XÂY DỰNG KẾ HOẠCH TIẾP THỊ QUỐC TẾ CHO SẢN PHẨM NỘI THẤT TRE ĐỂ XÂM NHẬP THỊ TRƯỜNG HÀN QUỐC

THE FINANCIAL
UNIVERSITY OF FINANCE & MARKETING

DEVELOPING AN INTERNATIONAL MARKETING
PLAN FOR BAMBOO FURNITURE PRODUCTS TO
ENTER THE KOREAN MARKET
Majors: Marketing
Specialized: Marketing Management
Class: CLC_20DMA09
Course code: 2221702031209
Instrutor: Master Đặng Huỳnh Phương
Student Implementation:
Name

Student Number

Trương Quốc King

2021008461

Nguyễn Hoài Nam

2021008483

Huỳnh Ngọc Tâm

2021008541

Đặng Thị Tú Anh

2021008227

Lê Thanh Thảo

2021008550

Ho Chi Minh city, 2022
i


TEACHER’S COMMENTS
Student Implementation:
Name

Student Number

Contribution (100%)

Nguyễn Hoài Nam (Team Leader)

2021008483

20%

Trương Quốc King

2021008461

20%

Huỳnh Ngọc Tâm

2021008541

20%

Lê Thanh Thảo

2021008550

20%

Đặng Thị Tú Anh

2021008227

20%

(This part is for teachers to directly guide and comment on students)

Score in numbers

Teacher signature

(Score in numbers)

(Teacher signature)

MAJORS MARKETING

MASTER ĐẶNG HUỲNH PHƯƠNG

ii


Executive Summary
Research the furniture market, especially bamboo furniture. This is one of the consumption
trends in the coming time, especially in the Asia-Pacific region, especially Korea, a
potential market. That's why my team decided to do in-depth Korean market research to
come up with a marketing plan. After having data for research, the next step is to learn
about issues such as culture, economy, society, etc. of the land of kimchi. Then identify the
target customers and devise the most reasonable marketing mix strategies possible to ensure
the achievement of the set goals.

iii


Table of Contents
CHAPTER 1: COMPANY OVERVIEW ......................................................................... 1
1.1. COMPANY INTRODUCTION............................................................................................ 1
1.2. VISION & MISSION ........................................................................................................ 1
1.3. COMPANY CULTURE ..................................................................................................... 2
1.4. COMPANY RESOURCE ................................................................................................... 2
1.5. SWOT OF COMPANY .................................................................................................... 4
CHAPTER 2: COUNTRY SELECTIVE ......................................................................... 5
2.1. REASONS WHY CHOOSE SOUTH KOREA ....................................................................... 5
2.2. RESEARCH ON WOODEN FURNITURE MARKET IN KOREA ........................................... 6
2.3. OVERVIEW OF THE DEVELOPMENT HISTORY OF SOUTH KOREA ............................... 7
2.4. NATIONAL BUSINESS ENVIRONMENT ............................................................................ 8
2.4.1. PEOPLE ....................................................................................................................... 8
2.4.2. GOVERNMENT .......................................................................................................... 11
2.4.3. GEOGRAPHY OF SOUTH KOREA .............................................................................. 14

2.4.4. ECONOMY ................................................................................................................. 15
2.4.5. MARKET POTENTIAL AND SCALE ............................................................................ 18
2.4.6. MEDIA & TECHNOLOGY .......................................................................................... 19
2.5. INDUSTRY COMPETITORS ........................................................................................... 20
2.5.1. MARKET SHARE OF FURNITURE BUSINESSES IN SOUTH KOREA ............................ 20
2.5.2. DIRECT COMPETITOR ............................................................................................. 21
2.5.3. INDIRECT COMPETITORS ........................................................................................ 22
CHAPTER 3: ENTRY MODE SELECTION ............................................................... 23
CHAPTER 4: TARGET MARKET ............................................................................... 25
4.1. SEGMENTATION .......................................................................................................... 25
4.2. TARGETING ................................................................................................................. 26
4.3. POSITIONING ............................................................................................................... 26
4.4. POLITICAL RISK .......................................................................................................... 27
4.5. DIFFERENCE IN CULTURE ........................................................................................... 27
4.6. EXCHANGE RISK.......................................................................................................... 28
4.7. LEGAL AND TAX ISSUES .............................................................................................. 28
CHAPTER 5: MARKETING OBJECTIVES ............................................................... 29
5.1. MARKETING GOALS .................................................................................................... 29
5.2. MARKETING OBJECTIVES .......................................................................................... 29
5.2.1 MARKET SHARE OBJECTIVES .................................................................................. 29
5.2.2 REVENUE OBJECTIVES: ............................................................................................ 29
5.2.3 PROMOTIONAL OBJECTIVES .................................................................................... 29
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5.2.4 LOYALTY OBJECTIVES ............................................................................................. 29
CHAPTER 6: MARKETING STRAGETY................................................................... 30
6.1. PRODUCT ..................................................................................................................... 30
6.2. PRICING ....................................................................................................................... 33
6.3. DISTRIBUTION ............................................................................................................. 35

