Content

nt

I.

Executive summary 3

II.

General Information 3

III.

Economic situation 4
Analysis of the main macro-economic variables 4
Development of the main economic sectors 5
Level of Competitiveness 6

IV.

Foreign trade of services and goods 7

Global trade exchange of the market 7
Trade exchange of the market with Peru 7

V.

Access to the market 9

Tariff measures and non-tariff measures 9
Another taxes applied to the Commerce 12

VI.

Trading opportunities 12
Preferences obtained in trading agreements 12
Products with export potential 13

VII.

Consumer Tendencies 15

VIII.

Business culture 16

IX.

Links of interest 17

X.

Commercial Events 18

XI.

Bibliography 18

I. Executive summary
Korea was one of the most damaged Asian economies due to the International crisis, though, it can recover
rapidly from that. The policies of consumption implemented for the government
took the desired effect in decreasing the effects of the crisis. The development of the country is said to
keep growing while reaching 3,7% by 2014.
South Korea is one of the most important tenth economic for Peru in terms of trade exchange and the
third in Asia. The high purchasing power of its population, approximately 50 millions of people, and the
recent trade agreement taking effect, it turns Korea in an attractive economy which give great
opportunities to the Peruvian exporters.
Now, the Korean demand for Peruvian products with added value is centered mainly in agricultural and
fish products. Leading the list are the squid, in various presentations, mahi-mahi fillets and eel, and entire
shrimps frozen. On the other hand, with the free trade agreement which took effect with Korea in August
2011, the agricultural deliveries have gained great benefits. Among the most important products, fresh
grapes, mainly organic bananas, and fresh asparagus are the ones that stand out.
Koreans look for Premium products with high quality, preferably from the gourmet lines when it comes to
food, even better if they provide nutritive proprieties and functions . Regarding the topic of clothing, they
are fixed in terms of quality, the yarns, and the comfortability on clothing and brand names.
II General information
The Republic of Korea (South Korea) is located in the northeast
of Asia, taking out half of Korea's south peninsula. Its
population is estimated to overtake 50 millions of people. 83% of
its population is urban and half of them live in Seoul, which is one
of the most crowded cities of the world. The country experienced
a rapid economic development that last almost twenty years
(1970--1990) which affected the migration of thousands of
families from the countryside to urban centers. Another important
cities are Busan (3,7 millions), Incheon (2,6 millions), Daegu (2,5
millions), Gwangju (1,4 millions), Daejon (1,5 millions) and Ulsan
(1,1 millions).
When it comes to the distributions of population per age, it is observed that 15% are under the age of 14,
73% are between 15 and 64 years, and 12% is 65 years or more. The average age is 38 years old, and
the population growth rate is 0.23%. On average, the distribution among men and women are almost the
same. Life expectancy is 81 years old.
26,3% of Korean population are Christians( Protestants 19,7% and Catholic Romans 6,6%), 23,2%
Buddhism and others 1,3%. In this last group are the Islam's practicing and other religious movements as
Jeungism, Won Buddhism, Daesunism , Cheondoism.. It is important to say that Korean population don't
profess any religion.
The official language is Korean and the commercial one is English which is spoken and understood in
business, as well as administrative areas. The most educated people often speak other foreign languages.

III Economic Situation

Korea is the seventh largest export country in the world. It is the second business partner for China and the
sixth for USA and Japan. The earnings of most Korean companies have recovered
their levels of pre-crisis. It is estimated that competitiveness grows up and and there will be a major
interest to enter to the Chinese enterprises, among others, due to its rapid development.
The behavior of the Korean economy depends on consumer prices and interest rates. On the other hand ,
the main risk factor is the volatility of the exchange rate perceived. Moreover, the weaken relationship with
North Korea due to political and ideological issues have caused that the expectations of improvement to
be more conservative.
It is observed an increasing dependency of the Chinese economy. According to Trademap's figures, the
amount of exportations to said country reached 25% of total terms in 2012. The exportations to USA and
Japan represents the 11% and 7% of all korean exportations, respectively.
Analysis of the main macro-economic variables
Korean economy has registered less levels of development in the last years, however, it will have reached
to 3% in 2013. It is estimated that the GDP will increase 3,7% by the end of GDP by the end of 2014.
This development will be possible due to the recent free trade agreements with USA and The European
Union. In accordance with its economic recovery, its GDP per capita is growing and it is located as the
highest in recent years. Furthermore, levels of unemployment will remain the same and inflation keeps
decreasing, and it is estimated that inflation will increase at the end of 2014.
Table 01
Development of Macroeconomic Indicators
Economic Indicators

