Despite the fact that they are now separated into two countries which is North Korea
and South Korea, their social, cultural, and historical history was once shared equally
throughout the Korean. The history, customs, traditions, and beliefs of South Korea are
all rich in culture. This has last influenced by several of its various dynasty, conflicts,
shifts in religious trust as well as modernization of the globe overall, and a diversity of
more customs and traditions which have been approved from one generation to others
with minor changes. For instance, South Korean culture practices involves food,
festivals, national sports, and cultural conventions, along with popular culture
throughout the musical genre, film, dramas, and fashion.

The religious floor and beliefs of Koreans are constructed in particular across the
religions of Confucianism, Buddhist, and Christian. Of the particular, specifically
Confucianism acquires lasting impact in Korea, along with political and social ideology
can nevertheless genuinely continue to visible in South Korea today. Nonetheless,
Buddhist and Christian likewise are noticeably seen witnessed in the society whereby
the Buddhist of South Koreans reported for 46% of the community. For instance, the
approach of position in Korea appear against the Confucianism belief. The position is
constructed principally situated against a person’s age, career position, education
background, and acknowledged or famous social rank. Confucianism, emphases plenty
consequent to respecting senior and ancestors.

Annually, South Korea celebrates two main holidays which is New Year's Day
(the second full moon after the winter autumn) and Chuseok (the eighth full moon).
Such ceremonies are celebrated by memorial services of relatives, families,
entertainment, harvest festivals, and cuisine. Moreover, vital element of the two main
holidays are fulfilling a ceremony known as "Sebae" in the act of their culture and
custom. In this ceremony, the entire family attired "hanbok" and make a significant
ceremonial bow at the same time asking for great luck in the coming year. Rice cake
porridge, savoury pancakes, and stir-fried glass noodles with veggies are typical meals
on that day.

The concept of face, which is fundamental in shaping Korean behaviour and

thinking, is addition aspect regarding South Korean social culture context. This indicates
characteristic where most Korean culture associate with a person status, power, dignity,
and honor. The conceptual of face is considered seriously in South Korea. Most
Koreans nowadays are much less interested with implementing this concept of face
totally, as well as they are frequently unfit to hide or manage their emotions. Face
expressions and gestures frequently reflect a person's real emotions in a matter of
seconds. Praising someone, giving someone respect, or doing something to boost self-
esteem are all important aspects of the face principle.

Throughout Korean social culture, fundamental greetings or welcoming were

performed with a bow. Bows are only used to express respect for elders. The more
respectful they are, the lower and longer they will bow. Friends are barely bow between
each other, yet bowing to each other through public occasions is appropriate,
regardless of how close they are. Bowing requires good posture as well. The waist
should be used to bow. Casual bows, respectful bows, bellybutton bows, 90 degree
bows, and big bows are all types of bows implemented in South Korean social culture.
There are all the same things, but the implementation is according to the person that
they want to greet in the context of asking for forgiveness, age, gender, status, and
religious ceremony. After the bows, Koreans will greet each other with handshakes.

In South Korea, style of communication is also an element of social culture. The

way of communication in South Korea is often indirect and complex. They emphasis
very little on words and instead derive information from the speaker position, attitude,
and speaking style. Furthermore, a South Korean priority with preserving respect and
politeness implies that, although if they disagree with the speaker, they will rarely
respond with negative answer. Silence is also an essential and strategic element in their
communication. Stopping before responding signifies that someone has provided the
question adequate thought and consideration, as well as courtesy and respect. Finally,
in awkward situations, laughing is sometimes adopted. A Korean may chuckle while
they are uncomfortable, although this is not always the case.
TECHNOLOGY

According to Bloomberg (February, 2021), South Korea has reclaimed first place
in the latest Bloomberg Innovation Index, while the United States has dropped out of a
top ten that includes a group of European countries. South Korea reclaimed the top spot
from Germany, which fell to fourth place. The Asian country has now topped the index
seven out of the nine years it has been published. Singapore and Switzerland both
moved up one spot to second and third place, respectively. The Bloomberg index
examines dozens of criteria using seven equally weighted metrics, such as R&D
spending, manufacturing capability, and the concentration of publicly traded high-tech
companies. The rankings for 2021 reflect a world in which the fight against Covid-19
has pushed innovation to the forefront, from government efforts to contain the pandemic
to digital infrastructure that has allowed economies to cope, and the race to develop
vaccines that can end it.
According to Catherine Mann (2021), in the year of COVID-19, and in the face of
the impending threat of climate change, the importance of innovation fundamentals only
grows. New ideas, new products, and new services are often used to measure
innovation, but the true metric of success is diffusion and adoption. South Korea has
established itself as a global leader in information and communication technology,
topping the Bloomberg Index of Most Innovative Nations 2021, followed by Singapore,
Switzerland, and Germany. The country is home to global leading electronics and IT
companies such as Samsung Electronics, LG Electronics, SK Hynix, and Naver, thanks
to its cutting-edge ICT infrastructure and the world's fastest internet speeds. Korea is
determined to maintain its position as a global ICT powerhouse by investing heavily in
cutting-edge technologies such as 5G networks, artificial intelligence, big data, and
cybersecurity.