6.4. MARKETING COMMUNICATION ................................................................................. 38
6.4.1. ADVERTISING ........................................................................................................... 38
6.4.2 SOCIAL NETWORK ..................................................................................................... 40
6.4.3. SALE PROMOTION .................................................................................................... 41
6.4.4 PUBLIC RELATIONS .................................................................................................. 41
CHAPTER 7: FINAL RECOMMENDATIONS, EVALUATION, MEASUREMENT
AND CONTROL .............................................................................................................. 43
LIST OF REFERENCES................................................................................................. 44
APPENDIX ....................................................................................................................... 48

v


LIST OF TABLE AND FIGURE
Picture 1.1: Logo of Asian Craft ................................................................................... 1
Picture 2.1: Furniture Revenuew in Korea from 2017 to 2025 ..................................... 6
Picture 2.2: Market size forecast ................................................................................... 7
Picture 2.3: Korea's development .................................................................................. 8
Picture 2.4: Korean family ............................................................................................ 8
Picture 2.5: Korean house design .................................................................................. 9
Picture 2.6: Korean meal ............................................................................................... 9
Picture 2.7: Korean wall-street ...................................................................................... 10
Picture 2.8: OECD Ministerial Conference ................................................................... 13
Picture 2.9: The FDI incentives offered by the South Korean Government ................. 13
Picture 2.10: Korea map in the world ............................................................................ 14
Picture 2.11: Korean phone usage rate based on population ......................................... 19
Picture 2.12: Most-used social media platforms in Korea ............................................ 20
Picture 2.13: Furniture Market share in Korea .............................................................. 20
Picture 4.1. Positioning Map ......................................................................................... 28
Picture 5.1: Furniture distributor in korea ..................................................................... 37

Table 2.1: Value of exports and imports by continent, country block and some major
markets in 5 months of 2022 and compared to 5 months of 2021. ............................... 5

iv


CHAPTER 1: COMPANY OVERVIEW
1.1. Company introduction
Full name: Asian Craft Co.,LTD
Established: 11/04/2013 in Hanoi
Asian Craft is an enterprise specializing in
manufacturing, trading, and exporting high-class
handicrafts from Cao Lanh Stone, Buffalo Horn,
Fine Art Snails, and Sculpture Products.
Exporting products to China and ASEAN
countries.
Picture 1.1: Logo of Asian Craft

To suit the Korean market, Asian Craft chose to establish a new brand, Sbamboo. The letter
S carries the characteristics of the strip of Vietnam, bamboo is a bamboo tree that both
represents the product's material and is attached to the spirit and temperament of the
Vietnamese people.
1.2. Vision & Mission
Guided by its pioneering aspirations as well as a sustainable Manufacture - Exporter Development strategy, Asian Craft has been striving to become Vietnam’s and the regions’s
leading Handicraft exporter business group, which aims to become a Group of international
stature and standards. Asian Craft's aspires to establish its Vietnamese brand, demonstrating
Vietnamese intellectual prominence and pride in the international arena.
With the Mission:
-

-

-

For the market: To provide premium products and services of international
standards that are original, highly creative and embedded with local identities. In
addition to its outstanding quality, each product - service contains a cultural message
with a view to best cater for customers’ legitimate needs.
For employees: To develop a professional, dynamic, creative and humane working
environment, enabling high income and equal development opportunities for all
employees.
For society: To harmonize the company’s and society’s benefits; to make active
contributions to community-oriented activities, and to demonstrate citizens’ sense
of responsibilities and national pride.