2010

2011

2012

2013p

2014p

Var.%
12/11

Real growth of GDP (%)

6,32

3,68

2,04

2,84

3,68

Var.%
Aver.
12/08
-

20 540

22 388

22 589

23 838

25 189

0,9

4,4

2,94

4,03

2,19

1,39

2,26

3,73

3,41

3,23

3,23

3,23

GDP per capita (USD)

Inflation rate (%)
Unemployment rate (%)

Source World Economic Outlook, IMF. Production of PROMPER

The currency is the WON(KRW). The currency equivalences in terms of American dollars USD ( Currency
of USA) and the Nuevos Soles PEN(Per) are indicated in the table attached1.

Mid-market rates: 2013-10-29 20:46 UTC

1,00 USD = 1 062,68 KRW
United States Dollars
South Korea Won
1 USD = 1 062,68 KRW
1 KRW = 0,000941015 USD

The exchange rate KRW/US$ has remained stable since 2010. The highest rise of the south korean won
in the last years took place in 2009 due to the economic and financial crisis.

1 For

further information: www.xe.com

The regulatory frame about foreign investment in Korea is founded in The Foreign Investment.
Promotion Act (FIPA), law that took effect in September 1998. It is stipulated that minimum capital of
investment shall be about US$ 45 900 ( 50 millions of wons) and that percentage share shall be greater
than 10%. In case more investors are added in the same enterprise, the same criteria should be apply for
each investor.
It should be noted there is no limit for increasing the investment volume. Moreover, if the investment
implies technological transference, it is no necessary a ratio minimum of investment. It is neither
necessary in case of establishing a supply of raw materials, or the contract implies the appointment of
one directive. Korea recognizes in the Korean Standard Industrial Classification (KSIC), 1121 business
sectors. It is permitted the directly foreign investment in 1 056 sectors ( 1 030 are open and 26 are
partially open).
Table 02
Foreign investment in South Korea
Indicators
Total IED (Millions
US$)

IED per Industry

IED per Type

IED per Country

2012
16 257
Services (58,9%)
Manufactures( 37,5%)
Others(3,5%)
Greenfield Project (76,9%)
Fusions and Adquisitions (23,1%)
Japan (27,8%)
USA (22,6%)
Others(49,5%)

Production & Source: Invest in Korea

* Others is referring to the primary industry, electricity, gas, water and construction.

It is observed in Table 02 that IED in Korea increases to US$ 16 257 millions. The main sector of
investment is service, with a participation of 59%. Likewise, the most common type of investments are the
starter projects or in the existing ones that changes completely (Greenfield Project), and the most
representative country in Korea is Japan, with a participation of 28%.
Development of the main economic sectors2
Agriculture uses 6% of the workforce. Available land for farmers have decreased constantly during the last
two decades. However, farmers have a high level of support and protection from the government. Almost
two quarters of farmer's incomes from the south of Korea comes from protection or subsidy of
government.
Manufacture sector represented 31,6% of GDP in 2012 using 15,5% of all workers. Samsung is the
greatest conglomerate which represents about 20% of total exportations. South Korea is a dominant naval
builder with more than 50% of the global market and it is the fifth manufacturer of automobiles in the
world. The increasing globalization of
2 Source:

Euromonitor International

economy is pushing industries to emphasis the development of skills in the textile and leather sector. The
value of industrial gross production increses 2.8% in 2012.
Service sector represents 57,9% of GDP. Seoul keeps influencing the Banking System and it is stated
that it is going to face a restructuring process in short term, since a majority of them are too small to
support the exportation's agreement of the country.
The real value of tourism's incomes increases 10,1% in 2012 and it is estimated the same percentage of
increment for 2013. On the other hand, the opening of huge casinos in the bay's cities it is thought to
attract a great number of tourists.
Level of Competitiveness
In the following table it is presented the Global Classification of Doing Business's data, which measures
the "ease of doing business" (among 185 economies), and also the classification for each theme, both for
Peru and South Korea, and other similar countries.
Table 03