Source: Bloomberg

The indices highlight South Korea's outstanding performance in R&D intensity,

an indicator based on R&D investment by government and industry, as well as the
number of researchers working in and between the two sectors. South Korea, for
example, had the highest share of researchers who moved from industry to academia
among 71 countries from 2017 to 2019, according to data from academic recruitment
firm League of Scholars. The high R&D intensity that has helped South Korea become a
global leader in information and communication technologies has emerged from a
historically 'top-down' innovation system that promotes "close collaboration between
government, industry, and the academic community in the process of nation building,"
according to Tim Mazzarol of the University of Western Australia in Perth, who
specialises in innovation and entrepreneurship. President Park Chung-hee drove South
Korea's economic progress from 1961, when he gained power in a military coup, to
1979, when he was assassinated. Park switched the economy's post-war reliance on
technology imports and the construction of industrial facilities by foreign businesses to a
concentration on domestic labour-intensive industries such as apparel and textiles.
Importantly, strong support for R&D was central to his first Five-Year Economic
Development Plan in 1962, and it was manifested in his establishment of the Korea
Institute of Science and Technology (KIST) in 1966, and the Ministry of Science and
Technology the following year.
These instruments aided the formation of enormous industrial conglomerates
known as chaebols, which were owned and controlled by South Korean people or
families. The chaebol structure is a business conglomerate system that arose in South
Korea in the 1960s, resulting in worldwide multinational corporations with extensive

international operations. Chaebol is an English transliteration of the Korean word 재벌,

which means plutocracy, rich business family, or monopoly, and the chaebol structure
can encompass a single large company or several groups of companies (Boyle, 2021).
The government urged the chaebols to invest substantially in R&D while insulating them
from competition. With greater R&D intensity centred on applied knowledge, chaebols
such as LG, Lotte, and Samsung were pushed into new heavy sectors such as
petrochemicals, car manufacture, and shipbuilding, as well as consumer electronics.
Samsung is an example of a classic chaebol. Samsung is the company that began as a
grocery trader in 1938 has grown to become South Korea's largest chaebol, with
operations in industries ranging from electronics to insurance, construction, and
shipbuilding. In 2018, it accounted for roughly 15% of the nation's gross domestic
product. With the assistance of government protectionist policies, its founder, Lee
Byung Chul, expanded into textiles after the Korean War, electronics in the 1960s,
heavy industries, aerospace, and computing in the 1970s and early 1980s. By the
1990s and 2000s, Samsung had established itself as a global leader in tablet and
mobile devices, as well as the design and manufacture of computer chips. Based on
contributions to research publications published in the 82 high-quality natural scientific
journals covered by the Index, the firm is by far South Korea's leading corporate
institution in the Nature Index. With a Share of 10.36 in 2019, it ranked 28th among all
institutions in the country, surpassing its nearest corporate rival, LG, which had a Share
of 1.99. The Nature Index also includes Samsung in each of South Korea's nine leading
corporate-academic collaboration partnerships. The most fruitful collaboration is with
Sungkyunkwan University (SKKU) in Seoul, which produced 159 collaborative works
between 2015 and 2019. Their cooperation is especially significant in electrochemistry
and the development of new energy sources like lithium-ion batteries (J. K. Shon et al.
Nature Commun. 7, 11049; 2016). Other collaborations include Seoul National
University in Seoul (41 publications) and Daejeon's Korea Advanced Institute of Science
and Technology (KAIST) (35 articles).
Park's successors continued to emphasise research and innovation as a driving
force in national economic and social progress. R&D expenditure by the government
and business increased dramatically, and basic-research capabilities were extended.
The government's focus had turned to high-tech businesses such as semiconductor
design and manufacturing by the mid-1980s and early 1990s. For example, it
established KAIST in 1971, which is now a renowned national research university.
The top ten collaborating academic partners on manuscripts in Nature Index journals
are split evenly between US and domestic universities. They are rated here by bilateral
collaboration score (CS) from 2015 to 2019. CS is calculated by adding each
institution's share of the papers to which authors from both institutions contributed.
Source: https://www.nature.com/articles/d41586-020-01466-7
 A number of targeted nation-building programmes have also been launched. For
example, in 1995, the government launched a US$1.5 billion, ten-year plan to create
national broadband infrastructure and deliver public programmes on how to best use it.
Following the Asian Financial Crisis in 1997, many chaebols shifted away from the low-
value-added exports typical of a 'tiger' economy and toward technology and knowledge-
intensive products and services such as semiconductors, mobile phones, and mobile
applications. Working with chaebols, the government began establishing regional
innovation hubs such as Gyeonggi, a nearly 13 million-person area surrounding Seoul
that is today considered as the nation's economic and innovative powerhouse. The
centre brings together industrial R&D and manufacturing infrastructure, as well as local
and national universities and research centres. For example, Samsung Electronics,
based in Gyeonggi, is cooperating with SKKU Chemistry to create a semiconductor
material that can lower the amount of radiation exposure while capturing medical X-ray
photos. By 2010, South Korea had 105 regional innovation centres and 18 techno-
parks, as well as 7 federal programmes to boost industrial cluster competitiveness.
Despite continuous government financing to stimulate R&D spending and
programmes to improve translational development and scientific, engineering, and
managerial competence, the majority of major R&D investment has transferred to the
business sector in quest of patents and profits. In 2019, private R&D spending
accounted for approximately 80% of total R&D spending in South Korea, surpassing
highly inventive nations such as Germany, Sweden, and Switzerland, which contributed
for 70%. The move was aided by R&D tax breaks and the entry of foreign technologies.
According to Dr. Winnie Tang (2019), Pangyo Techno Valley (PTV) is the South
Korea's Silicon Valley, is a microcosm of the country's innovation and technology
(innotech) development. The Asian financial crisis of 1997 had a significant impact on
South Korea. However, the country recovered and produced an amazing economic
miracle over the next two decades: its GDP per capita doubled, its K-Pop and innotech
gained global renown, as did cosmetics and skin care products, home appliances,
mobile phones, food, clothing, and automobiles, all of which drove exports more than
fivefold during the period.
 PTV was founded in the end of 2004. It is located in the Gyeonggi-do province of
Seongnam, only 30 kilometres from Seoul. The government has spent more than 100
billion won (US88.9 million) to construct the 66-hectare Pangyo New Town (three times
the size of Hong Kong Science Park), which includes subways and highways
connecting to Seoul and Incheon International Airport. The industrial complex is being
built in three stages, with the second phase presently underway. Because of its efficient
transit network, it has attracted high-tech departments from prominent Korean
corporations like as Samsung, SK, and LG to establish offices there. In fact, PTV is
home to eight of the country's top ten organisations, as well as 1,306 IT firms. As of
2016, the valley employed approximately 75,000 people, offering the greatest number of
job possibilities and accounting for 22 percent of the province's GDP.
The government's strong support for innovation, including granting more than a
quarter of the land in PTV to research institutions, was one of the elements that
contributed to Pangyo's success. In addition to fostering companies, it also explores
innovative technology like as autonomous cars — starting this year, two driverless bus
services will run between Pangyo train station and the valley for a 12-month trial period.
PTV's success is based on the country's collective efforts during the last 20 years.
Do’s and Don’ts of Doing Business in the Korea:

CULTURE

Korean culture has been greatly influenced by Confucian principles.

Confucianism stresses group harmony, respect for elders and authority, and the
importance of family, friendship, and ancestors as well as tradition (Santander, 2021).
Koreans place a high value on maintaining their Kibun. It is a concept that pervades
every aspect of Korean life and can be defined as pride, face, mood or state of mind,
and feelings. To keep a Korean's sense of kibun, especially in a business setting, one
must show proper respect and avoid causing loss of face. Because once it is lost, it
cannot be recovered (Communicaid, 2021). In a culture where social harmony is valued,
the ability to recognise another’s state of mind, known as nunchi, is critical to successful
business ventures. Nunchi is defined as the "art of understanding what people are
thinking and feeling" – a characteristic shared by those who are sensitive to the
dynamics of a given group (Hong, 2019). Koreans cultivate nunchi since a very young
age. The word nunchi translates roughly to "eye-measure", it is a sort of sizing-up of a
situation overall context and atmosphere rather than of individuals. It is appropriate for
almost any social situation, from a wedding to a job interview. Nunchi in action entails
noticing who is speaking, who is listening, who interrupts, who apologises, and who rolls
their eyes in any given situation. From there, one can make potentially useful
assessments about the nature of a group's relationships and hierarchies, the overall
mood, and how to act accordingly (Hong, 2021). As a result, you must be aware of
communication nuances, observing nonverbal and indirect cues that frequently indicate
the true sense of what is being communicated. Failure to respect your counterpart's
kibun which may result in a cultural misunderstanding or conflict. The followings are the
Do’s and Don’ts of culture aspect in doing business in Korea.
The first Do’s is, be punctual. Koreans are very strict with time management.
Punctuality is essential because arriving on time shows respect. It is crucial to try be
punctual and be sure to apologize for your tardiness if you are late. Top Korean
business executives, on the other hand, may be a few minutes late for appointments
due to their extremely busy and stressful schedule. Cancellations are common, but
repeated cancellations may indicate that the other party is uninterested in doing
business with us.
Secondly, do show respect for age and status. Respect for age and status is
highly valued in Korean culture, with social interactions governed by a strict hierarchy.
Since everyone has a role in society as a result of hierarchy, it is critical to respect it.
Koreans are most at ease when interacting with someone they regard as their equal.
Someone's status is largely determined by their role in an organisation, the organisation
for which they work, the university they attended, and their marital status.
Thirdly, do bowing and handshakes. Koreans bow to those in authority as a
greeting and a sign of respect. When meeting someone of the same age, a 15° degrees
bow is used. The junior initiates the bow by bending from the waist at an angle of 30° to
45° degrees from vertical. As an acknowledgement, the more senior person returns a
less pronounced bow. Bowing is not as prevalent in Korea as it is in other countries
such as Japan. When meeting a group of Koreans, greet the highest status individual
first, followed by the oldest. The person with the highest status is usually the first to
enter a room. If a superior (in age or status) initiates a handshake, accept it with both
hands without standing straight. It is common to say "Hello!" (An-nyeong-ha-se-yo!) or
"Nice to meet you!" (Ban-gab-seub-ni-da!) and to say your name during greetings. It is
customary to address a counterpart by his surname, followed by his title and “Nim” as in
“Kim Director Nim”. Titles, rather than personal names, are commonly used by Koreans.
Co-workers are addressed at work using a combination of title and family name.
The Don’ts in Korean culture are, firstly, do not be too pushy. Koreans prefer to
spend time getting to know their business partners, so don't expect major decisions to
be made during the first meeting. Avoid showing signs of frustration or annoyance, as
this may offend your host. Allow plenty of time for negotiations and maintain your dignity
throughout. Business relationships frequently cross over into personal life because
Koreans value developing relationships over meals and drinks and consider their
business partners to be friends. At the end of the work day, businessmen frequently
smoke cigarettes and drink alcohol together (and a fair level of inebriation is often
reached). Your Korean counterpart may be able to consume a large amount of alcohol
as a point of pride, but do not feel obligated to keep up with their consumption. In fact,
being the more sober one pays off because key business information is frequently
revealed at the end of drinking sessions. If you want to abstain from drinking, do so for
religious or medical reasons rather than moral ones. However, keep in mind that by
abstaining from their drinking culture, you are also abstaining from a large part of
Korean business culture. Drinking sessions are used to foster togetherness and loyalty,
with the goal of better preparing a business team to face competition.
Secondly, do not fold and write on a business card in front of the giver. Business
cards are very important in South Korea, and there is a special ritual associated with
them. At the start of meetings, there will be an exchange. Business cards are given and
received with both hands, with the writing facing up and legible to the recipient. In both
upper corners, place the card between your thumb and top knuckle or index finger.
Take a moment to appreciate the business card by studying the name and title with
utter respect. Compliments are well-received, but too many will appear insincere. Also,
it is important to have your business card ready because when doing business in Korea,
one of the most important business accessories is a business card holder.
Thirdly, do not decline dining invitations. In bars and restaurants, a lot of
relationship building takes place. Always accept dinner invitations because this is an
opportunity for the Korean to assess your trustworthiness and whether they want to do
business with you. Dinner is the largest meal of the day and is typically served between
7 and 9 p.m. While it is customary in other countries to extend dinner invitations to
spouses, this is not the case in Korea; business entertaining is typically reserved for
those directly involved. It is customary for the host to order the food, which is then
delivered all at once. Korean food can be extremely spicy, but there are also milder
dishes available. Wait until the host asks you to begin. When not in use, place your
chopsticks by the side of your place setting on the chopstick rests rather than in the rice
bowl. When passing food around the table, only use your right hand. The host is
expected to pay for the meal; however, a friendly debate about who will pay is to be
expected. It is also customary for the foreigner to extend a reciprocal dinner invitation.
ECONOMIC

