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According to a survey of 3,410 foreign companies, it was revealed that market penetration and growth potential of the market were the most attractive factors for FDI in Korea
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New ServiceIntroduction Business Consulting Center(BCC)Korea April,2018 Dr. Sung-Bin Yoon, Simonlee
Why Invest inKorea? According to a survey of 3,410 foreign companies, it was revealed that market penetration and growth potential of the market were the most attractive factors for FDI inKorea The reason why invest inKorea?
Why Invest inKorea? 39.5 15.1 10.9 7.7 4.5 3.5 3.2 Localmarket penetration Marketgrowth potential Globalnetwork Innovative environment High-quality manpower Productivity efficiency Govornment Incentives Source) KOTRA(Korea Trade-Investment Promotion Agency), FDI Survey2017
Attractiveness ofKorea 1 Strategiclocation • Located between China and Japan, A gateway to NortheastAsia • Within a 3-hour flight distance from 147 cities with a population of more than 1million 2 Presence of globalfirms • There are Korean firms leading global industries in the areas of mobile devices, appliances, chips, displays, bio fields and thearts. • Foreign firms supply their products to Samsung, LG, SK andHyundai. 3 Smart consumermarket • As Korean consumers are very sophisticated, many companies choose Korea as a test-bed market. Fashion, beauty care and tech firms tap the Korean market before launching new products acrossAsia 4 Advancement inICT • In 2015, Korea was ranked first in the International Telecommunication Union’s annual ICT Development Index (IDI). Korea is active in ICT convergence across different industries such as bio, finance, logistics, tourism andculture.
New Trend of FDIKorea • Foreign direct investment to South Korea hit an all-time high of US$ 23 billion in 2017, up 7.7-percent from the previous year. • It is mainly due to the increase in tech investment related to the so-called 'Fourth Industrial Revolution' such as auto parts, drones, new materials, secondary batteries androbots. • In addition, rising investments in the services sector such as real estate as well as wholesale and retail sales contributed to the surge of FDI. A lot of FDI was made in areas where advanced foreign technology wasmixedwithKorea’sgreatITinfrastructuresuchasbigdata,fintechandmobileplatforms. • By country, the United States’ FDI in Korea inflated 21.5% to US$7.06 billion, while Japan 47.9% to US$1.84 billion. In particular, the UAE reported an investment of US$1.01 billion in a hotel and convention center in Gangwon Province in the fourthquarter.
Mega TrendofKorea Industries With the wave of 4th Industrial Revolution, mega trend of Korea industries are summarized as 3S 1P (Smart, Servitization, Sustainable andPlatform) 3S1P Trends 1 Smart New technologies such as IoT, Big data, AI andetc. It makes all the things and human connected andintelligent Smart factory, smart home, smart city, andetc. 2 Servitization Fromproducttocombination(product+service)orserviceoriented Service as differentiated advantage and valuecreation Carmakersareadoptingmobilityservice(smartcarservice) 3 Sustainable Global environment regulations aretightening Itpromotesenvironmentfriendlyinnovation(ex.energyefficiency) Green tech and new materials are emerging as newindustry 4 Platform Connectionandintegrationofproduct/servicecancreatenewvalue IoT and AI are used for establishing platformbusiness
Emerging NewIndustries Servitization New Industryfocus Smart Sustainable Platform System ElectricVehicle Automotive Smart GreenShip Shipbuilding IoTElectronics Electronics Robot Machinery Biohealthcare Pharma/Medical AviationDrone Aviation Premiumconsumer product Consumerproduct Energy newindustry EnergyIndustry High tech Newmaterials Material/component Steel/Petrochem/Fiber Smart steelmill Ultralightmaterials AR/VR Contents Nextgeneration Display Display Nextgeneration semiconductor Semiconductor
OurServices Investment EnvironmentAnalysis Market Research andStrategy FeasibilityStudy Business Plan (summit to localauthorities) Deal sourcing & Due diligence (for M&A, anytransaction) Brokerage, Agency, Partnermatching
OurTeam Name Career • TangXin • Partner of Business Consulting Center atQYR • Managing Director of QYResearchJapan. • 25 Years marketresearch • Know well of Japanmarket
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Contact Business Consulting Center atQYR U.S.A.Office MarkLiu Tel:+1-6262952442 E-mail:liujunjie@qyresearch.com ChinaOffice Simon Lee(ZhangDong) Tel :+86-1082945717 E-mail :zhangdong@qyresearch.com South Korea Office Sung-Bin Yoon, Ph. D Tel :+82-10-7551-1278 E-mail :yoon@innoresearch.co.kr Japanoffice TangXin Tel:+81-9038009273 E-mail:tangxin@qyresearch.com