Jeffery Jones, KIM & CHANG Partner had an interview with the DGFEZ team to talk about changes in the Korean business environment and a few tips on doing business in South Korea.

Q1. Can you tell us about yourself?
A. I’ve lived in Korea for a long time, for over 30 years, and I have watched Korea grow from a very poor country to a very advanced country today. It is a creative place; there is lots of dynamic, smart people in this country and it’s a delight to be able to work here.

Q2. What changes has there been in Korea’s business environment since you arrived?
A. We have gone from a centrally controlled business environment where the central government made all the decisions, where the central government controlled all of the banks, financial institutions, and we did not have a market-oriented system prior to the financial crisis. So while there were big changes in terms of development and expertise, experience, many of the large companies began to go global before the crisis. Subsequent to the crisis, a market system was introduced into Korea, the financial sector became stronger, and we saw a real boom in research and development as Korean companies became more competitive, more global, and much more market oriented.

Q3. How does the Korea-U.S.A. FTA benefit companies?
A. I think the primary benefit has come through increased opportunities, not only for imports into Korea but also exporting from Korea to the United States because of the tariff reductions. So it has created a significant increase in exports out of Korea, and foreign companies, particularly U.S. companies doing business in Korea, tend to buy a lot from Korean companies. So U.S. companies here in Korea don’t just import from the United States, but they buy a lot from Korea as well, and the KORUS FTA has permitted them to buy more from Korean companies on a much more competitive basis.

Q4. What advice do you have for companies looking to enter the Korea market?
A. Spend a lot of time. It takes a lot of time to get to know Korea. This is a friendly place. The values are very similar to those of Americans. Koreans are extremely well educated, hardworking, and delightful to be around. So it’s a great place to spend time, but to get into the business community and develop relationships you have to spend time getting to know people, getting to know the environment, and if they do they will be greatly rewarded.