Return to: Index of "1996 Country Commercial Guides" || Index of "Economic and Business Issues" || Electronic Research Collections Index || ERC Homepage

U.S. Department of State  
1996 Korea Country Commercial Guide  
Office of the Coordinator for Business Affairs  
                  1996 COUNTRY COMMERCIAL GUIDE  
This Country Commercial Guide (CCG) presents a comprehensive look at the  
Republic of Korea's commercial environment through economic, political  
and market analyses.  
The CCG's were established by recommendation of the Trade Promotion  
Coordinating Committee (TPCC), a mutli-agency task force, to consolidate  
various reporting documents prepared for the U.S. business community.   
Country Commercial Guides are prepared annually at U.S. Embassies  
through the combined efforts of several U.S. government agencies.  
                     TABLE OF CONTENTS  
Chapter I.  Executive Summary  
Chapter II. Economic Trends and Outlook  
      - Major Trends and Outlook  
      - Principal Growth Sectors  
      - Government Role in the Economy  
      - Balance of Payments Situation  
      - Infrastructure Situation  
Chapter III.  Political Environment  
      - Nature of Political Relationship with the U.S.A.  
      - Major Political Issues Affecting the Business Climate  
      - Brief Synopsis of the Political System   
Chapter IV.  Marketing U.S. Products and Services  
      - Distribution and Sales Channels  
      - Use of Agents and Distributors; Finding a Partner  
      - Franchising  
      - Direct Marketing  
      - Joint Ventures/Licensing  
      - Steps to Establishing an Office  
      - Selling Factors/Techniques  
      - Advertisng and Trade Promotion (including list  
        of major  newpapers and business journals)  
      - Pricing a Product  
      - Sales Service/ Customer Support  
      - Selling to the Government  
      - Protecting your Products from IPR infringement  
      - Need for a Local Attorney  
Chapter V.  Leading Sectors for U.S. Exports and Investment  
      - Best Prospects for Manufactured Products   
      - Electrical Power Systems           
      - Aircraft and Parts  
      - Transportation Services  
      - Computer and Peripherals  
      - Telecommunications Equipment  
      - Education and Training  
      - Pollution Control Equipment  
      - Security and Safety Equipment           
      - Medical Equipment  
      - Computer Software  
      - Building Products  
      - Household Consumer Goods  
      - Drugs and Pharmaceuticals  
      - Telecommunications Service  
      - Architechtural/Construction/Engineering  
      - Best Prospects for Agricultural Products  
      - Beef  
      - Pork  
      - Fish and Seafood  
      - Dairy Products  
      - Nuts and Dried Fruits  
      - Citrus Fruits  
      - Poultry Meat and Products  
      - Fruit Juices  
      - Prepared Fruits, Vegetables  
      - Other Prepared Foods  
      - Significant Investment Opportunities (optional)  
Chapter VI.  Trade Regulations and Standards  
      - Trade Barriers (including tariffs, non-tariff barriers,  
        import taxes)  
      - Customs Valuation  
      - Import Licenses  
      - Export Controls  
      - Import/Export Documentation  
      - Temporary Entry  
      - Labeling, Marking Requirements  
      - Prohibited Imports  
      - Standards   
      - Free Trade Zones/ Warehouses  
      - Special Import Provisions  
      - Membership in Free Trade Arrangements  
Chapter VII.  Investment Climate  
      - Government Attitude towards Foreign Investment  
      - Openness to Foreign Investment   
      - Conversion and Transfer Policies  
      - Expropriation and Compensation  
      - Dispute Settlement  
      - Performance Requirements/ Incentives  
      - Right to Private Ownership and Establishment  
      - Protection of Property Rights   
      - Regulatory System:  Laws and Procedures  
      - Capital Markets and Portfolio Investment  
      - Political Violence  
      - Bilateral Investment Agreements  
      - OPIC and Other Investment Insurance Programs  
      - Labor  
      - Foreign/Free Trade Zones   
      - Capital Outflow Policy  
      - Major Foreign Investors  
Chapter VIII.  Trade and Project Financing  
      - Brief Description of Banking System  
      - Foreign Exchange Controls Affecting Trading  
      - General Financing Availability  
      - How to Finance Exports/ Methods of Payment  
      - Types of Available Export Financing and Insurance  
      - Project Financing  
      - List of Major Korean and U.S. Banks in Korea  
Chapter IX.  Business Travel  
      - Business Customs  
      - Travel Advisory and Visas  
      - Holidays  
      - Business Infrastructure  
Chapter X.  Appendices  
      - Appendix A:  Country Data  
      - Appendix B:  Domestic Economy  
      - Appendix C:  Trade  
      - Appendix D:  Foreign Direct Investment Statistics  
      - Appendix E:  US and Country Contacts  
      - Appendix F:  Market Research  
      - Appendix G:  Trade Event Schedule   
                        CHAPTER I.  EXECUTIVE SUMMARY  
Long gone are the notions of Korea as a struggling, third world  
developing country.  The Korea of the 1990's is modern, cosmopolitan,  
fast-paced, and dynamic with abundant business opportunities for savvy  
American businesses.  Since the devastation left behind from the Korean  
War in the early 1950's, the Republic of Korea (ROK) has matured and  
expanded into a bustling and thriving economy buttressed by political  
and macro-economic stability.    
The World Bank estimates that Korea was the twelfth largest economy in  
the world in 1993, and preliminary data indicate that Korea's GNP now  
exceeds that of Russia.  Korea is the sixth largest market for U.S.  
exports, and the eighth largest partner in two-way trade.  Overall US  
exports to Korea in 1994 totalled $21.6 billion, and are expected to  
pass $30 billion in 1995.  The fact that U.S. exports to Korea were  
twice that to China with 22 times less the population illustrates the  
importance of the Korean market.  
While the American media tends to highlight issues such as student  
demonstrations, construction accidents, the North Korean nuclear problem  
and trade disputes, it is important to recognize that in fact the  
domestic political situation has been stable enough to permit remarkable  
growth over the last generation.  While Americans planning to do  
business in Korea should continue to follow developments involving North  
Korea closely, they should realize that the North Korean threat has not  
served as a brake on South Korea's economic growth.  South Korea is an  
open society with a free press and a robust if recent democratic  
political system.  Therefore, negative images from the evening news  
shown in the United States should not obscure this important economic  
and political success story.  
U.S. manufactured goods related to infrastructure, high-tech goods, and  
consumables are expected to do well in the coming years.  Korea was the  
fourth largest market for U.S. agricultural, fishery and forestry  
products, importing $3.2 billion from the U.S. in 1994. The strongest  
future growth in the agricultural category will occur in consumer-ready  
food products.    
Because of rapid expansion and great potential for continued U.S.  
exports, the U.S. Department of Commerce recently designated Korea as  
one of ten Big Emerging Markets (BEMs).  The potential for businesses  
especially in the major projects area is immense.  The government of  
Korea has estimated its investment over the next three years at $100  
billion to improve its infrastructure system including a Seoul-Pusan  
high-speed rail project ($15 billion), a new international airport near  
Inchon ($4.7 billion), construction of additional nuclear and thermal  
power plants ($3 billion per annum until 2000), subway construction in  
five cities ($12 billion), seaport expansion ($10 to 20 billion), and an  
integrated super highway construction by 2015 ($50 billion).   
There are many opportunities in Korea, but problems still exist for  
outside businesses.  Korea has taken efforts to improve the protection  
of intellectual property rights, yet pirated and counterfeited products  
are still in the marketplace.  Government regulations, and the  
interpretation and enforcement of Korean laws sometimes seem arbitrary  
and inconsistent.  Korean "chaebol" conglomerates dominate the Korean  
market making competition for foreigners difficult. Customs clearance  
procedures and regulations in areas such as labelling, phytosanitary and  
non-phytosanitary standards, and quarantine are cumbersome and often  
serve as non-tariff barriers.    
President KIM Young Sam, recognizing the importance of international  
trade, has adopted a policy of globalization and liberalization.  Korea  
is a signatory to many international conventions including the Uruguay  
Round and its subsidiary agreements (including the Trade Related Aspects  
of Intellectual Property - TRIPs).  The Kim administration is working to  
liberalize historically restricted sectors.  For example many of the  
service sectors including distribution, telecommunications, banking and  
insurance are on their way to incremental deregulation as soon as 1996.   
Liberalization will also begin in the architectural, engineering, and  
construction sectors in 1997.    
The Organization of Economic Cooperation and Development (OECD) in its  
1994 report commended ROK on its recent macro-economic policy.  As an  
indicator of Korea's industrialized status, Korean GNP in 1995 is  
expected to surpass that of Russia and is already larger than the GNPs  
of Australia and Mexico. Despite anticipated annual average growth in  
excess of 8 percent in both 1994 and 1995, inflation is expected to  
remain steady at around 5 to 6 percent.  Consistent with the Korean  
government's policy of "globalization," the ROKG recently asserted  
confidence in its own industrial prowess by seeking membership in the  
OECD, a designation bestowed only to the most advanced, liberalized, and  
industrially developed nations.    
Despite existing problems in the commercial environment, the level of  
business activity in Korea is higher than ever before.  As a potential  
lucrative overseas export market, Korea should be considered among the  
top choices by American businesses when looking to expand overseas.  
The Korean economy is enjoying a period of sustained expansion and, as  
of June 1995, no major risks for economic stability are on the horizon.   
Real GDP rose an average 8.4 percent in 1994, and in the first quarter  
of 1995 was up 9.5 percent from previous year levels.  Industrial  
production during January-April 1995 grew at an 18.9 percent seasonally- 
adjusted annual rate. The expansion is investment-led, as the large  
conglomerates implement ambitious plans to modernize and expand  
facilities.  Exports, aided by the strength of the yen, remain brisk in  
1995, although imports, particularly of capital goods, are also booming.  
Consumption spending, which accounts for over half of total GDP, is  
growing along with optimism about the economy.  The U.S. Embassy  
predicts that real GDP growth will average 8.7 percent in 1995 and 6.5  
percent in 1996.  
Despite faster growth, inflation is expected to remain stable in the 5  
to 6 percent range.  In fact, consumer prices in the first quarter of  
1995 were up only 4.6 percent from the same period of 1994.  President  
Kim wants to hold inflation to under 5 percent  between December 1994  
and 1995, and the Bank of Korea intends to gradually lower money supply  
growth in 1995 in order to forestall overheating.  The ROKG also plans  
to tighten fiscal policy over the medium term.  
Within the context of a brightening macroeconomy, growth prospects vary  
widely across sectors.  Agriculture and mining are in sectoral decline,  
dependent on government subsidies and trade protection for survival.   
The energy sector, on the other hand, is booming, due to government  
plans to expand electric power production - both thermal and nuclear -  
and to diversify into imported LNG.  The manufacturing sector presents a  
mixed bag - heavy industries, such as chemicals, steel, autos, and  
electronics, are boosting capacity to meet strong domestic and export  
demand.  However, light industries, including textiles and footwear,  
have lost competitiveness due to past wage hikes.  Output by light  
manufacturing rose by only 3.1 percent in 1994, while that by  
petrochemicals and heavy manufacturers jumped 13.9 percent.  Even if the  
output levels of the smaller producers rebound more strongly in 1996,  
growth in the manufacturing sector will probably remain skewed toward  
capital-intensive enterprises.  The construction sector has  
traditionally been sensitive to ROKG stabilization policies, but demand  
for construction services will jump over the medium term due to a  
government program to encourage infrastructure development.  
The Korean service sector is growing more rapidly than the economy as a  
whole, and this differential may widen further if the ROKG follows  
through on its promises to deregulate the distribution,  
telecommunications, and banking and insurance sectors.  Overregulation  
and oligopolistic practices have kept productivity and technical  
innovation in most service categories low, so liberalization could spark  
substantial catch-up growth.  Value-added in the telecommunications  
sector will be enhanced by the introduction of new carriers and heavy  
hardware and software systems investment.  The ROKG hopes to modernize a  
distribution sector dominated by mom-and-pop style retailing  
establishments before it is opened to foreigners in 1996.  
Government role in the economy  
ROKG macroeconomic policy was lauded in a 1994 OECD review of the Korean  
economy.  Government spending and taxes as a share of GNP, as well as  
the fiscal deficit, are low by international standards.  Moreover, the  
quality of public expenditure is high, with an emphasis on education and  
public works rather than transfer payments.  The national savings rate  
has climbed dramatically since the ROKG made inflation control a  
priority in the early 1980s, and now roughly equals the gross investment  
ratio at about one third of GNP.  
At the microeconomic level, however, government intervention is  
extensive and costly in terms of economic efficiency.  The prices of  
many products are de facto controlled.  The ROKG allocates credit  
according to firm size and must approve all bond and stock issuances.   
Most overseas capital transactions are tightly controlled.  Investment  
and product safety regulations inhibit domestic competition and  
discriminate against foreigners.  ROKG task forces have been  
commissioned to rid the economy of obstructive and redundant  
regulations, but thus far progress has been marginal.  
The ROKG itself plays a direct role in the economy because a total of  
133 public enterprises account for about 10 percent of GNP.  The  
government admits that efficiency in the state sector is low, and a 1994  
privatization plan calls for selling off 58 of these firms by 1998, and  
closing another 10.  But the program is off to a slow start, and will be  
off grounds to foreigners who are prohibited from acquiring controlling  
shares in Korean enterprises.  
Due to surging imports, Korea's current account balance, which  
registered a $385 million surplus in 1993, shifted to a $4.8 billion  
deficit in 1994.  In January-April 1995 the deficit reached $4.3  
billion, compared to a $2.4 billion shortfall during the first four  
months of the previous year.  But the government is unperturbed by this  
red ink, arguing that the deficit is the result of rapidly growing  
capital goods and technology imports, which will improve competitiveness  
over the long term.  Moreover, the current account deficit as a share of  
GDP is less than 2 percent.  
Korea is a capital-importing country.  The surplus on the capital  
account was $8.9 billion in 1994, and $3.6 billion during the first four  
months of 1995.  As of the end of 1994 Korea's gross and net foreign  
debts amounted to $57.2 and $10.7 billion respectively.  Because net  
foreign debt equals less than 3 percent of GDP, debt management is no  
longer a significant issue for the ROKG.  Foreign exchange reserves  
totalled $27.3 billion at the end of April 1995.  
As tariff rates and quantitative restrictions on imports have fallen in  
Korea, nontariff barriers have become the chief concern of U.S. trade  
policy.  Importers commonly have difficulty with customs and quarantine  
clearance procedures, particularly for products deemed to be luxury  
goods.  Sanitary regulations have been employed to impede the flow of  
perishable imports - the Korean government's blocking of wheat and  
sausage imports underline problems in this area.  A major impediment to  
trade is the limitation of deferred payment terms to imports with tariff  
rates of 10 percent or less, which are generally raw materials and  
capital goods.  
Korea's average tariff rate of 8 percent in January 1994 is still high  
compared to those of OECD nations.  Moreover, tariff peaks are  
significant in some sectors, like agriculture.  Korea also uses so- 
called adjustment and emergency tariffs to cushion liberalized sectors  
like textiles.  
Korea has a poor reputation for attracting foreign direct investment -  
FDI flows as a share of GNP rank only ninth among Asian economies,  
behind poorer nations such as Malaysia, Indonesia, and the Philippines.   
Chronic complaints by U.S. firms operating in Korea involve restrictions  
on their ability to finance offshore and to purchase land; arbitrary  
treatment by Korean tax authorities; and violations of patents,  
trademarks, and copyrights, although in this latter area the Koreans are  
improving their legal regime and increasing enforcement.  Foreign  
investment through merger or acquisition is prohibited.  
The ROKG announced in mid-June 1994 a new program to attract FDI, which  
offers a one-stop approval service for prospective investors, expanded  
land availability for factory sites, financing incentives for high  
technology firms, and tax holidays.  This program has many promising  
elements, but the accelerated sectoral liberalizations promised under  
the program are hedged by joint venture requirements or other  
stipulations.  Under the new program foreigners will still be blocked  
from buying control of existing enterprises.  
Korea's well educated, 20 million-strong labor force is the nation's  
chief developmental asset.  Labor productivity in the manufacturing  
sector has grown at over 10 percent per annum during the 1990s.   
Unemployment has traditionally been low, and stood at only a 2.4 percent  
rate in April 1995.  The market is tight for skilled labor, and many  
firms complain about applicant shortages for technical positions.  
Wage demands are intensifying as the economy reaches full employment.   
Manufacturing wages rose an average 15.5 percent in 1994, compared to a  
10.9 percent advance in the previous year.  The ROKG is urging that  
large employers and unions forego outsized pay increases in 1995, but  
many companies are resorting to bonus and incentive schemes in order to  
circumvent government guidelines on basic pay.  During the first half of  
1995 illegal strike activity flared up at several large companies, but  
for the most part labor-management relations are proceeding smoothly.  
Major local and third country competitors in specific sectors  
The dominant position of conglomerates in the Korean economy represents  
a problem for foreign competitors.  "Chaebol" companies will purchase  
from "family" suppliers whenever possible.  Also, the ROKG encourages  
the "localization" of production and technology transfer when awarding  
public procurement contracts.  Therefore, successful marketing in Korea  
generally requires products, services, or technologies that are  
unavailable domestically.  Competition based chiefly on price terms is  
likely to prove disappointing.  
Despite Korea's position as an exporting center, the domestic capital  
goods industry is not world-class, resulting in a strong demand for U.S.  
manufacturing and electrical equipment, process controls, and customized  
machine tools.  Japan is our main competitor as a capital goods  
supplier, and regularly outsells the United States, despite a ROKG  
"diversification" program directed against Japanese imports.  U.S.  
aircraft and parts face no serious domestic competition, but Airbus has  
about a quarter of the civil aircraft market.  Large-scale power  
generation, both nuclear and thermal, is a U.S. success story in Korea,  
despite strong Canadian and European competition.  High tariffs, taxes  
linked to engine size, and past threats of tax audits have relegated  
U.S. and third country producers to a minuscule share of the booming  
domestic auto market.  The rapidly growing pharmaceutical market is  
dominated by domestic firms, and industry association and ROKG rules  
make foreign entry via direct sales or investment difficult.  The  
domestic chemical industry has greatly expanded its capacity in recent  
years, pushing foreigners into niche, specialty markets.  Korea Telecom  
has a history of favoring domestic suppliers, but, thanks to bilateral  
telecommunications agreements, the United States has made in-roads into  
the central switching market.   
Infrastructure situation regarding goods/services distribution  
While Korea advanced as a manufacturing center over the last two  
decades, its domestic infrastructure system remained relatively  
underdeveloped.  Korean industry now regards transportation and  
distribution bottlenecks as a major impediment to competitiveness.   
Ports, railroads, airports, and highways are stretched to capacity.   
According to the Korea Chamber of Commerce, the shares of total sales  
consumed by logistical and distribution expenses was 18 percent in Korea  
in 1991, compared to corresponding ratios of 14.5 percent in Japan, and  
12.4 percent in the United States.  The retailing and wholesaling  
network is inefficient and high cost due to regulations designed to  
protect small shop owners.  Modern retailing formats, such as discount  
stores, wholesale clubs, or European-style hypermarkets, are either  
unknown or new to Korea.  Until January 1996 foreign-owned chain stores  
will be prohibited, and foreign retailers will be limited to a maximum  
of 20 outlets, with floor spaces under 3,000 square meters.  An early  
liberalization in 1995 was allowed for foreign car dealerships.    
The ROKG is undertaking a massive program to upgrade the nation's  
infrastructure, which could involve about $100 billion in investment  
between 1993 and 1997.  The National Assembly has passed a bill that  
offers incentives for private investment in infrastructure development.  
A sample of the estimated price tags on the major infrastructure  
projects underway in Korea include: $15 billion for the Seoul-Pusan  
high-speed rail project; $4.7 billion for the first phase of the new  
international airport near Inchon; $3 billion per annum through the year  
2,000 to build nuclear and thermal power plants; $1.2 billion to  
construct LNG terminals and pipelines; $12 billion for subway  
construction in five cities; $20 billion for new express highway  
construction; and $10-$20 billion for seaport expansion.     
Korea's democratization, which began in 1987 with free presidential  
elections, has led to a mature, bilateral relationship as friends,  
partners and allies.  Korea and the U.S. share common democratic values  
and practices and are working together, both in the region and in the  
rest of the world, to advance democratization and human rights.  
The U.S. has a strong security relationship with Korea and is committed  
to maintaining peace and stability on the Korean peninsula.  The U.S. is  
obligated under the 1954 U.S.-Korea Mutual Defense Treaty to help Korea  
defend itself from external aggression.  In support of that commitment,  
the U.S. maintains about 37,000 uniformed men and women in the country,  
commanded by a U.S. four-star general who is also commander of the  
United Nations forces, including the Second Infantry Division and air  
force squadrons.  
The major political issue affecting the business climate is President  
Kim's push to globalize Korea in order to improve the country's  
international economic competitiveness.  The policy of globalization  
includes some market liberalization, but there are parts of the  
government bureaucracy that continue to significantly impede foreign  
imports.  In addition, there is nationalistic sentiment that colors  
popular attitudes against imports and foreign companies in Korea.  
Korea is governed by a directly elected President and a unicameral  
National Assembly that is selected by both direct and proportional  
elections.  The President serves five years and can serve only one term.   
National Assembly legislators are elected in a single election every  
four years.  
In February 1993, KIM Young Sam of the ruling Democratic Liberal Party  
(DLP) was inaugurated as the country's first chief executive who did not  
come from the military ranks in over three decades.  In his first year  
in office, President Kim, a former opposition leader, implemented  
sweeping political and economic reforms, including an anti-corruption  
drive, which represented a fundamental policy-break from the previous  
administration and ended the political careers of a number of key  
officials from that administration.   
Local elections were held in 1995 for the first time in over 30 years.   
Elections for the National Assembly's 299 seats will be held in 1996,  
followed in the next year by a presidential election.  Since 1990,  
following the three-party merger which produced the ruling Democratic  
Liberal party (DLP), Korea has essentially had a two-party political  
system, although smaller parties are also represented in the National  
Assembly.  The 1990 three-party merger combined the conservative ruling  
party with the party of the then opposition leader Kim, and a third  
minor party.    
The Democratic Party (DP) has been in the opposition since it was  
formed.  The DP holds, however, roughly a third of the seats in the  
National Assembly.  The party's main base of supporters are the people  
of the southwestern Cholla provinces, many of whom have moved to the  
Seoul-Inchon metropolitan area.  Traditionally, Cholla citizens have  
felt excluded from the country's power centers and discriminated  
against.  The opposition party's founder, KIM Dae Jung, declared at the  
end of 1992 that he was retiring from politics, but he still plays an  
active behind-the-scenes role.  National Assemblyman LEE Ki Taek  
currently is president of the DP party.  
Local representation is essential for foreign firms hoping to be  
successful in the Korean market.  This is especially true in a market in  
which business relationships are built upon personal ones, and in which  
much of the major third-country competition is only a few hours flight  
Distribution methods and the number and functions of intermediaries vary  
widely by product area and local conditions.  The market for most  
consumer products is concentrated in the major cities.  Retail  
distribution is accomplished through a highly complex network of  
outlets, the majority of which are small family-run stores, stalls in  
markets or street vendors.  There are many large department stores in  
Seoul and Pusan, which represent one of the best means to get foreign  
products before consumers.  Lately, retailing concepts such as the  
general merchandising and CVS chain store, shopping centers and high- 
volume discount stores ("hypermarkets") have been attracting interest.   
