UK Trade and Investment (UKTI) in the shape of its Asia Task Force, is currently focusing on the growth of United Kingdom exports to Asian markets (including South Korea) with a series of high level promotional events intended to bring together business leaders and Asia trade professionals.
Other country targets for the Asia Task Force are:
UK Exports to South Korea
UK exports (general trade) 2010, third quarter figures, show South Korea, the fourth largest economy in Asia and number fourteen globally, as number twenty six in the list of UK trading partners with an export value of £596 million.
UKTI describe the South Korean market as, “challenging” but adds that, “it is worth the effort,” particularly with the recent signing of the European Union – South Korea Free Trade Agreement.
European Union – South Korea Free Trade Agreement
The signing in 2010 of the European Union – South Korea Free Trade Agreement, due to be implemented in July 2011, means a removal of ninety seven per cent of current tariff duties for both UK exporters to South Korea and the wider EU exporting community. In monetary terms the total reduction for all EU exporters is expected to be in the region of €1.6 billion.
South Korea, with a population of around forty nine million, was the only OECD country which did not fall into negative growth in 2009 during the global economic downturn. Consequently with predicted growth in 2010 expected to be around the four per cent mark, South Korea offers UK companies a range of expanding sectors to take advantage of.
Current business opportunities for UK exporters to South Korea include:
- Advanced engineering
- Construction
- Consumer goods
- Cosmetics
- Energy
- Food and drink
- Life sciences
While it is not the intention of this writer to provide an in-depth analysis of the South Korean market there is one particular sector that merits attention – ICT.
South Korean ITC Market
UKTI has highlighted the impressive broadband expansion in the country, ranking first in the world among OECD countries for household penetration. With the world’s highest speeds available to consumers, the South Korean ICT sector offers UK exporters, with embedded software expertise, the opportunity to become involved in a range of specialist markets.
UKTI can provide UK exporters to Korea with a range of (in country) support. They can:
- Find local contacts
- Carry out in-depth research on the market
- Attend trade fairs
- Organise events to meet potential partners
- Promote the company and its products or services
Essentially for first time exporters, UKTI can also offer help with business etiquette, language, and culture, essential elements in understanding the Confucian values that permeate South Korean business methods.
Sources:
Statistical information drawn from HM Revenue and Customs: Overseas Trade Statistics, site accessed 30 January 2011
UK Trade and Investment, Doing Business in South Korea, site accessed 30 January 2011
UK Trade and Investment, Asia Task Force, South Korea, site accessed 30 January 2011
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