South Korea

Peru

Japan

China

Colombia

Chili

Singapore

Raking of Ease of doing business

Ease of doing business

43

24

91

45

37

Opening a business

24

60

114 151

61

32

Use and Permission of construction

26

86

72

181

27

84

Electricity Access

77

27

114 134

40

Property Registration

75

19

64

44

52

55

36

Obtaining credit

12

23

23

70

70

53

12

Protection of investors

49

13

19

100

32

Taxes payment

30

85

127 122

99

36

Cross border trade

60

19

68

98

48

Contract performance

115

35

19

69

70

12

Closing a Business

14

106

82

38

98

Criteria

Source Doing Business 2013. World Bank

Production PROMPERU

Peru is in the 43th position in the global ranking regarding ease of doing business, while South Korea is
in the 8th position. It should be noted that Peru has kept its same position at ranking DB2012 during 2013,
and Korea increases one scale regarding the same period. The peruvian stability in the ranking is due to
better construction permissions(up to 18 points), property registration (up to 4 points) and investment
protections (up to 2 points). The Republic of South Korea should thanks its investors protection(up to 30
points) and the taxes payment (up 11 points) for its progress.

IV Foreign trade of services and goods

4.1. Global trade exchange of the market
.The total sum of South Korea exportations is US$ 560 billions, 2,1% greater than the previous period.
Furthermore, importations goes down in 0.9% , which represents US$ 516 billions in 2013.
Table 04
Commercial information of South Korea
(US$ billions)
2009

2010

2011

2012

2013

Exportations

364

466

555

548

560

Var.%
Avera
ge
13/09
11.4

Importations

323

425

524

520

516

12.4

-0,9

Indicators

Var.%
13/12
2,1

Balance Of Trade

41

41

31

28

44

N/A

N/A

Trade exchange

687

891

1 079

1 068

1 075

11.8

0,7

Source Global Trade Atlas

Production PROMPER

South Korea global trade exchange made US$ 1 075 billions in 2013, which represented a recovery from
the previous year, even going higher to the previous levels of financial crisis. According to Global Trade
Atlas figures in 2013, the main destinations for Korean exportations were China (26% ), USA (11%),
Japan (6%), Hong Kong - China (5%), Singapore (4%) and Vietnam (4%) During the same period, the
most important suppliers of South Korea were China (16%), Japan (12%), USA (8%), Saudi Arabia (7%)
and Qatar (5%). From these list, only the last two showed growing in its deliveries to the Korean nation.
Qatar was the most dynamic among them.
4.2. Trade exchange of the market with Peru
Peruvian exportations to South Korea reached US$ 1 536 millions in 2013, with a less value of 0.6% from
the previous period. Importations reached US$ 1 470 millions during the same period, decreasing in 4,0%.
Table 05
Trade Information: South Korea-Peru
(US$ millions)
Indicators
Peruvian exportations to South Korea
Peruvian importations from South Korea
Balance Of Trade
Trade exchange

2009

2010

2011

2012

2013

750
600
149
1 350

896
952
-56
1 848

1 696
1 400
296
3 096

1 546
1 532
14
3 078

1 536
1 470
66
3 007

Var.%
Avera
ge
13/09
19,7
25,1
22,2

Var.%
13/12
-0,6
-4,0
-2,3

Source SUNAT Production PROMPERU

Balance of trade showed a surplus for our country in the past year. Trade exchange between both
countries made US$ 3 007 millions in 2013. Such amount represented a decreasing 2,3% with the same
last period of year. Peruvian exportations to South Korea reached 95%. mainly for traditional products in
2013. The most important products with added value were the ones related to fish (65% of no traditional
total), agriculture and livestock (20%) and textile (8%). Among them, agriculture and livestock sector only
showed growth in comparison to the previous period.

Table 6
Exportations for Economic Sectors
(US$ millions)
2012

2013

Traditional

1 453

1 456

Var.%
13/12
0,2

Mining

1 415

1 123

-20,6

Copper

558

464

-16,8

Lead

642

437

-32,0

Zinc

215

221

2,6

Others

0,24

730,1

-13,3

Fish oil

123,6

Fishmeal

-55,0

296

100,0

Liquefied natural gas

275

100,0

Petroleum Products

21

100,0

Farmings

31

31

0,3

Coffee

31

31

0,3

93

80

-14,0

Fishing

65

52

-19,7

Agriculture and livestock

13

16

26,3

Textile

-2,9

Chemical

-28,2

Iron and steel industrial

sector
Wood and Papers

-66,4

-34,7

Metal-mechanic

5,4

1 546

1 536

-0,6

Sector

Fishing

Natural Gas and Petroleum

No traditional

Total

Source SUNAT Production PROMPERU

The main no traditional deliveries to South Korea are fishing and farming products. Sales of processed,
frozen or fishmeal squid to Korea represents 52% of total exportations with added value. On the other
hand, after taking effect the Free Trade Agreement between Peru and South Korea, fresh grapes and
bananas started to be exported to Korean with good acceptance. Regarding textile goods, hair of alpaca
and worsted fabric have been the most important ones.

