| Economy |
The Korea Institute for Industrial Economies and Technology (KIET) has forecast in an industrial outlook report that Korean industries, which showed signs of life in the second quarter of this year, will recover both in terms of production and exports in the second half. The report predicts better times ahead for all industries in the latter part of the year, with the possible exceptions of petrochemicals, computers and textiles.
All the industries, except home appliances and textiles, are expected to see double-digit growth in exports. KIET attributed export recovery to the won's weakening for nearly two years and the recent strength of the Japanese yen, coupled with stable prices of raw materials amid global economic prosperity.
 | Policy |
Imports of all farm, livestock and fisheries products, except rice and beef, have been liberalized beginning July 1, according to the Ministry of Finance and Economy. Under the Uruguay Round of agricultural negotiations, 56 farm, livestock and fisheries products including pork, chicken and natural honey can be imported into the country without requiring recommendations from the government.
As a result, Korea's import liberalization ratio in farm, livestock and fisheries goods has been raised from the present 96.6 percent to 99.6 percent. Specifically, importers can now import pork and chicken, regardless of the kind. Before, importers were free to import refrigerated pork and chicken, but had to gain prior approval for the importation of frozen pork and chicken.
The broad-based liberalization measures brought Korea's import liberalization ratio for all products to 99.9 percent in July. Imports of beef are scheduled to be liberalized in 2001, making rice the only product whose import liberalization is withheld. It will be determined in 2004 whether Korea's rice market will be widened further.
The Korean government issued an official statement, vowing that it will not discriminate against foreign products. Economic ministers, including Deputy Premier and Finance-Economy Minister Kang Kyong-shik, held a meeting recently to clarify Seoul's affirmation to treat both Korean and foreign goods equally.
An official statement was issued in the name of the spokesman of the Ministry of Finance and Economy (MOFE). MOFE Spokesman Chung Eui-dong stated that the Seoul government has instructed all government agencies not to discriminate against foreign goods. The spokesman also explained that some civic groups voluntarily initiated frugality campaigns aimed at discouraging extravagant consumption and encouraging reasonable consumerism.
Korean government officials were instructed not to engage in "any activity that might be misconstrued as being anti-import," according to the government source. The Korea Customs Service was also told not to delay the clearance of foreign goods without justifiable reasons, he added.
 | Investment |
Korea has opened its market at a faster pace than other developing nations and its investment climate has improved greatly. According to a report released by the European Round Table of Industrialists (ERT) Korea was included on a list of nations with the fastest market opening speeds. The report was based in a review of 28 developing nations during the 1993-1996 period concerning their investment-related rules, protection of intellectual property rights and the points the European Union firms should pay heed to in investing there.
ERT conducted a similar review in the 1987-1992 period through which it classified Korea as a nation with relatively slow phased market opening. At that time, six nations-Argentina, India, Mexico, Pakistan, the Philippines and Thailand-made up the leading group in terms of market liberalization. But for the more current period, Korea, along with nine other nations including China and India, was noted as having expedited market opening almost at full throttle.
Given the further liberalization of foreign investment this year, the appraisal of Korea's opening will be even more positive, according to the Daewoo Economic Research Institute which acquired the report.
Regarding the points indicating the nation's market opening has improved, the ERT cited the introduction of a new system under which foreigners can begin business by only reporting to the related authorities without having to get permission. Other points include, for example, the abolition of rules which require mandatory share of domestic parts and materials, reduction in the areas closed off to foreign investment, the lessening of foreign currency management regulation and the strengthening of efforts to protect intellectual property rights.
 | Trades & Markets |
Based on their worldwide production volume, Korea's five automakers are ranked among the top 30 in the world, said the Korea Automobile Manufacturers' Association. Hyundai Motor Company was ranked as the 13th largest manufacturer of cars with a total of 1,297,742 vehicles: 1,281,762 vehicles produced at home and 15,980 units at its overseas plants.
Kia Motor Company came in 17th with 773,329 units after Daihatsu of Japan, while Daewoo Motors placed 21st with 539,916 vehicles excluding 117,665 units manufactured at Daewoo-FSO in Poland and trailing Germany's BMW. Daewoo Heavy Industries manufactured 208,141 Ticos, the only light vehicle model available in Korea, to finish as the 25th largest maker, while Asia Motor came in 30th with 53,657 units.
The textile industry, contrary to widespread belief that it had already lost its competitiveness, last year posted a trade surplus of $12.3 billion, the second largest among major industrial sectors. The Korea Federation of Textile Industries said recently that the healthy performance of the textile industry is especially significant, considering that expensive foreign apparel has been flooding the domestic market.
KOFOTI officials said the trade surplus of $12.3 billion is in fact second only to the electric/electronics sector which posted a $14.7 billion surplus, despite the poor performance of semiconductors. "There is a tendency to regard the textile sector as a bygone industry, but the latest statistics show that it has continued to serve as a strong engine for the nation's exports," one KOFOTI official said.
In fact, the surplus volume for last year is 1.6 times the $7.57 billion posted by the automobile industry and 2.4 times the $5.08 billion in the shipbuilding sector, he added. The performance of the textile industry is especially impressive, considering that such major industries as steel and general machinery recorded deficits of $1.86 billion and $12.2 billion.
The electronics industry, the main engine behind the nation's exports, registered slow growth of just 2.4 percent last year, the Electronics Industries Association of Korea said, but EIAK officials, quoting a recent global electronics market report, said that Korea's total production in electronics ranked it the fourth largest in the world following only the United States, Japan and Germany.
Total electronics production last year was tallied at $50.6 billion, compared to $298.5 billion in the United States, $282.4 billion in Japan and $52.4 billion in Germany, the report said. The growth rates were 4.7 percent in the United States, 5.7 percent in Japan and 0.4 percent in Germany, indicating that Korea could soon surpass Germany as the world's third largest producer of electronic goods.
Hot on the heels of Korea, however, are Singapore with production totaling $42.7 billion, up 7.2 percent over the previous year, Britain with $37.5 billion, up 3.0 percent, and France with $35.6 billion, up 0.9 percent.
 | Web Hits |
Are you looking for information about the 17th Kumsan Ginseng Festival (September 5-9)? Do you want to know how to enter Seoul's "Royal Guards Changing Ceremony" photo contest? Or do you need find the best place to stay on Korea's garden island of Cheju-do? These answers and much more can be found in some of Korea's excellent on-line travel resources.
"Discover the Mystery" of Korea and explore the storehouse of travel data available at the Korea National Tourism Organization's site
The Seoul Metropolitan Government's homepage, Seoul Focus, can also provide information about travel and living in the capital city. It can be found at <http://metro.seoul.kr/>. If you are headed south, for hiking, diving, or sightseeing on Cheju island, check out the page devoted to travel there, <http://cheju.net/>.
