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Table Of Contents
South Korea - A Trillion Dollar Economy Welcomes U.S. Trade
Why Korea?
Korean Strengths
Quick Facts about Korea
Best Prospects
Doing Business in South Korea
Business Tools
Recent Statements on U.S.-Korean Business Prospects
Testimonials
Upcoming Events
Korea-U.S. Free Trade Agreement
Markets Fact Sheet
Contact Us
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Seoul and the Han River, Photo by the Korea National Tourism Organization
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Listen to John Fogarasi, Senior Commercial Officer in Korea discuss the Korean Market.
Read the Transcript
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Senior Commercial Officer in South Korea, John Fogarasi
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Korea is one of the world’s leading economies and an outstanding trading partner for the United States. With a high-tech industry, a sophisticated consumer market, and a long history of successful trade with the United States, Korea is a great market for U.S. companies to enter or expand their Asian presence. The United States and Korea recently concluded negotiations to remove 95% of all tariffs under a free trade agreement. Secretary of Commerce Carlos Gutierrez described this Korea-U.S. Free Trade Agreement (KORUS) as the most significant trade agreement for the United States in 15 years.
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The Flag of South Korea
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In 2006, the U.S. exported over $32 billion in goods and services, making Korea the seventh largest export market for the United States in the world. As a global hub for high technology, over 40% of U.S. exports to Korea categorized as “advanced technology products.” At the same time U.S.-Korean trade is diversified and represents the broad range of consumer and agricultural products.
Twenty-nine U.S. States record Korea as one of their top ten trading partners and nine states experienced export growth in 2006 of $100 million or more over the previous year. Last year total U.S. exports grew by nearly $5 billion and significant growth is anticipated boosted by the Korea-U.S. Free Trade Agreement (KORUS). As mentioned, under KORUS over 95% of all products entering Korea from the U.S. will have a zero tariff – moreover, U.S. products will have even stronger IPR protections, greater transparency guarantees, and stronger trade facilitation. Double-digit U.S.-export growth with some estimates as high as 50% increases in exports are anticipated under this landmark trade agreement.
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Korea, the thirteenth largest economy in the world, facilitates more airfreight than any other Asian country and continues to expand as a major international trade and foreign investment center. Korea’s population of 48 million is heavily consumer-oriented with demands for efficient and economical products as well as upscale prestige items. Korean consumers are also highly educated, environmentally minded, and have one of the most wired (internet) economies in the world. Rapid growth, increasing disposable income along with a positive interest toward American products and services, combine to make Korea highly advantageous for U.S. exporters. As Korea continues to broaden its economic base and expand as a regional trading power in North-East Asia, American businesses with established ties to Korea are well-positioned to benefit in using Korea as a platform for the region.
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Incheon International Airport
Photo by Incheon International Airport
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 | 12th largest economy in the world,
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| 3rd largest economy in East Asia,
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| 7th largest U.S. trading partner,
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| 7th largest U.S. export market in general,
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| 6th largest market for U.S. high technology goods, and
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| 5th largest export market for U.S. agricultural products.
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| National Capital: Seoul
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| Population: 48.4 million
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| Land Area: 98,480 sq km (slightly larger than Indiana)
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| GDP: USD 827.4 billion (est. 2007)
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| GDP Growth: 5.0% (2006)
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| Korean Industries: electronics and electrical products, motor vehicles, shipbuilding, mining and manufacturing, petrochemicals, industrial machinery, textiles and footwear.
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| U.S. Exports to Korea: USD 32.4 billion (2006)
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| Total Korean Imports: USD 309.3 billion (2006)
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| U.S. Share of Korea's Imports: 10.49.7% |
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Best prospects for U.S. exports to Korea include:
Go to our "Market Research Library8" for more market insights on all of the above mentioned best prospects.
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KTX Bullet Train
Photo by Korea National Tourism Organization
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South Korea is a sophisticated country with an excellent transportation infrastructure, modern architecture, highly advanced telecommunications network and excellent hotels. Although the country may appear to be westernized, aspects of its business culture remain very traditional. South Koreans have a deep respect for family, age and hierarchy, and such elements come into play in the commercial world.
U.S. Commercial Service Korea is the Commercial Section of the U.S. Embassy in Seoul, and is an overseas office of the U.S. Department of Commerce. U.S. Commercial Service Korea offers services to help U.S. companies market their products and services in Korea.
Visit our services website for more information.
You can also advertise your products/services in Korea on our Featured U. S. Exporters site. Click here for more tips on doing business in Korea…
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Traditional Korean Fan Dance
Photo by Korea National Tourism Organization
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The US Commercial Service is ready to help your company enter and expand in the dynamic Korean market.