Table 7
South Korea Main no traditional products
(US$ thousand)
Shipment

Detail

2009

2010

2011

2012

2013

Var.%
Averag
e13/09

Var.%
13/12

% Part
2013

1605540000

Processed squid

10 918

11 850

41 734

28 328

21 585

18,6

-23,8

27,0

0307490000

Frozen Squid

10 355

10 320

18 645

27 244

19 187

16,7

-29,6

24,0

0806100000

Fresh grapes

182

1 541

9 071

12 141

---

33,8

15,2

0304299000

Mahi-mahi fillets and frozen eel

4 306

7 970

5 106

5 044

7 274

14,0

44,2

9,1

5108200000

1 040

1 839

2 479

1 630

2 343

22,5

43,8

2,9

2 151

---

100,0

2,7

0803901100

Alpaca's hair combed yarn

Whole shrimps with shell
frozen
Fresh bananas

495

1 567

1 523

---

-2,8

1,9

2301209000

Squid meal

105

515

49

115

937

72,8

711,7

1,2

0709200000

Fresh asparagus

87

167

199

481

636

64,6

32,2

0,8

0303900000

Flying fish eggs

0306171100

Rest
TOTAL
Source SUNAT

1 989

623

---

-68,7

0,8

11 458

13 661

23 353

17 274

11 525

0,1

-33,3

14,4

38 268

46 504

93 601

92 745

79 927

20,2

-14,0

100,0

Production PROMPER

V. Access to the market

Tariff measures and non-tariff measures
The Korea Customs Service and the Ministry of Strategy and Finance has control over all set of rules.
However,the implementation of commercial policies in South Korea concerns fundamentally to the
Ministry of Foreign Affairs and Trade of Korea (MOFAT). The Ministry of Knowledge and Economy (MKE)
regulates the importations, exportations and the direct foreign investment. The Korean Trade Commission
(KTC), which is under MKE, advises in commercial matter and searches for commercial malpractices so
that it can keep track of the OMC's agreements.
Most of the duties are Ad Valorem, though, there are specific fees and mixtures of such fees with duties
Ad Valorem. Importations are measured over a CIF value using the transaction value over the base of
effectively paid or payable for the Buyer. According to Korea Customs Service, the average duties
established are the following:
- Industrial Products (8%)
- Agricultural products( between 30%-50%), except garlic(360%), chestnuts(219%), onions (135%).
- Educative Products, software, high tech materials and machinery (Free of fees)
- Beer and Wisky(30%)
- Cigarrettes (40%)
- Imported vehicles(10%)
- Personal items importation (between 25-65%)

Table 08

RK

South Korea Tariff preferences to main products non traditional

Peruvian
Main
position
Competitors
Shipment
Detail
as a
(% Part.)
supplier
China (31%)
1605540000 Processed squid

Great Britane (12%)

Tariff
NMF

Tariff
preference
s

20%

14%

10%

7%

45%

18%

10%

0%

8%

4,6%

20%

12%

30%

12%

5%

1%

27%

0%

10%

0%

New Zealand (6%)

Vietnam (42%)
2

0307490000 Frozen Squid

Chili (24%)
China (6%)

0806100000 Fresh grapes

Mahi-mahi fillets and

0304299000
frozen eel

Chili (85%)
USA (11%)
Russia (26%)

11

Taipei Chinese (16%)

China (7%)
Italy (28%)

Alpaca's hair combed

5108200000
yarn

China (19%)
Bolivia (7%)
Vietnam (20%)

Frozen whole shrimps

0306171100
with shell

10

China (17%)
Ecuador (20%)
Philippines (98%)

0803901100 Fresh Bananas

Guatemala (0.5%)
Ecuador (0.1%)
Chili (3,2%)

2301209000 Squid meal

Denmark (5%)
India (5%)
Thailand (27%)

0709200000 Fresh asparagus

Australia (27%)
Mexico (27%)
Russia (86%)

10 0303900000 Flying fish eggs

USA (12%)
New Zeland (1%)

