Invest in Seoul

ENGLISH
INVEST IN SEOUL
SEOUL METROPOLITAN GOVERNMENT
Contents
INVEST IN SEOUL SEOUL METROPOLITAN GOVERNMENT
VISION BUSINESS ENVIRONMENT LIVING ENVIRONMENT INDUSTRY INDUSTRIAL SITES INCENTIVES
04 06 18 24 40 52
The Urban Competitiveness of Seoul Recognized around the World -
Seoul in the Global Community
01
Seoul in the Global Community

The Seoul Metropolitan Government topped the list of global cities in the use of IT according to the 2011 report released by the World Economic Forum in addition to research confirming its globally dominant position in the use of high-speed Internet(Oxford University, 2012). Seoul was also number one in the world in terms of average Internet speed according to a survey (Akamai Technologies, 2010). A 2012 UN survey confirmed that the Seoul Metropolitan Government was number one in electronic municipal administration in the world.
1st in the World in Tariff Administration for Three Years in a Row in 2010
World Bank put Seoul at the top of the list in Trading Across Borders, confirming its global leadership position in tariff administration for three years in a row, particularly in the areas of UNI-PASS and Single Windows services.
8th in 2012 Ease of Doing Business Index

The World Banks Ease of Doing Business Index of 180 countries rated Korea as the 8
th
most business friendly country in the world, up from 19rd in 2009 and 16th in 2010
19 16 8
(12th among OECD members, 6th among G20 countries).
1st in Labor Productivity according to a 2011 Report

Seoul was number one in labor productivity in the world according to the 2009 report of IMD (International Institute for Management Development) due to a high density of well-educated global talents.
8th in Globalization as of 2012

Seoul reached the eighth position in the 2012 Global City Index released by AT Kearney, a U.S. global management consulting firm, which compared 65 global cities around the world in corporate activities, human capital, political participation, cultural experiences, and information exchange. CASS (Chinese Academy of Social Sciences) awarded Seoul 9th position on its list of competitive global cities in its 2010 research.
Seoul is an attractive city brimming with arts and culture built upon her 2,000 year history as the capital of Korea with
Invest in The Future
natural beauty represented by the scenic Han River and Mt.Namsan. In terms of location, economic scale, business and living standards and growth potential, Seoul boasts competitive advantages over other Northeast Asian cities. This urban competitiveness is the reason why global investors are taking notice of Seoul.
Invest in Seoul
Section 1: IT
Business Environment of Seoul

As the center of the global economy moves to Asia, Korea is being recognized as a force that will be driving the world economy in the future. Korea demonstrated its potential by becoming the first OECD member country to overcome the global financial crisis in 2008 and successfully hosting the G20 Summit in 2010. Based on Koreas favorite geographical location, the country is serving as an outpost for entry into the Asian market, which possesses limitless growth potential. As the capital of Korea, Seoul is gaining global attention as a key city propelling the growth of the economy of Northeast Asia.
03:00
Seoul has favorable conditions for a single-day business Trip as there are 51 megacities whose population is over one million within a 3~4 hour flight.
World-Class Competitiveness
GLOBAL E-GOVERNMENT : 1st

UN Survey 2008, 2012
PRODUCTIBILITY OF LABOR : 1st

OECD 2011
1 7
WORLDWIDE CENTERS OF COMMERCE INDEX : 9th

Mastercard, 2010
GLOBAL CITIES INDEX : 8th

A.T. Kearney and Foreign Policy magazine, 2012
Seoul, an International City

Seoul offers an ideal geographical location for busi4 3~4 2~3
Beijing Tianjin Changchun Harbin Yangji Asahikawa
nesses, being located within a few hours flight from 51 cities, each with populations of over 1 million people. The capital of the Baekje and Joseon dynasties, as well as the Korean Empire, Seoul boasts a proud and rich 2,000-year history. It hosted the 1986 Asian Games, the 1988 Summer Olympic Games and the 2002 World Cup.
1~2
Dalian Qingdao
Seoul
Busan
Fukushima Tokyo Nagoya
Ease of Doing Business Index: 8th

World Bank 2012
Global Power City Index (GPCI) (2011) : 7th

Mori Memorial Foundation, Japan
Global City Competitiveness Index : 9th

Chinese Academy of Social Sciences
Economy Competitiveness : 3th

Newsweek 2011
Shanghai Chengdu
Fukuoka Miyazaki Okinawa
Guilin Hongkong
Taipei
GDP and GNI

Korea ranks 15th in the world in terms of GDP (USD 1.2 trillion). The Gross Regional Domestic Product (GRDP) of Seoul stands at USD 237,698 million (per-capita GRDP : USD 23,672), accounting for 23.4% of the countrys GRDP.
BUSINESS ENVIRONMENT
Seoul Area Population 605km2 10,528,000
Republic of Korea 100,032km2 50,062,000
Sovereign Credit Rating

Koreas sovereign credit rating stands at A, after a continued rise following a drop due to the foreign exchange crisis of 1997. The countrys credit rating by world-famous rating agencies is as follows. Standard & Poors Rating A (Stable) December 2011 Moodys corporation A1 (Positive) April 2010 Fitch ratings A+ (Positive) November 2011
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Invest in Seoul
Invest in Seoul
Economy
Asias 4th, and the worlds 15th largest economy High growth potential Main industries: shipbuilding, semiconductors, petrochemicals, electronics, automobiles and steel Strong IT infrastructure and cutting-edge information and communications network
11
3.7%
The country expects to grow by 3.7% in 2012 amid an improvement in inventory accumulation and exports, a recovery of domestic consumption, and a drop in the unemployment rate.
Korea and Free Trade Agreements

The Korean government is pushing ahead with FTAs as part of an effort to proactively open doors and liberalize trade. This stance provides favorable conditions for foreign investors through the protection of investors rights and the expansion of markets.
Status of FDI in Republic of Korea

The financial crisis that hit Asia in late 1990s led Korea to start seeking FDI. Korean's total inbound FDI between 1998 and 2012 is 6.4 times the amount attracted in the 1962 to 1997. FDI did show a decline in 2005, but rose in subsequent years, including in 2010.
Progress of FDI
Russia China India
(Unit : million USD)
2001
Mongolia Japan Canada U.S.A. Mexico
2002 9,095 2008 11,712
2003 6,471 2009 11,484
2004 12,796 2010 13,071
2005 11,566 2011 13,674
2006 11,247 2012.03 2,346
Amount
11,288 2007
Turkey Israel
Vietnam ASEAN Singapore Malaysia Indonesia Australia New zealand
Amount
Colombia Peru MERCOSUR Chile
10,516
Source: Ministry of Strategy and Finance(2012)
Major Foreign-Invested Companies
FTAs in effect FTAs signed and negotiation completed FTAs under negotiation
Covering 605km , Seoul occupies 0.6% of Republic of

2
green spaces (166km ), which account for 27% of the

2
Korea is one of the OECD countries showing the fastest and strongest recovery from the recent global recession through expansive fiscal policy and strong exports. The country showed a gradual weakening in the effects of fiscal expenditure from 2010, though it expects to grow by 3.7% in 2012 amid an improvement in inventory accumulation and exports, a recovery of domestic consumption and a drop in the unemployment rate.
(Unit : %, billion USD)
Korea (100,032km2). The city is composed of 436 communities (Dong) in 25 autonomous districts (Gu). The population of Seoul stands at 10,250,000 (as of the end of 2011), which accounts for 20.5% of the countrys entire population of 50.06 million. The population of the Greater Seoul area referring to Seoul and its surrounding Gyeonggi Province comes to 22.49 million, i.e. 44.9% of the countrys entire population.
entire metropolitan area, and the direct result of concerted efforts to create larger green areas. The Seoul Metropolitan Government aims to expand its green spaces from the present 16km2 to 19km2 per person by 2030 under a basic plan formulated to foster a pleasant environment. The 'green' efforts made by the Seoul Metropolitan Government include planting a forest in Yongsan, encouraging building owners to form green spaces on their rooftops, and expanding park green areas by 3,300km2.
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Invest in Seoul
Source Ministry of Strategy and Finance IMF
Economic growth rate 3.7 3.5
Price rise rate 3.2 2.9
Current account balance 16 25.9
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Invest in Seoul
High-Intensity Marketplace
Despite its high population density, Seoul boasts large
Economic Prospects for Korea
USD
26.6
(Unit : USD/m2)
South Korea offers varying degrees of land prices and rents concerning office spaces, depending on the area. Seoul and its vicinity maintain a high level of land prices and rents. The Gangnam Finance Center building in Seoul offers office rents at USD 26.6/ m2, the highest level in the country.
Education
In Seoul there are about 400 technical colleges, universities and graduate schools. The number of courses opened in these institutions totals over 7,000, and high-caliber talents are nurtured there to become leaders in a variety of specialized fields. Colleges Number Number of students Number of R&D center 10 64,142 448 Universities 37 434,021 Masters degree courses at graduate schools 351 117,286 4,075 PhD courses at graduate schools 351 26,339
Land Prices in Industrial Complexes

Many businesses wishing to invest in manufacturing or information technology (IT) and biotechnology (BT) choose to move into an industrial complex. Information on land prices in industrial complexes is as follows.
Location Seoul Gyeonggi Province Gangwon Province Jeolla Provinces Gyeongsang Provinces
Land prices 4,007 983.3 77.3 South North South North 157.4 168.5 698.3 205.8
Name of industrial complexes Seoul Digital Sihwa Bukpyeong Yeosu Gunsan Changwon Gumi
Source : Annual Report on Education Statistics 2012 (Gyoyuk Tonggye Yeonbo), Ministry of Education, Science and Technology
Source : FEMIS, Korea Industrial Complex Corp.(2010)
Land Prices and Rent

