• GDP: US$605 billion.
• Main imports: Machinery, electronics, electrical equipment, oil, steel, transport equipment, organic chemicals and plastics.
• Main exports: Semi-conductors, wireless telecommunications equipment, motor vehicles, computers, steel, ships and petrochemicals.
• Main trade partners: China, Hong Kong (SAR), Japan, Saudi Arabia and USA.

Korea (Rep) is one of the so-called ‘tiger economies’ of the Pacific Rim, which underwent rapid growth and industrialisation from the 1960s onwards and forged a major presence in world export markets. The Republic of Korea’s strength came from four main areas: shipbuilding, steel, consumer goods and construction. The agricultural sector, dominated by rice-growing and fisheries, is an important export earner as well as meeting domestic demand. Tourism dominates the service sector, which is still relatively small but received a boost from the success of the 2002 World Cup football competition, which Korea (Rep) co-hosted. Compared with the North, which has extensive coal and mineral deposits, the South is relatively poor in natural resources, although there have been recent offshore discoveries of natural gas which should help to reduce South Korea’s dependence on imported energy. The financial crisis which struck Asia in the autumn of 1997 had a very serious effect on the South Korean economy and raised major concerns about the long-term viability of the chaebol – the large conglomerates that form the foundations of Korea (Rep)’s industrial economy – and the stability of the finance sector, which had assumed increasing importance. The economy was saved from further damage at the beginning of 1998 by a US$60 billion financial rescue package put together by the IMF which kick-started a strong recovery by the South Korean economy. After settling down, the economy is now accelerating again: growth in 2002 increased to 6.3 per cent on the back of an increase in exports and investment, although did slow down in the following years. In 2003 it was 3.1 per cent and in 2004 it rose to 4.6 per cent. The Korean Development Institute estimates that 5.2 per cent average growth will be possible until 2011 if Korea (Rep) continues with its economic reforms. Inflation for 2004 was between 2.5 and 3.5 per cent. The government has successfully dealt with important structural weaknesses in the financial sector, but has yet to tackle the chaebol. The slow thaw in relations with the North has also seen a growth of economic links between the two parts of Korea.

Businessmen are expected to wear a suit and tie. English is widely spoken in commercial and official circles. Prior appointments are necessary and business cards are widely used. The use of the right hand when giving and receiving particularly applies to business cards. Best months for business visits are February to June. Office hours: Mon-Fri 0900-1800.

Korean Chamber of Commerce and Industry (KCCI)
PO Box 25, 45 4-ga, Namdaemun-ro, Chung-gu, Seoul 100-743, Korea (Republic of)
Tel: (2) 316 3114.
Website: www.kcci.or.kr

Korea Trade Centre in the UK
1st Floor, Brettenham House North, Lancaster Place, London WC2E 7EN, UK
Tel: (020) 7520 5300.
Website: www.kotra.or.kr/london

Korea Exhibition Centre (COEX)
World Trade Center, 159 Samsong-dong, Kangnam-ku, Seoul 135-731, Korea (Republic of)
Tel: (2) 6000 0114.
Website: www.coex.co.kr

Korea Convention and Coordinating Committee (Information on Conferences/Conventions)
PO Box 903, c/o Korea National Tourism Organization (see Top Things To Do),

International Convention Centre Jeju
2700 Jungmun-dong, Seoguipo City, 697-120 Jeju, Korea (Republic of)
Tel: (6) 4735 1000.
Website: www.iccjeju.co.kr