The Ministry of Knowledge Economy report, which focused on 2,300 companies with investments exceeding $500,000, showed combined sales reaching KRW 233 trillion ($205.7 billion) in 2008, which was 13.1% of the national total, and up from KRW 189 trillion in 2007.

Importantly, 87.8% of companies surveyed stated that their ventures in Korea, on average, performed better than similar investments made in other Asian countries.

Contribution of Foreign-invested companies in Korea (2008)

Other highlights from the report included -

• Labor productivity – measured by per capita value-added output – reached KRW 113.2 million for foreign companies, contrasted with just KRW 66 million for local firms.
• Employees at foreign invested companies accounted for 5.9 percent of the country’s workforce, reaching 318,000 workers in 2008, up from 282,000 the previous year.
• 59.1% of the firms’ investments were aimed at the local market and consumers.
• Foreign-invested companies brought in the bulk (60.2%) of the raw materials and components from abroad for manufacturing and reprocessing in the country.

However, according to the report, total exports by foreign-invested companies dipped to $52.3 billion (down from $54.3 billion the previous year), which accounted for about 12% of Korea’s total exports.

Under Korea’s corporate guidelines, a foreign-invested firm refers to a company in which overseas investors own more than 10 percent of the business. In 2008 there were about 16,000 foreign-invested companies in the country.

See here for the full JoongAng Daily article.

(Source: JoongAng Daily)

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Feature stories include:

• Visit Korea - A look at the nation’s plan to increase tourism
• Atomic Option - Nuclear technology emerges as a new growth engine for Korea
• Magic Carpet Ride - Korea explores opportunities for financing in the Islamic world
• Pushing the deregulatory agenda - How the Investment Ombudsman is working to quash regulations that burden foreign investors
• Perils of the poison pill - The Korean government considers poison pill legislation

Along with many other interesting articles related to living and investing in Korea.

With a revision of the law regarding the ‘poison pill’ takeover defense mechanism being passed earlier this week (see here), of particular interest to Korea M&A followers, will be the story ‘Perils of the poison pill’, by W. Andrew Ryu, of Lee International IP & Law Group -

One of the most hotly debated issues concerning merger and acquisition (M&A) last year was the announcement by the Ministry of Justice (MOJ) regarding the introduction of a “poison pill” provision in the Korean Commercial Code.

The official position of the Korean government is that there is a need for a workable and lawful hostile takeover defense scheme because the lack of clarity in this area has prompted large Korean companies to put aside sizeable capital — that would otherwise be allocated to more productive means — in anti-takeover reserve funds to counter potential hostile bids.

On the other side of the argument are foreign investors who claim that the introduction of a poison pill provision would not only result in eroding shareholder value, but would also add confusion and uncertainty into already opaque chaebol ownership and management systems… click here to continue reading.

About the Invest KOREA Journal –

Invest Korea Journal is the premier magazine for the promotion of investment into Korea. The periodical presents incisive perspectives on Korea’s economy, industry, trade, culture, and investment trends - information vital to any business aiming to maximize its potential in Korea.

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Feature stories include:

• Rivers of Destiny – A look at the Four Rivers Restoration Project
• On the Block – The Privatization of Korea’s SOEs
• Franchising Frontier – Korea’s Expanding Franchising Industry
• Seoul’s New Hub Status – An International Financial Center

Along with many other interesting articles related to living and investing in Korea.

Click the image below to view the journal online.

About the Invest KOREA Journal –

Invest Korea Journal is the premier magazine for the promotion of investment into Korea.

The periodical presents incisive perspectives on Korea’s economy, industry, trade, culture, and investment trends - information vital to any business aiming to maximize its potential in Korea.

The readership of Invest Korea Journal is highly focused on executives of corporations already invested in Korea, those strongly considering the country as an investment destination, or the professionals in a position to help them.

Invest Korea Journal is currently published and distributed bimonthly through KOTRA’s overseas network of offices and on an as-requested subscription basis via airmail direct from Seoul.

Invest Korea Journal is:

• Dispatched to all foreign-invested companies, embassies and public corporations in Korea as well as to actual and potential investors and key audiences overseas;
• Carried by two international airlines on flights to and from Korea;
• Placed in every room of Seoul’s prime hotels;
• Invest Korea Journal is available in an Internet version at http://ikjournal.com.
• Accessible worldwide through on-line news service providers Dow Jones, the Financial Times, Knight-Ridder, Reuters and ISI.

(For subscription details, or other inquiries about the Invest Korea Journal contact the publishing team at ikjournal@kotra.or.kr)

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Click to download

Contents -

1. Overview of FDI in Korea

2. Investment Environment

• Government Policy and Incentives
• Market
• Human Resources
• Infrastructure
• Living Environment

3. Business Opportunities

• Automotive Industry
• Semiconductor Industry
• Display Industry
• IT Industry
• Bio Industry
• Environmental Industry
• Photovoltaic Power Generation
• logistics Industry
• Real Estate Development

This report in multiple languages, along with many other interesting publications and presentations can be downloaded from the Invest KOREA website – www.investkorea.org.

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…the ratio of South Korean corporate shippers using third-party logistics providers is 46 percent, much lower than the 70~80-percent ratios of the corporate shippers of North America and Europe. This means that South Korea has considerable room for her logistics market to grow.

The size of South Korea’s logistics market has been estimated at over KRW 93 trillion, and is expanding by a considerable percentage every year.

The report is a great starting point, covering the following -

• Domestic Market Overview
• Korea’s Logistics Infrastructure and Network
• The Rapidly Growing Logistics Market and its Potential (includes a list, and sales revenue of the 20 major companies currently operating in Korea)
• Business Opportunities
• FDI in Korea’s Logistics Industry
• Case Study of FDI in Korea
• Relevant Organizations

For more information on logistics and Korea’s other promising industries for foreign investment, please visit Invest KOREA’s website – www.investkorea.org

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