Legal ramifications South Korea
Legal Ramifications
South Korea has a free trade image and has strong foreign relationships. Operating in South Korea is normally problem free as a result of the centralization of power in their political system (which will be discussed under political ramifications), which favors consistency and therefore corporations doesn’t have to fear radical legal changes which could harm their position and operation in South Korea. As to the legal aspects in doing business in the country, there are only few restrictions that may cause concern. According to the World Bank’s Doing Business 2013 indicators doing business in South Korea is not problematic and the nation ranks 8th in the world.
Furthermore South Korea doesn’t provide incentives such as subsidies to domestic businesses, which is the case in some countries to provide a higher export/import ratio and help the local industries. When that is said the country has taken some protective measures in specific sectors, though this is mainly true in the service sector and not the manufacturing sector thus Frosted Flakes are not affected.
The regulatory incentives in South Korea make the country a major attraction for International companies, as they can look forward to deductions and exemptions in corporate, local and central government income tax.
One of the main problems in the legal system in South Korea is the poor protection of intellectual properties and this affects the investors and the businesses negatively. Also the lack of actions against the chaebols’1 corruption and malpractices damages the image of the country and the legal system. By dealing with these to large problems the country’s legal system will be strengthened a lot.
South Korea has a free trade image and has strong foreign relationships. Operating in South Korea is normally problem free as a result of the centralization of power in their political system (which will be discussed under political ramifications), which favors consistency and therefore corporations doesn’t have to fear radical legal changes which could harm their position and operation in South Korea. As to the legal aspects in doing business in the country, there are only few restrictions that may cause concern. According to the World Bank’s Doing Business 2013 indicators doing business in South Korea is not problematic and the nation ranks 8th in the world.
Furthermore South Korea doesn’t provide incentives such as subsidies to domestic businesses, which is the case in some countries to provide a higher export/import ratio and help the local industries. When that is said the country has taken some protective measures in specific sectors, though this is mainly true in the service sector and not the manufacturing sector thus Frosted Flakes are not affected.
The regulatory incentives in South Korea make the country a major attraction for International companies, as they can look forward to deductions and exemptions in corporate, local and central government income tax.
One of the main problems in the legal system in South Korea is the poor protection of intellectual properties and this affects the investors and the businesses negatively. Also the lack of actions against the chaebols’1 corruption and malpractices damages the image of the country and the legal system. By dealing with these to large problems the country’s legal system will be strengthened a lot.