How Do I Do Business & Invest in Korea?
- 1). Research the basic areas of needed investment in the ROK. Like all the successful East Asian states, the government still targets needed investment areas and will be highly cooperative in the areas where the state has declared a great need. As of 2010 (and likely for the foreseeable future), the main areas of needed investment in the ROK are automotive parts and services, military and computer equipment (and the requisite engineering skills) and construction equipment. The best bet for foreign investors is in the medical and pharmaceutical industry. The ROK is highly dependent on Western know-how in that field.
- 2). Make a list of all the necessary requirements for importing into the country. Like most states, the basics are needed absolutely. These include a bill of lading, commercial invoice (three copies), packing lists (two copies), maritime insurance and a certificate of origin. The ROK requires substantial documentation on where imports are coming from, their status in terms of customs and the contents of all shipping crates and containers.
- 3). Take extra care with sanitation issues. Riots erupted in 2008 and 2009 over tainted beef coming in from the U.S. The ROK would rather not see a repeat of this, and make sure, especially with food products and other medically sensitive areas, that you double-check the sanitation and safety of all such products. Koreans are very sensitive about foreigners taking a cavalier attitude toward their customers when investing or importing into Korea.
- 4). Develop relationships before making any kind of business decisions. Koreans value personal trust and friendships before written contracts. Do not make cold calls, as they are almost never successful. Koreans will not buy or make deals with people they do not know, even if the deal will benefit them financially. Everything is about networking and making friends.
- 5). Buy a Korean phrase book before making any business trips. At least learn the basics such as "hello," "goodbye," "thank you," "you have a nice house" and other pleasantries before traveling. It will be much appreciated. Age hierarchies are important, so do not become offended if someone asks your age or basic level of family prestige. It is normal and not an attempt to invade your privacy.
- 6). Invest your money with caution. In general, formal business paperwork like spreadsheets and accounting books do not exist, or exist only incompletely. Dividends are often spread out secretly through family networks. Unless you are in a firm's circle of trust, getting straight answers about your investment is difficult. You should always have a Korean partner with you when investing to increase your legitimacy in the eyes of the natives. Always remember, never interfere with Korean monopolies of the big firms. Do not act as their competition. As an outsider, you are foreign and can be taken advantage of.
Source...