Korea offers varying degrees of land prices and rents concerning office spaces, depending on the area. Seoul and its vicinity maintain a high level of land prices and rents. The Gangnam Finance Center building in Seoul offers office rents at USD 26.6/m2, the highest level in the country. Office rental rates remain at a stable level after showing a sharp drop in 2009 amid the global economic crisis. Region The greater Seoul area Urban Center of Seoul 1(Gangnam) Urban Center of Seoul 2(Myeong-dong) General Business District in Seoul(Yeouido) Regional City(Daejeon) Other areas Regional Metropolitan City(Gwangju) Regional Metropolitan City(Busan) Average price 11,471 6,477 6,121 2,864 1,842 2,686
(Unit : USD/m2)
Labor Unions
In Korea, there were 4,420 labor unions as of the end of 2010 and 55 industrial federations or unions, though there has been a decrease in the number of labor unions and their members since 2007. Most of them are members of the Korean Confederation of Trade Unions (KCTU) and the Federation of Korean Trade Unions (FKTU). Labor disputes in Korea now stand at just 65 a year. With a low ratio of manufacturing companies, Seoul has about 14 disputes only per year.
Average rental rates 22.3 25.7 18.4

4.7~13.9 4.5~10.1
Protection of Intellectual Property Rights

Korea has a well-organized system for the protection of intellectual property rights, including the provision of news updates on patent-related disputes in major countries. The central and local governments, jointly with prosecution services and the police, have conducted crackdowns on intellectual property rights violators. As a result, Korea was excluded from the watch list of the USTR in 2009 (At present, the watch list includes China, Russia, and Argentina).
Source : Daum Real Estate/Naver Real Estate (as of September 2011) and Office Market Report (as of the 2nd quarter, 2011)
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Invest in Seoul
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Invest in Seoul
19.3%
In terms of tax as a share of GNP, Korea (19.3%) ranks 5th from the bottom among the OECD countries. (The average share of tax as a proportion of GNP for OECD countries: 24.8%)
Labor Cost
(Unit : USD)
Tax
In terms of tax as a share of GNP, Korea (19.3%) ranks 5th from the bottom among the OECD countries. (The average share of tax as a proportion of GNP for OECD countries: 24.8%)
Monthly average wage Business executives Professionals Office workers Employees in service sectors Machinery operators Menial workers 4,601.9 4,675.3 2,315.0 1,367.3 2,324.5 1,353.5
Source: Statistics Korea(2009)
Major Taxes and Tax Rate

Category Segment USD 180,505 or less Income tax Corporations USD 180,505 ~18,050,541 More than USD 18,050,541 Individuals Rate 10% 20% (+USD 18,051) 22% (+USD 3,592,058) 6%~38%
Social Security Insurance Premium

The Four Insurance Programs subsidized by corporations in Korea are relatively less burdensome than in the neighboring countries as shown below National pension Rate to be borne by the employer 4.50% Industrial disaster insurance 0.6%~35.4% Employment insurance 0.55% Health insurance
Residence tax VAT Import duties
Corporations Individuals
For all corporations: 10% of corporate tax and income tax USD 45 for all private business owners / USD 9 for all individuals 10% of supply price (0% for exports)
2.90%
Basic customs duties: 8% Average customs duties for industrial products: 6.9% For agricultural produce or products in protected sectors: 18~50%
Source: Korea Institute of Public Finance (KIPF)
Source: The four major social insurances BUSINESS ENVIRONMENT
Public Utility Charges

Korea boasts a well-organized basic utility infrastructure for water, power, gas, etc. The level of peoples satisfaction with the power supply has steadily increased. Seoul Electricity Gas 0.06 0.66 0.37 Singapore 0.2 2.2 0.9 Beijing 0.11 0.29 0.82 Honkong 0.12 0.49 0.54 Tokyo 0.24 0.48 1.85
(Unit : USD)
Unit kwh m3 m3
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Invest in Seoul
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Water
Source: Survey by the Korea Business Centers of KOTRA(2011)
118
The number of college graduates in Seoul is 118 people per population of ten thousand, overwhelming all other Asian cities.
Status of Foreign Investors in Seoul

In 2009 and 2010, the FDI cases attracted by Seoul accounted for 41.68% and 42.25%, respectively, of Koreas total FDI cases. As for FDI amount, Seoul accounted for 38.29% of the total investment in Korea in 2009, down 16.4% from the preceding year. In 2010, the figure stood at 20.49%, down 17.8% year-on-year. These figures indicate that small and medium-sized cases of FDI are increasing in Seoul. By sector, FDI in Seoul is focused on the service sectors. By investment size, a majority of FDI is small investments (less than USD 1 million). By type, greenfield-type FDI has taken the lead. By country of origin, most investors are from the United States, Japan and China, with Chinese investment in Korea showing a noticeable increase.
Competitiveness of Seoul
The land to build factories on is slightly more expensive in Seoul than in other main Asian cities. The office rent in the city is the lowest among the cities. Wages rank near the middle of the regional average.
(Unit : USD)
Seoul Price for sites to be used for factories(m2) Office rental rates(m2) 983.3 22.3~ 26.6 2,388.4 118
Singapore 153.2~765.3 95.9 2,487.1 77
Beijing 165~248 33.32 333.3 42
Hong Kong 321~487 94.4~127 1,688 34
Tokyo 1,135.5 55 2,818.40 50
5.05% 5.05% 53.16% 53.16%
0.42% 0.42% 41.37% 41.37% 75.25% 75.25%
1.12% 1.12%
6.44% 6.44% 17.19% 17.19%
Monthly wage No. of university graduates (per 10,000 people)
Source : Survey by the Korea Business Centers of KOTRA(2011)
Industry
Electricity and Gas griculture, dairy farming, A fishery and mining Manufacturing Service
Size
More than 100 million 1 million~USD10 million USD10 million~USD100 million Less than USD1 million
8.97%
17.35% 17.35% 61.04% 61.04%
4.76% 4.76%
8.97% 91.03% 91.03%
0.11% 0.11% 16.74% 16.74%
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Invest in Seoul
19 Business Type
M&A-type Greenfield-type USA China
Country
Pakistan Japan Others
73.1%
34.7%
Invest in Seoul
Living Environment
Convenient and Pleasant Living Environment

To ensure a convenient and satisfying living environment, Seoul is establishing a wide range of programs and creating a better infrastructure in regard to housing, education and medical services.
Educational Facilities for Foreigners

There are 52 foreign schools in Korea. 26 are from the United States or the United Kingdom, while 18 are Chinese schools and the other 8 are Japanese, Turkish, Mongolian, or Norwegian. Gyeonggi Province 7 2 9 Other areas 7 11 18
Seoul Schools based in the USA or the UK Chinese schools Japanese schools Others Total 10 3 1 5 19
Busan 2 2 1 1 6
Total
26 18 2 6 52
Source : MKE
ongsan International School of Seoul Y (Constructed in 2006) MC Japanese School in Seoul D (Constructed in 2010) ulwich College Seoul D (Constructed in 2010) MC USA The Dwight School D (To be constructed d in 2012)
Residential Facilities
Seoul has been operating apartments for rent for foreign residents since 2008, while plans are in place to build more units.
LIVING ENVIRONMENT
DMC VILLE Scale: 175 homes in 4 building units Site Area: 9,313m2, Gross Floor Area: 30,498m2
Medical Facilities
The country has 38 general hospitals where foreign citizens can receive medical services. 12 are located in Seoul and provide round-the-clock service to foreign citizens. At the Seoul Foreigner Support Center, volunteers are ready at all times to assist foreign citizens requiring medical services. The countrys national health insurance system is run for all people. Foreign citizens or ethnic Koreans staying in the country are also legally required to subscribe to the insurance system, if they are employees of a business falling under a given category or public employees, including teachers. Foreigners who have subscribed to the national health insurance may receive medical services at any hospital or clinic. A medical insurance subscriber pays 20% of the medical charge in the event of hospitalization or 30~50% as an outpatient.
Korea is noted as an information technology (IT) powerhouse. The countrys high-speed Internet penetration rate stands at 89.8%, the highest level among the OECD countries (2011). The country has a well-developed telecom system, including the Internet and mobile phone, but telecom charges are a little higher than those in other major countries.
(Unit : USD)
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Invest in Seoul
Phone Basic monthly Mobile phone Basic charge for subscription fee charge for phone subscription fee mobile phone 55.9 2.3~4.9 KT 22.4 SKT 36.9
Additional 0.02paid per 10 seconds
Internet installation fee 0~27.9
Basic internet charge 29.2~38.9

Source : KT, SKT(2011)
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Invest in Seoul
11.2
LIVING ENVIRONMENT
Telecom Network
Living Environment
The Urban Competitiveness of Seoul from a Foreign Residents Perspective