Next, in the economic aspect. Despite pandemic issues, South Korea is one of
the countries that has managed to achieve a good economic situation, with the country
expected to be ranked in the top ten in the world by 2020. Not to mention, the market's
largest industries are electronics, automobiles, telecommunications, shipbuilding,
chemicals, and steel. Among the well-known brands are Samsung, Hyundai, Kia, and
many others. The country has a highly developed mixed economy, which is a system
that incorporates elements of both capitalism and socialism. In other words, it is a
system that protects private property and allows some economic freedom while also
allowing the government to intervene in business activities in order to maintain the
country's social goals.
The first requirement of doing business in South Korea should be do understand
the economic pattern. One of the characteristics of a mixed economy is freedom of
choice. The country allows the market to have the ways of production and participate in
managerial decisions which imply that any kind of legal business and activities are
allowed without government intervention. Therefore, the market is free to determine the
prices and competition between businesses. However, South Korea strictly ban illegal
items or imports that might endanger the country such as guns, narcotics, pornography,
subversive material, treasonous material, and counterfeit goods.
Secondly, do recognize the trade-economic system. The South Korean
government has established an open market economy with few to no barriers to free-
market activity. The country proposed free economic zones or foreign-trade zones,
which would allow goods to be handled without the involvement of customs officials. A
free trade agreement, on the other hand, refers to South Korea signing a trade
agreement with countries that seal economic cooperation, such as Australia, Canada,
Central America, ASEAN, and others. As a result, goods should be landed or
manufactured in free-trade zones like Incheon, Busan-Jinhae, Gwangyang Bay Area,
Yellow Sea, Daegu-Gyeongbuk, East Coast, Chungbuk, and Saemangeum-Gunsan.
This is due to the fact that the process is more secure because it is under the
jurisdiction of national customs, as well as being easier and faster in terms of customs
clearance. Despite that, South Korea reported 210 import restrictions, including anti-
dumping duties, countervailing duties, safeguard actions, and other issues under
investigation. As a result, any company or business that exports goods to South Korea
should pay close attention to South Korea trade barriers in order to maximize profit
while minimizing production costs.
Thirdly, South Korea is one of the few countries that has succeeded in becoming
a high-income economy. This can be seen in the country's education development,
rapid innovation, and technological advancement. As a result, domestic consumers
were expected to be cautious when purchasing such goods, as the majority of
consumers are looking for better value with high quality. In fact, South Korean citizens
are generally tech-savvy, which has a significant impact on purchasing methods.
Furthermore, since the Internet has made it easier to compare products, a well-
educated and advanced consumer is likely to be well-positioned to judge the value of
such products. Hence with the intention of doing business in South Korea, it is crucial to
study consumer preference as it would affect the business growth.
POLITICS

