Swot Analysis of South Korea Market

704 Words May 13th, 2014 3 Pages
SWOT Analysis of South Korea Market
Strength
1. South Korea has a very high economic freedom. South Korea economic freedom score is 71.2 which makes its economy goes to the top 31st free economy in 2014. South Korea has improved on 0.9 point higher than last year due to their financial freedom and monetary freedom outweighing modest declines in business freedom, labor freedom, and fiscal freedom. South Korea is ranked 8th out of 42 countries in the Asia–Pacific region.
2. South Korea is moderately free of corruption. This makes South Korea a very clean place to conduct business where everything is fair towards the people which make it a very good place to conduct business if compare to country which has higher corruption rate. The
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Financial institutions have gained more autonomy from the state, ensuring greater market competition.
Weaknesses
1. Bankruptcy can be proceed very easily
2. The labor market remains dynamic, but there are lingering regulatory rigidities, and powerful trade unions add to the cost of conducting business.
3. The poor in the South Korea will be hard to buy any luxurious goods. Hence, a deep consideration needs to be done in order to start a new business in Korea or to compete in the market of South Korea.
Opportunity
1. There is a positive outlook on South Korea travel and tourism industry. This is a big opportunity because there will be more tourist who come to South Korea and eventually boost the income of South Korea. Besides that, more customers or consumers will come to South Korea to buy their product which makes it easier to earn profit and has more customers from all over the world.
2. South Korea trend has emerged to all over the world where the Music Industry of Korea has burst to country like the US, Indonesia, China, Malaysia and etc. This makes it easier to start a business which need to deals with people internationally. People nowadays might prefer things made in Korea due to their idols and tend to follow their culture. Hence making it a business opportunity for businessman in South Korea.
Threats
1. Increasing labor cost and changing of government policies. Due to the high level of education of labor in the South Korea,