Comparison of Everyday Life in Korea with Other Major Asian Countries
Seoul Apartment rental rates Singapore Beijing Hong Kong
(Unit: USD)
Tokyo
According to a survey of 108 long-term foreign residents of Seoul(having resided in Seoul for 5-10 years) conducted by McKinsey in October 2010, Seouls urban competitiveness is continuing to improve in most areas. Infrastructure
17% 46% 86% 52% 84% 92%
559~2,607
4,440
512~878
2,597~5,844
3,289~
Business environment
2% 14% 33% 10% 18% 40%
Medical system
The national medical insurance system is open to foreign citizens subscriptions.
Foreign citizens are not allowed All people should to subscribe subscribe to to the national Medisave. medical insurance system.
There is no national medical insurance system, but they can use national hospitals at reasonable rates. Well-developed network of public transportation (Subways, intracity buses, and trams) Taxi: 2.58 Subway: 0.45/ section Intra-city bus: 0.32/section
The national medical insurance system is available.
10 5 now years years ago ago [Transportation infrastructure]
10 5 now years years ago ago [IT infrastructure]
10 5 now years years ago ago [Korean companies capabilities]
10 5 now years years ago ago [R&D infrastructure]
Well-developed public transportation system Transportation system
Well-developed public transportation system
Large number of subway trains and intra-city buses
Well-developed network of public transportation, but charges are very high. Taxi: 9.4 Subway: 2.2/ section Intra-city bus: 2.6 (basic charge)
Living environment
33% 41% 62% 11% 13% 37% 22% 30% 49%
Taxi: 2.2 Subway: 0.84/10km
Taxi: 2.3 Subway: 0.69 (basic charge) Intra-city bus: 0.69/section
Taxi: 1.54 Subway: 0.31/ section Intra-city bus: 0.15 (basic charge)
10 5 now years years ago ago [Medical/Healthcare services]
10 5 now years years ago ago [Natural environment/ population levels, climate]
10 5 now years years ago ago [Culture environment] LIVING ENVIRONMENT
LIVING ENVIRONMENT
Intra-city bus: 0.84 Number of foreign schools (per 10,000 foreigners)
Personal attachment to Seoul

52 30 18 50 50
10 years ago 5 years ago Source: Survey by the Korea Business Centers of KOTRA now
Excellent
Above average
41 32 38 21
22
63% +18% 81%
10 years ago 5 years ago now
37 33 42
37% 8 41% 22 64% +27%
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Invest in Seoul
53% 43
23
Invest in Seoul
I expect (expected) to reside further in Seoul.
I recommend (recommended) Seoul as a place of residence to my acquaintances.
Location_3F, Korea Press Center, 124 Sejong-daero, Jung-gu, Seoul
Accommodations
Area Hotel Westin Chosun Seoul Millennium Seoul Hilton Jung-gu The Plaza Hotel Shilla Hotel Hotel Lotte Grand Ambassador Seoul Yongsan-gu Gwangjin-gu Seodaemun-gu Seocho-gu Grand Hyatt Seoul Sheraton Grand Walkerhill Seoul Grand Hilton Seoul JW Marriott Seoul Hotel Hotel Ritz-Carlton Seoul Grand Intercontinental Seoul Park Hyatt Seoul Gangnam-gu
LIVING ENVIRONMENT
(Unit: USD)
Website http://www.echosunhotel.com/ http://www.hilton.co.kr/ http://www.hoteltheplaza.com/ http://www.hotelshilla.net/ http://www.lottehotel.com/ http://grand.ambatel.com/ http://www.grandhyattseoul.co.kr/ http://www.sheratonwalkerhill.co.kr/ http://www.grandhiltonseoul.com/ http://www.jw-marriott.co.kr/ http://www.ritzcarltonseoul.com/ http://www.grandicparnas.com/ http://www.parkhyattseoul.co.kr/ http://www.iccoex.com/ http://www.renaissance-seoul.com/ http://www.imperialpalace.co.kr/ https://novotel.ambatel.com/ https://www.mayfield.co.kr/ https://novotel.ambatel.com/ https://www.lexingtonhotels.com/ To be opened in Dec. 2012.
Minimum charge 284 295 244 258 267 241 230 209 189 248 550 266 325 243 243 224 171 152 143 118 Source : hotel.com
Seoul Global Center, a One-Stop Administrative Services for Foreign Residents of Seoul As part of an effort to improve living conditions for foreigners, Seoul Metropolitan Government launched the Seoul Global Center in 2008, offering comprehensive and in-depth services to help foreigners adjust to living in Seoul, free of charge. In addition, foreigners can use the Seoul Global Village Centers conveniently located at seven foreign resident communities across the city. Comprehensive Multilingual Counseling Services
Available Languages-Korean, English, Japanese, Chinese, Vietnamese, Mongolian, Tagalog and Russian
Counseling service on living in Seoul : education, housing, medical service, transportation, consumer services and banking ounseling on matters related to life issues such as C professional consulting service: labor, legal issues, taxes, real estate, etc. n-site consulting services are provided on Wednesdays O of Sundays in areas which are densely populated by foreigners eoul Town Meeting(A venue for collecting opinions to S improve the life of foreign residents in Seoul)
Comprehensive Administrative Services

mmigration Branch Office(Extension of stay and the I issue of various certificates) Drivers License Information on tours in Seoul anking(Opening a bank account, obtaining a credit card) B Signing up for a mobile phone Consulting services on taxation and national pension
Business Support Education and Exchange Program

Korean Language Class Life information seminar for newly-arrived residents nformation fair that provides information on living in I Seoul to foreign residents Seoul Global Center Yeouido Business Center http://global.seoul.go.kr http://global.seoul.go.kr/yeouido usiness consulting service on general consultation on esB tablishing foreign companies, taxation, accounting and law Business start-up school eeting foreign business people, mentoring programs M Incubation for foreign invested companies Tel.82-2-2075-4130 Tel.82-2-6137-9830 Tel.82-2-6001-7248
LIVING ENVIRONMENT
COEX Intercontinental Seoul Renaissance Seoul Hotel Imperial Palace Hotel Novotel Ambassador
Gangnam Business Center http://global.seoul.go.kr/bizsupport
Gangseo-gu Geumcheon-gu Yeongdeungpo-gu
Mayfield Hotel Novotel Ambassador Hotel Lexington Conrad Seoul
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Invest in Seoul
Korea is one of the OECD countries showing the fastest and strongest recovery from the recent global recession on the
ITBTNTGT Digital Contents INDUSTRY
back of an expansive fiscal policy and strength in exports. The country showed a gradual weakening in the effects of fiscal expenditure from 2010, but expects them to grow by 3.7% in 2012 amid an improvement in inventory accumulation and exports, a recovery of domestic consumption, and a drop in the unemployment rate.
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Invest in Seoul
Section 1: IT
27
Invest in Seoul
Section 1: IT
INDUSTRY _ IT Industry
Korea as a Leader of Global IT Markets U.S.A. 1

Denmark 2 31.85 Helped by increasing exports, the IT industry has im-
Ranking
Score 39.04
Status of IT Production in Korea

SW Information and Communication Devices and Application Platforms Total Information and Communication Services
(Unit : billion USD)
proved its global competitiveness. Koreas share of the Canada 4 29.26

Switzerland 6
Sweden 3
30.11
Australia 5 28.63 global DRAM, mobile phone, TV and smart phone mar-
kets has7increased, while its global no. 1 position in Nand Finland 28.41 smart phones in particular, its world market share inFrance 10 26.66
Korea 19 creased from 4.2% in 2009 to 7.8% in 23.60 and its world 2010, U.K. 9
28.52
Singapore 8 27.90 flash and LCD panels has been maintained. Regarding
26.75
16.2 15.9 162.5
17.8
19.6
20.8
22.0
21.3
Ranking
U.S.A. 1 Denmark 2 Sweden 3 Canada 4 Australia 5 Switzerland 6 Finland 7 Singapore 8 U.K. 9 France 10 Korea 19
Score 39.04 31.85 30.11 29.26 28.63 28.52 28.41 27.90 26.75 26.66 23.60
rank improved to no. 4, despite many concerns.

139.4
166.9
176.8
185.1
202.8
205.3
1 2 4
1
17.7
37.5 17.9 41.5 17.9
19.7
21.7
44.3 19.7 46.8 21.7
23.0
23.0 49.8
24.4
24.4 53.1
23.6
23.6
54.2
1 2 4
DRAM
Nand Flash
LCD Panels Mobile Phones Smart Phones
TVs
227.5 224.7 205.1 227.5 195.9 224.7 184.9 In 2009, production size by sector was as follows: information communication device & application platform, USD 205 180.0 205.1 195.9 154.5 184.9 180.0 billion (73.1%); telecommunication service, USD 54 billion (19.3%); and SW, USD 21 billion (7.6%). The compound annual 6.7 6.5 6.3 154.5 growth rate from 2003 to 2009 for these sectors was: information communication device & application platform, 6.7%; 19.3% 5.0 IT industry production, 6.5%; telecommunication service, 6.3%; and SW, 5.0% 58.8 46.0 49.1 41.6 60.0 51.9 55.2 41.6 46.0 49.1 58.8 60.0 51.9 55.2
17.7
1 3 3
7.6%
IT Industrial Production in 2009
73.1%
CAGR 2003 2009
(Unit : %)
Worlds Best Infrastructure

Major IT-related international indices show that Korea ranks 1st for e-government, 2nd for ICT infrastructure
IT Industry, the Driving Force behind Recovery 5 from the National Economic Crisis
Although the global IT market recorded negative growth (-4.5%, Gartner) as a result of the global economic crisis in 2009, IT industrial production in Korea grew by
Infrastructure Competitiveness Competitiveness Infrastructure Development (2008) (2008) (2009) (2009) (2010) sis. The portion of the IT industry contributing
19.3% 7.6%
6.3
19.3% 7.6%
SW
6.7 6.3
6.7
6.5 5.0
5.0
6.5
and 3rd for IT infrastructure and information and communication development.
DRAM
Nand Flash
LCD Panels Mobile Phones Smart Phones
TVs
2 5 8
1 3 3
1.1%, helpingIT the country overcome the economicElectronic criICT IT Potential IT ICT
(2010) to real
73.1% 73.1%
20% 0%

Government
GDP in Korea increased from 9.5% in 2007 to 10.4% in 2009. The contribution of the IT industry to GDP growth increased from 24.3% in 2008 to a staggering 216.3% in 2009. Helped by the IT industry, Koreas GDP moved from negative growth to record a growth rate of 0.2%.
Electronic Government (2010)
44,484 30,320
15,510
1% 15%
SW
36,952
30%
31%
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Invest in Seoul
11%
22,742