Apart from that, South Korean politics has its own set of rules that may have an
impact on foreign investment in the country. South Korea's government established a
centralized democratic republic with three primary branches of government: executive,
legislative, and judicial. South Koreans are known to be among the most patriotic
people in the world, as well as one of the most democratically active countries. Without
a doubt, having a democratic right is critical for South Koreans because it represents
the freedom of speech and expression in cases such as the fair judiciary, gender
equality, regular elections, and so on. Thus, the following are the dos and don'ts of
doing business in the aspect of South Korean politics.
The first don’ts of doing business should be avoiding political issues in the
business. It is a common rule to not mix business and political issues, especially in
another country since it could affect the business badly. Moreover, politics is a personal
subject, and every individual is entitled to their opinion, with one bad political interaction
a business may lose a customer forever which would also harm its reputation as well.
This can be proved by a recent survey from InterNations which stated that most South
Koreans do not like foreigners and Korea is ranked as one of the countries that are
difficult for foreigners to settle in. Thus, it should be noted that mixing business with
political issues is not a good idea for a business to thrive in Korea.
The second don’ts should be steered clear from bribery. Bribery in any form was
strictly prohibited by the South Korean government. A person will be punished if he or
she promises, delivers, or manifests a desire to deliver a bribe, as according to the
Criminal Act. In fact, several Korean presidents have been imprisoned for corruption.
Despite the fact that several preventative measures, such as the State Public Officials
Act and the Public Service Ethics Act, have been implemented to address the issue,
corruption crime in South Korea is moderate when compared to many other Asian
countries. As a result, business bribery is strictly prohibited in South Korea, just as it is
in government and public institutions; any type of corrupt practices will be punished
under the regulations of overseas bribery, domestic bribery, and private and public
sector bribery.
 Thirdly, do note the anti-Chinese sentiment. Since the 2000s, the Chinese and
Korean governments have been in conflict over historical issues. However, the
contentious "Northeast Project" has slowed in recent years, as the People's Republic of
China (PRC) has promised not to use the altered version of history in its official history
textbook. Nonetheless, tensions between the two citizens remain, as the percentage of
South Koreans with negative stereotypes of China has increased from 31% in 2002 to
75% in 2020, while the percentage of people with positive perceptions has decreased
from 66% to 24% during the same time period, according to the Pew Research Center.
As a result, it should be acknowledged that most South Koreans have strong feelings
toward China, and it is critical to pay close attention to these issues when making
business decisions in the country, as they could have a significant impact on the
business.
BUSINESS PRACTICES

For many years, South Korean business practices have had a significant impact
on the country's development. In general, Koreans are reserved and well-mannered
individuals who are known for having unspoken ethics rules in society, particularly in the
workplace. This practice is critical for them to ensure that their employees follow all
applicable laws while also working as efficiently as possible. Furthermore, most
Koreans are fiercely competitive in business, so it is critical to understand business
practices in order to compete effectively. In terms of business practices, the following
are some dos and don'ts of doing business.
Firstly, do normalize group work rather than individually. In contrast to the
individualistic cultures of the West, Koreans prefer having a group mentality because
they consider the entire group's contributions or importance to the company's success,
whereas an individual contribution is only recognized if it leads to the success of the
group as a whole. Language, culture, and the manner in which foods are served all
confirm these practices. In terms of language, for example, Koreans prefer the words
we, us, or our, me, my, or I because it is considered ego-centric to refer to something as
"mine," whereas the words "our" reflect community and sharing. Aside from that, the
collectivist culture is very strong, and it has created a strong sense of community or
collectiveness in the workplace, which aids in the strengthening of business or
corporate relationships.
Secondly, do build several business relationships. The most essential part of
doing business in South Korea is building relationships for the reason that Koreans
normally like to work with someone they know. This practice is one of the Confucianism
beliefs which focuses on the core relationship and the importance of the structure of
human relationships. Forming strong business relationships help the business
progression in many ways such as promoting the business reputation itself. However,
some relationship does not have to be extreme. For instance, the business relationship
can be maintained by having a friendly conversation once in a while or occasionally
going to eat and drink together. Whether it is a formal relationship or an informal
relationship, either of them acts as an important part of the business. Hence, it should
be advised to have some kind of relationship to do business in the country that
cultivates collectivist practices as in South Korea.
Thirdly, do engage with colleagues after work hours. In South Korea, going out
with co-workers occasionally is considered the norm in their working environment.
Essentially, Korean are also known as hardworking according to the survey by Korea
Trade-Investment Promotion Agency, 71 percent of 3,410 respondents in foreign
companies agreed that Korean workers are hardworking, and they have a sense of
responsibility. Despite the fact that they view hard work as a virtue, Koreans highlight
the importance of socializing as well. Besides, participating in drinking is considered
important in their business practices since it could bond their connection in business
which could open many opportunities for business relationships. Thus, it should be
noted that informal socializing is as much as important as formal socializing for South
Koreans business practices.
Five potential business sectors for trade and investment.

