PESTEE Analysis Korea
Political factors refer to political situation of the country and the extent to which it may affect and interfere with the project.
Political system of South Korea has undergone a huge transformation to become a democratic country in 1987. South Korea became a stable democracy with strong political and economic support from the US
The political landscape of the country include centralization of power which the implementation of economic reforms became faster and effective so that the country was fully focused on economic development and friendly to foreign investments, especially strengthening foreign relationships with emphasis on EU. According to economic forecast, South Korea is to…show more content… |
|Approval of free trade agreement (FTA) | |Business friendly economy in the world |
|Competitive tax policy is adopted by the country | | |
Analyzing social factors is to determine whether the project and products will stand for benefit or risks in the country it is conducted. It impacts on projects in aspects of population growth rate, demographic landscape, education level (it will be mentioned as the last factor of report), spending power, lifestyle, attitudes to work.
The rapid urbanization (83% people lives in urban areas) and industrialization of South Korea heavily impacted and transformed the population which after years of limited access to goods, rapidly started to developed the demand for modern shopping environments and revealed unstoppable consumable drive. By low growth of 1.2%, the population of South Korea is affected by economic growth. However, South Korea with high density oscillating around 425 people per square kilometre would simplify distribution and targeting customers for companies as most of people live in large agglomerations.
The crisis in 1997 made Korean consumers more price sensitive which resulted in shifting their attention to new foreign retailers.
The wages in South Korea are high as most population lives in