Asian Craft's continously improves all services to respond to the credibility and expectation
of customer as well as to build prestige in the market. (ASIAN CRAFT CO.,LTD, 2010)

1


1.3. Company Culture
Their handicraft products are not only ordinary daily life items but also artistic works
representing the culture of the nation. Aslan Craft has reached the pinnacle of quality,
variety of types, sophistication in each pattern, and sophistication in each product to satisfy
every choice of customers. They work on the credibility and trust of our customers.
1.4. Company Resource
Financial sources: Property (year)
-

Cash and cash equivalents: 16 billion VND
Short-term receivables: VND 113 billion
Inventory: 79 billion VND
Other short-term assets: VND 20 billion
Fixed assets: 38 billion VND
Investment real estate: 51 billion VND
Long-term financial investment: 35 billion VND

Human resources: a team of experienced and skillful artisans is selected from
traditional craft villages in Vietnam, combined with professional design experts, taking
people as the central factor in their activities construction and development.
Research and development
With the gideline: Customer's smile is our happiness. Our company is constantly
improving techniques, production processes, and service to aim at the best product quality
for customers in order to maximize work efficiency and bring great value to customers.
client.
Their handicraft products are not only ordinary daily life items but also works of art
representing the culture of the nation.
Asian Craft has reached the pinnacle of quality: The variety of types, the sophistication
in each pattern, the subtlety in each product to satisfy every choice of customers. We work
on the credibility and trust of our customers.
Production process of products from bamboo knitting
• Step 1: Choose bamboo and rattan materials
Choose the best bamboo of Quang Phu - Quang Dien - Thua Thien Hue rattan and bamboo
craft village, which is not young, not old, grows straight and has high hardness.
To get the desired work, the artist must first understand the material he will make. The best
type of bamboo must be the one that is not young, not old, straight growing, with high
hardness. As for rattan, it is necessary to choose a type of sufficient size, about 5m long,
straight, round, and free from pests. Trees that are too old or too young are not good.

2


• Step 2: Prepare ingredients
For bamboo materials: Bamboo is cut down and then dried again. It is then treated with
anti-termite treatment. There are two common ways to fight termites: it is put in the XM5
chemical bath - an easy-to-use and very safe forest product preservative for users, or it is
soaked in water according to the traditional manual method.
For rattan materials: Rattan has a lot of sharp thorns around, so the preliminary processing
of rattan needs to be very careful. The outer thorny shell will be peeled off, revealing the
white rattan flesh inside. After that, rattan is also dried slightly, to move to the initial
processing stage.
• Step 3: Material handling
For bamboo materials: Bamboo is shaved, polished with sandpaper, then put in the oven,
using straw or bamboo leaves to smoke, which has the effect of creating color, helping to
dry the material, and helping to prevent warping. After smelting, the bamboo will have a
western brown or dark brown color. When the bamboo is cooled, it will be bent straight.
For rattan materials: Rattan is dried quite carefully, both to dry the material and to get the
color. When drying, if there is too much smoke or too little smoke, the clouds will turn red.
As for the drying process, if it rains, the rattan fiber loses its beauty, if it is exposed to the
sun, the rattan fiber loses its freshness. If the cloud is not dry enough, the skin will be dull,
if the cloud is too dry, it will lose its soft shine. Therefore, the process of drying rattan
requires a lot of effort from craftsmen.
• Step 4: Split yarn
To be able to weave rattan and bamboo, it needs to be split and spun. The size and length
of the yarn will depend on the specific type of product. Usually, the large yarn will be used
to knit the product, and the small yarn will be used to make more elaborate products. The
rattan splitting needs to be very attentive because rattan fibers often have uneven nodes, so
when splitting, it must be very skillful and skillful so that the rattan fibers are even.
The quality and aesthetics of rattan-bamboo fibers are one of the leading factors determining

the value of traditional bamboo and rattan products.
• Step 5: Construction and manufacturing of products
After the knitting is complete, the product will be dipped in glue, painted in color, glossed
over the surface, and trimmed to perfection.
The materials, after being processed, will be knitted and shaped by the talented and skillful
hands of artisans in the village to become beautiful and attractive products.
(The Production Process Of Bamboo, 2022)

