Business in Korea has been one of the fastest-growing economies around. When it comes to emerging business and gaining attraction to the culture, South Korea is standing at the forefront. In this article, we will be going over the 10 insights that you need to know when it comes to determining why moving your business to South Korea could be beneficial.
South Korea is filled with extremely hard-working people which has made their economy thrive. Investments in education have been imperative for the country’s growth. Although due to unprecedented times due to Covid-19 the GDP did slightly drop, South Korea has been able to keep the drop smaller than most other countries. In the 1960s South Korea grew from 2.7 billion USD to over One Trillion USD.
Opportunity is abundant in South Korea, however, there needs to be strategic planning. South Korea is well known for networking to make deals. South Korea is unlikely to apply for deals with a foreign company without that company having a clear vision for its future. Just like with any other business venture, one would need to have an outline of expectations, marketing solutions, and an income prediction for the coming year.
Why Business in Korea Can Be the Ideal Place?
Being one of the world’s 15 largest economies, South Korea should be on the docket for places to expand your business. South Korea is the world’s eighth easiest economies to do business in and there is a reason for it. South Korea has become one of the best marketplaces for investors from around the world so if you are capable of meeting the requirements to thrive in South Korea it is extremely feasible for your business to be a success.
South Korea has a proven track record of an abundant amount of growth. More than half of the Global fortune 500 companies are nestled into this economy. With the amount of growth that this country has witnessed, it would be a simple choice for one to proceed with expanding their company in South Korea.
The government provides tremendous tax benefits for foreign companies. The government also provides industrial sites as well as cash grants and other financial assistance to help your business to get up and running. it can seem like a daunting task to start a business in a new country, however, with financial assistance and tax benefits, it is less intimidating.
As mentioned, South Korea not only provides tax benefits for foreign companies but corporate taxpayers pay minimum taxes. This can be broken down by understanding that the greater 10% of the taxable income before deductions and waivers, is computed to reach the revised nonexempt income or the final tax that follows the many deductions and exemptions.
Strategically nudged between China and Japan, South Korea is in the most optimal range for travel to more than 60 cities with a population of more than one million. After the US-Korea free trade agreement took place, South Korean businesses now have better access to the largest consumer market in the world.
Since 2008, Incheon International Airport has catered to more than 63 air carriers and more than 30 million passengers who were traveling to over 49 countries. Needless to say, South Korea has business expansion at the forefront of their minds at all times. South Korea is reasonably sourced with respect to the ports, rail network, airfields as well as roads.
South Korea is highly tech-savvy, so having your business there is extremely beneficial. Not only are Korean home appliances as well as mobile phones highly sought after and all around the world, but they also have highly structured processes when testing out the new products. Due to the insightful clientele in South Korea, they have made it easy for some of the well-known companies such as Microsoft, L’Oreal, Proctor, and Gamble as well as eBay to test out the market value of their new products in South Korea.
Recently, Korea’s free trade agreement with the US, and EU has made Korea the prime location for the regional headquarters or the EU-based multinationals that are in hi-tech industries. Having such a perfect location for these large enterprises is a surefire way to tell that this country is stable and capable to handle large businesses adequately.
As the middle class in Korea begins to emerge and become more financially stable, there is now a high desire for more luxurious items. As the middle class becomes more and more prosperous, it begins to open up the opportunity for companies to break into the retail as well as the import of wholesale goods. Having this opportunity and running this type of business can become extremely profitable for future businesses that will venture to South Korea.
Due to the free trade agreements that South Korea has, Korea is able to break into the Asian multinational corporations that are primarily focused on parts and material businesses that are specific to Japanese and Chinese Based entities that are wanting to expand their Global Market.
Despite the global financial downpour that took place back in 2008, deregulated financial business service sectors were able to open up some unique opportunities for foreign investors.
With South Korea being one of the world’s largest countries for business growth, it would seem like a no-brainer for one to want to build there and prosper. With the many benefits such as tax breaks, grants, financial assistance, high rated infrastructure as well as having smart clientele, emerging and being successful in South Korea is more than possible. South Korea has become one of the nation’s go-to locations to build and expand the business because of the many great opportunities that it has to offer.