SW
29
Invest in Seoul
Source: Information and Communication Services KAIT (2010.4) / Information and Communication Devices and SW KEA (2010.4) 29% 9,922 Information and Communication Devices and Application Platforms
29%
ICT IT IT Potential IT ICT Infrastructure Competitiveness Competitiveness Infrastructure Development (2008) (2008) (2009) (2009) (2010)
The growth rate of the Korean IT industry is around 3 times that of real GDP.
28%
27%
Information and Communication Services
3%
Total
1% 15%
20% 20% 1%
0%
0%

72%
73%
71%
71%
15%
50% 11% 11%
30,320 22,742 15,510

29%
36,952
44,484 69% 70%

36,952 31%
30%
44,484
31%
9,922
22,742 29%
30,320 30%
INDUSTRY _ BT Industry
Governments IT Support through Strategic Policy

The government is pushing to develop the digital content industry as one of its core businesses. In 2002, the Online Digital Industry Development Act was legislated. In conjunction with the Online Content Industry Development Committee, the government confirmed the Digital Content Industry Development Basic Plan and selected digital content as one of the 10 Next-Generation Growth Engines. It built digital content production collaboration centers in the metropolitan areas to share equipment and to improve the production environment for companies. It also subsidized the Multimedia Technology Support Center in Jeju and Gwangju, where digital content industry infrastructure is weak. The government is also working on digital content-related information creation and analysis, research on methods to improve the business environment in a changing market and other policy support that can help the industry.
Emerging BT Industry in Korea

In terms of revenue, the Korean biotech industry occupies only 1.7% of the world market. It is also ranked a mediocre 19th out of the 48 countries surveyed by Scientific America. However, the industry - led by the bio energy and resource, biochemical, and bio electronics businesses, that recorded rapid growth of more than 50% over the previous year, helped by its outstanding manpower and the governments comprehensive support policy - is expected to continue growing in both the domestic and export markets.
Success Story : IBM Financial Status

IBM is a subsidiary of IBM Korea Holdings B.V in the Netherlands. Its business includes system development and supply, consulting, and computer/information processing device and office equipment sales, as well as a rental and repair service. Although the companys revenue is steady, its net profit is increasing each year as a direct result of the companys efforts to improve the
Potential of the Korean Market (Hui-seong Lee, CEO of IBM Korea)

IBM groups countries not by region but by market characteristics. As IBM Korea falls into the category of growing country, the company actively carries out investment and business, indicating that IBM Korea highly values the growth potential of the Korean market. A leading example of that potential is IBMs worldwide
Ranking of Global Competitiveness
Ranking
U.S.A. 1 Denmark 2 Sweden 3
Score 39.04 31.85

profit structure.
1,200 1,000 800 600 400 200 0 -200
innovation agenda, which is called Smarter Planet. Korea, perhaps more than any other country, agrees with the idea that a smart system makes a smart world, and is very active in the Smarter Planet program. IBM Korea believes that an environment in which the IBM vision can be realized is the greatest potential offered by the Korean market.
Canada 4 Australia 5 Switzerland 6 Finland 7 Singapore 8 U.K. 9 France 10 Korea 19
30.11 29.26 28.63 28.52 28.41 27.90 26.75 26.66 23.60

Source : Scientific America
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450 400 350 300 250
BT Growth Helped by Biogenerics

Helped by active policy support and first-class technology development, increasing the demand for medical services due to the ageing population, along with the promotion of biogenerics, the BT industry in Korea is enjoying a continuing growth trend. Since the size of the market, including domestic sales and exports, reached USD 2.9 billion in 2006, it has been recording an annual growth rate of 18.2%, reaching USD 5.6 billion in 2010. The BT industry market in Korea, including both domestic production and imports, also grew from USD 2.5 billion in 2006 to USD 5.0 billion in 2010, posting a high annual growth rate of 15.0%. It is fast becoming a major industry in Korea, having also created some 22,000 jobs.
BT Industry Market Size Trend in Korea
Growth Led by Food and Medicine Industry Promising Biogenerics Growth

As of 2010, the food and medicine industry constituted around 77% of the market, followed by the chemical industry and the energy and resource industry. While the portion of medicine business increased from 38.6% in 2006 to 49.2%
% 18.2 R CAG
4,083
5,560 5,087
5.0% AGR 1 C
2,477 1,633 844 2,945 2,024 921 3,389 2,354 1,035
in 2009, that of bio food decreased from 43% to 27.7% in the same period, indicating that the share of more technicallyoriented bio medicine is increasing rapidly.
3,824
4,330
3,352 2,204 1,633 1,328 1,219 2,851 2,354 1,718
3,083 2,624 2,463 2,477
3,083 2,624 BT Industry Domestic Market Size Trend in Korea 1,200

Pharmaceutical Food
1,247
2006 1,543 320 202 147 78 187 2,477
2007 1,857 357 247 179 91 215 2,946
2008 2,085 392 287 186 117 321 3,388
2009 2,289 465 336 198 127 409 3,824
2010 2,410 923 302 97 122 476 4,330
Growth rate 11.24% 37.69% 9.90% -6.80% 11.28% 30.91% 14.96%
2006
Domestic
2007
Export
2008
2009
2010
2006
Domestic
2007
Export
2008
2009
2010 Chemical
Environment Bioassay/ Bioinformatics Others Total
Total of Domestic Production

Source: Korea BT Industry Association, Korea BT Industry Status Report(2010)
% 18.2 R CAG
4,083
5,560 5,087
BT Industry Domestic Market Size Trend in Korea
5.0% AGR 1 C
3,389 2,354 1,035
3,824 2,624 1,200
4,330 3,083
Outstanding BT Human Resources

ployees per company. Human resources in the BT industry consist of 11,329 production personnel (35.4%), 11,091 R&D personnel (34.7%), and 9,584 sales/administrative personnel (29.9%).
In 2010, 32,004 people were employed by 913 companies in the BT industry in Korea, indicating an average of 35 em-
3,352 2,851 1,633 1,219 2,204 1,328 2,354 1,718
3,083 2,624 2,463 2,477
2,477 1,633 844
2,945 2,024 921
1,247
Personnel Distribution by Diploma in the BT Industry in Korea in 2010
(Unit: persons / %)
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Domestic
Export
Domestic
Export

Total
Persons Percentage
1,872 5.8
7,106 22.2
11,979 37.4
11,047 34.5
32,004 100
Invest in Seoul
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
PhD
MS
BS
Others
Total
33
1,200 1,000 800 600 400 200 0 -200
Cultivation of BT Industry Using Seoul Bio Investment Fund and Strategic Alliances
In April 2011, Seoul Metropolitan Government signed an MOU for Mutual Cooperation in Biotechnology and Cutting-edge Technology with Massachusetts, the home of the Boston Bio Cluster, one of the worlds top three bio clusters, to share BT industry development know-how and exchange information on the intensive cultivation of the BT industry. Seoul Metropolitan Government makes long-term investments in emerging small bio ventures and medicine companies with the aim of nurturing globally competitive bio star enterprises and creating sustainable, high quality jobs. Seoul Metropolitan Government has secured a USD 90 million Seoul Bio Fund (Seoul Global Biomedical Fund) and invested in six companies as of July 2012. It is open to further investments in this field.
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Success Story : Novartis Korea Financial Status

Novartis Korea, established in 1984, is a generic drug subsidiary of the global drug company Novartis. The company supplies generic drugs such as anti-cancer drugs and injectable drugs. The companys revenue is posting rapid growth each year.
450 400 350 300 250 200 150 100 50 0
2002
2003
2004
2005
2006
2007
2008
2009
2010
Potential of Korean Market (Peter Yager, CEO of Novartis Korea)

140 120 Having outstanding human resources is also a main strength of Novartis Korea and the secret to its success. Accord100 ing to Novartis Koreas observation, Koreans value national success as well as personal success, are passionate about 80 60 education, and are highly competitive. 40 20 Potential of the Korean Market 0 -20 Behind the continued growth of Novartis Korea lies the potential of the Korean market. Koreas drug market is the 2002 2003 2004 2005 2006 2007 2008 2009 2010
Outstanding Human Resources
Investment by Biomedical Funds (as of July 2012)

Industry Kang Stem Holdings Earlogic Korea Crystal Genomics Inc. PCL Inc. Pathway Genomics Pharmapcine Stem Cell Medicine Hearing Diagnostic New Drug Development Vitro Diagnostic Reagent Personal genetic reports Antibody New Drug
Investment GMP facility, clinical trial, R&D Manufacturing diagnostic equipment New drug development cost Operation cost and product development Operation cost and marketing cost Product development, patent cost
of Novartis as one of five emerging growth markets (EGM), primarily because the country is experiencing faster onset of an aging population compared to other countries such as Japan. As 99% of Koreans are covered by health insurance, we expect that the demand for high quality drugs will increase as the nations medical services grow and develop in line with the rapid pace of ageing population. Koreas drug market particularly has the outstanding potential in innovative new drugs and R&D, as the market is divided into new drugs produced by global drug companies (35%) and generic drugs (65%).
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12nd largest in the world and has become one of the most important markets in Asia. It has also caught the attention
INDUSTRY _ GT Industry
Fast Growing GT Industry in Korea

The supply of renewable energy is continuously growing, helped by active government investment and the involvement of the private sector in coping with external factors such as the enactment of the Climate Change Convention and the consistently high price of oil. The industry grew rapidly with an increase in the number of power generation complexes at the same time that the governments budget to support the renewable energy - such as solar cell and wind power rose massively from USD 106 million in 2003 to USD 704 million in 2009. Renewable energy supply in 2009 consisted of waste at 74.9%, hydraulic energy at 10.0%, and bio energy at 9.5%. The portion of waste is continuously decreasing.
GT Industry Market Size