As a result of the COVID-19 pandemic, the business world has changed

tremendously in recent years. Industry sectors that were once thought to be prosperous
have now plummeted, while others have risen from the ashes. The COVID-19 pandemic
has thrown the global economy into disarray. The impact on FDI will be significant right
away. Longer-term, a push for supply chain resiliency and increased productive
capacity autonomy could have long-term consequences. COVID-19, however, isn't the
only FDI game-changer. The new industrial revolution, policy shifts toward economic
nationalism, and sustainability trends will all have far-reaching implications for the
configuration of global production in the decade ahead. The overall directional trend in
international production points to shorter value chains, higher value-added
concentration, and lower international investment in physical productive assets. That will
bring huge challenges for developing countries.
Their development and industrialization strategies have relied on attracting FDI,
increasing participation and value capture in GVCs, and gradually upgrading technology
in international production networks for decades. The expected transformation of
international production also opens up some development opportunities, such as
encouraging resilience-seeking investment, establishing regional value chains, and
entering new markets via digital platforms. However, taking advantage of these
opportunities will necessitate a change in development strategies. An export-oriented
investment that focuses on the exploitation of production factors, resources, and low-
cost labor will continue to be important. However, the pool of such investment is
shrinking, and climbing the first rungs of the development ladder may become much
more difficult. It is necessary to rebalance the economy toward growth based on
domestic and regional demand, as well as to encourage investment in infrastructure and
domestic services.
This entails encouraging investment in sectors related to the Sustainable
Development Goals (SDGs). The large amounts of institutional capital looking for
investment opportunities in global markets are looking for value-creating projects in
infrastructure, renewable energy, water and sanitation, food and agriculture, and health
care, rather than manufacturing projects. The findings in this report's dedicated chapter
on SDG investment show that sustainability-themed funds are rapidly growing in global
capital markets. At the same time, they demonstrate that these funds have yet to find
their way to investments in developing countries. We have now entered the final decade
of the SDGs' implementation.
Virtual Reality. Similarly, virtual reality has become incredibly popular in recent
years. Virtual reality is currently only used in video games, which immerse users in 3D
photorealistic simulations that they can interact with. Virtual reality, on the other hand,
has a plethora of other applications that scientists are only now discovering.
Psychologists, for example, are employing virtual reality to conduct more ethical
experiments on volunteers. Meanwhile, the healthcare industry is developing virtual
reality (VR) programs that teach students how to perform surgery without the need for a
patient to practice on, significantly reducing risk. Virtual reality is being used in a similar
way by firefighting services to create simulations that require trainees to navigate harsh
environments without putting themselves in danger. Virtual reality has a lot of untapped
potentials, which investors can help scientists unlock with their money. To reduce risk,
start small and gradually increase your payments once you are confident that the VR
company you have invested in has enough traction and longevity to generate some real
profit.
Renewable Energy. Nothing is scarier than the current climate crisis. The
damage to the planet will be irreversible in a few years. Obviously, this news has
galvanised people into action, resulting in a surge of interest in the renewable energy
industry. Renewable or alternative energy can provide our planet with an infinite, non-
polluting source of power. As coal, gas, and oil supplies deplete, we may be forced to
rely on renewable energy. As a result, it is critical for more than just environmental
reasons. Impact investors may be drawn to the green energy industries because their
money can make a real difference in the world. For sure, before investing, you should
conduct some research on renewable energy. According to U.S Energy Information
Administration, renewable energy consists of geothermal, solar, hydroelectric, wind,
biomass waste, biofuels and wood. It is important to recognize what are the emerging
technologies that have the potential to make a significant difference in the world and
what energy solutions are good in theory but impractical in practice. Gaining a better
understanding of the market as a whole will assist you in making sound investment
decisions.
Cyber Security. Nowadays, almost everything is available online. Our personal
information, banking information, where we live, and who we work for As a result, cyber-
attacks have become a huge issue. Data leaks are common, phishing emails are almost
everywhere, and viruses can infect our computers with one mis-click. The greater
demand for cyber security means that this tech industry is looking particularly profitable
for investors. But where to begin? What cyber security solutions can genuinely make a
difference? Which ones are promising, and which ones are going to fall flat? Once
again, we recommend becoming an expert in your chosen investment field before
buying stocks in anything. For instance, there are five types of cyber security such as
critical infrastructure cybersecurity, network security, cloud security, internet of things
(IoT) security and application security. Business and academic journals dedicated to
this subject will be best informed on what areas of cyber security are most promising for
potential investors.
Transport. The coronavirus pandemic has had a significant impact on the
transportation industry. In fact, this industry has probably had it the worst of all.
However, as a result, stock prices are lower than they have ever been. The
transportation industry is in desperate need of financial assistance. Now could be the
best time to invest, before stock prices skyrocket once more. Furthermore, we believe
that once the pandemic has passed, interest in travel will increase. After all, people from
all over the world have been cooped up in their homes for almost two years. Though
this investment may be slightly riskier than the others on our list, it may also be the most
lucrative. The stock market is notorious for being unpredictable. Just make sure to
weigh the risks and rewards for yourself before making any decisions.
Cloud Computing. Cloud computing is the delivery of various services via the
Internet. Tools and applications such as data storage, servers, databases, networking,
and software are examples of these resources. As a result of the pandemic, some
people have realised that they prefer working from home. Even as restrictions loosen,
professionals may decide to combine remote and on-site work. As a result, cloud
computing has exploded in popularity. With the cloud, we can easily share files with one
another, streamlining business operations and increasing efficiency. Well-known cloud
computing such as Zoom Video Communications, AWS and Dropbox. Furthermore,
cloud computing is still evolving. Who knows what will happen next? As a result, this is
a safe industry to invest in for 2022.
These are some of the best industries to invest in this year or in 2022. Because
the stock market is volatile, there are never any guarantees with investments. These
sectors, on the other hand, appear to be very promising.
Recommendation most business sectors to trade and invest – why? Please
include the most suitable mode of entry to enter the country.

