Although Korea is not the largest country in the world, it has many advantages in business activities such as being located in the middle business centers – Japan and China. Therefore, this is an ideal country to establish a business, with access to the Asian economic market.
Notes before investing in Korea
Firstly, the Government has actively shaped the business sector, viewing businesses as a tool to focus on economic growth. However, this is not too important and does not affect the business’s operations too much.
Secondly, Korea has many foreign businesses entrenched in certain business fields. This is considered as the top destination for businesses around the world, including some notable brands such as Starbucks, Costco, Ikea,… This causes difficulties for most foreign businesses when planning to do business in these fields.
Advantages and disadvantages of investing and doing business in Korea
Korea is a highly educated country, with the highest literacy rate in the world, creating a favorable business environment for businesses. In addition, Korea has a population of more than 50 million people and the 10th highest GDP in the world, so consumers’ consumption is quite large.
At the same time, the Korean government is very active in promoting and supporting foreign businesses to expand and develop, which is reflected in many investment incentive policies such as tax reduction,… This creates a favorable and sustainable business environment, making it easy to penetrate the Asian market thanks to its favorable geographical location. In fact, starting a direct business in Japan or China can be challenging, but establishing a position in Korea can facilitate expansion across the continent.
However, although the government supports businesses, the procedures and documents that need to be prepared are quite complicated. At this time, businesses can hire a private unit to provide consulting and investment services like NYLA to quickly complete the project.
In general, it can be seen that Korea is the top destination for foreign private businesses wishing to expand their scope of operations in a new market. With a favorable strategic location, a highly educated population and the Government’s support, Korea will be a favorable choice for investment and development.