Modernization of the distribution system is coming as a result of Korean  
government deregulation and incentives for this sector as well as the  
appreciation by the major conglomerates of the great promise which this  
long-neglected sector holds.  The current interest in this sector offers  
not only the promise of a more efficient distribution system offering  
greater accessibility to imports but also business opportunities in the  
near term to U.S. wholesaler/retailers and those firms servicing the  
distribution industry with logistics and automation technology.  
The most common means of representation include: appointing a registered  
commission (or "offer") agent on an exclusive or non-exclusive basis,  
naming a registered trading firm as agent, and establishing a branch  
sales office managed by home office personnel.  
Only traders registered by the government are authorized to import goods  
in their own names.  Appointing a registered trader (rather than an  
"offer agent") as agent has the advantage that such agents can handle  
all the paperwork of importing and import for their own account.  As the  
registered traders tend to be larger firms and to split their business  
between exports and imports, however, they may be less attentive to  
building the U.S. supplier's business.  Similarly, while the general  
trading companies may be influential and well known in the market, they  
also may not devote as much attention to a single principal as do  
smaller firms.  
A good place to begin for U.S. suppliers is with the screening of agent  
candidates, offered for a fee through the district offices of the U.S.  
Department of Commerce and carried out by the industry specialists of  
FCS Seoul's local staff.  Upon receipt of an annotated listing of  
potentially qualified representatives, the next logical step is to plan  
a visit to Korea, perhaps calling upon FCS Seoul to arrange market  
briefings, a meeting schedule, an interpreter/secretary and office space  
under the fee-based Korea Gold Key (or special Green Key program for  
environment-related firms) service.    
Another good resource is the Association of Foreign Trading Agents of  
Korea (AFTAK), a 24-year old private trade association established under  
government auspices as the only entity dedicated to increasing imports  
into Korea.  Under Korean law only companies who have registered with  
AFTAK are allowed to present sell offers in Korea on behalf of foreign  
suppliers.  As of June 1994 8,600 Korean agents and distributors,  
together representing some 11,000 American firms, were members of AFTAK.   
On average AFTAK members account for about 82 percent of all of Korea's  
imports.  To fulfill its mission of promoting balanced trade, AFTAK  
helps execute Korea's import diversification (away from Japanese  
sources) plan, leads annual purchasing missions to the U.S., Latin  
America and Europe, and holds monthly meetings between member agents and  
foreign commercial officers (including FCS Seoul).  
American businesses can contact AFTAK by sending their catalog with a  
letter specifying the items for which they are seeking an agent or visit  
the AFTAK office directly.  Catalogs are displayed in the AFTAK library  
and inquiries are published free of charge in the associations monthly,  
AFTAK TRADE NEWS.  Contact: AFTAK, Address: Dongjin Bldg., 218, Hangang- 
ro 2-Ka, Yongsan-Ku, Seoul 140-012, Korea  Tel: 82-2/792-1581 ext. 231,  
Fax: 82-2/785-4373.  
For American firms whose interests include sourcing Korean products for  
import into the U.S., the Korea Trade Promotion Corporation (KOTRA), a  
non-profit government-affiliated organization which functions as the  
rough counterpart of the US&FCS, is a prime resource.  In addition to  
its headquarters in the Korea World Trade Center, KOTRA maintains seven  
Korea Trade Centers in Chicago, Dallas, Los Angeles, Miami, New York,  
San Francisco and New York.  KOTRA's general referral number is: 1-800- 
The franchising industry is developing rapidly in Korea and is expected  
to grow continuously with the full opening of the distribution market in  
January 1996.  Franchising businesses will increase due to growing  
consumer demand for variety and well-known brands.  Growing income  
levels, a desire for convenience and luxury, and increased numbers of  
the relatively wealthier older generation will be major factors  
affecting the franchise service market in Korea.   Best prospects in  
franchising will be fast food/family restaurants, retailing, hotels,  
automotive parts and service, travel, and amusement businesses.   
Franchise agreements involving licensing and royalty payments are  
considered as technology inducement under Korean law.  Technology  
inducement is regulated by the Foreign Capital Inducement Act and  
requires report acceptance by the ministry responsible for the  
particular industry.  However, effective July 1, 1994 franchise  
agreements involving solely foreign direct investment without royalty  
payments need only report to any Korean commercial banks which deal with  
foreign exchange.   
Door-to-door sales is a well established practice in Korea for  
everything from books and cutlery to water purifiers and yoghurt drinks.   
Catalog and mail order businesses are in their infancy.    
The main problems in direct sales in Korea have centered upon  
restrictions placed on multi-level sales (MLS).  Over the past three  
years Korean authorities have criticized MLS as an undesirable or  
inappropriate business form for Korea, one which is prone to consumer  
safety negligence, "excessive" profitability, or abuse of the tight  
Korean social fabric through "pyramid schemes."     
To check the rapid inroads by multi-level sellers, notably U.S. firms  
active in the areas of health and cleaning products, the Korean Door-to- 
Door Sales Act was implemented in late 1991.  In addition to being  
arguably the world's most restrictive laws on multi-level sales, certain  
provisions were vague or contradictory and led to criminal charges being  
brought against two American companies.   MOTIE pushed to revise the law  
in the fall of 1994 to bring it more in line with international norms.   
As a result, a new Door-to-Door Sales Act went into effect July 1995.  
This new law contains provisions that effect distribution and training  
and compensation. For more information, please contact FCS Seoul  
Approval of foreign investment is controlled by the Ministry of Finance  
governed through the Foreign Capital Inducement Act (FCIA).  Depending  
on the nature of the investment, other Korean Ministries might also be  
involved in the approval process.  
Selecting the appropriate partner is one of the most difficult and  
crucial aspects of initiating a joint venture in Korea.  Although the  
chaebols still exercise considerable influence, the Korean Government's  
policy shift toward support of small and medium sized businesses means  
that the participation of a chaebol in a joint venture could create  
additional obstacles in terms of obtaining necessary approvals and local  
financing.  Also, the chaebol's tend to be insistent on operating a  
joint venture in accordance with the overall policies and business  
culture of the group, sometimes to the detriment of the foreign  
shareholder's interest.  
Compatibility of goals between the partners is a crucial element to the  
joint venture's success.  Conflicts often arise because of the conflict  
between the foreign investor's goal of sending profit dividends offshore  
and the Korean investor's goal of growth of the company in Korea.   
Korean attitudes are rooted in social and cultural factors, such as an  
aversion to excessive profits and a continuing family orientation on the  
part of many companies.  Seeking an agreement in advance on the joint  
venture company's dividend policy is a way to help alleviate this  
To Koreans, a contract represents the current understanding of a "deal."   
The contract is viewed as a written expression of that understanding at  
the time of its execution.  If there are omissions or points that do not  
accurately express the understanding of the original deal under changing  
circumstances, then problems will arise.  The same is true if the  
contracting parties change.  This has led many foreigners to believe  
that Koreans do not place the same importance on a written contract as  
we do.  Therefore, contract negotiations with Koreans should be viewed  
as a process of extensive dialogue with the objectives of (1) reaching a  
common understanding on the deal and of each party; (2) putting that  
detailed understanding on paper; and (3) being prepared to modify the  
meanings of the terms afterwards as conditions change.  
Management control must be evaluated on three levels: 1) shareholder  
equity; 2) representation on the board of directors; and 3) active  
management (Representative Director and subordinate management).  Since  
board meetings in Korea can only be legally held by a physical meeting  
of a quorum of the directors, if a foreign investor intends to exercise  
day-to-day management by appointing a Representative Director, that  
individual must be expected to reside in Korea.  Also, in order to carry  
out the intentions of the foreign investor, the Representative Director  
will need the support of key functional areas of the company which are  
crucial to those intentions.  Therefore, the detail of the internal  
organization of a joint venture company should be settled and key  
management appointments agreed upon in the early stages.  
Certain terms of the commercial relationship between the joint venture  
and the partners, such as technology transfer, raw material supply,  
marketing and distribution, should be agreed upon in detail concurrently  
with the negotiation of the joint venture agreement.  
Under the Foreign Capital Inducement Act, the foreign investor need only  
report a license agreement to the concerned ministry.  However, the  
Korean Government (particularly the Fair Trade Office) may require  
changes in the terms of the agreement and may show interest with basic  
commercial terms, such as the amount of royalties.  Often these changes  
are requested retroactively when a financial commitment has already been  
Land Purchase: The Korean Government has recently expanded the scope of  
land that foreign investors can purchase, as well as streamlined the  
land acquisition procedures.  Land acquisition by foreigners is governed  
by the Enforcement Decree of the Alien Land Acquisition and Management  
Law.  Administrative guidance is then given on the renting and use of  
the purchased land.  Under this law, foreign invested companies (more  
than 50 percent foreign ownership is considered foreign) are also  
required to obtain approval from the heads of local governments in order  
to buy land.  Land acquisition by foreign invested companies operating  
manufacturing businesses are now only subject to notification instead of  
approval.  Finally, foreign invested firms can now purchase a maximum of  
660 square meters of land for housing management and staff.  
Rental Rates:  The rental rates for office space in Seoul, by  
comparison, are not as high as East Asian capitals such as Tokyo or Hong  
Kong, but are generally higher than New York or San Francisco.  The  
American Chamber of Commerce in Korea maintains a referral list for real  
estate and relocation firms in Seoul who can be consulted for current  
rental rates.  A recent spot survey indicated a range of rents in  
popular Seoul commercial buildings from $44-$106 per pyong (equal to 3.3  
square meters).  These rates are inclusive of maintenance fees and based  
upon gross floor area, which includes common areas.  Another major cost  
item is the substantial deposit payment (or "key money"), a one-time  
charge which is refundable without interest upon termination of a lease,  
required by almost all landlords.  Deposits for the rentals quoted above  
range from $313-$863 per pyong.  Office parking is another scarce  
commodity in Seoul, with monthly charges in the $31-$338 range.  
Location: Foreign companies in Seoul tend to cluster in perhaps four  
well-known districts: City Hall -- the old downtown where the U.S.  
Embassy and a few Korean ministries can be found; Yoido -- the  
"Manhattan Island" in the Han River where the financial firms and the  
National Assembly are located; Kangnam -- the expansive, bustling, new  
city center south of the river which also includes the World Trade  
Center complex; and the Mapo district -- halfway between Yoido and City  
Hall.  While taxis and rush hour traffic are an ongoing source of  
frustration and delay, Seoul has an excellent public transportation grid  
such that newly arriving firms can freely consider various location  
Personnel:  The complete dedication to the company by Korean workers is  
slowly disappearing.  Company loyalty does still exist but these  
attributes and high productivity do not result automatically.  The  
employer, if foreign, must first earn the respect of his/her Korean  
employees.  Foreign managers have had success using recognition and  
increased pay for increased productivity, but the more basic  
requirements of earning loyalty, respect and friendship gained by the  
foreigner's own personal efforts will pay greater dividends.  Often,  
Koreans view the long-term prospects of advancement in a smaller foreign  
company less appealing than those in a larger permanent Korean company.   
Attractive factors to local workers can include higher salary, higher  
position earlier in one's career, opportunities for travel, the chance  
to learn and use English, and the opportunity for transfer to the home  
office or other foreign branch office.  Korea also has a large pool of  
conscientious, highly educated woman workers who usually cannot find  
equivalent employment in Korean companies due to traditional cultural  
attitudes towards women in the work force; where little opportunities  
for professional advancement in Korean traditional companies exist,  
Korean women, in general, would welcome a career opportunity should a  
foreign firm make a good offer.  
Three practices are essential to success in the Korean market: adapting  
products and procedures to Korean tastes and conditions, staying in  
close communication with Korean business partners and customers, and  
consistently exhibiting a firm commitment to the Korean market.    
In selling to manufacturers, personal contact is important not only  
because of the value placed on direct discussion and on building long- 
term relationships but also because such contact brings the end-user in  
touch with new processes and equipment.  In light of the competition  
offered by Japanese suppliers, who often visit potential and existing  
customers throughout Korea, U.S. suppliers should consider (1) making  
visits to Korea to augment the efforts of the local representative; (2)  
bringing representatives back to the home office periodically to ensure  
they are fully informed, motivated and up-to-date on the supplier and  
its offerings; (3) holding more demonstrations, seminars and exhibitions  
of their products in Korea, utilizing the facilitates at FCS Seoul; (4)  
increasing the distribution of technical data and descriptive brochures  
(the American Business Center can assist with catalog displays,  
translations and mailings); and (5) improving the follow-up on initial  
sales leads.  
The Korean Government began a phased liberalization of its domestic  
advertising industry in 1987.  By 1991, the market was completely opened  
to 100 percent foreign equity participation.  As a result, a large  
number of joint venture agreements between major international  
advertising agencies and local Korean advertising firms were  
established.  Today, all the major international agencies are present in  
Total expenditures on advertising in Korea, which includes broadcasting,  
print media, out-bound (overseas), outdoor advertising, sales promotion  
and production, amounted to W2,816 billion in 1992, representing an  
increase of 17.6 percent over 1991.  Television advertising expenditures  
were W836 billion, magazines W121 billion and newspapers W1,141 billion.  
A shortage of television air time has contributed to a consistent  
inability for advertisers to obtain sufficient time to advertise their  
products.  There are two established broadcast networks in Korea, KBS I  
and KBS II, which are Korean government owned and operated.  Two other  
networks, MBC and SBS, are independent.  All four networks' advertising  
time is sold through the exclusive government selling organization,  
Korea Broadcast Advertising Corporation (KOBACO).  KOBACO controls  
broadcasting advertising by designating official broadcasting  
advertising agencies each year.  KOBACO charges a 20% commission on all  
broadcast advertising and rebates 11% to the approved agencies.  
Under previous KOBACO regulations, any advertising time purchased prior  
to January 1990 could be held indefinitely by the advertiser, or by an  
advertising agency on behalf of its client.  This is known as "Locked  
Time" and is sold on 52 week basis irrespective of client or product  
seasonality.  In 1992, advertising expenditures in Korea broadcast media  
represented 34% of total advertising expenditures; between 70% and 90%  
of this time was still held under the Permanent Time category, with the  
majority of this by large Korean advertisers.  If an advertiser ever  
relinquishes his Permanent Time, any new time can only be purchased on a  
three-month maximum basis, known as temporary time.  
In order to alleviate discrimination against new competitors, KOBACO has  
eliminated locked time for "spot" or "short piece" advertisements as of  
January 1, 1995.  As a result, the ratio of locked time to total prime  
and semi-prime advertising time was reduced to 45.8 percent as of  
January 1, 1995.  
KOBACO will continue to review further actions it will take so that by  
the end of 1995 locked time will be eliminated for all television  
stations as well as for all radio stations.  Toward this end, KOBACO is  
currently considering appropriate allocation systems to replace the  
locked time system, and will decide this matter in the autumn of 1995.  
However, Korean has taken, or will take, the following actions aimed at  
alleviating the current excess demand for prime advertising time: (1)    
Commercial time on television was increased from 8 percent to 10 percent  
of total television broadcasting time as of October 15, 1994; (2) Cable  
television service has been introduced as of March 1, 1995; and (3) Four  
regional television stations will begin operating as of May 1995.  
In the print media, newspapers and to a lesser extent magazines, operate  
a cartel pressure system to ensure that all newspapers get a share of  
advertisers' budgets irrespective of their efficiency.  Lack of  
circulation data has allowed newspapers to group themselves into major  
and minor groups: advertisers are expected to utilize all newspaper  
within a group and not to use one group to the exclusion of others.    
In most cases, when a local advertiser selects its advertising agency,  
the choice of local firm or multinational is usually pre-determined by  
the characteristics of the product.  Thus, the multinationals often  
compete among themselves.  In this business, cultural differences are  
frequently mentioned as a limiting factor for multinationals.  Also, the  
strict censorship system in the local broadcast advertising field is  
another difficulty in the Koreanization of multinational advertising.   
The Korean Broadcasting Commission is the responsible governmental  
authority.  On the other hand, the Korea Advertising Review Board (KARB)  
was established in 1991 under the control of the Korea Advertisers  
Association as a self-control organization in order to protect  
advertisers and ad agencies.  The KARB, which is organized by  
advertising associations, societies and industry associations, completed  
work on advertising review regulations in 1991.  
Payment practice in the advertising field is divided into two types: 1)  
commission basis in the case of TV, radio, newspapers and magazines  
advertising, and 2) fee basis in the case of advertising production.   
Commissions generally range between 7 to 15 percent.    
Seoul has a world-class trade resource known as the Korea World Trade  
Center (KWTC).  The KWTC consists of the 55 story Trade Tower and the  
Korea Exhibition Center, popularly known as "KOEX," which contains two  
large halls and an annex.  
The Trade Tower houses the offices of the Korea Trade Promotion  
Corporation (KOTRA), a wholly-owned corporation of the Korean Ministry  
of Trade, Industry and Energy.  KOTRA is the main trade promotion  
organization of the Korean Government and has 81 offices throughout the  
world.  The Korean Foreign Traders Association (KFTA), Korea's largest  
and most important trade association, are also located in the Trade  
KOEX is a profit-making, wholly-owned subsidiary of KFTA.  It contains  
over 335,000 square feet of usable space, making it the largest trade  
show venue in Korea.  The exhibition center hosts roughly 100 major  
trade shows a year, one third of which are organized by KOEX.  An even  
larger exhibition hall is being constructed in Pusan and is scheduled  
for completion in 1997.  This new hall will more than double Korea's  
trade exhibition capacity.  
Kuk Min Ilbo  
(Korean newspaper)  
Tel: 705-4815/6  
Fax: 705-4814  
Address: 371-16, Shinsa-dong  
Mapo-ku, Seoul 121-110 Korea  
Dong Ah Ilbo  
(Korean newspaper)  
Tel: 721-7755  
Fax: 721-7787  
Address: 139, Saechong-ro  
Chomgro-ku, Seoul 110-050 Korea  
Maeil Kyungjae  
(Korean newspaper)  
Tel: 295-8070  
Address: 1-51, Pil-dong  
Chung-ku, Seoul 100-271 Korea  
Chosun Ilbo  
(Korean newspaper)  
Tel: 724-5824  
Fax: 724-5809  
Address: 61, 1-ka, Taepyung-ro  
Chung-ku, Seoul 100-75 Korea  
Chungang Ilbo  
(Korean newspaper)  
Tel: 751-5156 Fax: 724-5809  
Address: 7, Soonhwa-dong  
Chung-ku, Seoul 100-130 Korea  
Seoul Shinmun  
(Korean newspaper)  
Tel: 735-7288  
Fax: 732-7557  
Address: 1-25, 1-ka, Taepyung-ro  
Chung-ku, Seoul 100-101 Korea  
Hankuk Ilbo  
(Korean newspaper)  
Tel: 724-2802  
Address: 14, Chunghak-dong  
Chongro-ku, Seoul 110-150 Korea  
Seoul Kyungjae Shinmun  
(Korean newspaper)  
Tel: 724-2858  
Fax: 734-9009  
Address: 19, Chunghak-dong  
Chongro-ku, Seoul 110-150 Korea  
Korea Times  
(English newspaper)  
Tel: 723-1623  
Fax: 723-1623  
Address: 14, Chunghak-dong  
Chongro-ku, Seoul 110-150 Korea  
The Daily Trade News  
(English newspaper)  
Tel: 551-1567  
Fax: 551-5400  
Address: Korea World Trade Center  
159-1, Samsung-dong  
Kangnam-ku, Seoul 135-757 Korea  
Korea Herald  
(English newspaper)  
Tel: 756-7711  
Fax: 773-8130  
Address: 1-12, 3-ka, Hoehyun-dong  
Chung-ku, Seoul 100-053 Korea  
Sankyung Ilbo  
(English newspaper)  
Tel: 364-4924  
Fax: 364-8880  
Address: Seodaemun-ku, Bukahyun-dong 221-7  
Baeksam Building 120-190  
Business Korea  
(monthly magazine)  
Tel: 744-4010  
Fax: 745-3232  
Address: 66-21 Wonnam-dong  
Chongo-ku, Seoul 110-450 Korea  
Korea Economic Daily  
(daily newspaper)  
Tel: 360-4114  
Fax: 319-6016  
Address: 441, Chunglin-dong  
Chung-ku, Seoul 100-360 Korea  
Korea Economic Report  
(monthly magazine)  
Tel: 783-5283  
Fax: 780-1717  
Address: Suit 603, Shinsong Bldg.  
25-4 Yoido- dong, Youngdungpo-ku  
Seoul 150-010 Korea    
The Korea Economic Weekly  
(weekly newspaper)  
Tel: 360-4636  
Fax: 392-8773  
Address: Room 402, Soonwha Bldg.  
Soonwha-dong, Choong-ku   
Seoul, Korea  
Korea Trade and Investment  
(bi-monthly magazine)  
Tel: 551-4262  
Fax: 551-4290  
Address: #1202 Korea World Trade Center  
159 Samsung-dong Kangnam-ku  
Seoul 135-729  
Travel Trade Journal  
Address: 66-21 Wonnam-dong  
Chongro-ku, Seoul 110-450 Korea  
U.S. goods have a reputation among Korean buyers for quality and  
performance; yet Koreans tend to be very price conscious and often  
regard the U.S. label as too expensive.  In an export-oriented economy  
where finished products must be able to meet keen competition in the  
world market, many local manufacturers believe that it is essential to  
buy raw materials and equipment from the cheapest source.  Goods from  
Japan and elsewhere are frequently considered to be better buys, even  
though their quality and durability may be acknowledged not to match  
that of the American item.  As Korea continues to move toward higher-end  
and often manufacturer-branded exports -- as well as to combat  
perceptions of poor quality control of certain Korean products in recent  
years -- the precedence given to price as a buying factor may be  
somewhat tempered.  Another characteristic of Korean price  
considerations is the tendency to bundle and often under-value the  
"software" or engineering component, particularly in the procurement of  
major systems.  
U.S. exporters might consider (1) adapting their products to Korea by  
marketing basic units; (2) taking into account in their price  
quotations, as their competitors do, the repeat business generated by  
the demand for spare parts and auxiliary equipment; and (3) emphasizing  
and selling the idea that superior quality of U.S. products ultimately  
results in lower production costs.  
Sales and after-sales service rank just after selection of the  
appropriate product or service and in-country representation in  
determining the success over time for U.S. suppliers to the Korean  
market.  Just after the Korean War, when foreign exchange was  
exceedingly scarce, Korean plant operators learned to rely on their own  
resources or on the many small machine shops to service machinery.  The  
tradition of self-reliance and improvisation remains, but, with heavy  
competition among foreign suppliers in the Korean market, servicing has  
become a much more important part of selling.  