3


1.5. SWOT of Company
Strength
- Financial strength
- Having a long-standing and reputable brand in the industry
- Experienced in exporting because the company's existing products have been
exported to China and ASEAN markets.
- Diversified product portfolio
-

Weakness
The product design stage is still limited because before the design is traditional,
making items that have been used in the past based on experience, but have not yet
approached or absorbed the requirements of the market. world school.
The market share of bamboo products is not high
The cost has not been optimized, the price is still high
Marketing channel is not working effectively
Opportunity
The business field is being expanded, there are many opportunities for
development and success in the future, especially the Korean market

Strong growth in furniture market
The government always encourages businesses to develop, especially products
with national culture
There are few competitors for this bamboo and rattan product
Challenge
Meet the rules of origin and origin procedures as well as labor and environmental
commitments are quite complicated
Exchange rate risk due to selling products abroad
Shipping costs tend to increase
Strong competition in Korean handicraft industry

4


CHAPTER 2: COUNTRY SELECTIVE
2.1. Reasons why choose South Korea
Table 2.1: Value of exports and imports by continent, country block and some major markets in 5
months of 2022 and compared to 5 months of 2021.
Export
Market

Value

Import

(Billion USD)

Compare to
2021 (%)

Proportion
(%)

Asia

71,37

13,6

ASEAN

14,42

China

Value
(Billion USD)

Compare to
2021 (%)

Proportion
(%)

46,6

127,27

17,6

83,3

24,9

9,4

20,29

14,3

13,3

21,98

8,3

14,3

49,61

13,1

32,5

Korea

10,22

16,8

6,7

27,78

32,2

18,2

Jappan

9,35

12,7

6,1

9,86

9,6

6,4

America

54,03

21,8

35,2

10,76

3,5

7,0

USA

45,89

22,4

29,9

6,11

-5,5

4,0

Erope

23,52

14,0

15,3

8,88

0,0

5,8

EU(27)

19,54

21,1

12,7

6,66

-2,3

4,4

Oceania

2,80

30,0

1,8

4,24

29,9

2,8

Africa

1,58

9,9

1,0

1,72

-7,0

1,1

Total

153,29

16,7

100,0

152,86

15,3

100,0

(Source: General Department of Customs)

According to the General Department of Customs, it can be seen that most countries in Asia
that have large import-export activities with Vietnam such as China, ASEAN, Korea,
etc., import more than they export. Equilibrium occurs only in Japan. In contrast to Western
regions like the US or EU, we export more than we import. Therefore, to be able to
balance between export and import deficit (not being assessed In short, it can be said that
Korea is the perfect country for the new company to enter. In addition to important trade
agreements signed with Vietnam, according to a report from the Immigration Department
(Korea Immigration Service) under the Korean Ministry of Justice on February 17, Vietnam
has a number of foreigners standing 2 in Korea with more than 200,000 people.

5


2.2. Research on wooden furniture market in Korea
According to a study from Statista, the Furniture segment revenue is expected to reach 9.66
billion USD in 2022. Revenue is expected to grow at an annual rate (CAGR 2022-2025)
was 4.94%, resulting in an expected market volume of US$11.16 billion by 2025. The
average revenue per user (ARPU) is projected up to 617.90 US dollars. Especially the living
room and kitchen area. (Furniture - South Korea, 2022)
Picture 2.1: Furniture Revenuew in Korea from 2017 to 2025

Detailed market intelligence report of the Global Bamboo Furniture Market applying the
best of each primary and secondary analysis to consider the competitive landscape and also
the prominent players in the expected market will dominate the global bamboo furniture
market for the forecast 2019– 2025.
The global bamboo furniture market is valued at USD 10376.60 million in 2018 and is
expected to reach USD 14895.45 million by 2025 at a CAGR of 5.30% during the forecast
period. Bamboo is popular for its ability to improve air quality. The size of the global

bamboo furniture market has been appreciated in the last few years and its value is expected
to increase in the coming years. Bamboo has made a great comeback with the modern
design of flooring, wallpaper and furniture, even expanding into modern bathroom
accessories. These materials are gaining high traction in the commercial and residential
sectors because of their light weight and durability and this makes it easier to move it
around. Some of the popular types of furniture used are bamboo planks, laminates as well
as strips. Bamboo stools currently hold the largest share of the market according to recent
reports and this is due to the application of this product for both indoor and outdoor
6


purposes. Commercial buildings such as cafes, bars and outdoor restaurants increasingly
prefer bamboo stools to create a contemporary look. Due to increased demand, there has
been increased investment in product innovation as well as R&D. All these factors are
driving the overall growth of the global bamboo furniture market. (Global Bamboo
Furniture Market, 2020)
Picture 2.2: Market size forecast