The output scale of the GT industry in Korea, employing 9,000 people, currently amounts to USD 1.8 billion in terms of domestic consumption and USD 1.1 billion in exports. However, its world market share and energy supply rate are only 1.4% and 2.4%, respectively. As such, the Korean government plans to increase the new & recycled energy supply rate to 11% by 2030. Currently, the Korean GT industrys technology level remains at 50~85% that of the most developed countries. Because of a lack of original technology and key part production technology, it imports 75% of all solar cell equipment and 99.6% of wind power equipment.
GT Industry Centered on Solar Energy, Wind Power, and Water Treatment Markets Solar Cell Energy Market Trend Renewable Energy Supply Status
(Twh) Supply (%) Solar heat
INDUSTRY _ GT Industry (Unit: thousand toe)
Concerning the renewable energy support policy, in 2001 the Korean government disposed the FIT (Feed in Tariff) executed since it enacted the Act on the Promotion of the Development, Use and Diffusion of New Renewable Energy in 2005. It now plans to convert to the RPS (Renewable Portfolio Standard) beginning in 2012. The annual mandatory ratio of RPS supply obligator will start from 2.0% and increased by 0.5% each year until 2016, and then by 1.0% each year to reach 10.0% in 2022.
2005 4,879.20 2.1 34.7 3.6 181.3 3,705.50 918.5 32.5 2.6 0.5
2006 5,225.20 2.2 33 7.8 274.5 3,975.30 867.1 59.7 6.2 1.7
2007 5,608.80 2.4 29.4 15.3 370.2 4,319.30 780.9 80.8 11.1 1.8
2008 5,858.50 2.4 28 61.1 426.8 4,568.60 660.1 93.7 15.7 4.4
2009 6,086.20 2.5 30.7 121.7 580.4 4,558.10 606.6 147.4 22.1 19.2
Solar cell Bio Waste Hydraulic Wind Power Geothermal Hydrogen and fuel cell
Although the market size and technical competitiveness of Koreas wind power industry are still vulnerable, the Korean government and local municipal administrations are preparing plans to develop coastal wind power complexes to secure technical self-sufficiency and sizable amounts of renewable energy by diffusing Korean-made wind power generation systems. Moreover, shipbuilding companies like Daewoo Shipbuilding, Hyundai Heavy Industries, Samsung Heavy Industries, and STX Offshore & Shipbuilding, in addition to Unison, Doosan Heavy Industries and Hyosung, are planning aggressive R&D and investment in the wind power business. As such, the creation of global leaders in the field of wind power generators is also expected in Korea in the future, since the above-named businesses are actively involved (R&D, facility investment and M&A); it is easy for Korean shipbuilders, which lead the worldwide shipbuilding industry, to enter the market as the applied technology for the blades of window power generators is similar to that of the propellers that drive ships. Furthermore, it will be possible to create synergy with the relevant industries, such as the machinery industry, within a relatively short period.
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Data Source: Statistics Korea, National Index
Wind Power Generation Market Trend
INDUSTRY _ NT Industry
Water Treatment Market Trend

In Korea, the top three companies dominate the RO (Reverse Osmosis) filter market with 75% (Dow 35%, Nitto Denko 25%, Toray 15%) of the market share, forming an oligopolistic market, and Woongjin Chemical holds 11% of the market. Many Korean companies are in the water business but most are investing in design, construction and equipment. Kolon and Cheil Industries are investing in the material sector but most are MF and UF filters, which have low technical barriers. Practically none exist in the RO filter area, which has high entry barriers. Woongjin Chemical is the only company in Korea that can produce RO filters, and profitability and technical barriers are very high in the value chain, which offer very attractive growth momentum for the company. They are also expanding in MF and UF filters, which means the filter business is expected to grow.
Concentrated Government Support such as 2030 Green Design Seoul Plan

Seoul, in accordance with national policy, seeks to reduce greenhouse gas emissions. The "2030 Green Design Seoul" plan has been established to support GT industries and lead Seouls green growth. Also to meet this goal, the Seoul Metropolitan Government (SMG) has selected 10 GT areas that will have a direct impact to promote low-carbon green growth policies. The SMG will also provide USD 1.3 million in support for Green Technology R&D of a distinctly Seoul style to encourage research in universities, companies and research institutions. And SMG created its own fund, in the amount of USD 9 million, to invest in small and medium-sized companies engaged in green technology. Focus areas for support include renewable energy, green cars, LED and the green building sector. Finally, the SMG will train 400 GT specialists by 2014. The industry will focus on green building, renewable energy, LED lighting and green cars. With industry-academy specialists, the GT industry will grow stronger, and sustainable growth can be expected.
Korea, an NT Powerhouse
The worldwide nano convergence market is expected to grow to USD 2.95 trillion (USD 1.5 trillion if semiconductors are excluded) by 2015. In Korea, the market is expected to show a rapid annual growth rate of 22.6% until 2020. Korean nano technology is ranked no. 4 in the world in terms of competitiveness, and is particularly outstanding where nano processes, nano parts, and systems are concerned. More than 50% of domestic nano technology companies are engaged in the nano parts business, which ranks a strong fifth in the world in terms of competitiveness as it is moving into a maturity period with an approximately 60% level of original technologies compared to other advanced countries. Dramatic growth of the local new materials market is also expected along with accelerated penetration into local markets by multinational companies armed with nano-based convergence technologies in the following areas: Hybrid cars, airplanes, and wind power plants; smart textile clothing; home networks; WIG ships; and artificial intestines.
Foreign Investment in the GT Industry

As of 2008, 160 foreign companies had invested an accumulated total of USD 685 million in the GT industry in Korea. Although the total amount came to a mere USD 46 million (Registration based) in 2006, the figure increased greatly
Well-established Nano Industry Ecology

The Seoul Metropolitan Government is equipped with both quantitative and qualitative advantages concerning its R&D convergence technologies through cross-disciplinary research, and is equally blessed with numerous opportunities
INDUSTRY _ NT Industry
thereafter to USD 173 million in 2007 and USD 165 million in 2008.
resources for nano and nano-related technologies. It offers a favorable environment for the development of innovative
(Unit: thousand USD)
Foreign Investment in the GT Industry in Korea

Area Renewable energy(Solar energy, wind energy, fuel cell) Environmental pollution prevention (Atmospheric pollution, waste processing) Resource management(Recycling, water supply, etc.) Total Number of investing companies(EA) 32 73 55 160
for companies to participate in public urban projects that could create demand for the related industries using NT. In terms of the NT support environment, Seoul enjoys higher network competitiveness in Korea than other regions of the country given that many excellent educational institutions and world-class enterprises are based in the city.
Amount invested 241,951 195,770 247,010 684,731
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New Growth Engine Hope Fund

Seoul Metropolitan Government is planning to create its own version of the New Growth Engine Hope Fund in the amount of USD 902 million to provide assistance to companies engaged in one of the eight new growth engines such as IT, BT and GT; design and fashion industries; financial industries; and finally the tourism industry. According to the Seoul Economic Vision 2020 established in 2011, the Seoul Metropolitan Government plans to promote a more active participation in venture investments by the private sector that the city budget cannot afford to support.
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Source: INSC (KOTRA Investment Report statistics system)
INDUSTRY _ Digital Content Industry

Korean Digital Content Industry Showing Explosive Growth Led by the Game Industry 19.6 The online game market in Korea accounts for 25.9% of 17.8 16.2
21.7 the total world market, and has consolidated its position 15.9 19.7 17.9 as the world no. 2 behind China (30.4%). The fact that 17.7 the Korean market recorded growth of 2.9%, while the 176.8 166.9 162.5 Chinese market decreased by 0.9% last year indicates 139.4 195.9 184.9 180.0 that Korea may be ready to take back the no. 1 position it 154.5 yielded to China in 2008 at a time when China was expe41.5 44.3 37.5 46.8 riencing explosive growth. 41.6 49.1 46.0 51.9
20.8
23.0
22.0
24.4 23.6
21.3
Fostering Digital Content Industry as the Next-Generation Growth-Engine Industry

The government is pushing to develop the digital content industry as one of its core businesses. In 2002, the Online Digital Industry Development Act was legislated. In conjunction with the Online Content Industry Development Committee, the government confirmed the Digital Content Industry Development Basic Plan and selected digital
185.1
205.1 224.7
202.8
227.5
205.3
content as one of the 10 Next-Generation Growth Engines. It built digital content production collaboration centers in the metropolitan areas to share equipment and to improve the production environment for companies. It also subsidized
1,200 The government is also working on digital content-related information creation and analysis, research on methods to 1,000 improve the business environment in a changing market and other policy support that can help the industry. 800 600 400 200 0 -200 2002 2003 2004 2005 2006 2007 2008 2009 2010
the Multimedia Technology Support Center in Jeju and Gwangju, where digital content industry infrastructure is weak.
49.8
55.2 58.8
53.1
60.0
54.2
Portion of Korean Market in World Game Market in 2010 (based on revenue)

Description World game19.3% market Online games 15,913 4,123 25.9% Video games 33,788 369 1.1% Mobile games 8,569 6.3 274
(Unit: million USD)
6.3
PC games 6.7
19.3% Domestic game market 7.6%

7.6% Market share
6.7 3,068
10 0.3%
Arcade games 23,481 6.5
6.5
Total
5.0 128
5.0
84,818 4,905 5.8%
Success Story - Actozsoft