Japan's proximity to Korea (not to mention cultural affinities which  
transcend deep political animosities) allow already stiff competitors  
from that country to send teams of specialists at little cost to offer  
skilled advice in installation, maintenance and repair.  U.S. firms  
should consider establishing regional servicing facilities that can  
effectively service and support equipment sold in Korea.  Short of that,  
the emphasis given recently by some American firms on training  
personnel, often through programs in the United States, has proved  
Private traders and offer agents often have engineers available to  
install equipment.  For specialized installations, however, the best  
sources of assistance include government laboratories and resident  
foreign engineers whose services are available for contract.  
The Office of Supply, Republic of Korea (OSROK) supervises procurement  
by government agencies and most of the state-owned firms in which the  
government holds a majority share.  (Korea Telecom and Korea Electric  
Power Company are the two largest entities not covered by OSROK  
procurement).  OSROK covers roughly one-half of the total of Korean  
government non-defense procurement, valued at estimated $8.25 billion  
annually -- the eighth highest in the world.   
Government procurement needs are formulated by the ministries and  
agencies concerned, then screened by the Ministry of Trade and Industry  
to determine if the needs can be met by local sources.  If not, MOF  
allocates the necessary foreign exchange.  To encourage Korean firms to  
develop the needed technologies, OSROK has been releasing three-year  
forecasts of major requirements in April of each year.  (In the past,  
the "shopping list" was led by electronic switchboards, diesel  
locomotives/railway cars, circuit breakers, and various types of cables  
and electric wires).  The system thus discriminates against all foreign  
suppliers in cases where goods or services are available domestically.   
However, foreign-invested companies manufacturing in Korea can qualify  
as a "domestic sources."  It is estimated that total foreign procurement  
for 1994 was valued at about $950 million.  
Foreign purchases are financed either by government-owned foreign  
exchange (KFX) or by loan and credit funds from international financial  
organizations and foreign aid programs (IBRD, ABD, OECF, etc.).  The  
invitation to bid specifies the source of financing.  Worldwide bidding  
under open, formal procedures is the norm, although occasionally OSROK  
is obligated to purchase under negotiated contract, as in the case of  
spare parts for specialized equipment.  Specifications are drawn up by  
the requesting agency, which frequently consults with the Korean  
representatives of foreign suppliers.  Thus, for American businesses to  
effectively participate in the Korean Government market, it is very  
useful to have a local representative.  
Invitations for bids are announced every ten to fourteen days in the  
local English-language newspapers and mailed to the Commercial Section  
of the American Embassy in Seoul and OSROK's procurement officers  
overseas.  In the United States businesses may contact the Procurement  
Officers located in the Korean Consulates General in San Francisco and  
New York.  They will also make available on request annual procurement  
plans and bid forms and instructions.  If an American firm wishes to bid  
directly from the United States, the bid must be certified by the Korean  
Consulate General or chamber of commerce located in the firm's area.   
Further, American suppliers not bidding through an OSROK-listed agent  
must register themselves with OSROK prior to completing the contract.   
Generally, the deadline for receiving bids is 40 calendar days after the  
invitation to bid is issued.    
As a result of a series of U.S.-Korea telecommunications talks begun in  
1992, the Korean government agreed to gradually open the procurement  
market (OSROK, KT and MOC) for telecommunications goods and services  
under the principles and procedures embodied in the GATT Government  
Procurement Code.   
Pressure for this special opening had built because Korea is not a  
signatory to the GATT Government Procurement Code.  However, Korea  
applied for accession in May 1990 to a possible new, expanded code.   
Accession would increase opportunities for American firms bidding on  
Korean government projects and qualify Korean companies to bid on U.S.  
Government-funded procurement covered under the Code.  
Most experts advise engaging a local attorney before making major  
business decisions in dealing with Korean companies.  The legal advice  
that Korean firms with international experience can provide can be very  
important.  In addition to advice on structuring deals or arranging  
contracts, Korean firms are usually well plugged into the power  
structure and have extensive contacts in the government ministries whose  
approval often means life or death to the foreign company.  A list of  
well-known attorneys is maintained at the Embassy's Commercial Section.  
Although it is important to have legal representation when your business  
in Korea reaches even a modest level of complexity it is important to  
remember two things.  First, the Korean law firm's capabilities will go  
well beyond strictly legal work and will likely include functions more  
often performed by consultants or public relations firms in the United  
States.  Second, although major Korean firms have extensive and  
excellent contacts with the Korean bureaucracy, for anyone planning long  
term business involvement in Korea, it is often useful to establish  
direct contacts with the officials who oversee any given industry.  
                        AND INVESTMENT  
Best Propects for Manufactured Products  
1. Rank of Sector:  1  
   ITA Industry Code:  ELP  
2. Comments: Korea's large scale industrial expansion program and infra- 
structure projects creates a continuous strong demand for electric  
power, as does the growth of a consumer life-style which demands more  
electric power consuming appliances.  Although the state-owned power  
company KEPCO plans to double electric power generation capacity from  
30,000 MW to 60,000 MW over the next 10 years, increased construction of  
power plants (nuclear, thermal, and combined cycle) is barely keeping  
pace with the country's energy needs. The amount of power generation  
equipment purchased by KEPCO will steadily increase as KEPCO constructs  
34 planned power plants (6 nuclear, 12 thermal, 16 combined cycle).  
The most promising subsectors:  
   Nuclear Power Generating Equipment  
   Thermal Power Generating Equipment  
   Transmission/Distribution Equipment  
3.   Statistics (US$ millions)  
                                    1994        1995(E)    1996(E)  
A.   Total Market Size              3,955       6,255      5,205     
B.   Total Local Production         2,082       3,290      2,738     
C.   Total Exports                     10          12         14     
D.   Total Imports                  1,873       2,965      2,467     
E.   Imports from U.S.              1,100       2,075      1,727     
F.   Exchange Rates                   780         803        800     
   * The above statistics are unofficial estimates.  E=Estimated.  
1. Rank of Sector: 2  
   Name of sector: AIRCRAFT AND PARTS   
   ITA Industry Code: AIR   
2. Comments: Following the successful licensed production of UH-60 Black  
Hawk helicopters and F-16 Fighters under the Korea Fighter Program  
(KFP), Korea is now attempting to develop its aircraft industry through  
a huge investment by major Korean conglomerates ("chaebol").  In  
addition to this attempt to develop the aerospace industry as a key  
industry for the next century, follow-up activities such as investment  
in production facilities and expertise building in this industry have  
also received heavy emphasis.  Other factors for expanding the Korean  
aircraft industry include: the New Seoul International Airport  
development, a project for 100-seat passenger aircraft development with  
China, local production plans for helicopters, and the opening of the  
ground support/service market in 1996.  The two national carriers,  
Korean Air Lines (KAL) and Asiana Air (AAR), are implementing their  
procurement plan for a total of 44 aircrafts.  This procurement is  
expected to start in 1996 and to be completed by 1999.  The estimated  
cost for this procurement is approximately USD 5,500 million.  A recent  
procurement contract for a total of 12 Boeing vessels, including 4 B777- 
Stretches, is an example of the promising nature of the Korean market.  
The most promising subsectors:    
   -General Aviation  
   -Aircraft Parts  
3.   Statistics (US$ millions)  
                                      1994       1995(E)    1996(E)  
A.   Total Market Size                3,087      3,989       4,707   
B.   Total Local Production             737      1,009       1,342  
C.   Total Exports                      433        563         727  
D.   Total Imports                    2,350      2,980       3,365  
E.   Imports from the U.S.            1,762      2,265       2,655  
F.   Exchange Rates                     780        803         800  
   * The above statistics are unofficial estimates.  E=Estimated.  
1. Rank of Sector:  3  
   Name of sector: TRANSPORTATION SERVICES        
   ITA Industry Code: TRN  
2. Comments: Due to the rapid increase in transportation volume in the  
Korean market, the Korean transportation market has been growing at over  
16 percent since 1990.  This market reached USD 31 billion in 1993, USD  
34 billion in 1994.  Estimates put this year's market at approximately  
USD 40 billion.  The volume of container cargos for export/import  
reached about 2.9 million TEU last year with a 15 percent growth over  
the previous year.  In accordance with the anticipated liberalization of  
the Korean transportation market in 1996 (which includes inland trucking  
service and airfreight forwarding service), the Korean government is  
making huge investements in transportation facility projects.  These  
major projects include: the development of ports / airports / roads and  
railways with a modernized cargo handling system, expansion of the  
current cargo terminals at sea/airport terminals, construction of  
Integrated Freight Terminals (IFT), and the establishment of Inland  
Container Depots (ICD) in major Korean cities.  Furthermore , the 24th  
International Federation of Freight Forwarders Associations (FIATA)  
World Congress will be held this Fall in Seoul.  Along with this event,  
it is expected that there will be more investments by foreign firms  
expanding their transportation service business in the Korean market.  
The most promising subsectors:    
   -Maritime service  
   -Aviation Service  
   -Port/Airport Service   
   -Light Electric Railway Service  
3.   Statistics (US$ millions)  
                                        1994       1995(E)  1996(E)  
A.   Total Sales                       35,710      39,650   44,380  
B.   Sales by Local Firms              30,820      33,792   37,250  
C.   Foreign Sales by Local Firms      12,980      14,840   16,730  
D.   Sales by Foreign-owned Firms       4,890       5,858    7,130  
E.   Sales by U.S.-owned Firms            813       1,100    1,426  
F.   Exchange Rates                       780         803      800  
   * The above statistics are unofficial estimates.  E=Estimated.  
1. Rank of sector:  4  
   ITA industry code :  CPT    
2. Comments: The Korean market for computers and peripherals will  
continue to expand as modernization of information processing and  
innovations in management continue in the principal facets of the  
government, financial, and industrial sectors.  Computer peripherals,  
such as high-capacity hard disk drives (HDDs), CD-ROMs and high-speed  
laser beam printers (LBPs), are also increasing in popularity with the  
proliferation of high capacity engineering workstations (EWS) and  
Pentium PCs.  The trend toward networking and decentralization among  
advanced private sector computer users will also spark significant  
demand for other related peripherals for a wide rage of applications.   
Improvements in the price/performance of PCs and the broadening base of  
supporting technology around the client/server model of computing are  
creating compelling alternatives to traditional mainframe solutions.   
The U.S. is the principal supplier to Korea.  The growing market,  
however, has led to increased competition from third country suppliers,  
mostly European and Japanese.  Technology of local products is  
relatively high, particularly in the PC subsector, but is not expected  
to be any major challenge to foreign suppliers.  U.S. suppliers should  
continue to intensify their sales efforts now if they are to capture  
Korean users' loyalty in anticipation of the eventual expansion of the  
local market.   
3.  Statistics (US$ millions)  
                                   1994      1995(E)   1996(E)  
A.   Total market size             2,843.3   3,096.3   3,405.9  
B.   Total local production        4,410.9   4,852.0   5,337.2  
C.   Total exports                 2,894.9   3,242.3   3,596.3  
D.   Total imports                 1,327.3   1,486.6   1,665.0  
E.   Imports from the U.S.           570.6     684.7     782.6  
F.   Exchange Rates                  804.0     762.0     762.0  
Special notes:  The above statistics are unofficial estimates.   
1. Rank of sector:  5  
   ITA industry code :  TEL    
2. Comments: Korea is one of the fastest growing telecommunications  
markets in the world.  Opportunities will unfold over the next several  
years for U.S. sales of communications equipment and systems as economic  
restructuring and deregulation in the telecommunications sector  
accelerate in Korea and the Korean government loosens its monopoly  
control on the telecommunications sector.  In addition, the Korean  
government has recently lifted major technical barriers to imports of  
all customer premises equipment to be attached to the public  
telecommunications networks (PSTN and PSDN).  Korea started broadcasting  
its first CATV channels in April 1995.  There will be one more cellular  
telephone service provider by early 1996.  Korea also plans to invest  
approximately $50.0 billion to build an integrated information super  
highway system by 2015.   Sales prospects are bright, particularly for  
cellular telecomm equipment, broadcast equipment including CATV  
Equipment, and satellite communications equipment.  Local producers have  
captured the broad middle segment of the market for high demand/volume  
types of products, while U.S. suppliers have maintained their dominant  
technologically competitive postion in Korea, controlling the  
specialized equipment market.   U.S. firms can benefit from Korea's  
rapidly growing telecom market, as Korea expands its telecom networks  
and explores ISDN features.  Since the technology of local product is  
relatively high, the highest quality is expected from U.S. equipment.  
3.  Statistics (US$ Millions)  
                                     1994      1995(E)   1996(E)  
A.   Total market size              2,834.7   3,205.9   3,626.5  
B.   Total local production         3,362.2   3,765.6   4,217.5  
C.   Total exports                  1,565.7   1,753.6   1,964.0   
D.   Total imports                  1,038.2   1,193.9   1,373.0  
E.   Imports from the U.S.            498.3     585.0     686.5  
F.   Exchange Rates                   803.0     762.0     762.0  
Special notes:  The above statistics are unofficial estimates.  
1. Rank of sector:  6  
   Name of sector: EDUCATION & TRAINING   
   ITA industry code: EDS   
2. Comments: The Korean educational and training market is promising.  
Due to the opening of the Korean educational market on January 1, 1995,  
143 kinds of vocational training courses have already been liberalized  
or will be deregulated within five years.  The Korean government will  
unveil revolutionary educational reforms on June 1, 1995.  The Korean  
government will strengthen vocational and technical training systems  
with which all students can enhance job possibilities.  According to the  
education reforms, the percentage of gross domestic product(GDP) devoted  
to education will increase from the current 3.89 percent to 5 percent by  
The number of Koreans who want to study abroad includes not only  
students but also business people who are seeking career advancement.   
The United States is the most popular educational destination for  
Koreans with approximately 100,000 including 31,076 college students in  
1994.  Although American schools and institutes are competitive, other  
countries are also vigorously promoting themselves as alternative  
destinations for who are looking to study or train abroad.   
The most promising subsectors (US $ millions):  
- Language Institutes   200    
- Vocational Training   150  
-- 3. Statistics (US $ millions)  
                                        1994     1995(E)   1996(E)  
A.   Total sales                        11,505   11,861   12,217  
B.   Total sales by local firms         10,704   10,980   11,248  
C.   Total foreign sales by local firms    801      881      969  
D.   Total sales by foreign-owned firms    n/a      820      902  
E.   Total sales by U.S.-owned firms       n/a      550      605  
F.   Exchange Rates                        804      770      750  
    * The above statistics are unofficial estimates.  
1. Rank of sector: 7  
   ITA industry code: POL  
2. Comments: The Korean pollution control equipment market is still  
young and there are plenty of opportunities for U.S. environmental  
companies. Sales of many types of equipment or expertise, as well as  
joint venture manufacturing and construction ventures are the most  
promising avenues for participation.   
A major portion of the rapidly growing market is supplied by local  
manufactures with imports accounting for less than 40 percent of the  
total market. However, as a result of increased regulation and greater  
recognition of the necessity to invest in water protection, demand will  
grow for more sophiscated equipment.  
Best sales prospects are automatic strainers, aerators, screw-decanters,  
and hydrasive screw/ultra-screen systems.  
The most promising subsectors:  
-Air pollution control equipment      USD 512 million  
-Water pollution control equipment      USD 503 million  
3. Statistics (US$ million)  
                                      1994      1995(E)   1996(E)  
A.   Total market size                1,083     1,567   1,960  
B.   Total local production             704     1,034   1,300  
C.   Total exports                       70       104     130  
D.   Total imports                      449       637     790  
E.   Imports from the U.S.               85       127     165  
F.   Exchange rates used                800       770     750  
   *  The above statistics are unofficial estimates. E=Estimated.   
1. Rank of Sector: 8   
   ITA Industry Code: SEC     
2. Comments: Recently with the rapid increase in the use of computers  
and computerized information, demands for security systems are emerging  
and energizing the Korean market.  The industrial safety market also  
appears to be growing faster than ever, as recent labor disputes and  
accidents have raised awareness of the importance of industrial safety.   
The Korean government plans to invest approximately USD 370 million in  
industrial safety programs in the next three years.  This includes  
modernization of industrial equipment, supporting procurements for  
safety equipment and providing safety related seminars and training. In  
addition, the Korea government also plans to invest approximately USD  
260 million to establish vessel traffic systems at major Korean ports  
within several years.  These developments should work to accelerate  
growth in the Korean market for security and safety equipment in the  
coming years.  
    The most promising subsectors:    
   -Access Control Systems  
   -Traffic Control/Safety Products  
   -Airport Security Equipment  
   -Law and Order Enforcement Equipment  
3.  Statistics (US$ millions)  
                                    1994      1995(E)  1996(E)  
A.   Total Market Size               430      608      906  
B.   Total Local Production          210      334      520  
C.   Total Exports                    65      110      163  
D.   Total Imports                   220      274      386  
E.   Imports from the U.S.            64       96      154  
F.   Exchange Rates                  780      803      800  
    * The above statistics are unofficial estimates.  E=Estimated.  
1. Rank of Sector:  9   
   Name of Sector:  MEDICAL EQUIPMENT     
   ITA Industry Code:  MED     
2. Comments: Imports have always dominated the Korean medical equipment  
market.  Strong economic growth and a rising standard of living have  
spurred an increase in healthcare spending and demand for quality  
healthcare service.  In response, local healthcare providers are very  
interested in upgrading their service quality.  Accordingly, Korean  
demand for sophisticated medical technology has been on the upswing and  
is expected to continue to increase for the next several years.  
U.S. medical devices maintain a strong position as the largest country  
source supplying 40 percent of Korea's imports.  European and Japanese  
sources are also competing with the U.S sources.  The market is  
forecasted to expand at a rate of 10-15 percent annually for the next  
three years.  Korea is inherently a good import market for high-tech  
medical devices.  At its best, the market is too small justify large  
investments by Korean small and medium size medical and dental firms.  
Accordingly, imports of medical devices are expected to grow, matching  
the growth of the entire market.     
The most promising subsectors:    
   - Medical Sterilizers  
   - Rehabilitation Equipment  
   - Respiration Equipment  
   - Orthopedic Joints  
   - Diagnostic Ultrasound Scanners  
   - Magnetic Resonance Imaging Systems  
   - Patient Monitors  
   - Computer Tomography Scanners  
   - Catheters  
   - Artificial Kidney  
   - Syringes, Suture Needles  
   - General Surgical Instruments  
   - Operation Tables  
5.   Statistics (US$ millions)  
                                       1994    1995(E) 1996(E)  
A.   Total Market Size                  779      856   942  
B.   Total Local Production             329      362   398  
C.   Total Exports                      113      125   137  
D.   Total Imports                      563      619   681  
E.   Imports from the U.S.              257      283   311  
F.   Exchange Rates                     800      780   780  
    * The above statistics are unofficial estimates.  
1. Rank of sector:  10  
   Name of sector:  COMPUTER SOFTWARE   
   ITA industry code : CSF    
2. Comments: As computerization progresses in almost all sectors of the  
economy, the demand for software will rise, providing opportunities for  
incremental sales of U.S. high technology, specialized computer  
software.  The Korean software development technology is still far  
behind that of the U.S. and Japan, due to limited experience in the  
computer industry, and an acute shortage of highly qualified software  
specialists.  Korea depends heavily on imports to meet its system  
software and special-purpose applications software requirements.  In the  
past, inadequate legal protection for software adversely affected the  
U.S. software industry's position, most evidently in PC software.  In  
the future, the Computer Program Protection Law (CPPL) will be more  
strictly enforced to protect both domestic and foreign creators' rights.   
Korea depends entirely on imports for systems software, but is quite  
strong in developing applications software.  There is a lack of a strong  
infrastructure, resulting from the lack of accumulated technology and  
experience.  The U.S. is and will be the principal supplier to Korea,  
enjoying the many advantages it has over third country suppliers,  
resulting from the strength of its software project management and  
marketing skills.  U.S. suppliers' willingness to modify their software  
slightly to meet specific user needs is an important factor in end-user  
purchasing decisions.      
3.  Statistics (US$ millions)  
                                    1994      1995(E)   1996(E)  
A.   Total market size              484.9      552.7      629.9  
B.   Total local production         297.1      342.1      383.2  
C.   Total exports                    5.5        6.2        7.0  
D.   Total imports                  193.3      216.8      253.7  
E.   Imports from the U.S.          129.5      151.5      177.6  
F.   Exchange Rates                 803.0      762.0      762.0  
Special notes:  The above statistics are unofficial estimates.   
                E = Estimated.    
1. Rank of Sector:  11  
   Name of sector:  BUILDING PRODUCTS  
   ITA Industry Code: BLD     
2. Comments: The domestic market completely opened to foreign firms in  
1995.  U.S. companies will have a good opportunity to increase market  
share.  Korean builders would like to introduce and apply modern  
building concepts to commercial/residential building construction.  High  
quality building materials and systems have been used for those multi- 
purpose high rise building construction mainly built in large cities  
where land space is limited and expensive.  
In residential housing construction, Korean home builders are  
identifying better and more comfortable environmental facilities.  The  
trend for single family residential housing in Korea is toward natural  
building materials such as wood.  Most single houses under construction  
are mainly near large cities where natural building materials are  
primarily used.  Pre-fabricated building materials are becoming popular  
in time and are labor-cost wise in the construction of single houses.  
A slight modification of U.S. building products/systems will be key for  
the Korean market.  
The most promising subsectors:    
   - Log and lumber products:  USD1,236 million  
   - Pre-fabricated house: USD2.1 million  
3.   Statistics (US$ millions)  
                                 1994        1995(E)     1996(E)  
A.   Total Market Size           16,954      17,293      18,460  
B.   Total Local Production      15,182      15,500      16,645  
C.   Total Exports                1,376       1,417       1,459  
D.   Total Imports                3,148       3,210       3,274  
E.   Imports from the U.S.           95         112         115  
F.   Exchange Rates                 800         780         780  
* The above statistics are unofficial estimates.  Accurate statistical  
data is not available on total market and local production because  
reference books and  information provided by associations related to  
building products are unavailable.  Statistical data are currently an  
1. Rank of Sector:  12   
   Name of sector:  HOUSEHOLD CONSUMER GOODS  
   ITA Industry Code:  HCG  
2. Comments: Although it is not an easy task to characterize household  
consumer goods into a single sector, major varieties include electrical  
home appliances, kitchenware including cookware, china, glass and  
decorative accessories, toiletries, residential and commercial  
furnishings with upholstery fabrics, among many others.  Gradual market  
liberalization and recovery from an overall economic recession during  
the past five years have been a major influence in recording recent  
remarkable growth of imports and foreign investment.  Local demand for  
U.S. household products is steadily growing.  Thus, many U.S. brands  
have become well-established in the Korean market.  A few European  
countries such as Germany follow the U.S. into quality in the home  
appliance market.  
The most promising subsectors:   
- Major electrical home appliances (refrigerators, washing machines and  
dryers, gas oven/ranges, air conditioners, vacuum cleaners and  
dishwashers): 2,430  
- Housewares: N/A  
3.   Statistics (US$ millions)  
                                     1994      1995(E)    1996(E)  
A.   Total Market Size               6,850     7,200      7,560  
B.   Total Local Production         13,380    14,220     14,810  
C.   Total Exports                   7,350     7,900      8,200  
D.   Total Imports                     820       880        950  
E.   Imports from the U.S.             164       176        209  
F.   Exchange Rates                    800       780        780  
    * The above statistics are unofficial estimates.  