Asia Pacific has taken the largest share of the global bamboo furniture market recently and
it is also expected to grow at a better rate. Especially Korea, due to its culture and relatively
few major competitors, this will be a potential market. Specifically, currently bamboo and
rattan wicker furniture such as chairs, tables, trays and storage boxes and some decorative
objects are being evaluated as a prominent trend in interior design in Korea. Because
bamboo and rattan tables and chairs are often made from bamboo and rattan materials due
to their strong and durable characteristics. Its ocher color complements the home decor well.
(Korean Home Decor Trends , 2021)
2.3. Overview of the development history of South Korea
“The land of Kim Chi” always surprises foreign tourists with its unique culture and art. In
this country, there are traditional arts that not everyone knows. Among them, there is a longdeveloped art form called Pottery.
Korean history of the Goryeo - Goryeo period (918 - 1392)

In 918, Emperor Wang Gun founded the kingdom of Goryo and took Song-ak (present-day
Gaesong) as the capital. The Goryo dynasty continued to follow the Buddhist trend.
Buddhism, the dominant religion at that time in Korea, increased the demand for celadon
(cheongja) glazed porcelain, which made cheongja glaze grow very quickly, with more
organic shapes and decorations. , such as animal and bird motifs.
7


History of Korea during the Joseon period (1392-1910)
Grandfather Lee Seong Gye was the founder of the Joseon dynasty, based on Confucian
thought. Therefore, during this period many great people of Joseon. And also during this
time, items such as wardrobes, chests, shelves, large and small tables, bookcases, cupboards
and items for daily living appeared stronger. Joseon society only focused on academia, so
trade and production were overlooked, stagnant and unable to keep up with the changing
world.
Republic of Korea (1945 – present)
Because the US occupied the southern half and the Soviet Union controlled the north, after
being liberated in 1945, the Korean peninsula was divided into two South and North. In
1948, the Government of the Republic of Korea was established, the only legal government
recognized by the international community, taking Seoul as the capital of Korea.
Currently, Korea still preserves the old traditional beauty through the organization of
exhibitions on handicrafts.
Picture 2.3: Korea's development

2.4. National business environment
2.4.1. People
2.4.1.1. Culture
Eastern culture
Picture 2.4: Korean family

8


South Korean culture is always oriental, family life is respected and protected. Humans live
very closely and have a close relationship with nature. Their houses are built to "access"
to nature as much as possible, such as: Houses are built in open space; The main building
material is wood; Furniture uses limited plastic materials, instead they will use wood,
bamboo, knitting, cork,... According to VIETTRADE's research, out of 3,018 respondents,
37.6% said they often buy all kinds of environmentally friendly products. Among the types
of stores, hypermarkets are where South Korean consumers often go to buy eco-friendly
products.
Picture 2.5: Korean house design

South Korean food culture
Food culture makes up the typical culture of South Korea. South Koreans often sit on the
floor to eat and on the South Korean table there are many dishes and are very eye-catching.
Because of this habit, almost every family has a seat cushion made from bamboo and
some other products in the house such as pot lining, table mats are also made from
bamboo according to a cultural lifestyle close to nature.
Picture 2.6: Korean meal

9


2.4.1.2. Religion
In South Korea, religions from Shamanism to Buddhism, Confucianism, Christianity,
Islam... all exist and live peacefully. According to the 2015 census, 44% of the South
Korean population is religious.
Among them, Buddhism and Confucianism are the two roots of South Korean thought,
more than half of South Korea's monuments and cultural heritage are related to Buddhism

or Confucianism.
Just like in Vietnam, most temples and pagodas in South Korea use wood and bamboo as
the main building materials and daily items. Therefore, it affects 44% of the religious
population here.
2.4.1.3. Population
According to The World Bank, in 2021 South Korea's population will reach 51,836,239
people, an increase of 71,417 people compared to the previous year's population.
More than 50% of the Korean population lives in the capital (Seoul) and major cities
(Incheon, Gyeonggi). (According to The Korea Times citing data from the Korean statistical
information agency July 1, 2020)
Picture 2.7: Korean wall-street

Since then, people's demand for products made of bamboo and wood with multi-functions
has increased in order to save space and be used longer.

