Korea

Country starter pack
Introduction to Korea
5
1.1 WHY KOREA?
OPPORTUNITIES FOR
AUSTRALIAN BUSINESSES
The Republic of Korea (ROK), commonly known as
Korea, is the fourth largest economy in Asia and the 13th
largest in the world. Unlike its neighbour to the north, the
Democratic People’s Republic of Korea (DPRK, otherwise
referred to as North Korea), it is an innovative, freemarket
economy with a highly educated workforce and
democratic government.
Korea is an optimal location for doing business with the
world’s second and third largest economies (China and
Japan) and engaging the overall Asian market. Korea is
located within an average travel time of three hours from
over 81 cities with a population of one million or more.
Coupled with its world-class infrastructure, Korea is an
ideal location for Australian businesses looking for a North
Asian hub for strategic expansion.
Korea is Australia’s fourth largest trading partner, with
two-way trade totalling over $34.5 billion in 2014.
Australia and Korea enjoy a complementary trade
relationship – Australia sending raw materials to Korea
and Korea exporting manufactured goods to Australia.
Services are also an increasingly important aspect of
the trade relationship, and investment is growing from a
relatively low base. Korea is a dynamic country with many
opportunities for Australian businesses. It has an advanced
manufacturing sector and is home to iconic and world
leading brands such as Samsung, LG, Hyundai and Kia.
The nation boasts an affluent, tech savvy population with a
well-educated, highly skilled workforce enabling growth in
technology specific industries.
The Korea Australia Free Trade Agreement (KAFTA),
which came into force in December 2014, promises to
open up even more opportunities for Australian business.
There are several industries that Australian businesses can
target and take advantage of.