Trading and investing have been common practices in the business of the stock
market. In Korea, foreign trade is highly the main source of income in the country.
Moreover, South Korea has become one of the countries that succeeded to capitalize
on the global trading system since the country is adequate with high-end technology
and advanced innovations besides focusing on high quality and value-added products.
Foreign Direct Investment (FDI) has played a significant role in financial business
restructuring in Korea, which has been exacerbated by the Asian financial crisis that
began in 1997. Financially distressed local enterprises, banks, and other financial
service companies were purchased by overseas investors. Korea has become the top
ninth economy with the trillion-dollar club of foreign trade in the world. The largest
industry in South Korea includes electronics, automobiles, telecommunications,
shipbuilding, chemicals, and steel industry. As it is known, some of the lucrative brands
are Samsung, Hyundai, LG, Kia, and many more. Thus, the following are suggestions
on the business sectors that are recommended to trade and invest in South Korea.
The first sector is manufacturing. This sector has reached 36.8% as the main
invested sector in 2019 and it has driven the country to rapid economic development in
which forces it to become a leading industrial giant. Whereas the shipbuilding
manufacturer has become the second largest industry in the world ranking.
Manufacturing sectors in South Korea include shipbuilding, automobile, and
steelmaking, these industry developments are obtained through high technology
development and through supports from the South Korean government as well.
Investors must be aware of the environmental trade-offs involved with the sector's
development, as it is related to positive social and economic impact. Investors in the
private sector should seek prospects for greener manufacturing to aid in the
improvement of environmental sustainability of the environment. Despite tremendous
development in several areas, there is a definite limit to price competitiveness in the
global market. As a result, businesses are concentrating on developing high-value-
added products and services, human-friendly hybrid, or fuel-cell vehicles. Specialty
ships requiring core modern technologies, and advanced materials are examples of
value-added products that can become profitable in the future for investors.
Secondly, the financial sector. Companies that provide financial services to
consumers make up the banking or financial industry. Retail banks, insurance
companies, and investment services corporations all fall into this category. This industry
has a significant economic impact. The economy grows stronger as it grows stronger.
However, when the sector deteriorates as the events leading up to the Great
Depression demonstrated the economy begins to stagnate. As a result, a strong
financial and banking industry is required for a healthy and stable economy. Many of the
corporations in this sector pay dividends, which many value investors consider to be a
positive sign of quality. The longer the pay-out history, the better for the investor since it
indicates a successful track record. It also demonstrates that the corporation has a
history of sharing profits with investors. As a result, dividends that show a good track
record of success and a history of profit-sharing with investors are good for investors
and traders.
The third sector is the energy industry. South Korea is known for its
overpopulation and lack of natural resources. Considering this, the country does
become one of the fastest-growing economies. Because of a scarcity of natural
resources, the country's reliance on foreign energy imports has progressively increased.
Korea, as the world's fifth-largest oil importer, relies significantly on imports, particularly
crude oil, for its basic energy supply. Korea has placed a strong emphasis on nuclear
energy, solar electricity, and wind power in order to increase its energy self-sufficiency.
In the nuclear energy sector, Korea competes with world leaders. Green energy is
gaining a lot of traction around the world, and Korea is no different. Hence, this sector is
fit for investors and traders since it guarantees future profits.
The fourth recommended sector should be the engine sector. The government
has identified 17 new growth engine industries across three sectors, with an eye on
market trends and increased degrees of globalization. 17 selected areas are intended to
serve as future drivers of economic growth as a result of a multi-year investment, and
the government continues to promote foreign investment in these areas; renewable
energy, low-carbon energy technology, green transportation systems, and urban IT
convergence are among the 17 industries chosen. Apart from that, as the government
pushes tax incentives and support for green technologies, 'green growth' has suddenly
emerged as a major concern across industries. Over the next several decades, the
Korean government expects "low carbon, green growth" to steer the country's
development. International engagement is highly encouraged, and foreign experience in
high-tech sectors and commercial services is welcomed. A range of tax and other
investment incentives are available, as well as institutional barriers and laws.
Entering a new market involves extensive research and, in some cases, initial branding
activities. Furthermore, the sales channels that were selected have an impact on the
market entry approach. As a result, based on its aims and level of commitment, market
entry methods can be divided into several parts The following are some lists of various
modes of entry.
The first strategy is initial marketing campaigns. Initial marketing initiatives are
generally the focus of foreign brands with minimal local brand awareness. These
campaigns can be conducted in a variety of ways, including offline, online, and with the
support of influential opinion leaders in some cases (KOLs). For example, Rio
Ferdinand, an English footballer, appears in advertising for Tiger, a Southeast Asian
beer brand. Initial marketing initiatives are typically necessary before brands put their
products on local eCommerce marketplaces because they help to build trust and
awareness of the company.
Secondly, cross-border eCommerce. Cross-border eCommerce is rapidly
growing over the world as a result of globalization and digitization. This is especially true
in China, where local brands are preferred by Japanese buyers. Purchases from
overseas retail sites total more than USD 3 billion, with nearly half coming from US
online shops. However, both China and the EU are fast expanding in the sector. In
comparison to China, Korea does not have as many cross-border eCommerce sites,
such as Tmall Global. In the cross-border market, Korean buyers primarily purchase
goods from overseas marketplaces. Despite the fact that Amazon does not have a
branch in Korea as it does in Japan, Koreans continue to shop on Amazon.com.
Furthermore, one of the most popular eCommerce marketplaces, Coupang, is mainly
concentrating on sourcing goods directly from the United States and China. Cross-
border selling has a number of advantages such as regulatory barriers to entry being
reduced, exemptions from taxes are sometimes granted and it is also a good way to try
out new markets.
Finally, the strategy to entry is domestic eCommerce operation. Selling on
local eCommerce marketplaces is sometimes the best option for firms looking to expand
their market reach. The products can be sold in both offline (bricks and mortar) and
internet retailers by first importing them and warehousing them in-country. As a result, it
can reduce delivery times and costs while also selling across many channels. In Japan,
for example, up to 90% of purchases are made from local vendors. Buyers in Southeast
Asia also prefer to buy from local sellers. Importing and selling products through a
distributor or directly can dramatically enhance sales. As a consequence, the market
can be sold both internationally and locally at the same time. It is not needed to choose
only one option, but it can tailor the arrangement towards the items and marketplaces
used.
CONCLUSION

