(Last updated: 17 Mar 2011)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to the Republic of Korea. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

The Korean Government has placed substantial effort in creating an improved trade and investment climate in which a great deal of opportunity exists for Australian products, services and investment.

Korea has also significantly opened up its economy to foreign investment over the last few years, which is modernising the economy and creating many opportunities for new products and services.

The majority of Australian exports to Korea consist of primary produce; yet there is extensive room for export market expansion in areas including automotive, biotechnology, building and construction, dairy, defence, fruit and vegetables, information and communications technology, seafood, textiles and clothing and wine.

The Korean President was elected amidst pledges of economic reform including further deregulation of the economy and a tightening on illegal labour activities by unions. The President is expected to lower corporate taxes and reduce unnecessary administrative restrictions on investment and business operations.

Local media reports that President Lee is a strong supporter of free trade agreements with foreign countries. It is hoped these reforms will make Korea more attractive to foreign investors.

Key industry sectors including building and construction and IT sectors are rebounding strongly, which is positively driving the ROK economy. The IMF bank has recently upgraded the ROK economy based on economic performance and forecast results for the economy.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Korea is a democratic republic, led and governed by a President and National Assembly, whose representatives are elected by popular vote.

Lee Myung-bak of the Grand National Party (GNP) won the presidential election on 19 December 2007. President Lee, a former top executive of the Hyundai Group and former mayor of Seoul attracted 48.7 per cent of the electorate vote.

The members of the National Assembly are elected for a period of four years.

Trade relations and statistics

As a modern, industrialised and democratic society Korea has strong political and economic relationships in the region and around the world. In particular, strong relations exist with China, USA and Japan, with military and economic links with USA remaining close. Despite the pull back from many South East Asian markets, Korean investment in China remains largely intact. Relations with the Democratic Peoples Republic of Korea (DPRK) have eased over the last two years and Korean companies have begun to invest in the DPRK.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.