10


2.4.2. Government
2.4.2.1. State apparatus
Structure of local government

Capital cities and provinces under the central government.
Currently, South Korea has 6 capital cities and 1 city is the capital Seoul. The standard of
the capital city is that the population must reach 1 million or more, have a strongly
developed industry and service industry. Particularly for the capital, Seoul is a special
capital city, the capital of South Korea, placed directly under the direction of the Prime
Minister.
Autonomous counties, counties and
cities.

Currently, Korea has 69 autonomous districts,
including 25 districts under the capital city
Seoul and 44 districts in other capital cities.
Thanks to the autonomous system of counties,
counties and cities, each place has different
development characteristics, creating a niche
market for new businesses to easily enter and
capture small market shares. there.

11


About organizational apparatus and operating mechanism
The National Assembly of the Republic of
Korea is the unicameral national legislature
of South Korea representing the opinion of
the people. All the laws of the country are
made by the National Assembly. (SOUTH
KOREAN MARKET INTELLIGENCE
RESOURCE, 2021)

The National Assembly consists of 253
patrons in local constituencies and 47
patrons
through
proportional
representation. The latter is meant as a
means to bring people with specific
expertise into the guild. (Korea Information
- Government , 2020)

The Council of State, commonly known as
the "Cabinet meeting", will review
important policies that fall under the power
of the Executive.

2.4.2.2. Domestic relations
Government supervision
South Korea adopted a system of local self-government in June 1995. The head of local
government and local council members are elected by direct popular vote for a four-year
term. (SOUTH KOREAN MARKET INTELLIGENCE RESOURCE, 2021)
Financial problem
The finances of South Korean local governments are mainly composed of two sources of
revenue: local taxes and non-tax revenues.
Thanks to the government apparatus and domestic relations that promote democracy and
people's voting, in South Korea, legal and tax issues will also be more transparent and clear.
2.4.2.3 Foreign relations
South Korea strives to promote friendly relations and cooperation with other countries. As
of June 2020, South Korea maintains diplomatic relations with a total of 191 countries.
South Korea is committed to carrying out active activities as a member of diverse
international organizations such as UNESCO, IMF, APEC, IAEA, ILO, WHO. South Korea
12


became a member of the United Nations in 1991 and joined the OECD in 1996. It has also
engaged in various activities as a member of the IOC since 1947. (Korea Information Government , 2020)
Picture 2.8: OECD Ministerial Conference

International cooperation
South Korea makes every effort in the field of international cooperation to match its
enhanced economic strength. The country participates in programs designed to provide

assistance to poor countries through the World Bank, IMF and OECD. (Korea Information
- Government , 2020)
Picture 2.9: The FDI incentives offered by the South Korean Government

Most of the FDI incentives offered by the South Korean Government are provided through:
-

Tax support (corporate and income tax relief, acquisition tax and property tax relief,
excluding customs duties).
13


-

Cash allowance (land purchase cost, land rental cost, employment/ education/
training allowance).
Industrial location support (location support, price difference allowance, rental
discount subsidy).
Privileged domain Industrial support services, high-tech industry business, R&D
services, manufacturing, travel services, welfare facilities, etc. Exclusive
geographical area An industrial complex located near a port or airport, creating
favorable conditions for businesses to participate in foreign and international trade
in the airport area, distribution complex or station. goods, etc.