We can help you:
ü Research market potential
ü Locate and arrange appointments with qualified buyers and distributors
ü Advise on intellectual property rights, regulatory hurdles, and government contracts
ü Provide you with essential company background information that will help you make more informed decisions
ü Launch your product in Korea with a promotional or technical seminar |
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| “When the history of of early 21st century is written, I hope the KORUS FTA will be listed among its great achievements. It should stand as an example of American and Korean leadership in trade and as a key event in America’s engagement in one of the most economically vibrant regions in the world.” (Susan Schwab, U.S. Trade Representative)
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| “Few of the world’s previous FTA pairings match economies that are so strongly high-tech driven and innovation–oriented as this FTA. Looking at OECD data, no two countries within that organization are so closely aligned in terms of high-tech exports as are the United States and Korea.” (Alexander Vershbow, US Ambassador to Korea)
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| “The U.S. Commercial Service has been an amazing asset to the entire US business community, especially for small & medium-sized businesses. Commerce’s Korea team at the US Embassy is a key factor in the success of so many new companies entering and prospering in the Korean market.” (Tami Overby, President & CEO, American Chamber of Commerce Korea)
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| “Korea has world-class scientific talent and infrastructure. It also has sophisticated consumers – consumers, who can give us new product insights. Korea is also a culture that bridges the best of the East with an understanding of the West. This creates a highly favorable climate for innovation.” (Tom Falk, President & CEO, Kimberly Clark) |
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| We are a small company with 6 employees located in San Antonio, Texas. We have 6 to 12 shipments per year since 1999 of advanced water purification technology to Korea…The product has found a fit into the industrial and commercial market sectors in Korea. (Bob Atlas, General Manager, Aqua EWP, LLC, San Antonio, TX, www.sabrexewp.com)
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| We have been involved with the Korean market now for almost 4 years and have had a very positive experience. We distribute engines to OEM customer in Korea. We are a medium size business employing approximately 30 people here in the US. (Justin Osborne, Vice President, Industrial-Irrigation Services, Hastings, Nebraska)
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| Fabworx Solutions is a US manufacturer of equipment used in the making of semiconductor wafers. The company is young and small and is just now selling to Korea for the first time. We worked with your office (CS Korea) on a GKS partner search, have selected a distributor to work with, and are now moving quickly in the market. We first worked extensively to define how to avoid having our product copied in Korea and now feel comfortable that we are reasonably protected. (Mike Dailey, President, Fabworx Solutions, Austin, Texas)
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| Korea is a very easy place to do business. The companies and government agencies I have dealt with are very professional and friendly. They are also very efficient at processing required paperwork and payments. I just returned from my second sales and marketing visit to Seoul less than a month ago and already am seeing a significant increase in business due to my visit. We are a small software developer with a staff of ten. (Daniel L. Herold, Vice President, Parallel Geoscience Corporation, Incline Village, Nevada)
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| South Korea is one of the most advanced countries for the implementation of environmental monitoring. They have state of the art equipment and excellent means to communicate the data within the country. (Met One)
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| GoalMinds, Inc. has been doing business in the publishing industry in Korea for six years. …The books have sold very well…(Jo Condrill, M.S., President, GoalMinds, Inc. www.goalminds.com)
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| Reynolds Polymer Technology (RPT), a US based acrylic firm involved in acrylic production and applications (signage, aquariums, lighting, etc.) has been in the Korean market for a number of years. RPT has been able to complete a number of projects ranging form and aquarium in Uljin to signage and lighting applications for a high-end restaurant in Seoul. Some of the challenges RPT faces in the Korean market included competition from neighboring countries and to a smaller extent language. The US Commercial Office in Korea has been very helpful in overcoming the language barrier and gathering pertinent information on developing projects. (Dan Siathone, Asia Australia Sales & Marketing Manager, Reynolds Polymer Technology
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| NanoDynamics is receiving great interest in its products. Korean companies and our local representative have been very helpful in focusing our efforts. We found our local Dept. of Commerce extremely helpful in setting up distributor/agent arrangements and wording contracts.(Alan Rae, VP Innovation, NanoDynamics Inc., Buffalo, NY)
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| Of course, language can be a stumbling block, but having done business throughout Asia, we find Korean businessmen to be very straightforward, honest, and easy to deal with – as long as all inquires/matters are taken care of quickly and effectively. (World Technology Corp.) |
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About 125,000 qualified foreign buyers, sales representatives, and business partners are recruited by the U.S. Commercial Service around the world to "International Buyer Program (IBP)" trade shows in the U.S. each year. This is an excellent opportunity to exhibit your firm to buyers worldwide and to expand your business globally.
Additionally, The U.S. Commercial Service is present at premier trade events around the world such as Medica (Duesseldorf), CeBit (Hanover), Cosmoprof (Hong Kong), among other global trade events matching U.S. and Korean companies. For additional information on U.S. Commercial Service Korea events and trade shows, visit "Events".
For useful contacts, click on “link” for a list of Korean Government Organizations and Commercial Service Korea Partner Agencies that can provide assistance in the Korean market.
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On June 30, 2007, the United States and Korea signed an historic free trade agreement that will expand bilateral trade and investment ties and create new economic opportunities for people in both countries. Among the key features of the agreement are:
| US exporters will benefit from the elimination of tariffs and non-tariff barriers to trade in goods and services. Nearly 95% of consumer and industrial products will become duty-free within the first three years after implementation. Nearly all remaining tariffs will be eliminated within 10 years.
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| The FTA improves access for service companies, both cross-border (such as through electronic means) as well as those with a commercial presence in Korea.
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| US businesses will have expanded access to procurement contracts from Korean government ministries, agencies and other central government entities.
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| The FTA will give US companies advantages over third country competitors as this is the first FTA Korea has negotiated with a major industrialized country. |
Intellectual Property Protection:
| Transparent procedures for registration and maintenance of trademarks on-line
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| Extension of patent terms
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| Secures US company test data submitted for product approval procedures
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| Improves customs enforcement
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| Tougher penalties for piracy |
Standards & Technical Regulations:
| Improved transparency in the way governments develop and apply technical regulations and related conformity assessment procedures
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| Ability for US persons to participate in the development of new standards, regulations and assessment procedures |
All forms of investment will be protected under the agreement. It establishes a legal framework and protections in Korea that foreign investors currently enjoy under the US legal system.
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Click on the link below to view fact sheets on the markets affected by the FTA.
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John Fogarasi
Senior Commercial Officer
U.S. Commercial Service Korea
American Embassy
32 Sejongno Jongnogu
Seoul 110-710
Email: seoul.office.box@mail.doc.gov
Tel: 82-2-397-4535
Fax: 82-2-739-1628
Website: http://www.buyusa.gov/korea
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