Country Analysis on Korea

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Business Studies
17th Feb 2018
Country Analysis on Korea
South Korea’s economy is one of the fast-rising economies among nations considered to be industrialized. The quick progress is measurable on many levels, but the GDP per capita precisely helps to evaluate opportunities and risks of operating in the economy. Trend analysis of the GDP per capita indicates an upward trend as demonstrated in the table below. This steady rise is attributed to the growth of more lucrative industries such as the electronics industry that has greatly flourished. Renowned companies such as Samsung and Hyundai based in South Korea fetch huge income to the economy. Business in this sector is not only rewarding to the economy but also to a businessperson. There is a great investment in this sector to fuel innovations addressing groundbreaking global solutions. In statistical figures, the investment in electronic production rose by 40% between 2011 and 2016. The South Korean economy provides a platform for innovation that opens up to more opportunities (Jarvis 323).

Table 1: Gross domestic product (GDP) in current prices from 2012 to 2022 (in billion U.S. dollars)
South Korea’s economy is one of the fast-rising economies among nations considered to be industrialized. The quick progress is measurable on many levels, but the GDP per capita precisely helps to evaluate opportunities and risks of operating in the economy. Trend analysis of the GDP per capita indicates an upward trend as demonstrated in the table below.

This steady rise is attributed to the growth of more lucrative industries such as the electronics industry that has greatly flourished. Renowned companies such as Samsung and Hyundai based in South Korea fetch huge income to the economy. Business in this sector is not only rewarding to the economy but also to a businessperson. There is a great investment in this sector to fuel innovations addressing groundbreaking global solutions. In statistical figures, the investment in electronic production rose by 40% between 2011 and 2016. The South Korean economy provides a platform for innovation that opens up to more opportunities (Chung 78).
In the search for new economic growth engines, the South Korean government is keen on the already existing sectors. First, venturing into the oil and energy sector placed the country in a position to compete with its peers. This motivation and contribution to its high GDP per capita have driven the discovery of new markets. The most recent venture by the government is in the pharmaceutical field. The country aims at competing with pharmaceutical giants like Switzerland. This move comes with its opportunities and risks. There are generous incentives to promote growth in this sector. However, the level of competition that comes with the development of this sector can be fierce leading to low investments and returns (OECD, 46).Top of FBottom of Form
The regulatory standards that are set for management are more stringent such that production and financial reporting is at its best. The heavy investment dedicated to high-tech product demands keenness of the quality of goods produced. In other words, it is possible that the brands developed in South Korea sell themselves. This is the ultimate opportunity that business bank on. The readiness to adhere and live up to the required standards is also an advantage in the long-run. Successful commitment to higher education as a driver to the success of businesses in South Korea is astounding. As more people are being trained, there is the threat of new products each day. Therefore, changes in the market pose a challenge that business managers have to brace up for (Chung 184).
Concisely, South Korea’s business environment can be termed as volatile. The rapid growth that has rendered the country 11th when ranked among other Asian countries. The high GDP per capita from the outlook communicates a large domestic market is waiting to be served. However, the risks that come with this are also worth noting. Threats like the weakening of the government to the Chaebols are a scare. The business culture of South Korea where there are economic powers sabotaging labor availability is pronounced upfront business challenges. Nevertheless, based on the GDP per capita scale, the South Korean business opportunities are quite diverse and lucrative. The country is heavily invested in talent, production and quality goods, which make business less risky. In the light of this, exploitation of new and existing business ideas would be an informed step for individual growth and the country at large.
Huge investments in learning and a determined, hard-working people have been fundamental in the country’s development. South Korea’s actual GDP increased from $2.7 billion in the 1960s to above one trillion in the 2000s. The nation has also sustained its development in the last decade, regardless of the financial crises. Unlike Finland, South Korea only experienced a slight dip in 2008-2010 and had since taken up its earlier expansion path even though at a rather lower rate (Cooper 4). More lately, the corporation has experienced major challenges with its exportations, partly because of the international economy and somewhat because of political variances with China.
There is no option for South Korea not to open its doors to overseas labor force and businesses to allow it maintain its success as its domestic demand increases. In 2011, South Korea agreed on a Free-Trade Agreements (FTAs), including both the US and European Union (EU), opening novel business opportunities for global business (Cooper 6). The agreement with America, approved in November 2011, removed duties on 95% of the commodities in five years. The FTA with the EU has been temporarily enforced from July 2011. Approximations of its impact on levels of exportation were to the extent that 30 to 40 billion Euros interchangeably, except it is uncertain if this has been attained.

Works Cited
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Chung, Young-Iob. South Korea in the Fast Lane: Economic Development and Capital Formation. Oxford: Oxford University Press, 2007.Print.
Cooper, William H. The Eu-South Korea Free Trade Agreement and Its Implications for the United States. Washington, DC: Congressional Research Service, Library of Congress, 2010. Print.
Jarvis, Darryl S. L. International Business Risk: A Handbook for the Asia-Pacific Region. Cambridge [u.a.: Cambridge Univ. Press, 2003. Print.
OECD. Public-private Dialogue in Developing Countries: Opportunities and Risks. Paris: OECD Publishing, 2007. Print.
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