1. Rank of Sector:  13   
   Name of Sector:  DRUGS AND PHARMACEUTICALS     
   ITA Industry Code:  DRG  
2. Comments: Korea's imports of foreign-made pharmaceuticals have  
increased continually due to the rising demand for better quality  
healthcare and the steadily improving business environment.  The U.S.  
pharmaceutical industry, representing one of the major suppliers with  
Japan, Germany and Switzerland, has been active in the Korean market.   
This year foreign pharmaceutical industries are expected to re-leap into  
the Korean market because of new regulations actually banning copies of  
new drugs by local manufacturers for a certain period time after their  
initial introduction.  This is expected to have an important impact on  
the increase of imports in the long run.    
The Korean pharmaceutical market is expected to grow at rates of 5-7  
percent annually.  Despite several important elements disadvantageous to  
imported pharmaceuticals including insurance, import approvals and  
pricing, the growth of imported pharmaceuticals has exceeded that of the  
overall market in Korea and is expected to continue to do so for the  
next several years.  Recently, increase of consumer diagnostic kits has  
been remarkable, and continued growth of this market is forecasted.   
Steady expansion of OTC drugs is also anticipated.  
3.   Statistics (U$ millions)  
                                    1994       1995(E)   1996(E)  
A.   Total Market Size              6,900      7,260      7,624  
B.   Total Local Production         6,526      6,852      7,195  
C.   Total Exports                    368        386        405  
D.   Total Imports                    742        794        834  
E.   Imports from the U.S.             92        101        111  
F.   Exchange Rates                   800        780        780  
    * The above statistics are unofficial estimates. E=Estimated.  
1. Rank of sector:  14   
   ITA industry code:  TES    
2. Comments: Opportunities will unfold over the next several years for  
U.S. sales of communications services as economic restructuring and  
deregulation in the telecom sector accelerate in Korea and the Korean  
government loosens its monopoly control on the telecommunications sector  
and certain newly emerging service sectors, such as value added services  
(MHS, EDI, CRS, etc.) are also targeted for privatization.  U.S.  
suppliers enjoy a significant export advantage in communications and  
other related systems and services; therefore they should benefit from  
Korea's rapidly growing communications service market.  Joint venture  
and licensing agreements will be the key for the market.    
3.   Statistics (US$ millions)   
                                      1994       1995(E)   1996(E)     
A.   Total sales                     6,451.6     7,935.5   9,760.7  
B.   Sales by local firms            6,424.7     7,900.5   9,715.2  
C.   Foreign sales by local firms       -           -         -     
D.   Sales by foreign-owned firms       26.9        35.0      45.5  
E.   Sales by U.S.-owned firms          24.7        32.2      41.9  
F.   Exchange Rates                    803.0       762.0     762.0  
Special notes: The above statistics are unofficial estimates.   
               E = Estimated.  
1. Rank of sector:  Unranked  
   ITA industry code: ACE  
2. Comments: The Korean government plans to open the domestic market of  
architect, engineering and construction from 1997. Under the plan,  
foreign firms specializing in design will be allowed to participate in  
public construction projects each involving more than 5.5 billion Won  
(USD 1.2 million) at an initial stage. The technical level of Korean  
architect and engineering firms is evaluated at 60 percent of the  
technical standard of foreign counterparts in advanced nations.  
In 1995, a system of supervision over designs was introduced to prevent  
substandard designs, and the system was initially applied for huge  
government initiated projects such as construction of the New Seoul  
International Airport and the Seoul-Pusan High Speed Railways.    
The most promising subsectors:  
-Engineering service      USD 1,050 million  
-Architectural service    USD   250 million  
3.   Statistics (US$ million)  
                                     1994       1995(E)   1996(E)     
A.   Total sales                     4,047     5,059      6,375  
B.   Total sales by local firms      3,491     4,363      5,498  
C.   Foreign sales by local firms      556       696        877  
D.   Sales by foreign firms            N/A       N/A        N/A  
E.   Sales by U.S. firms               N/A       N/A        N/A  
F.   Exchange rates                    800       770        750  
    * The above statistics are unofficial estimates.   
Best Prospects for Agricultural Products  
(Volume: 1,000 Metric tons.  In parentheses are values   
 in million U.S. dollars, where applicable)  
1.  Name of Best Prospect:  BEEF  
2.  Commodity Code Number:  HS 0201 and 0202  
3.  Statistics     
                                   1994           1995       1996  
A.   Total Market Size             289.5           310        330  
B.   Total Local Production        147.0           160        170  
C.   Total Exports                   0.0             0          0  
D.   Total Imports                 142.5 (429.5)   150        160  
E.   Total Imports from USA         61.8 (249.1)    70         80  
   * The above statistics are unofficial estimates.  
4. Comments: Korea is already the fourth largest market for U.S. beef  
and this market will continue to grow.  Quotas are unrealistically small  
but the increasing volume under SBS presents opportunities for high  
quality U.S. products.  Estimates of market size are difficult to make  
because of the constraints imposed by the ROKG.  Imports would increase  
dramatically in a free market environment.  
1.   Name of Best Prospect:  PORK  
2.   Commodity Code Number:  HS 0203  
3.   Statistics   
                                   1994         1995     1996  
A.   Total Market Size             633.2        650       680  
B.   Total Local Production        621.0        640       670  
C.   Total Exports                  11.2 (64.7)  15        20  
D.   Total Imports                  23.4 (77.4)  25        30  
E.   Total Imports from USA          0.6  (1.8)   5        10  
   * The above statistics are unofficial estimates.  
4.   Comments:  Pork imports will be liberalized July, 1 1997 but this  
will be preceded by imports quotas of 21,930 tons in 1995 and 29,240  
tons in 1996.  Actual imports in 1995 will greatly exceed the quota as  
the government tries to keep prices down.  U.S. suppliers will face  
stiff competition from the domestic industry and imports from Taiwan,  
China and the EU.  
1.  Name of Best Prospect: FISH AND SEAFOOD  
2.  Commodity Code Number: HS 03, 1604 and 1605  
3.  Statistics  
                                   1994            1995      1996  
A.   Total Market Size             3,491.0         3,500   3,500  
B.   Total Local Production        3,476.0         3,400   3,350  
C.   Total Exports                   310.0 (1,400)   300     300  
D.   Total Imports                   325.0   (681)   400     450  
E.   Total Imports from USA           71.0   (131)   100     120  
   * The above statistics are unofficial estimates.  
4. Comments: Korea is a huge seafood market with great potential.  The  
domestic fleet and catch are declining; incomes are increasing; per  
capita consumption is very high; and most seafood products are  
liberalized or will be by 1997.  All these factors point to increasing  
imports, both for consumption and for processing and re-export.  
1. Name of Best Prospect: DAIRY PRODUCTS  
2. Commodity Code Number: HS 0401-0406 and 2105  
3. Statistics  
                                     1994        1995     1996  
A.   Total Market Size                N/A          N/A      N/A  
B.   Total Local Production           N/A          N/A      N/A  
C.   Total Exports                     2.1  (4.1)   2        2  
D.   Total Imports                    53.0 (72.0)  70      100  
E.   Total Imports from USA            7.9  (7.6)  20       30  
   * The above statistics are unofficial estimates.  
4.  Comments:  Opportunities for U.S. companies will be in the high  
value areas such as ice cream, frozen yogurt and cheese which are now  
liberalized.   Cheese was liberalized on January 1, 1995 and imports  
already amounted to over $10 million during the first four months this  
year.  Most dairy products including milk powder and whey powder are  
liberalized.  But some of these liberalized dairy products come under a  
tariff rate quota.  
1.   Name of Best Prospect: NUTS AND DRIED FRUITS  
2.   Commodity Code Number: HS 0801, 0802 and 0806  
3.   Statistics   
                                    1994         1995      1996  
A.   Total Market Size               N/A         N/A       N/A  
B.   Total Local Production          N/A         N/A       N/A  
C.   Total Exports                   17.2 (135)   18        18  
D.   Total Imports                   10.5 (37.5)  12        14  
E.   Total Imports from USA           8.6 (31.7)  10        12  
   * The above statistics are unofficial estimates.  
4.  Comments:  Local production is stagnate with no production programs  
in place.  Exports consist of chestnuts and will be basically flat.   
Imports will increase with the change in tastes, expansion of the bakery  
and confectionery industries, increases in income and entry of walnuts  
from the U.S. into the market.  The U.S. will continue to dominate this  
market but face stiff price competition from Iran and China.  Almonds  
will continue to be the largest import but expect larger imports of  
walnuts, pistachios and hazelnuts.  Dried fruit imports are mostly  
raisins imports of which will trend upward.  Other dried fruits are  
relatively minor.  
1.  Name of Best Prospect: CITRUS FRUIT  
2.  Commodity Code Number: HS 0805  
3.   Statistics  
                                 1994         1995        1996  
A.   Total Market Size           560.4        564         569  
B.   Total Local Production      549.0        550         550  
C.   Total Exports                 1.0  (1.1)   1           1  
D.   Total Imports                12.4 (11.7)  15          20  
E.   Total Imports from USA       12.4 (11.7)  15          20  
   * The above statistics are unofficial estimates.  
4. Comments:  Imports now consist of grapefruit and lemons, almost  
exclusively from the United States.  Orange imports will be liberalized  
in 1997 but with import quotas of 15,000 tons in 1995, 20,000 tons in  
1996 and 25,000 tons in 1997.  Most of these are expected to come from  
the United States.  Imports under the 1995 quota were made in early  
1995, all from the United States.  
1.    Name of Best Prospect: POULTRY MEAT  
2.    Commodity Code Number: HS 0207  
3.    Statistics  
                                 1994          1995      1996  
A.   Total Market Size           269.5         290       310  
B.   Total Local Production      245.0         250       255  
C.   Total Exports                 0.0           0         0  
D.   Total Imports                24.5 (40.6)   40        55  
E.   Total Imports from USA       15.5 (26.9)   25        35  
   * The above statistics are unofficial estimates.  
4. Comments: Present imports consist of turkey and duck meat.  Chicken  
meat will be liberalized in 1997 with a quota of 7,700 tons in 1995 and  
10,400 tons in 1996.  The United States should be a significant supplier  
but will face competition from Thailand and China.  
1.    Name of Best Prospect: FRUIT JUICES  
2.    Commodity Code Number    : HS 2009  
3.    Statistics  
                                 1994          1995       1996  
A.   Total Market Size           N/A           N/A        N/A  
B.   Total Local Production      N/A           N/A        N/A  
C.   Total Exports               9.0     (9)   10         10  
D.   Total Imports              77.3 (115.1)   85        100  
E.   Total Imports from USA     23.6  (40.9)   30         40  
   * The above statistics are unofficial estimates.  
4.  Comments: Orange juice is the major import and will be liberalized  
on July 1, 1997 but during the interim period, Korea will provide access  
quotas of 50,000 tons in 1995, and 55,000 tons in 1996 at a quota tariff  
of 50 percent.  Grape juice and Fruit juice beverages were liberalized  
on January 1, 1995 at tariffs of 50 percent and 9.9 percent  
respectively.  Apple juice will also be liberalized in  1996.   This  
means that imports will increase rapidly and the U.S. is well positioned  
as a major supplier.  Brazil dominates the FCOJ market on price but the  
United States will do very well in the high quality FCOJ sector and all  
other categories.  
2.    Commodity Code Number: HS 2001 - 2008  
3.    Statistics  
                                   1994        1995   1996  
A.   Total Market Size             N/A          N/A   N/A  
B.   Total Local Production        N/A          N/A   N/A  
C.   Total Exports                 19.6  (64.8)  25    30  
D.   Total Imports                114.6 (114.7) 130   150  
E.   Total Imports from USA        66.8  (52.5)  80   100  
   * The above statistics are unofficial estimates.  
4.  Comments: This sector has shown very strong growth in the last few  
years - with imports growing from $18.6 million in 1988 to $114.7  
million in 1994.  This growth is expected to continue.  
1.    Name of Best Prospect: OTHER PREPARED FOODS  
2.    Commodity Code Number: HS 2106  
3.   Statistics  
                                   1994          1995      1996  
A.   Total Market Size             N/A            N/A      N/A  
B.   Total Local Production        N/A            N/A      N/A  
C.   Total Exports                 43.7  (49.9)    50      55  
D.   Total Imports                 26.6 (115.7)    30      35  
E.   Total Imports from USA         5.2  (31.4)     8      10  
   * The above statistics are unofficial estimates.  
4.  Comments: This is a catch-all category that includes all consumer- 
ready, high-value products that do not fit into other H.S. codes.  It  
has seen a dramatic growth, with imports going from $11.9 million in  
1988 to $115.7 million in 1994, and is expected to continue.  
The average tariff rate on manufactured goods imported into Korea is  
8.0%.  However, tariffs on agricultural products range from 30-100%,  
depending on the item.  Korea has a flat 10% Value Added Tax on all  
imports.  Also, a special excise tax of 15% to 100% is levied on the  
import of certain luxury items and durable consumer goods. There also  
exist adjustment tariffs used for balance of payments purposes. Tariffs  
and taxes are payable in Korean won before goods are permitted to clear  
Most duties are assessed on an ad valorem basis.  Specific rates apply  
to a few goods while both ad valorem and specific rates apply on a few  
others.  The dutiable value of imported goods is the normal c.i.f. price  
at the time of import declaration.  Software is presently assessed on  
its retail value, not the value of the media.  
Import duties are not assessed on capital goods and raw materials  
imported in connection with foreign investment projects.  Authorization  
to import those items and supplies designated in a foreign investment  
application on a duty-free basis usually accompanies the Ministry of  
Finance's approval of a foreign investment project.  
In addition, certain raw materials used in the production of export  
goods are often exempt from duty, and certain machinery, materials, and  
parts used in designed industries may enter Korea either duty free or at  
reduced rates.  
An import license is required for every transaction and before a letter  
of credit may be opened in favor of a foreign supplier.  The license,  
obtainable from the Korea Exchange Bank or from any one of the other 886  
Class A foreign exchange banks and branches, is valid for up to 12  
months.  Under the system of licensing introduced in July 1967, all  
commodities may be freely imported (i.e., applications for import  
licenses will be approved automatically) unless they are included on a  
negative list, which includes commodities that are either prohibited or  
restricted.  The negative list, known as the Export and Import Notice,  
is published by the Ministry of Trade, Industry and Energy, and remains  
effective until revised to meet changing economic conditions.   
Applications for licenses for the import of items currently in the  
restricted category are approved on a case-by-case after screening by  
the government agencies concerned, or by the relevant manufacturers'  
All applications for import licenses must be accompanied by firm offers  
issued by a foreign supplier, in most cases through the supplier's  
qualified local agent.  Only firms that are registered as foreign  
traders are eligible to receive import licenses.  
The Special Trade Division of the Ministry of Trade, Industry and Energy  
and the Offices of Technology Cooperation at the Ministry of Science and  
Technology and Ministry of National Defense have legal responsibility  
for control of COCOM-related exports.  Although not a member of COCOM,  
COCOM licensing procedures were put into effect during 1993.  Korea is  
also a signatory to the Chemical Weapons Convention (CWC).   
Import Licenses (I/L) are issued by banks when firms place import  
orders.  An I/L is automatically issued based on a firm offer sheet and  
proforma invoices by foreign exporters for items locally called  
"automatic approval" (A/A) items.  For non-A/A items the importer must  
complete additional procedures specific to items prior to application  
for the  I/L.  These include registration with government agencies,  
recommendations, or reports to government-authorized organizations.  
A/A items can clear customs with regular shipping documents.  Most non- 
A/A items, typically health or safety related products, require  
additional testing or certification by previously registered or  
recommended organizations before clearing customs.  
Export licenses are issued by Korean customs at the time of export  
clearance.  Most items are approved on the basis of regular shipping  
documents.  Previous recommendation or report requirements similar to  
that for import are imposed on a few items.  Particularly export of  
textile products, which are bound under export quotas, must be allotted  
share before export.  
Pursuant to the Korean Customs Law, advertising material and samples of  
merchandise are exempt from customs duties, provided that such items are  
used solely for that purpose.  Some U.S. firms, however, have reported  
problems in receiving duty exemptions.  In general, duty-free entry of  
these items is left to the discretion of the customs officials at the  
port of entry.  Valuable samples may be admitted temporarily on a duty  
free basis under deposit for the amount of the duty.  Careful  
documentation and handling of samples are essential to minimize  
Korean customs also allows free customs entry of goods brought into  
Korea hand-carried by foreign business persons (such as personal  
computers) for use during their stay in Korea, by making a note on the  
travelers' passport and allowing them to leave the country only when  
accompanied by such goods.  
Goods entering Korea for exhibition purposes must be stored in a bonded  
area.  The U.S. Trade Center at the U.S. Embassy in Seoul and the Korea  
Exhibition Center (KOEX) are bonded areas.  Exhibition goods will be  
kept without charge at the KOEX during the exhibition period, after  
which they must be either: 1) reshipped directly out of Korea without  
payment of duty; 2) presented at Customs for payment of regular duty on  
value declared at time of entry; or 3) transferred to the Seoul Customs  
house bonded storage area for no more than 90 days from their entry into  
Korea.  Goods stored in a bonded warehouse can incur, if applicable,  
storage costs, customs brokerage charges, local transportation costs and  
moving equipment fees.  
Country of Origin labeling is required for commercial shipments entering  
Korea.  The Korean Customs Administration (KCA) publishes a list of the  
country of origin labeling requirements by Harmonized System Code  
number.  Further labeling and marking requirements for specific  
products, such as pharmaceutical and food products, are covered by  
specific regulations from the Korean Government agencies responsible for  
these items.  Korean labels, except country of origin markings which  
must be shown at the time of customs clearance, are allowed to be  
locally attached on products either in the bonded area before clearance  
or after clearance but before products are re-sold to the local market.   
Local importers usually print Korean labels when imported quantities are  
not large, and can consult with the KCA as to where they can be attached  
to the product.  
For example, all containers and packages of imported pharmaceutical must  
be marked in a conspicuous place to show:  1) manufacturers' and  
importers' names and addresses; 2) name of product; 3) date of  
production and batch number; 4) names and weights of ingredients; 5)  
quantity; 6) number of units; 7) storage method; 8) distribution  
validity date; 9) instructions for use; 10) import license number; 11)  
effectiveness; and 12) suggested retail price.  
For imported food products, labels should be in Korean (stickers may be  
used instead of Korean language labels but such stickers must be in  
Korean and should not be easily removable), and should have the  
following inscriptions printed in large enough letters to be readily  
legible: 1) name of product; 2) name of the importer, address and  
telephone number; 3) importer's business registration number; 4) date of  
manufacturing or date of import (not mandatory); 5) shelf life (the  
shelf life stipulated by the manufacturer must be shown, and must come  
immediately under the date of manufacturing or date of import when it is  
shown. For fresh fruits, this item may be omitted); 6) weight, volume or  
number of pieces (if the number of pieces is shown, the weight or volume  
must be shown in parentheses); 7) name and volume of ingredients (for  
dairy and meat products, fish meal products, canned and bottled food  
products, instant food, etc.).  Names of more than five raw materials  
must be listed in order of volume and of these, the quantities of at  
least three major ingredients must be shown in percentages); 8)  
addresses where products with defects may be returned or exchanged; and  
9) cautions and standards for use or preservation (for products which  
must be kept at a low temperature, such temperature should be shown).  
All commodities may be freely imported into Korea unless they are  
included on the negative list, which includes commodities that are  
either prohibited or restricted.  The negative list is published by the  
Ministry of Trade, Industry and Energy as the Annual Trade Plan (Export  
and Import Notice).  Restricted items include firearms, illicit drugs,  
endangered species, etc.   
The Korean Government adopted the ISO 9000 system as its official  
standard system as of April 1992 and published related regulations in  
September 1993.  The Industrial Advancement Administration (IAA) is a  
research, standards-making and regulatory administration under the  
Ministry of Trade, Industry and Energy, established to promote Korea's  
industrial technology and assure product quality.  The IAA has  
authorized five local laboratories to give ISO evaluations.  As of the  
end of May, approximately 507 Korean firms have been certified to fit  
into ISO standards.  
However, despite this progress, there are still concerns about the  
implementation of the commitments Korea made when it signed the GATT  
Agreement on Technical Barriers to Trade (the "Standards Code") in 1980.   
The need to apply structured developing country standards and procedures  
deviate substantially from international practices in both substance and  
implementation.  These requirements serve mainly to keep imported  
products out of the existing market.  Standards often only affect  
imported goods and are not applied in an equal manner to domestic  
products.  In addition, the Korean Government often issues new  
regulations without using public rule-making procedures.  The absence of  
a comment period and adequate time for industry to adjust is a  
significant barrier to trade.  Finally, implementation periods are  
allocated in very short periods of time which gives the exporters  
insufficient time to comply, this leads to unnecessary interruptions in  
The government has designated two free export zones for the bonded  
processing of imported materials into finished goods for export.  The  
free export zones are specially established industrial areas where  
foreign invested firms can manufacture, assemble, or process export  
products using freely imported, tax-free raw materials or semifinished  
goods.  Tax incentives are provided for foreign invested firms.  
The Masan Free Export Zone, established in 1971, is located near Pusan  
at the southern end of the country.  The Iri Free Export Zone opened in  
1975 and is located near Gunsan on the western coast.  Information on  
these free export zones can be obtained from the Director, Regional  
Industry Development Division, Ministry of Trade, Industry and Energy,  
Unified Government Building, 1 Choongang-dong, Kwachon City, Kyunggi-Do,  
Korea.  Tel: 82-2-503-9494, Fax: 82-2-503-9462  
A new industrial park, intended for the exclusive use of foreign- 
invested high-technology firms, is being planned for Asan, a city about  
two hours southwest of Seoul.  It will provide essentially the same  
services as do the Masan and Iri free export zones and is scheduled for  
completion in 1996.  
The bonded storage facilities in Korea are under the supervision of the  
Collector of Customs.  Korea has two kinds of bonded areas: 1)  
designated bonded areas (designated storage sites and customs inspection  
sites); and 2) licensed bonded areas (bonded storage sites, bonded  
warehouses, bonded factories, bonded exhibition sites, bonded  
construction sites, and bonded sales sites).  Goods may be stored in  
bonded warehouses for up to two years, and duties are payable only when  
they are cleared through customs.  Storage fees are high, and the use of  
a bonded warehouse to maintain inventories is limited.  Inquiries  
regarding bonded facilities in Korea can be addressed to: Director,  
Surveillance Division, Office of Customs Administration, 71, Nonhyun- 
dong, Kangnam-Ku, Seoul.  Tel: 82-2-512-2305, Fax: 82-2-518-4100  
The two-year storage period does not apply to the storage of live  
animals or plants, perishable merchandise, or other commodities that may  
cause damage to other merchandise or to the warehouse.  The Collector of  
Customs bears no responsibility for goods while they are stored in  
customs facilities.  
With the permission of the Collector of Customs, goods stored in bonded  
facilities may be repacked, stored, divided and combined, or repaired,  
provided that the nature and quality of the goods are not changed in  
doing so.  
