Korea

32
Country starter pack
Getting started in Korea
2.2 RESEARCHING KOREA
Comprehensive research is crucial when entering the
Korean market because of its unique features, including:
• The speed with which the market can change and
evolve
• Rapidly changing rules, regulations and the focus of
enforcement authorities
• A lack of consumer information and vague regulations
• A shortage of publicly available information to assist
with understanding processes and rules. Public data
bases are in short supply.
Your market research should cover a very wide field, from
import duties and other regulations to market-specific
issues such as distribution channels, market size and
growth, competition, demographics and local production.
Gathering this information is usually straightforward,
but it’s easy to get overwhelmed by research and all
the information that exists. This section condenses the
main topics that can assist you. However, do not limit
your Korean market investigation to this guide. Key
considerations include:
• When researching Korea, you should focus on the
needs of the Korean market, not your own company’s
needs
• Information available on the internet can only
get you so far. You may need to commission your
own professional Korean-based research and visit
the market numerous times to develop crucial
relationships. Researchers should note that much of
the available information may be in Korean.
Getting help
A variety of research organisations in Korea can be a
major source of information. Austrade has a significant
presence on the ground in Korea and provides a range
of services for Australian firms seeking to go offshore,
including assistance on:
• Information and advice with market entry and
business expansion
• Help with location selection
• Access to local contacts and networks
• Identification and follow-up on specific business
opportunities
• Market research services across a wide variety of
sectors.
In addition to Austrade, the Queensland, Victorian, New
South Wales, and Western Australian State Governments
have representative offices in Korea and may be able
to assist with further information. The Australian
Government’s Export Market Development Grant
(EMDG) scheme can help with costs, and state and
territory governments may provide grants too.
Market visits
After doing as much research as possible in Australia,
you will need to visit Korea to confirm the results of your
research, develop a deeper understanding of potential
markets, establish relationships and eventually negotiate
contracts and agreements. Business visits to Korea
require patience, understanding and commitment.
Determine where and when to visit. There are no
fixed rules about when to visit a market, except that
you should do so before entering into any agreements
with prospective agents, distributors, or other business
partners that could influence your future dealings.
Consider meeting with several potential partners first to
give you a basis for comparison. It can be helpful to meet
with the contact you believe will be the best fit for your
business towards the end of your trip. This will give you
time to develop a better understanding of the market so
you can handle questions and discuss strategic options
with confidence. Concentrate your effort on only one or
two markets at first to ensure a better chance of success.
Plan your trip at least six weeks in advance. To ensure a
successful trip, you should arrange in-country assistance
for the planning and setting up of your program. This will
help you see the right agents and customers who will be
briefed and screened for interest and suitability. Take
note of holidays and religious festivals that occur at the
same time as your planned visit. Also ensure you have all
your required paperwork completed before departing for
Korea, including your relevant visa and taking with you
(if applicable) any legal documentation such as financial
documents and regulation information. Having company
and product information and business cards is vital for
developing business relationships.
Do some background reading. If you have never visited
Korea and don’t know much about the country and its way
of life, you should do some research online. News articles
and travel books can also provide useful information.
Having some broad background knowledge about the
area you are visiting will inform and focus your discussions
when negotiating with local partners. Guides like this one,
and others with a more specific industry or product focus,
will also be beneficial.