Source SUNAT Trademap Production PROMPER

The agreement between Peru and South Korea entered into effect the first day of August,2011, which
give import tariff schedules to the Peruvian products. The following are some products that Peruvian offers
with its corresponding tax relief.
Agro-processing Sector: As a result of the negotiations, coffee can enter to the Korean market free of
paying tax relief since the agreement have been taking effect. Frozen and prepared asparagus, as well
as avocados have been totally deducted. It is important to point out that tax relief for

these products originally were 27%, 20%, 30%, respectively, The decreasing tax relief will improve the
competitiveness of Peruvian products in the market. On the other hand,
bananas and lemons will be deducted still in one years, while mangoes, big white corns and purple corn
will do it in six years. Grapes and oranges have especial and seasonal programs of deductions.
- Clothing Sector: The import tariff schedules for those products made of cotton as t-shirts, shirts for
women and men, sweaters and baby's cloths have been almost totally completed. Likewise, the
mentioned products made of a mixture of different cotton fabrics can enter without paying tariff since the
agreement took effect.
- Fish Sector: Tariffs in this sector are very variable, fluctuating between 5% and 22%. The terms of tax
relief in the agreement differ for each fish product. The tariff applied to frozen squid, 22% in the beginning,
will be zero at the beginning of the tenth years of validity in this agreement. Sea scallops, squid conserve,
shrimp tails and frozen octopus will face the same fate when its base tariff was 20%. Other products as
salad anchovies have been deducted, as well as shark fins which will completely be doing so in 2015.
Preferential tariffs applies for different products from the Peruvian exportable offer can be found in the
SIICEX web page (www.siicex.gob.pe ), in preferential tariff section.
Non-tariff measures
In order to make possible the exportation and importation of products, it is required to fill a format from the
Korean International Trade Association (KITA). Most of the those products can be imported from South
Korea without any import license. Import licenses have one year of validity Requests of import license
shall be added to the Sale Agreement and other documents required for the respectively authorities (
The Bank or the Ministry )and only registered businessmen are authorized to import items in their behalf.
Importations are controlled by the Ministry of Commerce, Industry and Energy. They are classified in three
categories: prohibited, restricted and automatic approval.
There is also a control system for products that enter in the territory. Depending on the importer's
classification given by the Korea Customs Service, products will be controlled to a greater or lesser extent.
If the importer have seen a situation of no conformity, his products will be systematically controlled.
Procedures of control are not only about verifying the correspondence of imported products with the
documents presented, it is also about verifying that products meet with Korean procedures( standards,
phytosanitary rules and/or fumigation) When importing perishable food, the detail of products' components
(percentage of each ingredient) shall be added to the importation statement.
Some products included in the "black list" (note of exportation or importation) are regulated or prohibited
only. Licenses of those products are given depending on type of

3 According
4For

to a study made by the ICEX Espaa Exportacin e Inversiones.

further information: http://asiaenglish.visitkorea.or.kr/ena/GK/GK_EN_2_1_3.jsp

importation, after a study made by the Ministry of competency and after consulting the corresponding
Professional Associations .
Regarding labeling, South Korea keep the obligatory nature of labeling with indications to the origin
country for all merchandising in the less unity of product. MKE establishes such indications not to be
manipulated for anyone and keep them with permanence impression. The Korean Food and Drug
Administration (KFDA) is responsible for the labeling and packing food rules according to the guidelines of
Food Sanitation Act.
In the packages of food shall be seen the ingredients, regarding the language, it is acceptable Chinese
characters in the label, where it is also required to see the Korean language. After all, there is no especial
restrictions when using labels in foreign languages. On the other hand, there are obligatory prescriptions
regarding labeling national products or imported ones modifies genetically as corn, soya bean, and fresh
potatoes, as well as other products containing it. Also, for those organic and functional products.
Another taxes applied to the Commerce
Taxes in South Korea are managed by the National Tax Service. The general type of Value Added Tax
(VAT) is 10%, while selected products of consumption added tariff from 5 to 20% for especial taxes, while
other are free, as it is the case of necessity goods. Other taxes often applied in the country are:
- Agricultural and fishing special tax - 20% of tax exemption
- Local tax - 10% corporate tax
- Resident tax ( local tax) - 10% tax to the factory or tax for new personnel
- Tax on acquisitions (real property ) - 3,6% of the buying price ( including tax education)
- Tax to the land - 0,2% - 0,5% of the land's price
- Tax to Property 0,3% - 7%
- Specific consumption tax on a range of items for customers and luxury items, including
jewelry , leather , golf equipment , air conditioners, televisions , camcorders, among others.
Rates are between 10 % and 30%.
- 5% registration tax and a 2% acquisition tax applied to all passenger cars (if they are imported
or produced locally ) .
VI. Trading opportunities
Preferences obtained in trading agreements
The Free trade Agreement between Peru and South Korea was subscripted in March 21th, 2011, in SeoulSouth Korea by both Ministry of Commerce of each country, which took effect in August 1st of that year.
Some products such as coffee , asparagus, camu - camu , fish oil , copper, lead , zinc, fine hair yarn ,
cotton shirts, among others, entered duty free immediately, as well as three or five years after taking effect
the agreement.
Peruvian textile offer, mainly contained in chapters 61 and 62, was the most benefited since , almost
entirely , tariff headings automatically were deducted when the agreement took effect. Regarding
agricultural products (Chapters 07.08 and 20) and fishing products (Chapter 03), the first ones were
negotiated with high tariff (reaching almost 385%) in the majority of deductions