In principle, bonded warehouses are the only warehouses facilities  
available in Korea to foreign companies where a U.S. exporter can store  
shipped goods and still maintain title until they are cleared through  
customs by normal import procedures.  Korea's Customs law specifies that  
any person who desires to establish a bonded warehouse shall obtain a  
license from the Director of each Customs.  Applications must include  
the name of the bonded warehouse, location, structure, numbers and sizes  
of buildings, storage capacity and types of products to be stored, and  
where applicable, must be accompanied by articles of incorporation and  
corporate register.  
Certain items are subject to special approval procedures if imported  
from a country with which Korea has a large, unfavorable trade balance  
of long standing.  Japan has dominated this category for a number of  
years do to its chronic trade surplus with Korea since 1965.  In 1994,  
Korea had a trade surplus with Japan which rounded out to be $11.9  
million, compared to an overall trade deficit of $8.8 billion in 1991.   
The list of items subject to special approval covers a wide array of  
products, and can be added to or deleted from during occasional  
revisions by the Ministry of Trade, Industry and Energy.  Importers need  
prior confirmation from the Association of Foreign Trading Agents of  
Korea for licenses to import these items from Japan which, in fact,  
places a de facto ban on imports.  
In an effort to reverse Korea's reputation as a difficult environment  
for foreign investment, the Korean government under President Kim has  
announced an ambitious program of economic reforms designed to remove  
unnecessary regulations and give more scope for decision making to the  
private sector.  In addition, US-Korea bilateral discussions begun in  
1992 under the title of the President's Economic Initiative (PEI) and  
continued under the Dialogue for Economic Cooperation in 1993-94, were  
moderately successful in promoting a more open and transparent climate  
for trade and investment flows between the two countries.  
The Foreign Capital Inducement Act (FCIA) and related regulations  
categorize business activities as either open, conditionally restricted,  
or closed to foreign investment.  Currently, Korea restricts foreign  
investment in 150 categories, including 24 in the agricultural sector,  
12 in the manufacturing sector and 114 in the services sector.  Among  
the 150 sectors in which foreign investment is restricted, 43 are  
partially open to foreign investors who satisfy certain specified  
conditions.  In June 1993, the Ministry of Finance announced a schedule  
by which all but 91 categories will open by the year 1997, and only  
seven categories will limit foreign participation to joint venture  
investment.  Potential foreign investors need to closely monitor the  
implementation of this schedule, however, since different categories  
necessary for a particular investment or project may not open together,  
and since the government may change category definitions to broaden  
In open categories, applications for foreign investment must be notified  
in advance to (in effect, requesting approval from)  designated foreign  
exchange banks, including branches of 40 authorized foreign banks.   
Under new procedures announced in March 1994, applications  for  
notification will be processed within three hours.  Applications may be  
denied on a number of grounds, including national security, public order  
and morals, international security obligations, and national  health and  
environment.  Exceptions to the advance notification-approval system  
exist for certain categories of projects that are subject to joint  
venture requirements and certain projects in the distribution sector.  
Investments not qualifying for application under notification procedures  
(i.e., conditionally restricted projects) must be approved by the  
Ministry of Finance and Economy.  Most applications submitted under  
approval procedures should be approved within five days, but in some  
cases requiring consultation with another ministry, processing time can  
take up to 25 days.  Large foreign investments are no longer referred to  
the Fair Trade Commission for review, and the prior review of  
environmentally sensitive projects is no longer conducted by the  
Ministry of the Environment.  
A host of laws, regulations, and changing policies make for a  
challenging business environment.  For example, the Korean government's  
procurement law generally favors domestic over foreign suppliers. (Some  
joint ventures and wholly-owned foreign subsidiaries incorporated in  
Korea do qualify as domestic suppliers, however.)  In addition, a  
variety of industry-specific laws in construction, insurance, combine  
and tractor manufacture, and vegetable and alcoholic beverage products  
restrict foreign investment. Foreign equity ownership limitations exist  
for a number of sectors including petroleum product manufacturing,  
fishing, seafood processing, game trapping, animal oils and fats, air  
transport and air freight, ship brokerage and leasing of water transport  
equipment, as well as wireless telephone and telegraph.  Foreign  
investment is prohibited in a number of sectors, notably education (pre- 
primary through senior high school, and technical/vocational schools).  
Korean law does not permit direct investment through merger with or  
acquisition of an existing domestic firm.  In general, foreign and  
domestic investors are not permitted to acquire more than ten percent in  
aggregate of the shares in a Korean firm listed on the Korean Stock  
In general, the Korean public supports foreign investment as beneficial  
to the national economy.  There are no significant non-governmental  
groups that oppose foreign investment.  A number of consumer groups have  
from time to time spoken out against imports, arguing that "luxury"  
consumption encourages social unrest or that foreign agricultural  
products are a threat to public health.  However, these groups have not  
opposed foreign investment per se, nor do they represent a serious  
obstacle to foreign investment flows.  
Advanced technology transfer and investment in high technology services  
may qualify for tax incentives from the Ministry of Finance and Economy.   
Effective April 1, 1995, foreign investment in 261 categories of high  
technology is eligible for an increased range of tax reductions and  
other incentives.  In addition, the scope of incentives was broadened to  
include the waiver of certain taxes, including corporate taxes on  
profits and dividends for the first five years the foreign-invested  
project realizes profits, and a 50-percent reduction thereafter.  New  
incentives also include access to offshore commercial loans when the  
funds are used to import needed capital equipment.  Major categories of  
high technology eligible for incentives include precision machinery and  
advanced manufacturing processes; advanced materials fabrication and  
processing; aerospace and transportation technology; and environmental  
and energy technology.  In addition, importers of 288 specified  
technologies are not required to withhold otherwise applicable taxes on  
royalty payments to foreign suppliers.  
The Korean government has a number of programs to encourage research and  
development by private sector organizations.  Of these, the most  
prominent is the Highly Advanced National (HAN) project, under which the  
government seeks to raise Korea's R&D capability to OECD levels by the  
year 2001.  The program provides funding for projects carried out by  
Korean institutes in partnership with foreign research bodies aimed at  
developing new technology in a number of specified fields.  In  
principle, funding under the government's R&D programs is available to  
foreign-owned firms; however, no foreigners have applied for the limited  
funds available except through a venture with a Korean company,  
university or research institute.  
Proposed foreign remittances must be approved at the time investment  
approval is sought.  Once approved, remittances are guaranteed.  When  
higher royalties or payments over an extended period of time are  
proposed as part of a technology licensing agreement, both the agreement  
and projected royalties must be approved by a foreign exchange bank or  
the Ministry of Finance.  In most cases approval is automatic.  
The Ministry of Finance and Economy strictly regulates the Korean  
foreign exchange market under the Foreign Exchange Control Act (FECA)  
and attendant regulations.  The FECA governs all aspects of the foreign  
exchange rate system, including foreign exchange transactions and  
holdings.  The Bank of Korea plays a secondary role.  In 1991, Korea  
replaced its "positive" system of foreign exchange controls with a  
"negative" system, under which transactions are allowed to take place if  
not specifically prohibited.  
Recent changes have permitted limited short-term offshore financing,  
short-term intracompany loans for high technology manufacturers, working  
capital increases without FCIA (Foreign Capital Inducement Act)  
restriction, and equity increases due to preferred stock issues and sale  
of existing stock.  An important step toward full liberalization of  
foreign exchange transactions occurred in October 1993 when the  
government raised the limit on import transactions that can be settled  
in won, and eased underlying documentation requirements on certain  
forward transactions in foreign exchange.  In December 1994 the  
government announced a package of reforms aimed at further  
liberalization of the foreign exchange system, including the goal of  
eliminating the requirement that foreign exchange be repatriated to  
Korea.  Despite the progress made in loosening foreign exchange  
controls, serious restrictions remain in the areas of offshore financing  
and deferred payments for imports.  
Conversion of the national currency, the won, into foreign currencies  
for certain international transactions such as the import of goods and  
services is possible with the permission of the Bank of Korea or an  
authorized foreign exchange bank.   However, the Korean won is generally  
not accepted outside of Korea.  The external value of the won is managed  
by the Bank of Korea, which allows it to float daily within a limited  
band against a basket of hard currencies.  As a reference price, the  
Bank of Korea uses the previous day's weighted average of won-dollar  
interbank transactions.  
A foreign firm that invests under the terms of the Foreign Capital  
Inducement Act (FCIA) is guaranteed unlimited remittances as long as a  
foreign exchange bank confirms its ability to undertake the  
transactions.  An audited financial statement must be made available to  
the foreign exchange bank.  To withdraw capital, a stock valuation  
report issued by a recognized securities company or the Korea Appraisal  
Board must also be presented.  Foreign companies not investing under the  
FCIA must repatriate funds through authorized foreign exchange banks  
after obtaining government approval.  
Korea follows generally accepted principles of international law with  
respect to expropriation.  The law protects all foreign-invested  
enterprise property from expropriation or requisition.  If private  
property is expropriated, it can only be taken for a public purpose and,  
then, in a non-discriminatory manner.  Property owners are entitled to  
prompt compensation at fair market value. In the last 40 years, there  
have been no cases of expropriation of foreign-owned property.  
In 1967, Korea became a member of the International Center for the  
Settlement of Investment Disputes. In 1973, it acceded to the New York  
Convention (formally called the United Nations Convention on the  
Recognition and Enforcement of Foreign Arbitral Awards).  It is a member  
of the International Commercial Arbitration Association and the  
Multilateral Investment Guarantee Agency.  Twenty-six countries have  
bilateral investment agreements with Korea, including the United States.  
Commercial disputes may be adjudicated in a civil court.  A lawsuit,  
however, is often considered a last resort, signaling the end of a  
relationship.  But for a number of reasons, foreign businessmen often  
feel that civil court is not a practical means to resolve disputes.  For  
example, proceedings are conducted in the Korean language, often without  
adequate translation. Foreign lawyers are banned from Korean courts.   
Another disadvantage  is that civil procedures common in the United  
States, such as pretrial discovery, do not exist in Korea.  Moreover,  
legal proceedings are expensive and time-consuming, and even if  
successful, enforcement is uncertain.  During litigation of a dispute,  
foreigners may be barred from leaving the country until a decision is  
Commercial disputes may also be taken to the Korean Commercial  
Arbitration Board (KCAB).  The Korean Arbitration Act and its  
implementing rules outline the following steps in the arbitration  
process: (1) parties may request the KCAB to act as informal  
intermediary to a settlement; (2) if unsuccessful, either or both  
parties may request formal arbitration, in which case the KCAB appoints  
a mediator to conduct conciliatory talks for 30 days; (3) if  
unsuccessful, an arbitration panel consisting of one or three  
arbitrators is assigned to decide the case.  If one party is a not  
resident in Korea, either may request an arbitrator from a neutral  
Korean authorities have ceased imposing performance requirements on new  
foreign investment since July 1989, and eliminated preexisting  
performance requirements in December 1992.  But the Korean view of  
performance requirements in this context relates only to local content  
and export sales levels and to mandatory technology transfers.  It does  
not include such things as foreign equity ownership restrictions,  
offshore financing restrictions, or work visa policies that force local  
Korea fully recognizes rights of private ownership and has a well- 
developed body of laws governing the establishment of corporate and  
other business enterprises.  Private entities may generally acquire and  
dispose of interests in business enterprises in Korea.  However, the  
Securities and Exchange Act provides that no legal person (individual or  
firm) may own more than ten percent of a listed corporation; the  
Securities and Exchange Commission may require that any shares owned  
above this limit be divested.  In addition, Korean law contains several  
provisions prohibiting cross-ownership between companies.  The purpose  
of these provisions is to prohibit a firm's directors from obtaining  
undue influence by exercising voting rights in shares of the firm owned  
by a second corporation.  For example, the commercial code specifies  
that shares in a corporation owned by a third company  (either jointly  
among a holding company, firm and subsidiary, or solely by a subsidiary  
of that corporation) do not convey voting rights.  The Fair Trade Act  
also restricts cross ownership of shares in two or more firms if the  
effect is to restrict competition in a particular industry.   
Foreign access to real estate is strictly controlled through the Alien  
Land Acquisition Act.  As a result of amendments to the Act adopted in  
late 1993, foreign-invested firms may purchase land for business  
purposes, including staff housing.  Other laws, however, require that  
specified minimum ratios of the land be used for the investor's stated  
purposes; failure to meet those requirements within a specified time can  
result in a heavy tax or a requirement that the undeveloped land be  
sold.  Although foreign banks and insurance companies have the right to  
acquire land through foreclosure, foreign-invested firms are generally  
not permitted to purchase land for investment purposes.  
Korea's ineffective enforcement of its intellectual property rights laws  
was the primary reason  that in April 1993 Korea was designated as a  
Priority Foreign Country under U.S. trade law.  Beginning in February  
1993, however, the Korean government announced a series of initiatives  
to strengthen enforcement procedures; increase prosecutorial resources  
and activities; and amend relevant customs, copyright, and computer  
software laws.  Rather than initiating action under U.S. trade law, U.S.  
government and private sector representatives chose to work with the  
Korean government to ensure that these initiatives effectively served  
U.S. interests.  
Until recently, the Korean government has routinely solicited  
proprietary information from potential foreign investors during the  
application process.  This information was then shared with domestic  
trade associations or illicitly made available to local competitors,  
ostensibly for technical review.  A number of U.S. companies have been  
seriously harmed in this way.  
The government of Korea has recently pledged to maintain the  
confidentiality of all proprietary business information that it obtains  
through the regulatory process.  The Unfair Competition Prevention Law  
was amended in late 1991 to extend protection to trade secrets and  
strengthen protection against counterfeiting; infringement is punishable  
by fines of up to 30 million won (US$37,500).  The law also permits the  
filing of civil suits for damages or injunctive relief.  In November  
1992, foreign investment regulations were amended to prohibit the  
referral of investment applications to industry associations or to other  
private sector organizations.  Authorities also circulated instructions  
to working level officials explaining the Korean government's  
responsibility and commitment to maintaining the confidentiality of  
investment information.  
Korean patent law is fairly comprehensive on paper, extensively  
protecting most products and technology.  A patent may be granted to the  
first applicant to file in Korea, notwithstanding proof of development  
or international ownership.  However, at 15 years calculated from the  
date of publication, patent life falls short of the international  
standard of 20 years from the date of application.  Patent applicants  
must request an examination of their application within five years of  
Korea maintains a system for compulsory licensing of patents.  If a  
patent has not been worked continuously and substantially for a period  
of three years, a second party may seek to work the patent by requesting  
a non-exclusive license by the patent holder.  If no license is granted,  
the second party may request arbitration by the patent commissioner.   
The patent commissioner may decide to grant a non-exclusive license.   
The right of the patent holder may be canceled altogether if the patent  
is not continuously worked for two or more years from the date on which  
arbitration granted a non-exclusive license.  Compulsory licenses may  
also be issued by the patent commissioner if the invention is deemed  
necessary for the national defense, for the public interest, or for the  
protection of a dependent patent. Violators of patent rights are liable  
under civil and criminal law.  
The Universal Copyright Convention, to which Korea acceded in 1987,  
obliges Korea to treat works from participating countries as it does its  
own.  Copyright protection is generally provided for under the Copyright  
Law, but several other laws pertain to non-printed material.  Korea's  
Copyright Law protects both the economic and moral rights of the author.   
Economic rights include the right to produce derivative work, reproduce,  
distribute, broadcast, and publicly perform or display material.  Moral  
rights include the right to claim authorship, maintain identity, and of  
release.  Copyrights expire 50 years after the author's death and are  
derived from the work itself; no registration is required. Copyrights on  
performances, recordings, and broadcasts currently expire 20 years after  
initial public display.  However, the new copyright law amendments,  
effective as of July 1, 1994, will extend the protection of neighboring  
right to 50 years after initial public display. An impediment to the  
effective enforcement of these laws has been the requirement that before  
action can be taken against violators, the rights-holder must file a  
formal complaint.  
In a 1986 bilateral agreement with the U.S., Korea agreed to provide  
retroactive protection to all computer software, audio recordings, and  
video recordings copyrighted in the United States. The same treatment  
was given to printed material copyrighted and published in the United  
States within the 10 years prior to 1987.  Until 1993, however,  
enforcement of the provisions concerning non-printed material was  
virtually non-existent.  In 1993, the Korean government set up a review  
system for licenses that has proved much more effective in enforcing the  
claims of legitimate rights-holders.  
In 1989, the Computer Program Protection Act (CPPA) was enacted to  
extend copyright protection to computer software.  Protection is  
afforded for a period of 50 years, dating from authorship, and applies  
only to computer programs written after the law went into effect (1989).   
The 1994 revision of the Copyright Law, effective July 1, recognizes  
data base compilations as copyrighted works.  The revisions to the CPPA,  
effective July 5, 1994, entitle the authors of computer programs to  
authorize rentals of their works.  Under the act, only civil remedies  
are available in case of violations.  
Legislation to protect semiconductor mask works was passed in 1991 and  
took effect at the beginning of 1994.  The law provides some downstream  
protection.  U.S. industry has expressed continuing concern over the  
compulsory licensing provisions of the law.  It is uncertain whether  
such a law would qualify for reciprocal recognition by the United  
The Trademark Law extends protection only if registration has taken  
place in Korea.  This provision has worked to disadvantage U.S. rights  
holders who attempt to enter the market relatively late but discover  
that their marks have already been registered by Korean firms.  The  
U.S.-Korea 1986 bilateral agreement obligates the Korean Industrial  
Property Office, to protect under administrative practice U.S.  
trademarks not registered in Korea, whether or not they are considered  
"well-known."  However, the Korean government historically has not  
enforced this provision and recently disputed this interpretation of the  
bilateral agreement.  Trademark infringement is punishable by  
imprisonment of up to five years and by a fine of up to 20 million won  
(US$25,000).  A complaint by the registered trademark holder is not  
necessary to initiate prosecution.  As in other areas of intellectual  
property rights protection, the Korean government began tough,  
systematic enforcement of the trademark law only in 1993.  
Trademark registration is good for 10 years and renewable in subsequent  
10 year periods.  To retain validity, trademarks must be used.  1990  
revisions to the Trademark Law extended the period of non-use to three  
years from the previous period of one year. Other revisions included the  
possibility of partial trademark nullification in some cases and  
authorization of sale or transfer of trademarks, apart from the sale of  
the business.  
Korea is a signatory to the World Intellectual Property Organization,  
the Universal Copyright Convention, the Budapest Treaty on the  
International Recognition of the Deposit of Microorganisms (March 1988),  
the Paris Convention for the Protection of Industrial Property (May  
1980), and the Patent Cooperation Treaty (August 1984).  
Difficult even for Korean firms, the Korean regulatory environment poses  
an even greater challenge to foreign firms. Opportunities for  
discrimination, inconsistent application, and corruption abound.  Laws  
and regulations are framed in general terms, and are subject to  
different bureaucratic interpretations.  Basic concepts of  
administrative procedure are not well developed.  Mid-level bureaucrats  
rely on unpublished ministerial guidelines and unwritten administrative  
advice for direction.  No formal rule making procedure exists.  Proposed  
rules are often not published prior to promulgation, or are published  
with insufficient time to permit public comment and industry adjustment.   
After promulgation, rules are often applied retroactively.  
The manner in which Korean standards and regulations are drafted,  
promulgated, and implemented has been a long-standing issue with the  
United States.  In 1981, Korea acceded to the GATT Agreement on  
Technical Barriers to Trade (the Standards Code), but implementation has  
been slow and not transparent. President Kim has made deregulation one  
of the cornerstones of his economic policy.  It is hoped that  
bureaucratic procedures will be improved and streamlined.  
Laws exist that discourage monopolistic practices and unfair  
competition, but their practical effect is limited by the long-standing  
economic dominance of a few large business conglomerates, called  
chaebols.  Korea's Monopoly Regulation and Fair Trade Law was amended in  
the mid-1980s to specifically address the issue of unwieldy chaebol  
growth.  Cross-equity investments were banned and equity limits set for  
chaebol holdings in joint venture companies.  Only drastic legal change,  
however, is likely to significantly reduce chaebol economic power.  
Chaebol domination of the Korean economy causes some practical business  
problems for foreign investors.  Small- and medium-sized suppliers, for  
example, may be reluctant to deal with foreign firms for fear of  
jeopardizing a prized chaebol relationship.  Distribution channels may  
be blocked by chaebol competitors who own or dominate distribution  
channels.  And, seeking credit may be complicated by the privileged  
relationships competing chaebols enjoy with local banks.  
In January 1992, Korea's stock market was partially opened to foreign  
investors.  Still, foreign ownership in a listed company is restricted  
to no more than 15 percent in the aggregate.  For certain companies in  
which foreign ownership existed prior to January 1992, foreigners may  
continue to own up to 25 percent.  However, purchases of the shares in  
two government-chartered companies, the Korea Electric Power Company and  
the Pohang Iron and Steel Company, are subject to strict limits. The  
government has permitted stock purchases on margin since 1977; however,  
transactions must be settled within three business days.  
Although Korea does not routinely limit the repatriation of funds, it  
reserves the right to do so in exceptional circumstances, such as  
situations which may harm its international balance of payments, cause  
excessive fluctuations in interest or exchange rates, or threaten the  
stability of its domestic financial markets.  
As noted above, Korea strictly limits foreign land acquisition and does  
not permit portfolio investment in real estate.  Foreigners may purchase  
land for business purposes and for use as staff  housing.  Currently,  
opening real estate to portfolio investment is not under consideration.  
The government exercises tight control over its domestic credit markets,  
often with the goal of channeling financing to priority sectors.  In  
some instances, banks have been carrying non-performing "policy loans"  
on their books for years. Credit ceilings on loans to the 30 largest  
business conglomerates are now in effect and banks are encouraged to  
channel a specified percentage to small- and medium-sized businesses.  
In June 1993, the Kim Young Sam administration announced a five-year  
financial sector reform program.  The program proposed loosening foreign  
exchange and capital controls, eliminating government credit schemes,  
and continuing the deregulation of interest rates.  In keeping with this  
proposal, the government in late 1993 announced continued deregulatory  
foreign exchange reform to take place beginning October 1, 1993. In  
November 1993, controls on interest rates on loans as well as time  
deposits with maturities over two years were removed when the second  
stage of a four-stage interest rate deregulation program was  
implemented.  The first stage was implemented in November 1991.  
During his election campaign, President Kim said that he would implement  
a "real-name" financial system, the purpose of which would be to combat  
corruption, since fictitious names were being used by bank account  
holders to evade taxes or shelter illicit funds.  In August 1993, Kim  
held true to his campaign pledge and announced that effective October  
12, 1993, false names would no longer be used in financial transactions.   
As a result of this change, bank accounts held under false names have  
largely been eliminated, although accounts held under borrowed names are  
still prevalent.  
Korea is not prone to political violence in relation to foreign direct  
investment.  We are unaware of any politically motivated threats of  
damage to foreign projects and/or installations of any sort.    
Tensions on the Korean Peninsula have remained relatively high due to  
the threat from North Korean conventional military forces and the  
potential threat of North Korea's nuclear weapons development program.   