In conclusion, South Korea is an Eastern Asian country that occupies the

southern half of the Korean Peninsula. It shares borders with Japan's Sea of Japan, the
Yellow Sea, and North Korea. The majority of South Korea's geography is mountainous.
The government is a republic, with the president as the chief of state and the prime
minister as the head of government. South Korea has a mixed economic system that
combines private freedom with centralised economic planning and government
regulation. South Korea is a signatory to the Asia-Pacific Economic Cooperation
(APEC) and the Asia-Pacific Trade Agreement (APTA) (APTA).
Based to their majority in the government, the Democratic Party of Korea are the
elected government and since September 2020. The Executive Branch is lead by the
President who is in charge of exercising executive authority. The Presidents tenure of
services toward the region is 5 years, and the president whether he is a men or women
are not eligible for any re-election. Upon securing the presidential election, President
Moon Jae In started to serve his service toward the region by May 10, 2017. The State
Council of Republic of Korea often known as the Ministerial meeting which responsible
for discussing on major issues that are under the Executive`s authority. The Supreme
Court, appeals courts, district courts, family courts, administrative courts, and the patent
court are all part of the government of Republic of Korea judicial system.
The nation gets along on export-oriented economic growth initiatives in the early
1960s. The nation decided to engage in wide range of chemical infrastructure in the
year of 1970, forming the set up for huge manufacturing product exports. South Korea
region exports increased from USD 32. 82 million in 1960 to USD 10 billion by 1977 as
well as USD 542. 2 billion in the year of 2019. This was the nation`s early huge test
ensuing years of fast economic recovery. Following its recovery from the economic
downturn, the South Korean economy has continued to develop steadily. By reality, the
nation had an amazing growth in the economy of 6. 3 percent between the year of 2008
and 2010, while rest of the region was suffering an extreme economic disaster. The
country`s economic efficiency was over USD 1 trillion throughout four years in a row
during 2011 until 2014. During the year of 2015 and 2016, economic output fell
significantly, yet returned to USD 1 trillion by 2017. On the basis of high exports and
rising consumption, South Korea`s economy has grown at its greatest rate in a decade
throughout the second quarter. GDP growth rate is expected to return to 3. 6 percent in
2021 and stable at 2. 8 percent in 2022, as per the IMF prediction on April 2021,
depending to a post pandemic global economic recovery.
Despite the fact that they are now separated into two countries which is North
Korea and South Korea, their social, cultural, and historical history was once shared
equally throughout the Korean. The history, customs, traditions, and beliefs of South
Korea are all rich in culture. The religious floor and beliefs of Koreans are constructed in
particular across the religions of Confucianism, Buddhist, and Christian. Of the
particular, specifically Confucianism acquires lasting impact in Korea, along with political
and social ideology can nevertheless genuinely continue to visible in South Korea
today. For instance, the approach of position in Korea appear against the Confucianism
belief. Annually, South Korea celebrates two main holidays which is New Year`s Day
(the second full moon after the winter autumn) and Chuseok (the eighth full moon).
Moreover, vital element of the two main holidays are fulfilling a ceremony known as
"Sebae" i=n the act of their culture and custom. The concept of face, which is
fundamental in shaping Korean behaviour and thinking, is addition aspect regarding
South Korean social culture context. Throughout Korean social culture, fundamental
greetings or welcoming were performed with a bow. Furthermore, a South Korean
priority with preserving respect and politeness implies that, although if they disagree
with the speaker, they will rarely respond with negative answers.
Lastly, South Korea has reclaimed first place in the latest Bloomberg Innovation
Index, while the United States has dropped out of a top ten that includes a group of
European countries. South Korea reclaimed the top spot from Germany, which fell to
fourth place. South Korea has established itself as a global leader in information and
communication technology, topping the Bloomberg Index of Most Innovative Nations
2021, followed by Singapore, Switzerland, and Germany. The country is home to global
leading electronics and IT companies such as Samsung Electronics, LG Electronics, SK
Hynix, and Naver, thanks to its cutting-edge ICT infrastructure and the world`s fastest
internet speeds.