2.4.3. Geography of South Korea
Picture 2.10: Korea map in the world

(Source GobalEDGE, />
Geographical location
The Republic of Korea is located in East Asia, on the southern half of the Korean peninsula,

east of Asia. The only country with a land border with South Korea is North Korea. South
Korea is mainly surrounded by sea and has 2,413 kilometers of coastline along three seas.
There are 70% of South Korea's territory is mountainous, the rest is plain, accounting for
only 30%. (South Korea: Statistics, 2022)
Having three sides bordering the sea gives Korea a great opportunity to grow in seafood
and marine economy. favorable for trade exchange by sea streets. Many rivers and streams
14


as well as many large and small islands are the huge tourism potential of the land of kimchi,
famous and talked about by the whole world, possibly Jeju Island.
2.4.4. Economy
People often refer to Korea's economic miracle as the "Legend of the Han River", which
continues to this day. South Korea's economy is the 5th largest in Asia after China, Japan,
India, and Indonesia and ranks 14th in the world with GDP (PPP) in 2021 reaching 2.503
trillion USD. In 2017 Korea was ranked 4th out of 190 countries according to the World
Bank's Ease of Doing Business Index.
Key economic sectors
Digital electronics industry; Information and telecommunications industry; Semiconductor
industry; Automotive industry; Steel industry; Shipbuilding industry; Textile industry; Raw
material spare parts industry.
Economic indicators
2017

2018

2019

2020

2021

GDP (PPP) (Trillion USD)

2.027

2,164

2,208

2,187

2,503

GDP growth

3,10%

2,70%

2%

-0,90%

4,00%

GDP per capita (PPP)
(USD per year)

41.300

42.300

42,700

41,900

48.309

GDP by Sector (2017)

Agriculture (2,2 %) - Industry (38,7 %) - Service (59,1 %)

Unemployment rate

3,80%

3,85%

3,76%

3,70%

Inflation rate

1,90%

1,40%

0,30%

0,50%

Exports (Billion USD)

552,3

729,94

660,51

606,71

512,498

Main export partners
(2019)

China 25%, USA 14%, Vietnam 9%, Hong Kong 6%, Japan 5%

Main products (Export)
(2019)

Integrated circuits, automobiles and vehicle parts, refined
petroleum, ships, office machinery

Import (Billion USD)

448,4

649,23

607,54

540,96

467,633

Main import partners
(2019)

China 22%, USA 12%, Japan 9%, Germany (4,8%), Saudi Arabic
(4,5%)

Main products (Import)
(2019)

Crude oil, integrated circuits, natural gas, refined petroleum, coal

Poverty rate (2016)

14.4%

Gini Index - family income
distribution (2017)

35,5

15

Labor force (Million)
(2020)

26,839

Foreign exchange reserves

458,700

(Billion USD) (2021)
Budget revenue and
expenditure (Billion USD)

Income:
357,1

Income:
428,7

Outcome:
335,8

Outcome:
456,5

Exchange rate
Korean Won (KRW) per
US Dollar

1.119,80

1.189,90

1.084,65

Economic sectors: Shipbuilding, Electronics, Automotive, Mining, Construction, Defense,
Tourism
ECONOMIC RELATIONSHIP WITH VIETNAM
South Korea continues to consider Vietnam as an important leading partner in Southeast
Asia, an additional destination for the Chinese market, which has been saturated due to
Vietnam's socio-political stability. production costs are still relatively low, labor force and
natural resources are abundant, a stable supply network has been established for the
operation of enterprises, taking advantage of the market.
The Vietnam-Korea Free Trade Agreement (KVFTA) that came into force at the end of
2015 plays an important role in strengthening and further expanding bilateral trade and
investment relations, and at the same time enhancing improving the effectiveness of the
legal framework and implementing trade policies, improving the process of economic
restructuring, especially the business environment and competitiveness of the two
economies of Vietnam and Korea.

Vietnam
Export

2017

2018

2019

2020

2021

14,82

18,24

19,72

18,6

21,9

46,73

47,58

46,93

45,12

56,2

(Billion USD)
Vietnam
Import
(Billion USD)

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Currently, South Korea is the leading economic partner of Vietnam as it is the largest FDI
investor in Vietnam with the accumulated investment capital by the end of February 2022
reaching more than 75 billion USD. South Korea is also Vietnam's third largest trading
partner after China and the United States. In the opposite direction, Vietnam is the focus of
South Korea's southward policy in the ASEAN region when the two countries' trade
turnover accounts for more than 40% of the total trade turnover between Korea and
ASEAN. (Thang, 2022)
According to the Ministry of
Industry and Trade, in the first two
months of 2022, bilateral trade
turnover continued to grow
strongly when the total import and
export turnover of Vietnam and
South Korea reached 13.8 billion
USD, up 19.03% compared to the
previous year with the same period
in 2021. In which, Vietnam's
export turnover to South Korea
reached 3.7 billion USD, up 15.7%
and imports from Korea reached
10.1 billion USD, up 20.3%. (Việt
Nam - Hàn Quốc, 2022)