In a U.S.-DPRK agreement signed in Geneva in October 1994, North Korea  
agreed to freeze and eventually dismantle its nuclear weapons program in  
return for improved relations with the U.S. and a program to provide  
substitute energy in the form of heavy fuel oil and the construction of  
light water reactors, which are less subject to use for weapons  
development.  It is hoped that this program, in conjunction with  
improved inter-Korean relations starting in June 1995 with an ROK-DPRK  
agreement to provide South Korean rice to the North, will ease the  
DPRK's international isolation and reduce tensions on the peninsula.  
The United States has a bilateral Treaty of Friendship, Commerce, and  
Navigation with Korea which contains general provisions pertaining to  
business relations and investment.  Korea also maintains bilateral  
investment protection agreements with 26 countries including Germany,  
France, the United Kingdom, the Netherlands, Belgium, Switzerland,  
Denmark, Hungary, Thailand, Bangladesh, Sri Lanka, Senegal, and Tunisia.  
Since a 1991 determination under the workers rights provisions (Section  
23lA) of the Foreign Assistance act, the Overseas Private Investment  
Corporation (OPIC) has refrained from writing policies under its  
insurance programs for companies making new investments in Korea.   
Coverage issued prior to this determination is still in force.  Lack of  
OPIC coverage is not regarded as a serious obstacle to U.S. investors,  
since OPIC has never had to cover claims for expropriation, political  
risk or currency inconvertibility.  
Korea has been a member of the Multilateral Investment Guarantee Agency  
since November 1987.  
Korea has a highly educated and hard-working work force.  Although  
labor-management relations can be contentious, they have improved in the  
past five years with wages having increased more than two and a half  
times over 1987 levels.  Between 1987 and 1989, labor disputes numbered  
in the thousands.  There were 234 recorded in 1991, 235 in 1992, and 144  
in 1993.  Acts of violence are on the decline, but labor relations  
remain highly emotional.  Labor groups are quick to escalate disputes  
and often resort to work slowdowns, abuse of leave, and disruption of  
business by holding rallies, wearing casual clothes, or displaying  
protest signs in the work environment.  These tactics fall outside the  
scope of Korea's labor law and usually do not lead to confrontations  
with authorities. Sit-in strikes are common, and workers have on  
occasion occupied company offices or factories.  
Foreign-invested firms may be more vulnerable to labor disturbances than  
wholly Korean owned enterprises.  Employees at foreign-invested firms  
tend to make greater demands on management. Disputes with foreign firms  
have, at times, taken on an emotional, xenophobic tone in which  
employees have made verbal threats against expatriate managers.   
Although actions by striking employees may be illegal, unless violence  
occurs, police are reluctant to enforce the law and arrest unionists at  
foreign firms.  Labor is quick to get its side of the story into the  
local papers, often portraying the dispute as an issue of nationalism.   
Since economic growth has slowed and a number of foreign firms have or  
are planning to withdraw from Korea, labor is increasingly concerned  
about reductions in force and issues of severance pay.  Mechanisms for  
peacefully resolving labor disputes remain inadequate.  For some firms  
such as banks and broadcasting companies whose activities are considered  
to perform public services, the government has ordered binding  
arbitration to solve labor disputes.  In 1993, the government invoked  
binding arbitration to resolve a labor dispute involving a U.S. bank,  
the first time it had done so in the case of  a foreign-owned firm.  
In December 1991, following its admission to the United Nations, Korea  
joined the International Labor Organization (ILO).  It has not ratified,  
however, the basic ILO conventions on workers rights (Convention No. 87  
on the Freedom of Association, Convention No. 98 on the Right to  
Organize and Collective Bargaining, and Convention No. 151 on public  
service employees' right to organize).  A number of international and  
domestic labor groups have filed complaints against the Korean  
government with the ILO's Committee on Freedom of Association, which  
issued a report critical of Korean labor laws and practices and  
recommended that Korea amend its Trade Union Law to allow workers to  
form plural trade unions of their choice without restriction, to allow  
public servants and teachers the right to organize trade unions and  
engage in collective bargaining, to repeal the ban on third-party  
intervention in the settlement of labor disputes, and to facilitate the  
release of a number of imprisoned trade unionists.  
Although they have diminished in importance, Korea maintains two free  
export zones at Masan and Iri (on the southern and western coasts) for  
the exclusive use of foreign-invested firms to import raw materials and  
semi-finished goods in-bond and duty-free for re-export as finished  
goods.  Other tax incentives are also available (see above).  The zones  
have good water and electricity supply, storage facilities, stevedoring  
and packing services, machinery repair, telecommunications, and other  
support services.  Land for plant and warehousing is available at  
relatively low prices.  
A new industrial park, intended for the exclusive use of foreign- 
invested high-technology firms, is being planned for Asan, a city about  
two hours southwest of Seoul.  It will provide essentially the same  
services as do Masan and Iri and is scheduled for completion in 1996.  
Since liberalization in 1986, Korean foreign direct investment abroad  
has been growing at an average annual rate of over 38 percent.  By 1992,  
it totaled more than $4.5 billion.  Much of this has been recent  
investment has gone to China and Southeast Asia in labor intensive  
industries such as footwear and component assembly. Southeast Asia has  
replaced the United States  and Canada as the largest regional recipient  
of Korean investment. Since the establishment of formal diplomatic  
relations in 1992, Korean investors have been particularly active in  
China's northern provinces, which have sizable ethnic Korean  
On April 1, 1993, the Ministry of Finance announced several measures to  
liberalize restrictions on overseas portfolio investments. Short-term  
finance companies and pension funds may now invest in foreign stocks and  
bonds.  Korean industrial firms with trading volumes exceeding US$100  
million may purchase up to use 100 million won in foreign securities.   
And, individual investors may make indirect investments in foreign  
securities by purchasing beneficiary certificates issued by one of three  
investment trust companies.  Prior to April 1993, only securities  
companies, investment trust companies, and insurance firms were  
permitted to invest in foreign securities. Portfolio investment in  
foreign real estate is still prohibited.  
The following is a list of major U.S. investments in Korea.  For  
information on other countries' investments, please refer to the section  
on investment statistics.  
Top 10 U.S. Investors in Korea and their Products:  
Procter&Gamble Far East.:   Household Products  
                            Paper Products  
E.I.Dupont De Nemours & Co: Photomasks for Semiconductors  
                            Engineering Plastics  
                            Titanium Dioxide   
Ford Motor Company:         Autos and Auto Parts  
Caltex (Overseas) Ltd:      Petroleum Refining  
Bank of America NT:         Banking  
Carrier Corp.:              Air Conditioners  
H.J. Heinz Co.:             Foods & Feeds  
General Motors Corp.:       Auto Parts  
Caltex Petroleum Corp.:     Petroleum Refining  
Dupont Laboratories, Inc.:  Photomasks for Semiconductor  
The Comprehensive Assistance Center for foreign investment is a one-stop  
shop for foreign investment in Korea and recently opened in the Myong- 
dong area of Seoul.  This office provides Korean government publications  
on foreign investment as well as provides a consulting service for  
foreigners.  Contact:  Mr. MOON, Jong Chul; Comprehensive Assistance  
Center for Foreign Investment, 3rd Floor, Industrial Bank of Korea  
Building 50, Eulji-ro 2-ka, Choong-ku, Seoul.  Tel. 011-82-2-319-7314/5;  
Fax 011-82-2-319-7318.  
The banking system in Korea comprises 15 commercial banks, 10 regional  
banks (one in each of Korea's 10 provinces), 52 foreign bank branches,  
23 foreign representative offices, and 5 "specialized" banks.  Directed  
and supervised by the government, the specialized banks were originally  
created in the 1960s to provide funds to particular sectors where credit  
was insufficient, but have since expanded into commercial banking.   
Kookmin Bank (new name for the Citizens National Bank), formerly a  
specialzed bank, became a commercial bank as of December 31, 1994, as  
the Korean government abolished the Citizens National Bank Act in light  
of privatization.  The total assets of nationwide commercial banks (less  
acceptances and guarantees) accounted to 185 trillion won (US$ 243  
billion) as of end of 1994.  
Proposed foreign remittances must be approved at the time investment  
approval is sought.  Once approved, remittances are guaranteed.  When  
higher royalties or payments over an extended period of time are  
proposed as part of a technology licensing agreement, both the agreement  
and projected royalties must be approved by a foreign exchange bank or  
the Ministry of Finance and Economy.  In most cases approval is  
In 1991, the Korean government replaced its "positive" system of foreign  
exchange controls with a "negative" system, under which transactions are  
allowed to take place if not specifically prohibited.  Since then, the  
government has introduced a number of measures to further ease foreign  
exchange restrictions.  These include steps to ease the underlying  
documentation requirements for forward foreign exchange transactions,  
raise the limits on the foreign exchange positions of banks, and allow  
certain transactions to be paid in Korean won.   
In its most recent foreign exchange reform plan announced in December  
1994, the government outlined a five-year program to ease restrictions  
on both current account and capital account transactions.  According to  
the plan, in 1995 import payment terms on a deferred basis will be  
extended to 180 days (up from 150 days) in the case of imports intended  
for re-export, and up to 90 days in the case of imports for domestic  
consumption, up from the current term of 60 days.  The government also  
plans to reduce the documentation requirements for overseas payments,  
and to eliminate the requirements totally for payments of less than  
$5,000.  It also plans to ease the restrictions on offshore commercial  
borrowing: beginning in 1995, the government's reform plan calls for  
widening the category of companies permitted to borrow offshore to  
include firms engaged in infrastructure projects, small- and medium- 
sized companies, and Korean-owned firms designated as high technology.   
Currently, only foreign-invested firms designated to provide high  
technology goods and services are permitted to borrow offshore.  In any  
event, borrowed funds must be used to import machinery and equipment and  
are subject to specified limits.  The government plans to eliminate most  
restrictions on offshore borrowing by 1999.  
Conversion of the national currency, the won, into foreign currencies  
for international transactions such as the import of goods and services  
is possible through a foreign exchange bank.  Korean residents may now  
remit up to $50,000 or its equivalent for donation to a foreign charity.   
Also, a Korean traveler may purchase up to $10,000 to meet the expense  
of foreign travel, plus an additional $10,000 for overseas stays longer  
than one month.  Korean residents are now authorized to purchase foreign  
real estate of up to $300,000 per individual.  Limits on purchases of  
foreign securities have also been eased: Korean companies may now  
purchase up to one billion won ($1,250,000), and individuals may buy up  
to 500 million won ($625,000).  The government eliminated limits on  
foreign security purchases by institutional investors.  In addition,  
Korean residents are now permitted to hold deposits abroad of up to  
$30,000 for individuals and $1 million for corporations.  
A foreign firm that invests under the terms of the Foreign Capital  
Inducement Act (FCIA) is guaranteed unlimited remittances as long as   
foreign exchange bank confirms its ability to undertake the  
transactions.  An audited financial statement must be made available to  
the foreign exchange bank.  To withdraw capital, a stock valuation  
report issued by a recognized securities company or the Korean Appraisal  
Board must also be presented.  Foreign companies not investing under the  
FCIA must repatriate funds through authorized foreign exchange banks  
after obtaining government approval.  
Although Korea does not routinely limit the repatriation of funds, it  
reserves the right to do so in exceptional circumstances, such as  
situations which may harm its international balance of payments, cause  
excessive fluctuations in interest or exchange rates, or threaten the  
stability of its domestic financial markets.  
The government recently announced simplified procedures for importing  
high technology.  Under new rules that went into effect on April 1,  
1995, most contracts for importing high technology under license no  
longer need to be reported in advance to the relevant ministry.   
However, contracts with an effective period of at least one year or  
more, or those whose repayment period is one year or more and which  
involve technology related to equipment and parts used in the aerospace,  
nuclear, or defense industries continue to be subject to the prior  
notification requirement.    
The government exercises tight control over its domestic credit markets,  
often with the goal of channeling funds to priority sectors.  Beginning  
in the 1970s, the government provided funds, called "policy loans,"  
carrying subsidized interest rates to small business, the agriculture  
sector, and other priority segments of the economy.  In addition, credit  
ceilings on loans to the 30 largest business conglomerates are in  
effect, and banks are encouraged to channel a percentage of incremental  
loans to small- and medium-sized businesses.  Distortions in credit  
allocation due to government controls have resulted in high levels of  
non-performing loans in the banking system; according to official  
statistics, such loans comprise about two percent of total bank loans),  
although industry estimates place the percentage as high as ten percent.  
Medium and short term credit is available from Korean as well as foreign  
banks, and through the issuance of debentures.  Credit, however, is  
often in short supply, and foreign firms much compete with domestic  
companies, which generally have better access to local funding.  Foreign  
banks also operate under government restrictions which limit their  
access to won funding and therefore their ability to fill the credit  
needs of their customers.  Debentures are an alternate, albeit expensive  
source of financing.  Long term debt is available from the Korea  
Development Bank and the Korea Long Term Credit Bank, but only for high  
priority industries and funding is in short supply.  Offshore loans are  
generally not permitted.  As noted above, however, certain categories of  
firms including foreign-invested high tech companies may be eligible to  
borrow funds offshore in order to finance imports of needed machinery  
and equipment.  
For the reasons discussed above, the Korean financial system is  
perennially hard-pressed to meet the demand for Korean won.  Foreign  
companies in a start-up operation with a Korean partner often invest  
capital for the venture while their partner makes an investment in kind,  
i.e., land or facilities, as the Korean equity.  Joint venture companies  
and foreign firms usually work with branches of foreign banks that have  
special albeit limited funds designated for local currency financing of  
such enterprises.  
Potential sources of financing include the foreign and domestic  
commercial banks, regional banks and specialized banks including the  
Korea Development Bank (under the jurisdiction of the Ministry of  
Finance and Economy, serving as an intermediary for channeling  
government funds and foreign loans to industry), the Korea Long-Term  
Credit Bank, the National Agricultural Cooperative Federation which  
emphasizes service to the agricultural sector, the Industrial Bank of  
Korea, Korea Housing Bank, and the Export-Import Bank of Korea.  
For the most part, counter trade requirements are confined to the  
defense industry sector.  A company can freely repatriate capital and  
profits if the Ministry of Finance and Economy (MOE) has approved its  
investment application outlining the company's intent to do so.  The  
embassy is not aware of any problems or complaints from U.S. companies  
operating in Korea in this regard.  
There are three principal methods of importing with Korea's own foreign  
exchange:  (1) Letters of Credit, (2) Documents against Acceptance (D/A)  
and (3) Documents against Payment (D/P).  D/A is a form of extended  
credit in which the importer makes no payment for the goods until the  
date called for in the credit; however, they may clear the goods from  
customs prior to payment.  D/P is the same as D/A except that the  
importer cannot clear the goods from customs prior to payment.  The  
methods used under Korea's foreign exchange control regulations follow  
universal commercial practice.  
Imports on deferred payment terms D/A and usance L/C terms of payments  
are allowed only for (1) commodities that are not subject to specific  
commercial duties having tariff rate of 10 percent or less, and (2)  
crude oil, light oil, and heavy oil.  Deferred payment terms are valid  
only up to 60 days (120 days for export use).  The only exceptions to  
this limit are 30 days for procurement from nearby sources requiring  
sailing times of not more than 10 days (i.e. Japan, Hong Kong, Taiwan,  
and the Philippines).    
Types of Available Export Financing and Insurance  
Since a 1991 determination under the workers rights provisions (Section  
231A) of the Foreign Assistance Act, the Overseas Private Investment  
Corporation (OPIC) has refrained from writing policies under its  
insurance programs for companies making new investments in Korea.   
Coverage issued prior to this determination is still in force.  As OPIC  
has never had to cover claims for expropriation, political risk or  
currency inconvertibility in Korea, lack of OPIC coverage is not  
regarded as a serious obstacle to U.S. investments.  Likewise, although  
loans and guarantees are technically available from the Export-Import  
Bank of the United States, they are not common.  Since 1987, Korea has  
been a member of the Multilateral Investment Guarantee Agency of the  
World Bank Group.    
American Banks in Seoul:  
American Express Bank, LTD. (Seoul Branch): 17th Floor,  
Kwangwhamoon Bldg., 64-8 Taipyungro 1-Ka, Chung-ku, Seoul.  
Mailing address: KPO Box 1390, Seoul.  Cable address: "AMBANK" SEOUL.   
Telex: K24484.  Tel: 399-2929, Fax: 399-2967  
Bankers Trust Company (Seoul Branch): 10th Floor, 1 Center Bldg., #91-1,  
Sokong-dong, Chung-ku, Seoul.  Mailing address: CPO Box 7480, Seoul.   
Cable address: "BANTRUSSEL".  Telex K26390.  
Tel: 3112-603/15, Fax: 756-2648  
Bank of America (Seoul Branch): Hyonam Bldg.  9th Floor, #1 Jangkyo- 
dong, Chungku, Seoul.  Mailing address: CPO Box 3026, Seoul.  Cable  
address: "BANKAMERICA" SEOUL.  Telex: K23294.  
Tel: 729-4401/6, Fax: 738-0624  
Chase Manhattan (Seoul Branch): #34-35 Jung dong, Chung-ku, Seoul.   
Mailing address: CPO Box 2249, Seoul.  Cable Adress: "CHAMANBANK" SEOUL.   
Telex: K23249.    
Tel: 7585-114, 7585-312/315  Fax: 758-5423  
Chemical Bank (Seoul Branch).  11th Floor, Daewoo Bldg., #541  
Namdaemoonro 5-ka, Chung-ku, Seoul.  Mailing address: CPO Box 1240,  
Seoul.  Cable address: "CHEMICAL" SEOUL.  Telex:K23736. Tel: 771-9922,  
Fax: 318-1849  
Citibank, N.A. (Seoul Branch): #89-29 Shinmoonro 2-ka,  
Chongro-ku, Seoul.  Mailing address: KPO Box 749, Seoul.  
Cable address: "CITIBANK" Seoul.  Telex: K23293.  
Tel: 731-1114, 722-7800-0  Fax: 720-9712   
First National Bank of Chicago (Seoul Branch): Oriental Chemical Bldg.  
15th Floor, #50, Sodong-dong, Chung-ku, Seoul.  Mailing address: CPO Box  
7239, Seoul.  Cable address: "FIRSTCHICAGO" SEOUL.  Telex: K27534.  Tel:  
316-9700, Fax: 753-7917  
Morgan Guarantee Trust Company of N.Y. (Seoul Branch): 22th Floor, Kobo  
Bldg., #1-1, 1-ka, Chongro, Chongro-ku, Seoul.  Mailing adress: CPO Box  
7212, Seoul.  Cable address: "MORGANBANK".  Tel: 732-2300, Fax: 734-0148  
Korean Banks in Seoul  
Hanil Bank: 130 Namdaemoonro 2-ka, Choong-ku, Seoul.    
Telephone: 752-9660  Fax: 753-7322  
Korea First Bank: 100 Gongpyoung-dong, Chongno-ku, Seoul.  Telephone:  
736-8055  Fax: 736-8092  
Chohung Bank: 14 Namdaemoonro 1-ka, Choong-ku, Seoul.    
Telephone: 739-3493  Fax: 723-6475  
The Commercial Bank of Korea:  111-1 Namdaemoonro 2-ka, Choong-ku,  
Seoul.  Telephone: 752-2141   Fax: 755-8039  
Seoul Bank: 10-1 Namdaemoonro 2-ka, Choong-ku, Seoul.    
Telephone: 3709-5618  Fax: 775-4983  
Shinhan Bank:  120 Taepyoungro 2-ka, Choong-ku, Seoul.  Telephone: 774- 
7674  Fax: 774-7013  
Koram Bank: 1 Gongpyoung-dong, Chongro-gu, Seoul.    
Telephone: 731-8522  Fax:731-8939  
Donghwa Bank: 66 Juksun-dong, Chongro-gu, Seoul.    
Telephone: 733-8815  Fax: 720-7326  
Dongnam Bank: 149 Seorin-dong, Chongro-gu, Seoul.    
Telephone: 723-4112  Fax: 723-8503  
Daedong Bank: 51-9 Pil-dong, Choong-ku, Seoul.    
Telephone: 268-8568  Fax: 272-3675  
Korea Exchange Bank: 181 Ulchiro 2-ka, Choong-ku, Seoul.  Telephone:  
729-8911  Fax: 754-9817  
Hana Bank: 101-1 Ulchiro 1-ka, Choong-ku, Seoul.    
Telephone: 775-6728   Fax: 756-6358  
Boram Bank: 9-10 Ulchiro 2-ka, Choong-ku, Seoul.    
Telephone: 771-5300  Fax: 757-0056  
Peace Bank of Korea: 823-21 Yoksam-dong, Kangnam-ku, Seoul.  Telephone:  
222-2224   Fax: 564-8464  
Kookmin Bank: 9-1 Namdaemoonro 2-ka, Choong-ku, Seoul.  
Telephone: 317-2114  Fax: 776-5637    
                     CHAPTER IX.  BUSINESS TRAVEL  
It is imperative that any American doing business in Korea realize that  
Seoul is not Los Angeles.  Every year Korea becomes more and more  
modern, but it is important to recognize that modern does not equal  
Western.  Koreans will not expect you to be an expert on the nuances of  
their culture, but they will appreciate a show of interest in matters  
that are important to them.    
For Koreans, relationships are all important; "cold calls" don't work --  
introductions are crucial!  Koreans want to do business with people with  
whom they have formed a personal connection.    
The exchange of business cards is very important and a means by which  
Koreans learn about the name, position and status of the other person.   
Always have your (preferably bilingual) business card at the ready and  
treat the exchange and your counterpart's card with some respect. (It is  
custom to receive and present items with both hands.)    
Negotiating style is particularly important.  Koreans can prove subtle  
and effective negotiators, and a commitment to a rigid negotiating tact  
early on may work to the American's disadvantage.  Your offer may  
include the best price, technology and profit potential but still get  
turned downed because the Korean customer doesn't like your style.       
An important point must be kept in mind concerning the nature of  
reaching agreement with a Korean firm.  Westerners attach great   
importance to a written contract which specifies each detail of the  
business relationship.  Koreans, on the other hand, value a contract as  
a loosely structured consensus statement that broadly defines what has  
been negotiated, but leaves sufficient room to permit flexibility and  
adjustment.  The Korean Government has attempted to address this dual  
perception by formulating "model" contracts for licensing technology and  
other arrangements.  Both parties must be assured the obligations  
spelled out in a negotiated contract are fully understood.  
Most Koreans have three names.  These names usually follow the Chinese  
pattern of a surname followed by two given names.  In addressing  
Koreans, foreigners should stick to the use of surnames (Mr. Kim; Ms.  
Lee), using formal titles if possible (Dr. Yoo; Director Song).    
Travelers with questions or concerns about traveling to Korea should  
check with the U.S. Department of State at Travel Advisory Service, 2201  
C Street, N.W., Washington, D.C. 20520.  For recorded travel advisory  
information contact tel. 202-647-5225.  For faxed travel advisory  
information sent to your fax machine, contact tel. 202-647-3000.   
Although Korea has not yet made its mark as a tourist destination, Seoul  
has long been a well established business center.  As an Asian business  
center, Seoul has the selection of deluxe hotels one would expect.   