in long terms, and only some fruits and seeds using for farming were deducted automatically in 2011. In
the case of fishing products, the base tariff fluctuates between
10% and 20% with scheduled deductions between 3 - 10 years.
Products with export potential
Table 09
Fishing Sector
Shipment

030390

Description

Livers, eggs and milk

Classification

2012 Importations
(Millions US$)

Duty
Peru

Competitors duty
Russia (10%)
USA (10%)
New Zeland (10%)

Flagship
product

124 478

0,0%

030339 Frozen fishing

Flagship
product

63 008

6,0%

030354

Flagship
product

61 248

6,0%

Flagship
product

47 414

4,3%

030344 Frozen bigeye tuna

Promising

42 777

4,3%

030721 Frozen scallops and queen scallops

Promising

24 990

8,6%

030351 Frozen fish ( mainly

Promising

5 643

2,0%

030549 Smoked fishes

Promising

5 452

4,0%

030362 Frozen hake

Promising

5 414

2,0%

France (10%)
Russia (10%)
Chili (10%)

160540 Processed and made

crustacean

Promising

939

0,0%

India (20%)
Norway (20%)
China (20%)

Frozen mackerel

030352 Frozen fish ( mainly

herrings)

herrings)

Source Trademap/ Market Access Map

Russia (10%)
USA (10%)
China (10%)
Norway (10%)
China (10%)
Japan (10%)
Russia (10%)
USA (10%)
China (10%)
Taipei Chinese (10%)
China (10%)
Vietnam (10%)
China (20%)
Japan (20%)
USA (20%)
Russia (10%)
Myanmar (10%)
Norway (10%)
Indonesia (13%)
Philippines (13%)
Thailand (13%)

Production PROMPER

South Korea is an attractive market for Peruvian food, focusing mainly on the demand of fishing products.
Consumption per capita of those products in the country is an average of 60 kg per year. It is important to
notice that the first fishing product exported to Korea is squid in its different presentations, frozen or
proceeded. Regarding the Peruvian fishing offer with potential in the country, livers , eggs and milk, frozen
mackerel, scallops and hake, as well as some species of frozen and smoked fishes are the ones that
stand out for its growing and participation.

Table 10

Shipme
nt
180690

Agriculture and livestock sector

2012
Classification
Importations
(Millions US$)

Detail
Chocolates and products containing
cacao

Peruvia
n
tariff

Flagship
product

97 611

1,6%

090121 Roasted decaffeinated coffee

Flagship
product

89 541

1,6%

081190 Frozen fruits ( mainly Mango)

Flagship
product

81 935

6,0%

Flagship
product

60 320

19,3%

Promising

46 696

1,6%

Promising

42 306

0,0%

070310 Fresh onions

Promising

21 637

138,0%

190531 Sweet cookies

Promising

20 190

0,0%

Promising

20 078

27,0%

Promising

18 450

0,0%

200819

190110

180500

081090

Conserved peel fruits ( mainly Corn)

Making food for children

Cacao powder with no sugar or

sweetener

Fresh fruits ( mainly Pomegranate,

passion fruit)