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Important agreements signed
-

Agreement on Technical and Economic Cooperation (February 1993) Investment
Guarantee Agreement (May 1993)
Agreement on Avoiding Double Taxation (May 1994) Cultural Agreement (August
1994)
Tariff Cooperation Agreement (March 1995)
Vietnam - Korea Free Trade Agreement VKFTA (May 2015)

2.4.5. Market potential and scale
The infrastructure
South Korean traffic is considered as a modern transportation system in the world's traffic
systems with a variety of vehicles. Korea's strength is its transportation system, especially
road, air and sea traffic. The quality of roads, bridges and tunnels here all ensure the best
technical standards.
Road Traffic
The road transport system of South Korea is divided into two main types: highways,
national roads and many others. According to statistics, the total length of roads in South
Korea is approximately 60,000km .
Especially in Korea, the 428 km long Seoul - Busan expressway helps bring people to all
regions of the country in just one day, connecting the two economic centers of the country.
The route has opened up concentrated economic projects along the Seoul-Busan corridor,
making Busan the busiest seaport and at the same time developing Seoul into the economic
center of the country. The route also makes a big contribution to Korea's export industry by
cutting logistics costs and transportation time, thereby reducing production costs.
Waterway
The waterway system of Korea includes 3 main types: ferries, piers and ports, and
commercial shipping. Each vehicle will have its own strengths. This is the world's largest
shipbuilding industry traffic road.
With a favorable geographical position connecting the oceans and continents, Korea's
arterial ports can anchor large tonnage import and export container ships and optimize

efficiency. of high-speed boat lanes. The competitiveness of logistics infrastructure is
measured by the capacity and speed of freight.
In particular, the port of Busan in South Korea is ranked 5th in the world in terms of freight
volume and is considered the main important shipping route connecting the world and
providing the best logistics services to the main cities. of Northeast Asia. The port of Busan
is one of the largest cargo ports in the world and also the largest port in Korea, accounting
for 66% of Korea's total import and export volume.

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Airline
There are 7 international airports in Korea. Busan (Gimhae Airport), Cheongju, Daegu,
Jeju, Muan, Seoul (Gimpo Airport and Incheon International Airport). The two main
airlines in Korea are Korean Air and Asiana. From Vietnam, it is easy to travel to Korea by
either Korean Air or Vietnam Airlines.
Incheon has maintained an average annual growth rate of 6% and has become the 2nd
largest cargo airport and 8th largest passenger airport in the world.
It is also quite easy to transport goods to Korea in the current era of integration. These can
be mentioned as Bestlogistics' air freight service to Korea.
2.4.6. Media & Technology
According to Hootsuite's statistics, Korea currently has nearly 40 million mobile phone
subscribers out of a total of 49 million people, so the percentage of people using mobile
phones is up to 78%. More than 11 million South Koreans subscribe to 3G services, which
allow telephony, movie and music downloads, and online games. Besides mobile phones,
Koreans use most other new technologies. More than 92% of homes have computers and
South Korea is the world leader in high-speed internet with more than 80% of homes
connected.
In which, 97% of Koreans are internet users, along with 45.79% of active social network
users, accounting for 89.3% of the total population. (Korea Digital Marketing 2021, 2021)

Picture 2.11: Korean phone usage rate based on population

On average, Korean citizens spend 5 hours and 37 minutes on the internet every day, with
2 hours and 51 minutes watching videos (broadcast and online) and 1 hour and 8 minutes
using social networks.
In South Korea, online video consumption has long surpassed traditional TV channels, with
more than half taking place on mobile devices. (Korea Digital Marketing 2021, 2021) The
study also found that 20 times less video viewers may be more distracted from watching
videos on their phones than on television, and are more inclined to look for product
information after watching an ad. videos on the phone.
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