450 Financial Status 400 Actozsoft Co. Ltd. was set up in Korea in 1996 as a sub350 sidiary of SANDA, China, a company engaged in online 300 game development and related services. Its operating 250 Income has been increasing steadily over the years. 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010
73.1%
73.1%
3.2%
0.5%
The Potential of the Korean Market (Kim Gang, CEO of Actozsoft)

The game industry worldwide is showing faster growth and business diversification than many other industries. However, as in other industries, the game industry is also pursuing expansion at a certain stage of its growth. When such a phenomenon is maximized, each business pany is a first-generation online game developer. We are now witnessing our arrival at the stage mentioned above and can see that Korea is a great place to do business in
INDUSTRY _ Digital Contents Industry
Korean Digital Content Industry Based on Worlds Best Level Infrastructure

Korea's digital content industry has the world's leading high-speed Internet, wireless networks, various computer software programs and platforms, serving as an engine for sustainable growth. In particular, the emergence of a new genre, like UCC, ubiquitous and U-city, will bring more consumers who are familiar with the digital content industry,
INDUSTRY _ Digital Contents Industry
which will lead to sustained growth.
tends to value specialization as never before. Our com-
Portion of Digital Content Industry in 2010
Portion of Channel
On-line Mobile
(Unit: million USD)
1% 15%15% 3% 3%
1%
20% 20%
0% 0% 11% 11%
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30,320 22,742 22,742 30% 29% 29% 15,510 15,510 29% 9,922 29% 9,922 27% 27% 28% 28%
72% 73% 71% 71%
36,952 30,320
44,484 36,952
31% 30%
44,484
31%
140 120 100 80 60 40 20 0 -20
this regard. Above all, we are experiencing significant changes in the game platform field because of the rapid spread of smartphones since 2010. Such an accelerated expansion of new infrastructure will ultimately lead to the development of wide range of games and contribute to an increase in demand both at home and abroad. I anticipate a dramatic boost to Koreas game industry once Latin America, Africa and Russia equip themselves with
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Invest in Seoul
70%
69%
2002
2003
2004
2005
2006
2007
2008
2009
2010
better Internet network environment than at present.
50% 50%
Seoul is developing diverse policies and expanding support to develop itself into a first rate business city and emerge as
Invest in Innovation
the preferred choice of investors. Leveraging high-caliber human resources and Koreas leading edge in information communication technology, Seoul is pursuing groundbreaking projects such as the Magok District , DMC, Gongneung District, Yeouido International Finance Centre, Yongsan International Business District to drive future growth.
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Invest in Seoul
Section 1: IT
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Invest in Seoul
Section 1: IT
INDUSTRIAL SITES_Magok
Magok District
Accessibility
The Magok District is directly connected to Incheon International Airport and Gimpo International Airport through the metropolitan road network. It is located at the heart of Northwestern Seoul. Subway lines 5 & 6 run through the area, as does the railway to Inchon International Airport. Most notably, the area is right alongside Gimpo International Airport, which covers all domestic flights plus flights to five Asian cities in the region. All of the flight destinations from Gimpo are within the single-day business range. Also, the Magok District is reachable from Beijing, Shanghai, Osaka and Tokyo within about two hours, surely making it one of the best locations in which to do business in Northeast Asia.
Gimpo Airport 12.46km(20minutes) Seoul City Hall 10.36km(20minutes)
Incheon International Airport 40.10km(46minutes)
Types of Business in the District High-tech Industrial Complex(770,922m2): Priority is given to R&D companies specializing in IT, BT, GT and NT. Business Complex(325,571m2): Financing, insurance, convention, R&D, business services, telecom and
broadcasting
Located in southwestern Seoul, the Magok District is an environmentally-friendly knowledge industry cluster Seoul City Hall where cutting-edge technology industries using IT, BT, GT and NT coexist with organizations specializing in Gimpo Airport 7.07km(17minutes) 17.99km(30minutes) international business. It is a future-oriented town that will connect Seoul to the rest of the world.
Gimpo Airport 21.49km(30minutes)
Major Companies that Will Move into the Seoul City Hall Magok District 5.12km(15minutes) LG and Kolon are set to move into the zone
With the conclusion of agreements with the two outstanding anchor companies, the reputation and value of the zone has been incontestably reconfirmed. A great integration effect between the anchor companies and SME venture businesses is anticipated. The LG Consortium has presented its vision for a next-generation convergence R&D hub, which will become a next-generation growth engine. It has confirmed the execution/implementation of a USD 3,610 million investment plan in the Magok District by the end of 2012. The area secured by the LG consortium occupies 58%, or 133,588m2 of the total area required. LG plans to conduct research and development for next-generation growth engine businesses here and to create a pan-business R&D center. The Kolon Consortium has presented a business plan focusing on water treatment, energy and biotechnology. It will be based on an 11,729m2 site.
INDUSTRIAL SITES _ Magok
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Invest in Seoul
INDUSTRIAL SITES _ Magok
Location Area Development directions
Magok-dong & Gayang-dong, Gangseo-gu, Seoul 3,665,336m2 reation of an advanced IT C BT GT NT convergence technology R&D center; establishment of an international business complex; and development of a cluster of sophisticated industries through the T/T by universities and research institutes or establishment of start-ups reation of a cluster of high-tech companies aiming at attracting C next generation growth engine industries; development of an international business complex and construction of a residential complex Investment methods Participation in development through land purchases Gimpo Airport 6.43km(20minutes) Land for R&D or IT BT GT NT is available at low prices. Incheon International Construction of buildings with purchased land or rental of offices Airport 46.05km(47minutes) Selling in lots will begin in earnest on second half of 2012
Seoul City Hall 16.34km(29minutes)
Seoul City Hall 13.25km(30minutes) Gimpo Airport 36.12km(54minutes) Incheon International Airport 71.97km(77minutes)
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INDUSTRIAL SITES_DMC
Easy Access to Northeast Asian Markets
The DMC is accessible from Incheon International Airport, the hub of East Asia, within 30 minutes either by highway or express railway. A huge East Asian market of 1.7 billion people can be reached in just two hours from the DMC.
Digital Media City
The Enormous Seoul Metropolitan Market

DMC is located in the middle of a huge market of 24 million consumers in Seoul and the surrounding Gyeonggi Province, providing the best access to one of the biggest domestic markets in the world
Cutting-edge IT Infrastructure
Citizens within the DMC complex can access the Internet free of charge through a wireless high-speed fiber optic network anytime anywhere. The DMC is equipped with the worlds fastest high-speed telecom network and IT infrastructure
Benefits Available to Foreign Investors

Supply of Land_Foreign investors are given additional points upon evaluation of their project plans. upply of Rental Offices_Foreign businesses are eligible for low rates when renting offices from the Seoul Metropolitan GovS ernment in venture business facilities, and are given priority in the assignment of office space. Supply of Rental Housing_The Seoul Metropolitan Government provides rental housing in convenient locations for foreigners. enefits under the Foreign Investment Law_Foreign investors based in foreign investment areas or engaged in industry supB port services or high-tech industries are entitled to tax breaks (national and regional), benefits in financing, and exemptions from fees according to the Foreign Investment Promotion Act and the related city ordinances. ong-term Land & Building Rents_Foreign investment companies are entitled to rent land and/or buildings at low rates for L up to 50 years.
The DMC, or Digital Media City, is an advanced digital media entertainment(M&E) cluster currently under construction in the Sangam Zone on a 569,925m2 site in Northwestern Seoul. The project is led by the Seoul Metropolitan Government and is scheduled for completion in 2015. At present, 350 advanced M&E and IT businesses are located and over 25,000 people work in the DMC. By 2015, over 600 businesses will have been operating there with at least 60,000 employees working there.
Current Status of Businesses Operating in DMC

Businesses
Games Broadcasting Imaging
Contents Business Research Center, Korea Game Developers Association, Tongyang Online, Gravity, Nflute, Putto entertainment Kudo Communication, Traditional Korean Music Broadcast, CJ E&M, CJ CGV, MBC, C&I and KBS Media Daneck, CS Music &, Sound & Company Korea Film Commission, Cheongeoram , CJ CGV
Internet
Korea.com Communications
INDUSTRIAL SITES _ DMC
INDUSTRIAL SITES _ DMC
Location Land Area Construction period Client Target industry
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Others
Korea Trump GmbH, EBM Papst Korea, Multivak Korea, Renew System, Daesung Global Network, The Federation of Korean Information Industries, NIPA
Invest in Seoul
Land Development Area, Sangam New Millenium New City, Mapo-gu, Seoul 569,925m2 (Business Area : 335,134m2 / Public Area: 234,791m2) 2002~2015 The Seoul Metropolitan Government edia industry including broadcasting, movies/animation, games, M music, digital education and any businesses involved in R&D for entertainment-related technologies or the production and distribution of digital contents Businesses distributing or consuming digital contents Gimpo Airport Software or other IT-related service businesses 12.46km(20minutes) IT, BT or NT R&D or manufacturing
Film IT BT HW SW Finance
Communications Pantech, LG U+
Woorifis, Hansol PNS, Hansolinticube, Korea Electronics Technology Institute, I-gene, Environment Bio, Advanced Bio Technology, Benebiosis SRC Hyundai Card, Daesung Holdings, IT Business Unit, Naupil, Core Gate, Nectar Soft, Damon Easy Certi, Hun IT, E-Sum Tech, Access Seoul, DS Ivy, I-Yuno Global, C-Square Soft, Podivision, Mogens Lab, Bit Rust, In Media Daesung PE Humancontents , Mediact, The Federation of Korean Information Industries, Hansol Education Korea Creative Contents Agency, Korea Federation of Copyright Organizations, Ministry of Culture and Tourism Intellectual Property Division, Korea Broadcast Publishing, Muha Digital
Education and research
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M&E and other
INDUSTRIAL SITES_Gongneung
Gongneung District
Seoul Metropolitan Government aims at establishing an R&D network particularly in such areas as IT-NT convergence, electricity, bio, nuclear and medical industries through technical development, human resources development and industry-academia cooperation. Ultimately the city government pursues a greater balanced development between its districts while contributing to the technical development of the country through the successful expansion of DMC. The Seoul Metropolitan Government plans to attract more than 50 global enterprises with top notch technologies, create 2,000 jobs by 2014, train more than 200 personnel, and create a USD 913 million market in the NIT parts and equipment industry.
Gimpo Airport 12.46km(20minutes) Seoul City Hall 10.36km(20minutes)