190410 Products based on cereals

Source Trademap/ Market Access Map

Competitors duty
USA (14%)
Belgium (14%)
France (14%)
USA (8%)
Switzerland (6,6%)
Italy (8%)
China (30%)
USA (30%)
Chili (19,1%)
Myanmar (13%)
China (46,7%)
USA (46,7%)
New Zealand (23%)
Australia (23%)
Germany (23%)
Netherlands (5%)
Singapore (3,3%)
Malaysia (5%)
China (103,6%)
USA (103,6%)
Thailand (90,1%)
Belgium (8%)
China (4%)
Netherlands (8%)
USA (241,1%)
Chili (230,9%)
Vietnam (234,7%)
USA (5,4%)
China (5,4%)
Great Britain (5,4%)

Production PROMPER

Agricultural products also have a great opportunity in South Korea. Nowadays, consumers diets in that
country have started to change, taking rice away and adding more cereals, fruits and other fined seeds as
Quinoa. Chocolates and its similar presentations,which contain cacao, are more and more demanded
every day. There are products as the very cacao powder , roasted decaffeinated coffee, fresh corns and
onions due to its growing and participation distinguish them as great opportunities for Peruvian food in the
South Korean market.

Table 11
Textile sector
Shipme
nt
620193

Detail

Classification

Coats and jackets for men and children

2012
Exportations
(US$ millions)

Peruvia
n
Tariff

Flagship
product

416 695

0,0%

620293 Coats and jackets for women and girl

Flagship
product

304 124

0,0%

611030

Flagship
product

205 185

0,0%

Flagship
product

197 252

0,0%

Flagship
product

162 495

0,0%

Flagship
product

155 409

0,0%

Flagship
product

152 316

0,0%

Flagship
product

151 024

0,0%

Flagship
product

75 607

0,0%

Flagship
product

65 242

0,0%

620343

Pants, shorts and short pants of

Synthetic fibers

621133

Coats, vest and sweater of Synthetic

fibers

620463

Pants, shorts and short pants of

Synthetic fibers

621040

Other cloths for men and children (

mainly T-shirts)

610990

Shirts and T-shirts form other textile

materials

621050 Tops, bolero jacket and one-piece clothes

for women
610510

Cotton knit shirts for men and children

Source Trademap/ Market Access Map

Competito
rs Tariff
Vietnam (8%)
China (13%)
Myanmar (8%)
China (6.5%)
Vietnam (8%)
Myanmar (8%)
China (13%)
Vietnam (8%)
Indonesia (8%)
China (13%)
Vietnam (8%)
Indonesia (8%)
China (12.3%)
Vietnam (8%)
Indonesia (8%)
China (6.5%)
Vietnam (8%)
Indonesia (8%)
Vietnam (8%)
China (11.7%)
Bangladesh (11.7%)
China (12.7%)
Vietnam (8.6%)
Indonesia (8.6%)
Vietnam (8%)
China (9.1%)
Bangladesh (9.1%)
China (6.5%)
Vietnam (13%)
Indonesia (13%)

Production PROMPER

The products which shown great potential to tap into that market are coats and jackets , sweaters and
pullovers, pants and synthetic fibers jackets. According to the Korean International Trade Association (
KITA ) , importations of fashion ( textiles , footwear and leather industry) increases 91.5 % during the
2009-2012 period. Likewise, countries located near South Korea have become its main suppliers, China is
the most important one.
VII. Consumer Tendencies
According to Euromonitor datum, Korean consumers show a high sensibility in issues related to brandproduct. They value quality and are able to pay for that. They have special interest in products which
involves benefits to health. They also value the service given to them after the selling. It is also observed a
greater consumption of foreign products, in all socioeconomic levels, which show us the less influence that
nationalism have as a decisive factor when it comes to consumption. As a consequence, there is a greater
consumption of luxury products, with a tendency to the international brand names.