These hotels cater to the needs of busy professionals with business  
centers offering secretarial services, translation and interpretation,  
courier service, printing and photocopying, telecommunications and  
equipment rental.  
It is relatively easy to get to Korea from the U.S.  Flying time ranges  
from 10-14 hours, depending on point of departure and season.  Kimpo  
International Airport, located 10 miles southwest of downtown Seoul, is  
the primary gateway to South Korea.  For information on Kimpo  
operations, English speakers can telephone in Seoul, 660-2471/2 (foreign  
airline terminal) or 660-2481/2 (Korean-owned airlines' international  
terminal).  Korean speakers can dial in Seoul, 660-2200 or 660-2114.  
Visas are not required for American visitors in transit through Korea,  
or for tourists who do not remain in Korea for more than 15 days and  
hold confirmed outbound tickets.  However, since there are no extensions  
and a substantial penalty at departure for those who exceed 15 days, it  
is a good idea to get a visa from a Korean embassy or consulate prior to  
coming to Korea, if you think your stay might approach two weeks.  
On a business visa visitors may stay for up to 90 days.  A business visa  
requires a letter from an American company stating the purpose of travel  
and photograph; no written invitation from a Korean firm is required.   
Travelers wishing to exit and return to Korea within the period  
specified by their visas need simply obtain a re-entry permit when  
A long-term resident visa (beyond 90 days) is more difficult to obtain  
than the business visa.  Application must be made to the Ministry of  
Justice from outside Korea.  It requires considerable documentation,  
including a letter of invitation from a Korean company and contractual  
evidence of legal employment.  Starting July 1, 1994, however, the  
Justice Ministry will extend the long-term stay for foreigners from  
three years to four years.  They have also simplified the visa renewal  
process, eliminating the 15-day, out-of-the-country wait period.   
Renewals will be available at overseas Korean diplomatic missions by  
filing out applications before leaving the U.S.    
Also starting July 1, 1994, 43 automatic passport-reading machines have  
been installed at Kimpo International Airport.  This will help ease the  
entry and exit procedures for foreigners, with only random checks to be  
For help with all matters pertaining to visas during your stay in Korea,  
contact the nearest of the nation's 25 immigration offices under the  
Korean Ministry of Justice in Seoul, Tel: 720-2817/2820 or 776-8984.   
The ministry has recently announced improvements in services for non- 
Korean speaking foreigners, including a new recorded information service  
(dial 655-2103/6 and push #3 for information in English on alien  
Upon arrival in Korea an immigration card and customs declaration (given  
to you on the plane) should be completed before reaching the first floor  
arrival processing area.  No vaccination certificate is required for  
entrance under Korean quarantine regulations.  In clearing customs,  
gifts with a value of up to $400 (which can include liquor up to one  
liter (33.8 fl. oz.), 2 ounces of perfume and 200 cigarettes) may be  
brought in duty-free by non-residents.  Currency in excess of $10,000  
must be declared.  
For international departure from Kimpo there are two terminals: terminal  
1 for 16 foreign carriers; and terminal 2 for the two Korean airlines  
and 7 foreign ones.  At check-in a passenger service charge of Won 8,000  
($10.53) must be paid.  Also, be aware that the Cultural Preservation  
Properties Law prohibits the export of "significant" Korean cultural  
Non-residents must declare in writing to Korean Customs all foreign  
currency with a value in excess of $10,000 that they carry into or  
acquire in Korea.  This rule is enforced.  When buying won in Korea be  
sure to keep the receipt(s) because re-exchange is allowed up to the  
amount specified; without receipts only $500 worth of won can be re- 
converted to dollars.  A maximum of $5,000 (about won 4,400,000) can be  
exported.  Americans living in Korea for over six months can convert up  
to $5,000 into won at one time.  For shorter stays the maximum is $500  
at a time.  
Visitors are allowed to bring in duty-free gifts with a value of up to  
$100.  For travelers within this limit no written declaration is  
required.  Additional gifts and other items which will remain in the  
U.S. are dutied at a rate of 10% up to $1,000, and at variable rates  
Returning U.S. residents can bring in articles totalling $400 in value  
duty-free when the articles are for personal use.  After the $400  
exemption, the next $1,000 worth of personal or gift items are dutied at  
a flat rate of 10%.  Beyond $1,400, various duty rates apply according  
to the item.  Both residents and non-residents are limited to one carton  
of cigarettes, 100 cigars and one liter of alcoholic beverage or 2  
ounces of perfume for duty-free import.  The duty-free limit is $50 for  
bona fide gifts mailed to the U.S.  All mail shipments must contain a  
written declaration.    
Foreign-made personal articles are dutiable each time they are brought  
into the U.S., unless one can prove prior possession.  Articles bought  
in "duty free" shops in foreign countries are subject to U.S. customs  
duty.  Articles purchased in U.S. "duty free" shops are also subject to  
U.S. duties if they are brought back into the U.S.  
Visiting Americans should be aware of possible trademark and copyright  
violations when purchasing articles in Korea.  Makes such as Couch,  
Reebok, LA Gear, Gucci, Polo, Rolex and Members Only, and computer  
software and games are often counterfeit.  Due to the high potential for  
counterfeiting, items bearing the above-named trademarks (and several  
others) cannot be legally mailed into the U.S.  By attempting to take  
counterfeit goods through U.S. Customs, one runs the risk of having them  
confiscated.  Possession of significant amounts of counterfeit goods can  
lead to criminal prosecution.  If you have any questions, contact the  
U.S. Customs office at the Embassy in Seoul at 397-4644.  
January 1 & 2:               New Year Holidays  
February 18,19 & 20:         Lunar New Year Days  
March 1:                     Independence Movement Day  
April 5:                     Arbor Day  
May 5:                       Children's Day  
May 24:                      Buddha's Birthday  
June 6:                      Memorial Day  
July 17:                     Constitution Day  
August 15:                   Independence Day  
September 26, 27 & 28:       Korean Thanksgiving Days  
October 3:                   National Foundation Day  
December 25:                 Christmas Day  
Business infrastructure (e.g. transportation, language, communications,  
housing, health, food)  
When visiting Korea on business it is best to reserve your room well in  
advance.  This is doubly true for the last weeks in April and much of  
October.  Further, it is a good idea to confirm your hotel reservation  
and any special requests by fax.  Call the Korea National Tourism  
Corporation at 011-82-2-757-0086 and ask for an English assistant for  
help in finding a hotel outside of Seoul.  By faxing the Seoul Tourist  
Association on 011-82-2-757-9756 one can request a comprehensive listing  
of Seoul hotels, inns and hostels.  
Tipping is not customary, but a 10% service fee is charged at most  
hotels, as is a 10% Value Added Tax.  Many of the hotels offer  
attractive corporate discounts, but they are usually not available if  
you book through a travel agent.  Finally, participants in official  
programs (such as trade shows, "matchmakers" and other official trade  
missions) sponsored by the Foreign Commercial Service of the American  
Embassy or other entities of the U.S. government can often be accorded  
the "Embassy rate" at certain hotels.    
The public transportation system is very well organized.  With timely  
subways and city buses that service the whole city, the only real  
problem is the traffic.  The seemingly endless rush-hour traffic can be  
a major hinderance, so early preparation, as well as lots of patience,  
is required.   
Thanks to the new non-stop limousine bus service commissioned by the  
government and operated by Korean Air, travel to the major hotels is  
quite easy.  The fare is won 3,500 ($4.50), one-way and won 2,000 for  
ages between 6-12.  As an added convenience the buses are equipped with  
pay phones and tourist information.   
Seoul boasts a world-class trade resource known as the Korea World Trade  
Center (KWTC).  Included at this site are the Trade Tower, the Korea  
Exhibition Center (KOEX), the City Air Terminal, a convention center and  
the Seoul Intercontinental Hotel.  
Most private office are open from 8:30 a.m. to 6:00 p.m. weekdays and  
from 9:00 a.m. to 1:00 p.m. on Saturdays.  Korean Government offices  
keep similar hours, except for a 5:00 p.m. closing from November through  
February.  Banking hours are from 9:30 a.m. to 4:30 p.m. weekdays and  
9:30 a.m. to 1:30 p.m. Saturdays.  
The U.S. Embassy is open from 8:30 a.m. to 5:00 p.m. weekdays and closed  
on Saturdays and Sundays.  
                          CHAPTER X.  APPENDICES  
Appendix A:  Country Data  
-   Population:  44.5 million (1994)  
-   Population growth rate:  0.9 percent  
-   Religions:  Buddhist (28%); Christian (24%); Other (4%);  
    No affiliation (44%); strong confucian traditions.  
-   Government system:  Representative democracy with a populary-elected  
    President, who is Chief of State and Head of Government, and a  
    unicameral National Assembly.  
-   Languages:  Korean, with English widely taught in schools.  
-   Work Week:  Monday to Saturday; Average work week of 47.5  
Appendix B:  Domestic Economy  
(In million U.S. Dollars unless otherwise noted)  
                                  1994        1995       1996  
GDP                                379.5      451.6      501.3  
GDP growth rate (1990 prices)        8.4        8.7        6.5  
GDP per capita (USD)             8,528.0   10,058.0   11,066.0  
Government Spending as % of GDP     17.3       17.2       17.8  
Inflation rate                       6.2        5.2        5.4  
Foreign Exchange Reserves       25,679.0   31,000.0   35,000.0  
Average Exchange Rate USD 1        803.4      765.0      760.5  
Foreign Debt                    57,268.0   65,000.0   72,000.0  
Debt Service Ratio                   9.3       10.5       10.8  
U.S. Mil./Econ. Asst.                0.0        0.0        0.0  
Appendix C:  Trade  
Total ROK Exports                96,013   124,820    136,050  
Total ROK Imports               102,348   135,100    143,180  
ROK Exports to U.S.              20,550    23,632     25,640  
ROK Imports from U.S.            21,580    30,200     32,600  
U.S. Share of ROK Imports         21.1     22.4      22.7  
Appendix D:  Foreign Direct Investment Statistics  
            (US$ millions)  
                 New/Additional         Cumulative Approvals  
1962-66             47.4   (39)          47.4     (42)  
1967-71            218.6  (350)         226.0    (392)  
1972-76            879.4  (851)       1,145.4  (1,243)  
1977-81            720.6  (244)       1,866.0  (1,487)  
1982-86          1,767.7  (565)       3,633.7  (2,052)  
1987             1,060.2  (363)       4,693.9  (2,415)  
1988             1,282.7  (342)       5,976.6  (2,757)  
1989             1,090.3  (336)       7,066.9  (3,093)  
1990               802.5  (295)       7,869.4  (3,399)  
1991             1,396.0  (286)       9,265.5  (3,696)  
1992               894.5  (233)      10,163.4  (3,905)  
1993             1,044.3  (274)      11,208.5  (4,178)  
1994             1,316.5  (414)      12,525.1  (4,592)  
- On an approval or notification acceptance basis.  
- Figures in parenthesis indicate number of new projects.  
Source:  The Ministry of Finance and Economy (MOFE).  
           BY MAJOR COUNTRIES, 1962-94 (US$ million)  
              Total       U.S.       Japan     EC/EU     Others  
1962-76      1,145.4      255.3      725.1      58.7      106.3  
            (1,266)       (188)     (985)      (35)       (58)  
1977-81        720.6      235.7      300.9      64.2      119.8  
              (251)       (67)      (132)      (26)       (26)  
1982-86      1,767.7      581.6      876.2     117.7      192.2  
              (579)      (168)      (276)      (58)       (77)  
1987         1,063.3      255.1      497.0     149.6      161.6  
              (372)       (93)      (206)      (31)       (42)  
1988         1,282.7      284.4      696.2     217.0       85.1  
              (352)      (104)      (177)      (45)       (26)  
1989         1,090.3      328.8      461.5     160.1      139.9  
              (349)       (97)      (145)      (59)       (48)  
1990           802.5      317.5      235.8     177.9       71.3  
              (306)       (84)      (145)      (39)       (38)  
1991         1,396.0      296.3      266.2     733.3      100.3  
              (297)       (86)      (112)      (51)       (48)  
1992           894.5      379.2      155.2     231.6      128.5  
              (233)       (70)       (72)      (42)       (49)  
1993         1,044.3      340.7      285.9     295.3      122.4  
              (274)       (69)       (85)      (42)       (78)  
1994         1,316.5      310.9      424.4     226.7      354.5  
              (414)      (115)      (132)      (50)      (117)  
TOTAL       12,525.1    3,570.1    4,894.1   2,443.3    1,617.6  
            (4,592)     (1,139)    (2,470)     (480)      (503)  
- On an approval or notification acceptance basis.  
- Figures in parenthesis indicate number of new projects.  
Source:  The Ministry of Finance and Economy (MOFE).  
INDUSTRY, 1993-94 (US$ millions)  
         Cumulative 1962 Thru 1994               1993        1994  
Agriculture/Fishery      24.3    (82)         0.1  (1)        --  
 Agriculture             16.4    (45)         0.1  (1)        --  
 Fishery                  7.9    (37)          --             --  
Mining                   17.9    (45)        --              0.3   (1)  
Manufacturing         7,795.9 (3,098)      526.8 (80)      401.7 (136)  
 Food Processing        489.7  (188)        39.4  (4)       17.8  (13)  
 Textiles/Clothing      317.5  (263)         4.6  (6)        6.1  (14)  
 Wood/Paper             168.9   (65)         1.6  (3)        7.2   (6)  
 Chemicals            1,965.4  (401)       241.2 (13)      106.9   (9)  
 Fertilizers             50.0    (7)         1.2  (-)        --  
 Pharmaceuticals        412.3   (90)        22.7  (1)       38.0   (5)  
 Petroleum              683.2   (16)        20.7  (-)        8.2   (3)  
 Ceramics               206.3   (90)        29.1  (1)       27.7   (3)  
 Metals                 226.7  (205)        15.1  (4)        7.5   (9)  
 Machinery              727.7  (588)        49.8 (28)       48.7  (43)  
 Electronics          1,502.7  (642)        45.2  (8)       63.1  (14)  
 Transport Equipment    918.4  (153)        44.1  (4)       66.2  (10)  
 Others                 127.1  (390)        12.2  (8)        4.3   (7)  
Services              4,687.1(1,484)       517.3 (192)     914.5 (277)  
 Electricity & Gas       26.0    (1)        26.0  (1)      --  
 Construction            64.8   (20)         1.1  (2)        6.8   (5)  
 Wholesale/Retail       150.7   (73)        63.5  (8)       21.7  (18)  
 Foreign Trade          444.4  (640)        92.2 (110)     101.4 (130)  
 Restaurants             70.2   (64)        35.1 (11)        4.3  (14)  
 Hotels               2,166.2   (95)       102.7  (4)      293.1   (9)  
 Transport/Warehouse     59.2   (65)         0.6  (4)        8.1  (17)  
 Banking                977.0  (108)        57.0  (6)      293.8   (9)  
 Insurance              202.1   (15)         8.7  (1)        8.0   (-)  
 Others                 526.5  (403)       156.5 (46)      151.4  (74)  
TOTAL                12,525.1 (4,709)    1,044.3 (273)   1,316.5 (414)  
- On an approval or notification acceptance basis.  
- Figures in parenthesis indicate number of new projects.  
Source:  The Ministry of Finance and Economy (MOFE).  
Mr. Hak-Do Kim  
Commercial Attache  
Embassy of the Republic of Korea  
2450 Massachusetts Ave., NW  
Washington DC 20008  
Tel. 202-939-5670, Fax. 202-939-5669  
Mr. Young-Soo Rhee, Manager  
Korea Foreign Trade Association (KFTA)  
1800 K Street, NW Suite 700  
Washington, DC 20006  
Tel. 202-828-4400, Fax. 202-828-4404  
Mr. Yoon Hong Choi, Director  
Korea Trade Center (KOTRA)  
1129 20th Street, NW #410  
Washington, DC 20036  
Tel. 202-857-7929/21, Fax. 202-857-7923  
Jeffrey Donius/William Golike (policy)  
Dan Duvall (counselling)  
Desk Officer for Korea  
US Department of Commerce  
14th and Constitution Avenue, NW  
Washington, DC 20230  
Tel. 202-482-4390, Fax. 202-482-3316  
Ann Kambara/Dan Hutchens, Desk Officer for Korea  
US Department of State  
2201 C Street, N.W  
Washington DC 20520  
Tel. 202-647-7717, Fax. 202-647-7350.  
Mr. Todd Schneider, International Economist  
Office of Asian and Near East Nations  
U.S. Department of the Treasury  
1500 Pennsylvania Ave., NW  
Rm 5221  
Washington, DC 20220  
Tel. 202-622-0335, Fax. 202-622-0349  
Export Counseling Division  
Office of Export Services  
Bureau of Export Administration  
U.S. Department of Commerce  
14th & Constitution Ave., NW  
Rm 1099D  
Tel. 202-482-4811, Fax. 202-482-3617  
Christina Lund  
Director for Korean Affairs  
Office of the United States Trade Representative  
Winder Bldg., 600 17th Street, N.W.  
