intelligence

opportunities for a wide range of British designers. These are further enhanced by the new FTA, whereby tariffs on high-end fashion fall to zero, giving the UK fashion industry a competitive edge over its North American counterpart.

BEYOND KIMCHI

Koreans generally prefer their own cuisine, although its consumers are becoming more adventurous in what they eat and in turn supermarket chains and distributors are looking for innovative products. Scottish ice cream brand ‘Cream of Galloway’ is popular in the region and, with more than 400 stores, Tesco (badged Homeplus locally) has plenty of UK products on its shelves. There are opportunities for specialist high-quality foods such as salmon, cheese and other products. Korea is the world’s fi fth-largest

market for Scottish whisky, accounting for almost £169m in trade each year. Blends such as Royal Windsor are specifi cally made for the local market. There is a slow but steady shift to single malts, with the iconic ‘Whisky Live’ event held in Seoul for the fi rst time in February. There is also a thirst for speciality

beers in Korea, creating opportunities for UK brewers. Food and drink feature strongly in the FTA, with the duty on wine falling to zero on implementation, the 20 per cent duty on whisky disappearing after three years, and the duty on beer being eliminated after seven years.

ROLLING OUT THE RED CARPET

Last year’s G20 summit in Seoul brought together leaders from the world’s largest economies, including Prime Minister David Cameron and Chancellor George Osborne. The event left a positive impression of Korea’s impressive organisational skill and effi ciency. In May, Business Secretary Vince

Cable visited to publicise the FTA and launch a guide for Korean companies wanting to set up in the UK. He said:

“Korea offers countless opportunities for UK companies of all sizes, and across a number of sectors, that want to take that next crucial step and extend their business overseas. Korea is set to make the 10th-largest contribution to world growth over the next fi ve years and will become one of the most attractive export destinations globally. There has never been a better time to engage with this market”.

GREEN FIELD TRIP

One of the main features of Korea’s economic transition is its transformation into a low-carbon economy. In late 2009, in a speech to the UN General Assembly, President Lee outlined The New Green Deal where he described the shift to low carbon as our “new engine for growth”. As part of a fi ve-year plan, Korea will

commit two per cent of GDP to green growth. There is also a pledge to cut energy consumption in buildings by 30 per cent by 2012, 60 per cent by 2017 and to zero by 2025 – ambitious targets which offer multiple opportunities for UK companies with an expertise in low- carbon technologies. Green building, as we understand it in

the UK, is in its infancy in Korea. Recent green building trade missions from the UK to Korea have been well received. There are also opportunities for suppliers of low-carbon materials, solar panels and other ‘green’ equipment, most of which benefi t from the FTA. There will be a UK mission to Korea

in November 2011 with an anticipated low-carbon mission. UK businesses interested in attending should contact clifford.bebb@fco.gov.uk

OFF THE STARTING BLOCKS

Seoul is a picturesque capital, full of hills and mountains. Hiking is a national obsession and the city has plenty of trails. In keeping with the trend for quality, city hikers generally dress in the best and most up-to-date gear. UK-based Berghaus does well in Korea, but there

springboard: | page 44

are opportunities for new entrants too. Golf is another national obsession, with new courses being built and the nooks and crannies of Seoul taken up with golf driving ranges. Korean golfers do well internationally, with recent winners on the men’s tour and Korean ladies dominating women’s events. Good news for manufacturers of high-quality equipment. Korea has a proven track record

of delivering major sporting events. The Seoul Olympics of 1988, perhaps best remembered as the ‘Ben Johnson Olympics’, helped to regenerate the south side of the Han River. The FIFA World Cup in 2002 was a spectacular success and embraced by the whole country. New stadia were built, including the Seoul World Cup Stadium on a former landfi ll site. Korea will host the Asian Games in

Incheon in 2014 and the World Student Games in Gwangju in 2015. Having narrowly failed to win on the last two occasions, Korea has also bid to host the Winter Olympics in Pyeongchang in 2018 – a decision will be made in early July. Each of these events offer opportunities for UK companies involved in global sports projects. Those who work with local partners stand greater chances of success.

BACK TO BUSINESS

Doing business in Korea is vastly unlike doing business in the West. Korea is a Confucian society, with matching values. Koreans value seniority, both in age and title. You will have to spend time in the market and invest in relationship building. Business cards, translated into Korean, are a must. In Korea, information fl ows upwards and orders fl ow downwards – make sure you are talking to the decision maker. Cold calling, including emails, rarely works. Ensure you have a proper introduction which can be arranged by UK Trade & Investment. Finally, social entertaining is part of business life in Korea. Business and pleasure do mix – this is usually crucial to establishing a business relationship and it is better to embrace this, rather than fi ght it.

To fi nd out more about the Korean market contact Trevor Cayless, tel: 020 7215 4763, email trevor.cayless@ukti.gsi.gov.uk