Why start a business in South Korea?
South Korea is located in the Korean peninsula. It’s not so popular neighbor North Korea with hardly any development, seems like a put off to any foreign investors who want to come down to South Korea and start a business. In the West it is neighbor to China and towards the East finds itself facing Japan.
With so much of hostility from all sides, South Korea has managed to come out bravely and strongly from the Korean War which has affected many citizens, many of whom are living in the country. With its capital Seoul and the currency as the Korean won (KRW), the economy of the country has been ranked as 15th in the world.
It is a large exporter of goods, especially automobiles and electronic goods. It is also a massive importer of products. Though it is a great place to start a business, there are certain things which you should be aware of. Like an old Korean saying goes, make a friend first, and do business second, can help you understand the mentality of the people.
What are the main opportunities for companies wanting to do business with Korea?
The first thing to understand about the South Korean market is that unlike the Western or the American market, the business etiquette is quite different. The people of South Korea are very punctual and disciplined. You will also want to know that during the first meeting, you will have to give them a wrapped) gift.
Questions to ask yourself before starting a business in South Korea
- Will your product or service be liked or have the right appeal towards the people of South Korea?
- Who will be the rivals or your competitors there and how well are they doing?
- What would be the initial rates of your products or services when entering the market?
- What are the terms and conditions before entering the South Korean market?
- Where you can find space to do business in the country?
- How to start a business in the country with a bank account?
- Do you need an accountant who is based in Korea?
- Why do you need to start a business with a South Korean business partner?
All the above questions need to be answered. You will need enough funds and money to start a business. Moreover you need to understand the rules and regulations to start a business in the country. You would also need an agent who is based in this country or a distributor who is based so that they can sell your products or services here.
Why settling down in South Korea is easier when compared to other countries?
The government has designed friendly policies towards those who want to invest in South Korea. Though other countries have excellent policies, the nature of the people in this amazing country is what really captures everyone’s hearts. They have come back strongly from the Korean War which literally has torn almost every family currently living in South Korea.
With popular automobile makers and electronic products, they have managed to get noticed globally. They are friendly and helpful when compared to people from other Asian countries. Most of the localities in South Korea have homes available for rent, schools located nearby, and businesses which can be started with the help of a local business partner.
They are trust worthy people too and finding partners and investors should not be a major problem. As long as you both think alike and have some experience in what you are doing, you will be able to excel.