Washington, D.C. 20506  
Tel. 202-395-4755, Fax. 202-395-3911  
Trade Assistance & Promotion Office  
U.S.Department of Agriculture/Foreign Agricultural Service  
Room 4930 South  
12th & Independence  
Washington DC 20250-1052  
Tel. 202-720-7420, Fax. 202-690-4374  
Regional Director-Asia/Pacific  
U.S. Trade and Development Agency  
SA-16-Room 309  
Washington, DC 20523-1602  
Tel. 703-875-4278, Fax. 703-875-4009  
International Business Development Office  
Export-Import Bank of the United States (Eximbank)  
811 Vermont Ave., NW  
Washington, DC 20571  
Tel. 202-565-3920, Fax. 202-565-3931  
Robert Connan, Minister-Counselor for Commercial Affairs  
Jerry Mitchell, Minister-Counselor for Commercial Affairs (As of August,  
US&FCS, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4535, Fax. 82-2-739-1628  
Barbara Griffiths, Minister-Counselor for Economic Affairs  
Economic Section, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4400, Fax. 82-2-722-1429  
Frederick Crosher, Counselor for Scientific & Technological Affairs  
Science & Technology Affairs, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4159, Fax. 82-2-722-1429  
Mark Minton, Minister-Counselor for Political Affairs  
Political Section, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4210, Fax. 82-2-733-4791  
Mr. David Schoonover, Minister-Counselor for Agricultural Affairs  
Agricultural Affairs Office (AGAFF)  
American Embassy in Seoul  
Unit #15550  
APO AP 96205-0001  
Tel. 82-2-397-4297, Fax. 82-2-738-7147  
Mr. Phillip Shull, Director  
Agricultural Trade Office (ATO)  
Room 303, Leema Building  
146-1, Soosong-dong, Chongro-ku  
Seoul, Korea  
Tel. 82-2-397-4188, Fax. 82-2-720-7921   
William Maurer, Minister-Counselor for Public Affairs   
U.S. Information Service, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4436, Fax. 82-2-794-2889  
Reginald Duncan, Customs Attache  
U.S. Customs Service, American Embassy in Seoul  
Unit 15550  
APO AP 96205-0001  
Tel. 82-2-397-4644, Fax. 82-2-736-6850  
          1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Deputy Prime Min. & Min. of Finance & Economy, HONG Jae Hyong, 503-9001  
Vice Minister, LEE Suk Chae, 503-9006  
Public Information Officer,BAE Young Shik, 503-9019  
Assistant Minister I, CHANG Seung Woo, 503-9018  
Assistant Minister II, SHIN Myung Ho, 503-9204  
Planning & Management Office, AHN Byung Woo, 503-9013  
Budget Office:  
LEE Young Tak, 503-9015  
Director General for Budget Coordination, CHUNG Dong Soo, 500-5111  
Director General for Budget, BYEON Yang Kyoon, 500-5112  
Director General for Budget II, YOON Young Dae, 500-5113  
Director General for Budget III, CHANG Suk June, 500-5182  
Tax & Customs Office:  
KANG Man Soo, 503-0711  
Director General for Tax Affairs, NAM Koong Hoon, 503-9207  
Director General for Tax Affairs II, LEE Kun Kyong, 503-9220  
Director General for Customs & Tarriff, HAN Taek Soo, 503-9230  
Financial Policy Office:  
KIM Yong Sup, 503-9206  
Director General for Financial Policy, YOON Jeung Hyun, 503-9240  
Director General for Banking & Insurance, LEE Yoon Jae, 503-9253  
Director Gen. for Int'l Finance & Securities, YON Won Young, 503-9266  
Treasury Bureau, MAENG Jung Ju, 503-9279  
Economic Policy Bureau, CHOI Jong Chan, 503-9044  
Int'l Economic Policy Bureau, CHUNG Duck Koo, 503-9134  
Welfare & Consumer Policy Bureau, KIM Ho Shik, 503-9057  
Korean Customs Service:  
71 Nonhyun-dong, Kangnam-ku, 135-702  
Commissioner, LEE Hwan Kyun, 543-8245  
National Tax Administration:  
108-4, Soosung-dong, Chongro-ku, Seoul, 110-140  
Commissioner, CHOO Kyung Suk, 720-28ll  
         77, Sejong-ro, Chongro-ku, Seoul  110-760  
Minister, GONG Ro Myung, 720-2301  
Vice Minister, LEE See Young, 720-2305  
Public Information Officer, RYU Kwang Sok, 720-2687  
Assistant Minister for Political Affairs, LEE Jai Chun, 732-2306  
Assistant Minister for Economic Affairs, SUN Joun Yung, 720-2352  
Office of Planning and Management:  
Assistant Minister for Planning & Management, KIM Hang Kyung, 720-2314  
Senior Coord. for Planning & Management I, MOON Byung Rok, 730-5911  
Senior Coordinator for Planning & Management II,  SUNG Rak Min, 733-4609  
Office of Policy Planning:  
Assistant Minister for Policy Planning, BAN Ki Moon, 720-3379  
Senior Coordinator for Policy Developmt.,  JU Chul Ki, 720-2358  
   Director, Regional Policy Div., KIM Euy Taek, 720-4022  
Senior Coordinator for Security Affairs, SONG Young Oh, 720-2655  
   Director,, CHOI Won Sun, 720-9212  
   Security Policy Division     
Senior Coord. for Regional Political Affairs, JEON Bu Guan, 735-2165  
   Director,, LEE Soo Taek, 720-4503  
   Special Political Affairs Division  
Sr. Coord. for Intelligence Evaluation & Mngmt., SEO Hyun Seop, 720-3185  
   Director,, SEOK Tong Youn, 720-2340  
   Intelligence Analysis Division  
American Affairs Bureau:  
Director General, YIM Sung Joon, 720-2320  
Deputy Director General, CHO Yong Ha, 738-1140  
Director, North America Division I, KIM Sook, 720-2321  
Director, North America Division II, KIM Wook, 720-2239  
Director, Central America & Caribbean Division, KIM Byung Kwon, 720-2326  
Director, South America Division, JUNG Kwang Kyun, 720-2249  
United Nations System Bureau:  
Director General, HAHM Myung Chul, 720-2333  
Deputy Director General, SUH Dae Won, 720-4571  
Director, U.N. Policy Division, OH Joon, 720-2334  
Director, Disarmament & Nuclear Energy Div., PARK In Kook, 720-3969  
Director, U.N. Economic Affairs Division, KIM Sang Yoon, 720-2336  
Director, Human Rights & Social Affairs, LIM Jae Hong, 723-8934  
Treaties Bureau:  
Director General, OH Yoon Kyung, 725-1015  
Deputy Director General, CHOI Seung Ho, 720-45721  
Director, Treaties Division I, PARK Yong Kyu, 720-2337  
Director, Treaties Division II, CHANG Dong Hee, 725-0766  
Director, Intl. Legal Affairs Div., CHUNG Hae Woong, 720-4045  
International Economic Affairs Bureau:  
Director General, CHOI Young Jin, 720-2045  
Deputy Director General, AHN Hyo Seung, 720-2434  
Director, Economic Cooperation Division I, SHIN Yeon Sung, 720-2330  
Director, Economic Cooperation Division II, KIM Bong Joo, 720-4537  
Director, Environment Cooperation Division, KIM Young Suk,  720-2328  
Director, Int'l Environment Organiz. Div., PARK Heung Shin, 725-0789  
Director, Science and Resources Division, SHIN Kil Soo, 720-2329  
Cultural Affairs Bureau:  
Director General, KIM Young Ki, 725-7602  
Deputy Director General, LEE Suk Jo, 725-7603  
Director, Cultural Affairs, CHUNG Soon Suk, 725-7604  
Director, Public Relations Div., KIM Jong Hae, 725-7606  
Director, Diplomatic Archives Division, LEE Chung Kee, 571-1097  
Overseas Residents and Consular Affairs Bureau:  
Director General, KIM Sung Young, 720-2343  
Deputy Director General for Passport, BAE Yeong Jin, 720-2727  
Director, Overseas Residents Division, LEE Choong Seok, 720-2728  
Director, Consular Division, HUR Duck Haeng, 720-2346  
Institute of Foreign Affairs and National Security (IFANS):  
1376-2, Seocho 2-dong, Seocho-ku, Seoul  137-072  
Chancellor, LEE Joung Binn, 571-1011  
                     MINISTRY OF JUSTICE  
         1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, AHN Woo Mahn, 503-7001  
Vice Minister, KIM Jong Koo, 503-7003  
Public Information Officer, LEE Sang Hyung, 503-7011  
Planning & Management Office, CHOI Byung Kook, 503-7005  
Legal Affairs Office, KIM Soo Jang, 503-7006  
Prosecution Bureau, CHOI Hwan, 503-7007  
Correction Bureau, WON Jong Il, 503-7008  
Social Protection & Rehabilitation Bureau, KIM Byung Hak, 503-7009  
Immigration Control Bureau, HONG Seok Jong, 503-7010  
Public Prosecutions Administration:  
138, Seosomoon-dong, Choong-ku, Seoul  110-701  
Prosecutor General, KIM Do Eun, 752-0505  
Chief, Seoul High Prosecutor's Office, KIM KI Soo, 536-3201  
Chief, Seoul District Prosecutor's Office,  CHOI Young Kwang, 536-5301  
                       MINISTRY OF NATIONAL DEFENSE  
             1, Yongsan-dong 3-ka, Yongsan-ku, Seoul  140-023  
Minister, LEE Yang Ho, 748-6022  
Vice Minister, LEE Jung Rin, 748-6100  
Spokesman, KIM Young Choul, 748-6060  
Chief Protocol Officer, CAPT CHO Boo Keun, 748-6031  
Assistant Minister for Policy, LTG CHO Sung Tae, 723-6037  
Assistant Minister for Mngmt. & Plans, CHO Yong Su, 748-6120  
1st Assistant Minister, SOHN Byung Ik, 748-6130  
2nd Assistant Minister, YOON Chong Ho, 748-6140  
Commander, Defense Procurement Agency, MG LIM Sam, 754-3196  
CG, Defense Security Command, MG LIM Jae Moon, 748-7200  
CG, Defense Security Agency, MG LEE Eui Se, 723-6698  
(9125th MND Unit)  
Defense Intelligence Agency, LTG YOO Jeong Gap, 748-2000  
President, National Defense College, MG HAN Kwang Duk, 309-8231  
Chief, Armed Forces Special Inspection Group, LTG RHE Jae Dal, 748-1900  
Policy & Plans Office, KIM In Jong, 748-6200  
Finance Bureau, LEE Kwa Seoung, 748-5300  
Mobilization & Reserve Forces Bureau, YOO Hyo Il, 748-5200  
Personnel Bureau, LEE Youn Woo, 748-5101  
Troop Information & Education Bureau, MG OH Jum Rok, 748-6400  
Logistics Bureau, MG AHN Kwang Nam, 748-5701  
Installations Bureau, MG KANG Awk Tae, 748-5801  
Acquisition Policy Bureau, MG PARK Young Ik, 748-5600  
Project Coordination Office, COL LEE Won Hyoung, 748-5500  
Troop Information & Education Bureau, MG OH Jum Lock, 748-6400  
Force Programming Bureau, KWON Young Hyo, 748-6600  
Arms Control Bureau, MG KIM Yong Koo, 748-6300  
Joint Chiefs of Staff:  
Chairman, GEN KIM Dong Jin, 748-3001  
1st Vice Chairman, PYUN Jang Won, 748-3010  
2nd Vice Chairman/Chief Director, Support, VADM KANG Duk Dong, 748-3020  
Chief Director, Strategic Planning, LTG CHOE Dong Hwan, 748-3600  
Chief Director, Operations Planning, LTG KIM Dong Shin, 748-3200  
Director, Operations, MG CHOI Don Guel, 748-3400  
Director, Force Planning, MG CHO Young Kil, 748-3800  
Director, Forces Evaluation, RADM LEE Ji Doo, 748-3900  
Director, Command Control & Communications, MG KIM Kwang Pyung, 748-2600  
Director, N. Korean Intelligence Directorate, MG PARK Hyun Jin, 748-2200  
Director, Logistic Planning, MG CHUNG Jung Taek, 748-2400  
Director, Combat Readiness Inspection, MG JUNG Kook Bon, 748-2500  
Director, Exercise & Doctrine, MG KIM Hyon, 748-3500  
Director, Strategic Planning, MG CHOI Yong Hwan, 748-3700  
Director, Overseas Intelligence, RADM KIM Chong Dae, 748-2300  
Director, Intelligence Collect. & Security, MG KIM Young Chul, 748-2100  
Director, Operations Plans, MG CHUNG Hwa Eun, 748-3300  
Director, Personnel Planning, MG CHA Ki Joon, 748-3100  
Director, Civil Affairs & Psychological Warfare, MG KOO Tae Do, 748-2700  
Chief, Secretary, BG KIM Myong Lip, 748-3030  
Director, Defense Intelligence Agency, LTG YOO Jeong Gap, 748-2000  
Director, Operation Analysis Group, YOON Gap Soo, 748-2530  
CG, Defense Intelligence Command, MG SEO Tea Suk, 748-7290  
Superintendent, Joint Staff College, MG LEE Jung Ho, 748-1368  
CG, Defense Communication Command, BG AHN Byung Kil, 748-1500  
Republic of Korea Army:  
Chief of Staff, GEN YOON Yong Nam, 505-6000  
Vice Chief of Staff, LTG KIM Hyung Sun, 505-6100  
Republic of Korea Navy  
Chief of Naval Operations, ADM KIM Hong Yeol, 815-3566  
Vice Chief of Naval Operations, VADM YIM Tae Sup, 815-3567  
Republic of Korea Air Force  
Chief of Staff, GEN KIM Hong Rae,  506-6000  
Vice Chief of Staff, LTG PARK Chun Taek, 506-6100  
ROK-US Combined Forces Command (CFC)  
Deputy Commander in Chief, GEN CHANG Sung, 794-2081  
                       MINISTRY OF EDUCATION  
              77, Sejong-ro, Chongro-ku, Seoul  110-760  
Minister, KIM Sook He, 720-3400  
Vice Minister, LEE Chun Soo, 720-3266  
Public Information Officer, KIM Yon Soo, 739-3345  
Planning & Management Office, LEE Soo Jong, 720-3267  
Education Policy Office, SUH Jung Hun, 737-5506  
Higher Education Support, KIM Myung Kon, 720-3978  
Local Education Support, LEE Bo Ryeong, 720-3477  
Teacher Policy & Support, KIM Duck Hwan, 720-3305  
Non-Formal Education & Intl. Affairs Bureau, CHO Sun Jae, 737-4184  
Textbook Compilation & Curriculum Devlopmnt., HAN Myung Hee, 736-3409  
                    MINISTRY OF CULTURE AND SPORTS  
              82, Sejong-ro 1-ka, Chongro-ku, Seoul  110-050  
Minister, CHOO Don Shik, 720-3801  
Vice Minister, KIM Do Hyun, 720-3805  
Public Information Officer, SHIN Hyun Taek, 734-5833  
Assistant Minister, CHOI Chang Shin, 733-0031  
Planning & Management Office, LEE Kyung Moon, 720-3809  
Religious Affairs Office, CHUNG Duk Yong, 720-3819  
Youth Policy Office, KIM Sa Heung, 734-0182  
Cultural Policy Bureau, KIM Yong Moon, 736-4030  
Arts Bureau, CHUNG Ki Young, 734-3815  
Culture & Industry Bureau, HA Jin Kyu, 720-3836  
Tourism Bureau, SUH Jung Bae, 734-5287  
Sports Policy Bureau, SUNG Sang Woo, 734-5286  
Int'l Sports Bureau, OH Jee Chul, 734-5288  
Office of Cultural Properties  
5-1, Chung-dong, Choong-ku, Seoul  100-120  
Director General, KIM Jin Moo, 318-4300  
National Museum  
1-57, Sejong-ro, Chongro-ku, Seoul  110-050  
Director General, CHUNG Yang Mo, 732-9428  
           1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, CHOI In Kee, 503-7201  
Vice Minister, PARK Sang Woo, 503-7204  
Public Information Officer, KIM Young Kap, 503-7210  
Assistant Minister, CHO Il Ho, 503-7206  
Planning & Management Office, LEE Young Rae, 503-7240  
Agriculture & Fisheries Statistics Information, KIM Jung Jae, 503-7250  
Agricultural Policy Office,  KIM Dong Tae, 503-7208  
Int'l Agriculture Bureau, CHOI Yong Kyu, 503-7290  
Room 322, 3-dong, , 507-2095(F)  
Kwacheon Government Building  
1 Chungagn-dong, Kwacheon-shi   
Kyunggi-do, Korea  
Rural Development Bureau, LEE Sang Moo, 504-9400  
Marketing Policy Bureau, Vacant, 504-9410  
Horticulture & Special Crops, SHIN Soon Woo, 504-9420  
Livestock Bureau, AHN Duck Soo, 504-9430  
Agricultural Cooperatives:  
Mr. Won, Cheol Hi, President  
National Agricultural Cooperatives Federation (NACF)  
75, Choongjung-ro 1-ka, Chung-ku, Seoul  
Phone: 737-0021/9    
Fax: 397-5010  
Mr. Song, Chan Won, President  
National Livestock Cooperatives Federation (NLCF)  
451, Seongnai-dong, Kangdong-ku  
Seoul, Korea  
Phone: 485-3141  
Fax:  475-8129  
Mr. Park, Jong Shik, President  
National Federation of Fisheries Cooperatives  
11-6, Shincheon-dong, Songpa-ku  
Seoul, Korea  
Phone: 240-2114  
Fax: 240-3000  
Rural Development Administration:  
Administrator, KIM Kwang Hee, (0331) 292-4371  
Fisheries Administration:  
Administrator, LEE Hee Soo, 753-0810  
Forestry Administration:  
Administrator, KWAK Man Sup, 962-4211  
National Animal Quarantine Service:  
Director General, KIM Ok Kyung, 653-5034  
National Plant Quarantine Service:  
Director General, HONG In Shik, (0343) 49-0523  
           1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, PARK Jae Yoon, 503-9400  
Vice Minister, PARK Un Suh, 503-9402  
Public Information Officer,  CHO Hwan Eik, 503-9404  
Assistant Minister, CHUNG Hae Joo, 503-9415  
Planning & Management Office,  Sokan CHANG, 503-9416  
Int'l Trade Office:  
HAN Duck Soo, 503-9415  
D/G for Int'l Trade I, LEE Chong Ku, 503-9442  
D/G for Int'l Trade II, KIM Hong Kyung, 503-9443  
D/G for Int'l Trade III, HAN Young Soo, 503-9431  
Energy Policy Office:  
KIM Tae Kon, 503-9617  
D/G for Energy Policy I, KIM Hyo Sung, 503-9661  
D/G for Energy Policy II, KIM Dong Won, 503-9625  
D/G for Energy Policy III, SUH Joo Sok, 503-9638  
Industrial Policy Bureau, OH Kang Kyun, 503-9451  
Small & Medium Enterprise Bureau, OH Young Kyo, 503-9458  
Basic Industry Bureau, LEE Gun Woo, 503-9469  
Processing & Consumer Goods Industry Bur., SUH Sa Hyun, 503-9486  
              100, Sejong-ro, Chongro-ku, Seoul  110-777  
Minister, KYONG Sang Hyon, 750-2001  
Vice Minister, LEE Kye Cheol, 750-2020  
Public Information Officer, SUH Young Kil, 750-2800  
Planning & Management Office,  PARK Sung Deuk, 750-2100  
Information & Communication Policy Office, JUNG Hong Shik, 750-2300  
Information & Communication Promotion Bureau, LEE In Pyo, 750-2060  
Int'l Cooperation Bureau, LEE Jong Soon, 750-2070  
Radio & Broadcasting Bureau, LEE Sung Hae, 750-2400  
Posts Bureau, LEE In Hak, 750-2200  
Postal Savings, Insurance & Finance Bureau, PAK Young Ihl, 750-2500  
                           MINISTRY OF ENVIRONMENT  
             1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, KIM Joong Wie, 504-9211  
Vice Minister, KIM In Hwan, 504-9217  
Public Information Officer, PARK Jong Keon, 504-9220  
Planning & Management Office, YOON Suh Sung, 504-9230  
Environmental Policy Office, CHO Byung Hwan, 504-9236  
Nature Conservation Bureau, YOON Chang Won, 504-9281  
Air Quality Management Bureau, KIM Jong Suk, 504-9246  
Water Quality Management, SHIM Jae Kon, 504-9251  
Water Supply & Sewage Bureau,  KWAK Kyul Ho, 507-2451  
Waste Management & Recycling Bureau, CHUNG Kook Hyun, 504-9258  
                     MINISTRY OF HEALTH AND WELFARE  
              1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, SUH Sang Mok, 503-7500  
Vice Minister, JOO Kyung Shik, 503-7502  
Public Information Officer, JEON Do Suk, 503-7504  
Planning & Management Office,  KIM Jong Dae, 503-7519  
Social Welfare Policy Office, IN Kyung Suk, 504-7720  
Public Health Bureau, LEE Dong Mo, 503-7537  
Food Affairs Bureau, CHON Kye Hyo, 503-7582  
Medical Affairs Bureau, CHO Pyung Ryun, 503-7547  
Pharmaceutical Affairs Bureau, SIM HAN Sup, 503-7556  
Pension & Health Insurance Bureau,  KIM Yong Moon, 504-1101  
                            MINISTRY OF LABOR  
                1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, LEE Hyung Koo, , 503-9700  
Vice Minister, CHOI Seung Boo, , 503-9702  
Public Information Officer, CHOI Song Chon, , 503-9713  
Planning & Management Office, AHN Young Soo, 503-9704  
Labor Relations Office, KIM Sang Nam, 503-9774  
   D/G for Labor Relations Policy, KIM Won Bae, 503-9728  
   D/G for Labor-Management Corporation, KIM Chung Kyu, 503-9729  
Labor Standards Bureau, CHO Sun Moon, 503-9740  
Industrial Safety & Health Bureau, CHANG Soun Shik, 500-5617  
Employment Security Bureau, LEE Hong Ji, 503-9747  
Vocational Training Bureau, KIM Jae Young, 503-9753  
Labor Insurance Bureau, KIM Song Ja, 503-9760  
              1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, OH Myung, 504-9001  
Vice Minister, YOO Sang Yol, 504-9005  
Public Information Officer, KIM Sang Youn, 504-9030  
Assistant Minister, HONG Chul, 504-9008  
Planning & Management Office, YOO Jik Hyung, 504-9010  
Construction Affairs Office, KIM Kuen Ho, 504-9020  
   Construction Technology Officer, NAM Dong Ick, 504-9021  
   Water Resources Officer, HA Jin Kyu, 504-9040  
   Construction Economy Officer, GANG Ghil Boo, 504-9050  
Transport Policy Office, LEE Heon Seok, 504-9060  
   Transport Planning Officer, LEE Hwan Guan, 504-9061  
   Roads Officer, CHOI Joo Hyung, 504-9070  
   Logistics Officer, JEONG Im Cheon, 504-9080  
National Development Planning Bureau, KANG Yun Mo, 504-9110  
Surface Transportation Bureau, JANG Bu Shi, 504-9140  
Transport Safety Bureau, LEE Hyang Yeul, 504-9150  
Civil Aviation Bureau, SUNG Ki Soo, 504-9180  
Land Bureau, SUNG Boo Hyun, 504-9120  
Housing & Urban Affairs Bureau, PARK Byung Seon, 504-9130  
                 77, Sejong-ro, Chongro-ku, Seoul  110-760  
Minister, SEO Suk Jae, 720-4321  
Vice Minister, WON Jin Shik, 720-4325  
Public Information Officer, CHO Ki Ahn, 720-4351  
Planning & Management Office, KANG Bin, 720-4327  
Protocol & State Council Bureau, KIM Bum Il, 720-4332  
Personnel Bureau, OH Hyoung Hwan, 720-4340  
Organization Bureau, MOON Dong Hao, 720-4348  
Administrative Efficiency Bureau, KIM Choong Yang, 720-4402  
            1, Joongang-dong, Kwacheon, Kyunggi-do  427-760  
Minister, CHUNG Kun Mo, , 503-7601  
Vice Minister, KOO Bohn Young, , 503-7604  
Public Information Officer, CHOI Seok Sik, , 503-7608  
Planning & Management Office, KIM Ji Ho, , 503-7623  
Research & Development Coordination Office, SONG Ok Hwan, , 503-7630  
   Coordinator for R&D Planning & Management, PARK Dong Suk, , 503-7636  
   Basic Research Coordinator, PARK Sang Dong, 503-7631  
   Machinery & Material Research Coordinator, CHEON Eui Jin, 503-7633  
   Electrical & Electronic Research Coordinator, MOON You Hyun, 503-7634  
   Chemical & Bio-technology Research Coord., CHANG Moon Ho, 503-7635  
   Natural Resources & Ocean Research Coord., CHANG Sang Ku, 503-7606  
   Atomic Energy Office, KIM Se Jong, 503-7607  
   Atomic Energy Policy Officer, CHO Chung Won, 503-7644  
   Nuclear Safety Officer, HUH Nam, 503-7645  
Technology Promotion Bureau, LEE Sang Tae, 500-3232  
Technology Cooperation Bureau, KYUNG Jong Chul, 500-3249  
Technical Manpower Bureau, YU Hee Yol, 500-3214  
National Science Museum:  
Director General, KWON Kap Taek, (042)861-2521  
List of DOC/ISAs, and USDA/FAS/Commodity Reports  
List of DOC/ISAs:  
AHS   Commuter Helicopter Service                January  
ELP   Thermal Power Generation Equipment         January  
FUR   Furniture                                  January  
TLS   Power Tools                                January  
TEL   Wireless Data Comm Equipment               January  
ACH   Architect Services                         January  
APS   Automotive Parts                           April  
FRA   Sea Food Restaurant                        April  
FPP   Food Processing Equipment                  April  
HCS   Healthcare Services                        April  
TEL   Fiber Optic Transmission Systems           April  
ELP   Liquid Natural Gas Equipment               April  
TOY   Toys                                       July  
PAP   Pulp and Paper Materials                   July  
MED   Sterilizers                                July  
TRN   Air Cargo Service                          July  
FLM   Film/Video Recordings                      July  
CPT   Expansion Boards                           July  
CON   Mobile Lifting Construction Equipment      July  
SPT   Sporting Goods                             October  
INS   Insurance                                  October  
TRA   Conventional Travel                        October  
PKG   Packaging Equipment                        October  
MED   Catheters                                  October  
ICH   Industrial Specialty Chemicals             October  
OGM   Pipeline Equipement & Services             October  
List of Agricultural Commodity Reports/Cables:  
Title of Report:                 Due Date 1996:  
Oilseeds Update                   01/20  
Grain Update                      01/20  
Seafood Semi                      02/01  
Livestock Semi                    02/01  
Oilseeds Annual                   03/01  
Grain and Feed Annual             04/01  
Sugar Annual                      04/10  
Agricultural Situation            09/30  
Citrus Semi                       05/01  
Tobacco Annual                    05/01  
Cotton Annual                     06/20  
Poultry Annual                    06/20  
Grain Update                      06/15  
Oilseeds Update                   06/15  
Forest Production Annual          07/15  
Grain Update                      08/01  
Livestock Annual                  08/01  
Oilseeds Update                   08/01  
Seafood Annual                    08/15  
Oilseeds Update                   10/20  
Grain Update                      10/20  
Cotton Update                     10/20  
Citrus Annual                     11/01  
Planting Seeds                    11/15  
Embassy Seoul's trade promotion program ranked among the top programs  
worldwide and increased slightly from the previous year as post  
continued to implement the recommendations of the Strategic Review.  In  
FY'95, post participated in 52 separate events, an increase from 49 in  
FY'94, ranging from Post Initiated Programs to participation in official  
US Pavilions at international trade fairs.  Post plans to emphasize  
support for NTM/NTE U.S. companies in a variety of trade events.  The  
following is a list of trade events for FY'96.  
A.  1. Visit USA Travel Trade Fair  
    2. December 5-7, 1995  
B.  1. American Comsumer Products Fair  
    2. December 1-10, 1995  
C.  1. Study USA '96  
    2. February 2-6, 1996  
D.  1. State of Michigan Trade Exhibition  
    2. October 14-17, 1995  
E.  1. INPOCO '96  
    2. April 1996  
F.  1. Great American Food Show  
    2. March 1996  
G.  1. KIMES '96  
    2. March 1996  
    2. May  1996  
I.  1. Environmental Technologies  
    2. April 1996  
J.  1. KIECO '96  
    2. April 1996           
K.  1. KOTFA '96  
    2. October  1996  
L.  1. Aerospace Seoul '96  
    2. October 10-13, 1996     
In Korea:  
From the U.S.:                    (U.S. domestic mail):  
US Foreign Commercial Service      US Foreign Commercial Service  
American Embassy in Seoul          American Embassy in Seoul  
82 Sejong-Ro, Chongro-Ku           Unit 15550  
Seoul 110-050                      APO AP 96205-0001  
Tel: 397-4221                      Tel: 82-2/397-4221  
Fax: 739-1628                      Fax: 82-2/739-1628  
This report was completed in July 1995  
To the top of this page