Phase I
Contents eoul National University of Science & Technology (83,905m2) at 172 S Gongneung-dong, Nowon-gu, Seoul 0,872m2 (A 12-storey headquarters building with one basement floor 3 & two other buildings) 2004 ~ 2008 (5 years) eoul Metropolitan Government, SeoulTechPark, KEPCO, Nowon District Office, S Ministry of Knowledge Ecnomy Construction of NIT-related R&D centers and establishment of educational facilities
Location Area Project period Clients Project contents
INDUSTRIAL SITES _ Gongneung
Location Building area
23,140m2 (10 floors including the basement floors) be completed in 2014 To eoul Metropolitan Government, SeoulTechnoPark. KEPCO, Nowon Disrict Office, S Ministry of Knowledge Economy xpansion of the Industry Technology Complex E (and establishment of the Smart Grid R&D Center) ano, IT convergence, electricity, biotech, nuclear medicine industry N (at a future-oriented technology complex in northeastern Seoul for R&D and human resources development) USD 43 million(KEPCO budget)
Location Land area Target industry
Gongneung-dong, Nowon-gu, Seoul 172 114,512m2 Nano, IT convergence, electricity, biotech, nuclear medicine industry
Project period Clients Project contents
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Gimpo Airport 6.43km(20minutes) Incheon International Airport 46.05km(47minutes)
Seoul City Hall 13.25km(30minutes) Gimpo Airport 36.12km(54minutes) Incheon International Airport 71.97km(77minutes)
Target industry Construction budget
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INDUSTRIAL SITES _ Gongneung
The Gongneung Future Industry Technology Complex is a strategic project being promoted by the Seoul City Hall Seoul City Hall Gimpo Airport 5.12km(15minutes) Seoul Metropolitan Government to create a NT, IT R&D Complex and a Subminiature Complex System Gimpo Airport 7.07km(17minutes) 21.49km(30minutes) 17.99km(30minutes) Technology Development Complex in the Gongneung area of northeastern Seoul. The comprehensive complex is being built for the purpose of developing NIT-related businesses, promoting joint development Incheon International Incheon International Airport Airport with other industries, and creating a synergy effect across the overall industry. 57.29km(54minutes) 53.63km(55minutes)
Phase II
Contents EPCO Central Education Institute (31.417m2) at 170-2 K Gongneung-dong, Nowon-gu, Seoul
INDUSTRIAL SITES_IFC Seoul
Yeouido
International Financial Centre Seoul

Supporting Facilities and Agencies
Currently, financial regulatory agencies such as the Financial Service Committee and the Financial Supervisory Service as well as the Korea Exchange are located in the area. Having the regulatory agencies nearby will make it easy for financial companies to share information and communicate with each other. Moreover, the areas proximity to KOREX helps to increase business efficiency.
Financial Professional Development

The Korea Institute of Financial Investment has a training center for the re-education and professional development of financial human resources. Seoul Metropolitan Government is constructing International Finance Centre Seoul, consisting of three grade A office building, the six star Cornard Hilton hotel, and the luxury shopping space in a bid to develop Yeouido into an international financial hub and establish a concentrated financial cluster comprising financerelated enterprises and agencies.
Type Overview
Seoul City Hall The nations Best Financial District Infrastructure Gimpo Airport 10.36km(20minutes) 12.46km(20minutes) are 42 of the capitals Of the 291 financial institutions based in Seoul, 93 are headquartered in Yeouido, as 68 asset management companies and 8 of its 11 futures companies. As such, the region has sufficient Incheon International infrastructure to further expand the asset management-centered financialAirport district and is regarded as the 40.10km(46minutes) countrys best financial district heavily concentrated with the related financial companies.
Description Developer : Seoul Metropolitan Government and AIG Global Real Estate Development Location : 23, 23-1 Yeouido-dong, Youndeungpo-gu Building area : 504,880m2 / Two IFC(29 floors) : 61,870m2 / Three IFC(55 floors) : 128,964m2 onstruction of focal point of the financial industry cluster in Seoul and landmark C facility representing the financial infrastructure in Seoul cquisition of the infrastructure required to attract global financial institutions A and multinational companies evelopment of an efficient network for the financial industry and related D industries such as legal and accounting
Purpose
INDUSTRIAL SITES _ IFC Seoul
2006 ~ end of 2012 Construction period

Location Land area Target industry Yeouido-dong, Youndeungpo-gu, Seoul 3,976,788m2 lobal financial institutions and multinational enterprises G Financial services, legal/accounting and other related businesses
Expected tenants
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Invest in Seoul
Targeted industry and businesses
Focal point of the financial industry cluster and financial infrastructure landmark Global financial institutions and multinational companies Financial industry, law, accounting and other related industries
Invest in Seoul
8 global financial institutions, consulting companies and others have signed con2 tracts to move into DMC, including One IFC (International Finance Centre), Bank of New York Mellon, Daiwa Securities Group Inc. and Deloitte Consulting. lated to open their doors at the end of August 2012 are IFC Mall, CGV Cinemas S (multiplex movie theatres), Youngpoong Bookstore and 110 premium brands, including ZARA and H&M. Scheduled to open in November 2012 is the Conrad Hotel, a subsidiary of the Hilton. egotiations are under way with other global financial powerhouses, including global N accounting, consulting and law firms.
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INDUSTRIAL SITES _ IFC Seoul
INDUSTRIAL SITES_IBD
Yongsan
International Business Complex

Advantages of Yongsan International Business District
Situated right at the center of Greater Seoul with a population of 25 million, it is the largest business hub in Northeast Asia. Inside the city of Seoul, it is located at the heart of the three main business areas. xtensive government support for a nationwide transportation network linking to the district, E securing ample green space and developing a diversity of faculties inside the area he master plan of the area by the Korean government is making it the largest and best economic T and cultural hub of Seoul, emulating Times Square of New York and the Central District of Hong Kong.
The Hub of the Seoul Green Network

he Yongsan International Business District is located in the middle of the most remarkable T green axis of Seoul, namely the green belt of Namsan, Yongsan Park and the Han River. s the North Riverside Expressway now runs under a bridge, residents of the district A can easily access the parks along the Han River.
Type
Description promote advancement of the industrial structure by expanding deregulation and To performing the deregulation test bed role for different fields to prepare for the market opening o expand open zones to strategically attract foreign investment T (Development of a system that provides the best environment for foreign investment and ensures a high degree of competitiveness) Business consulting (accounting, legal services, intellectual property rights, licensing, and technical collaboration for prompt business) Information interchange and PR (conventions, international meetings, and PR hall) ducation and R&D (international business education and research with working-level E professional development programs) Multi-purpose complex with the aim of becoming a global IT, financial and tourism hub Development goal for financial industry sset management-centered development by attracting global top 50 asset A management companies onstruction of an Asian financial hub that surpasses Hong Kong and Singapore by C attracting the regional headquarters of global top 50 asset management companies as well as investment banks and international financial institutions evelopment of an Asian financial hub and gradual advancement as a global financial D hub to rival New York and London
INDUSTRIAL SITES _ IBD
Support
Location Land area Target industry
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Invest in Seoul
Seobuicheon-dong, Hangnaro, Yongsan-gu, Seoul 565,109m2(including the adjacent rail yard) rade A offices, shopping malls, hotels, recreational facilities, G department stores, designer boutiques, convention centers, etc. To Construction period be completed in 2012
Gimpo Airport 17.99km(30minutes) Seoul City Hall 7.07km(17minutes) Gimpo Airport 21.49km(30minutes) Seoul City Hall 5.12km(15minutes)
Future plan
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Invest in Seoul
INDUSTRIAL SITES _ IBD
Seoul City is The Yongsan International Business ComplexHall the worlds largest multi-purpose complex project, being Gimpo Airport 10.36km(20minutes) 12.46km(20minutes) 5.6 times the size of Roppongi Hills in Japan and twice that of Canary Wharf in the UK in terms of its architectural area. The project has been conceived to enhance the international competitiveness of Seoul. Incheon International With this project, Seoul Metropolitan Government plans to induce the balanced development of Seoul by Airport 40.10km(46minutes) moving some of the development factors currently concentrated in Kangnam to Yongsan and to nurture it into a center of international business by developing the only available large plot of land in the Seoul urban area.
Purpose
The Seoul Metropolitan Government is preparing various benefits so that international investors and companies can
Invest in Success
invest in Seoul flexibly and more conveniently. Due to Seouls strong business infrastructure and high growth potential, more than half of the Fortune 500 companies and over 10,000 international companies are carrying out their corporate activities in Seoul.
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Invest in Seoul
Section 1: IT
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Invest in Seoul
Section 1: IT
INCENTIVES
Foreign Direct Investment Process

Business Activities of Foreign Companies in Korea
The various types of foreign companies operating in Korea are classified into three categories: local corporations, branches, and liaison offices. Only local corporations are recognized as foreign direct investment (FDI). Investors should choose the type of investment most suitable to them in consideration of the relevant factors, such as the purpose of business, expense required for the establishment of a local corporation, annual tax, remittance of funds back home, etc.
Foreign Direct Investment Process