The concept of "healing"has been filtered among the south Korean consumers, affecting,even more, every
aspect of all this industry. Consumers of that country tries to escape from the stress of its society and the
fast
of thelifestyle
country. Especially in urban centers , a growing number of consumers have been encouraged to go
into a deeper search for the spiritual welfare , and this has been reflected in a wide range of new product
proposals.
Koreans have a high degree of selection and evaluation of natural products , which considers not only the
quality of said products, but also the effects that they have to stay healthy. Products that increase the
intellectual level of the students, that increase genetic height in children, that are healthier, among other
features are preferred. In the same way , it is more common for South Korean men worry about protecting
their skin , so there has been a considerable increased in the use of cosmetics for men.
Food products and soft drinks represents one of the main areas in consumer spending and this
consumption has risen in recent years. Consumers have increased their preferences for foreign , highquality products. Likewise, both hypermarkets as well as the competition among discount stores lower
prices of food, especially in products purchased in quantity. Meanwhile , mobile commerce keeps growing
due to the increase use of smart phones, and this trend is expected to continue.
VIII. Business culture
It is important to understand that, thought it is a modern country, Korea has kept its culture for more than
500 years. The protocol, in social relationships as well as in business, is very important for that reason.
When negotiating, there is often distrust on everything related to overseas business and commercial level.
For that reason, it is preferred to deal with Korean goods and products. Koreans prefer to work, even in
the workplace, for national companies. Therefore , it is essential that a third party , preferably Korean ( as
a symbol of trust ) , be the intermediary.
An important point to consider is the issue of status. With the adoption of Confucianism ( in place of
Buddhism) as the official ideology , the degree of authority took on greater significance . Therefore, when
starting a conversation , Koreans ask for age in order to determine the hierarchical position and therefore ,
the treatment that they have to adopt . Therefore, it is necessary to know the representative of Korean
negotiations in order to "match the range " of individuals in the negotiations.
The following are some additional tips:
- That person of lower status shall bow to that of higher status .
- Socially, you should expect to be presented, when parting is necessary to bow to each person
separately .
- If you are invited to a Korean home , you shall give fruit, flowers or chocolates.
- The number 4 or its multiples are considered unlucky while 7 is considered good fortune.
- Do not wrap gifts in green, white or black colors. Use yellow and pink color instead.
- Give the gifts with both of your hands, when receiving do not open them in front of each other.
- Koreans are extremely straightforward when it comes to communication. They often ask many
times in order to be sure related to the topic and they tend to be concise.
- The business meeting shall be requested with three or four weeks in advance.

It is recommendable both parties send to each other a working agenda including general
information about the company. This material should be available in both English and Korean
languages.
It is important to keep in mind that the main objective for the first meeting is to know each other.
Punctuality is very appreciated in Korean culture. It is quite common that both parties arrive
beforehand to the meeting.

Exchanging personal cards is a particular case and in Korea is obligatory. It should be given with one
hand or with both of them. Left hand must not be used since it is considered disrespectful. Once you have
gotten the personal card, it must not be kept right away. The tradition says to leave it on the table, in front
of oneself.
It is recommended that one of the card's side should be written in Korean. Analyze the business card you
have gotten in detailed. Never write down on the card of someone you just have happened to
interchange. Finally, it is necessary to keep in mind that in the Korean culture, the way you treat someone
else business card indicates how the owner of that card shall be treated.
IX. Links of Interests
Korea Customs Service
http://english.customs.go.kr/
Agencia De Promocin Al Comercio E Inversin En Corea
www.investkorea.org
The Bank of Korea
www.bok.or.kr
Korea Chamber of Commerce & Industry
http://english.korcham.net/
Korean Trade Commission http://www.ktc.go.kr/
Federation of Korean Industries http://www.fki.or.kr/en/Default.aspx
Korea International Trade Association http://global.kita.net/
Ministry of Food and Drug Safety http://www.kfda.go.kr
Ministry of Strategy and Finance http://.mosf.go.kr/
Ministry of Foreign Affairs
http://www.mofat.go.kr/english/main/index.jsp?lang=eng
Ministry of Knowledge Economy
http://www.mke.go.kr/language/eng/index.jsp

X. Commercial Events
Food Week Korea
November 12-15, 2014
Food Industry Seoul

Chocolate Hall, Seoul

January 16-19, 2014
Cacao and Chocolate by-product and similar
sweet shop Seoul
Seoul Int'l Cafe Show
November 20-24, 2014
Coffee, tea, herbs, drinks y liquors, ice creams, raw material, machinery and
equipment for the industry.
Seoul
Seoul International Wines & Spirits Expo
April 17-19 (Seoul)
Spiritual drinks, food and wines.
Jewelry Fair Korea
April 24-27 (Seoul)
Jewelry and
accessories.
Busan International Seafood & Fisheries EXPO
July 2-4, 2014 (Busan) Fishing
Industry

XI. Bibliography

International Monetary Fund (IMF)

www.imf.org
Euromonitor International
www.euromonitor.com

Doing Business
www.doingbusiness.org

CIA, The World Factbook

www.cia.gov

Korea Customs Service

http://english.customs.go.kr/

Mundo Ferias
www.mundoferias.com/index.html