In Korea, there are several modes of FDI: acquisition of the stocks or equity share of a local corporation or business; provision of a long-term loan to a local corporation; and investment in a non-profit corporation.
Step 1
FDI report (To be handled immediately)

Local corporations Branch offices Liaison offices
A foreign investor may submit a report through one of the following : Invest Korea or the headquarters or a branch of a domestic foreign exchange bank or a domestic branch of a designated foreign bank. Required documents: investment report, certified copy of a corporation registration (for corporations), citizenship certificate or passport (for individuals), letter of attorney (when reported by an agent)
Step 2
Remittance of FDI funds to Korea and conversion and currency exchange (To be handled within 2~3 days)
In principle, investment funds should be remitted to Korea through a foreign exchange bank or the customs office in the name of the foreign investor. Funds from a source within the country are not recognized as FDI.
Step 3
Paying up shares (To be handled immediately)

You should ask your bank to issue a certificate of deposit balance (if your companys capital amount comes to less than USD 902 thousand) or a certificate of inward remittance (if your companys capital amount comes to USD 902 thousand or more). Required documents : shareholders list, articles of association, minutes of inaugural general meeting, minutes of board of directors meetings
Applicable law
Foreign Investment Promotion Act
Foreign Exchange Transactions Act Foreign corporation Profit making is not allowed
Type of corporation Local corporation Range of business activities Minimum required capital
Profit-making activities within the approved scope Not less than USD 90,253 (=one hundred million won)
No minimum required capital orporate tax: C 10~22% of taxable income esidence tax : 10% R of corporate tax AT: between 10% V of supply value and 10% of supply cost
Annual taxes
orporate tax: 10~22% of taxable C income Residence tax: 10% of corporate tax AT : between 10% of supply value V and 10% of supply cost
No corporate tax, Residence tax or VAT imposed
Step 4
Corporation registration (To be handled within 2~5 days)

Corporate establishment can be registered at the court having jurisdiction over the area where the corporation will be located. Required documents: foreign investment notification certification, letter of attorney, executive appointment acceptance letter, corporation seal, copy of lease contract, minutes of board of directors meetings
Step 5
Business registration (To be handled within 7 days)

To carry out business activities, the investor should be registered as a business at the tax office having jurisdiction over the area where the corporation will be located. Required documents: business registration application form, copy of foreign investment notification, foreign currency purchase/deposit certificate, copy of lease contract
Step 6
FDI registration (To be handled immediately)

You should be registered as an FDI business at the place where you submitted a report on the investment in accordance with Step 1. Required documents: business registration application form, business registration certificate, certified copy of a corporation registration, foreign currency purchase/deposit certificate.
INCENTIVES
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Invest in Seoul
External audit
Loans in Korea Recognized as FDI
Possible, based on credit Recognized
Realistically impossible Not recognized Not recognized
Invest in Seoul
A business whose total asset amount in the preceding business year came to USD 90,253,000 (KRW 10 billion) or more is legally required to hire an external auditor.
No external audit required
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INCENTIVES
Tax reduction/ exemption
Hi-tech businesses are eligible for tax reduction or exemption under The Foreign Investment Promotion Act
Tax reduction/exemption not applied
INCENTIVES
Foreign Investment Incentives

In Korea, incentives offered for foreign investors are divided into those offered by the central government and those offered by a local government, depending on the provider. By type, they are divided into land support, tax support, cash grant, and other support. Incentives Offered for Investors by Country
Korea Hi-tech businesses Singapore China Japan Tax reduction / exemption
Supportive Measures for Foreign Investors Taken by the Seoul Metropolitan Government
Requirements and details of reduction/exemption Cases of application
equirements: Foreign invested company R usinesses in standalone type foreign investment zones (Tourism) B ndividual foreign investI ndustry support service & high degree technology business I ment zone: Stanford Hotel Details of reduction/exemption
Income tax: 100% for 5 years after income creation 50% for next 2 years Acquisition &Registration tax: 100% for 10 years after income creation 50% for next 5 years Property tax: 50% 100% for 5 years after income creation 50% for next 2 years
Offered for
Businesses contributing to technological advance of the industrial structure via the adoption of new technologies Those investing or work processes, or a large amount enhanced productivity Exemption from income tax on profit earned from business activities
Regional headquarters for multinationals
oreign invested company: F Amkor Technology Korea, TaeguTec etc
N/A
Tax reduction Tax reduction/ or exemption exemption for 5~7 years
Export duties and VAT are exempted when exporting goods produced by an FDI business aying 30% of office P rent in the first year aying a subsidy P for the first 3 years aying a subsidy P of USD 146.4/m2 in the case of purchasing a building
Cash grant N/A
usinesses providing industrial services; hi-tech businesses; B S businesses building new facilities or expanding existing facilities in olvay Chemical USD 1.8 million to be paid parts/material sectors (USD 1.0 million by the Seoul Employing a large number of employees (50~300) Metropolitan Government + mploying permanent research employees (5 or more) E USD 0.8 million by MKE) Up to 50% of the FDI amount he foreign investment ratio shall be over 30% T egular worker should be over 20 ( R&D: Over 10) R USD 902 per person for 6 month Limited to a total of USD 180 thousand per company usinesses providing industrial services; hi-tech businesses; B businesses engaging in knowledge-related services in manufacturing (Up to 8 years/up to USD 1,739 thousand) Business/operational expenses Projects for the formation of foreigners villages onstruction of infrastructure facilities designed to foster an environment C
suited to foreigners everyday lives onstruction and operation of facilities related to improvement of the FDI C environment
Land support
Rent reduced by 50~100%
Training subsidy/ employment subsidy N/A SME fostering fund Support for fostering environment conducive to foreign investors Bio medical fund
total of USD 2.3 million A paid to 34 businesses (2005~2011) total of USD 3.6 million A paid to 18 businesses (2011)
N/A
Cash grant
INCENTIVES
Not less than 5% of the investment amount
Providing financial support in the case of building an R&D center Paying expenses associated with intellectual property rights and human resources
1 kindergartens and 2 schools for foreigners
N/A
N/A
Prestigious bio businesses (domestic and foreign)
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Invest in Seoul
Act
Invest in Seoul
Other support
Employment subsidy Education/ training subsidy
Paying operation/ R&D-related training expenses in the case of a newly installed facility
It is possible to apply for a subsidy concerning directors vehicles and housing from the City of Beijing.
No separate incentives are offered to foreign investors, but some local governments provide incentives.
R&D-related cash support
rovision of research expenses on a selective basis for domestic P university research institutes launching research institutes in Seoul jointly with world-famous counterparts The Promotion of Industrial Education and Industry Academic Cooperation
total of USD 11 milA lion paid to Fraunhofer Research Institution over 5 years, total of USD 18 million A paid to Bell Laboratories over 5 years
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INCENTIVES
total of USD 9.6 million A paid to 6 businesses(July. 2011)

Invest in Seoul

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ENGLISH

INVEST IN SEOUL SEOUL METROPOLITAN GOVERNMENT

VISION BUSINESS ENVIRONMENT LIVING ENVIRONMENT INDUSTRY INDUSTRIAL SITES INCENTIVES

The Urban Competitiveness of Seoul Recognized around the World -

Seoul in the Global Community

Seoul in the Global Community

8th in 2012 Ease of Doing Business Index

(12th among OECD members, 6th among G20 countries).

1st in Labor Productivity according to a 2011 Report

8th in Globalization as of 2012

Invest in The Future

Business Environment of Seoul

GLOBAL E-GOVERNMENT : 1st

PRODUCTIBILITY OF LABOR : 1st

WORLDWIDE CENTERS OF COMMERCE INDEX : 9th

GLOBAL CITIES INDEX : 8th

Seoul, an International City

Fukushima Tokyo Nagoya

Ease of Doing Business Index: 8th

Global Power City Index (GPCI) (2011) : 7th

Global City Competitiveness Index : 9th

Economy Competitiveness : 3th

Fukuoka Miyazaki Okinawa

GDP and GNI

Seoul Area Population 605km2 10,528,000

Republic of Korea 100,032km2 50,062,000

Sovereign Credit Rating

Business Environment of Seoul

Korea and Free Trade Agreements

Status of FDI in Republic of Korea

(Unit : million USD)

2002 9,095 2008 11,712

2003 6,471 2009 11,484

2004 12,796 2010 13,071

2005 11,566 2011 13,674

2006 11,247 2012.03 2,346

Vietnam ASEAN Singapore Malaysia Indonesia Australia New zealand

Source: Ministry of Strategy and Finance(2012)

Major Foreign-Invested Companies

Covering 605km , Seoul occupies 0.6% of Republic of

green spaces (166km ), which account for 27% of the

Source Ministry of Strategy and Finance IMF

Economic growth rate 3.7 3.5

Price rise rate 3.2 2.9

Current account balance 16 25.9

Despite its high population density, Seoul boasts large

Economic Prospects for Korea

Business Environment of Seoul

Land Prices in Industrial Complexes

Source : FEMIS, Korea Industrial Complex Corp.(2010)

Land Prices and Rent

Average rental rates 22.3 25.7 18.4

Protection of Intellectual Property Rights

Business Environment of Seoul

Major Taxes and Tax Rate

Social Security Insurance Premium

Residence tax VAT Import duties

Source: The four major social insurances BUSINESS ENVIRONMENT

Public Utility Charges

Source: Survey by the Korea Business Centers of KOTRA(2011)

Business Environment of Seoul

Status of Foreign Investors in Seoul

Singapore 153.2~765.3 95.9 2,487.1 77