BUSINESS ANALYSIS of South Korea & India

8/8/2019 BUSINESS ANALYSIS of South Korea & India

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Introduction

Background

An independent Korean state or collection of

states has existed almost continuously for

several millennia. Between its initial

unification in the 7th century - from three

predecessor Korean states - until the 20th

century, Korea existed as a single independent

country. In 1905, following the Russo-

Japanese War, Korea became a protectorate of

imperial Japan, and in 1910 it was annexed as

a colony. Korea regained its independence

following Japan's surrender to the United

States in 1945. After World War II, a Republic

of Korea (ROK) was set up in the southern half

of the Korean Peninsula while a Communist-

style government was installed in the north

(the DPRK). During the Korean War (1950-

53), US troops and UN forces fought alongside

soldiers from the ROK to defend South Koreafrom DPRK attacks supported by China and

the Soviet Union. An armistice was signed in

1953, splitting the peninsula along a

demilitarized zone at about the 38th parallel.

Thereafter, South Korea achieved rapid

economic growth with per capita income rising

to roughly 14 times the level of North Korea.

In 1993, KIM Young-sam became South

Korea's first civilian president following 32

years of military rule. South Korea today is a

fully functioning modern democracy. In June

2000, a historic first North-South summit took

place between the South's President KIM Dae-

Background:

The Indus Valley civilization, one of

the world's oldest, flourished during the 3rd

and 2nd millennia B.C. and extended into

northwestern India. Aryan tribes from the

northwest infiltrated onto the Indian

subcontinent about 1500 B.C.; their merger

with the earlier Dravidian inhabitants created

the classical Indian culture. The Maurya

Empire of the 4th and 3rd centuries B.C. -

which reached its zenith under ASHOKA -

united much of South Asia. The Golden Age

ushered in by the Gupta dynasty (4th to 6th

centuries A.D.) saw a flowering of Indian

science, art, and culture. Islam spread across

the subcontinent over a period of 700 years. In

the 10th and 11th centuries, Turks and

Afghans invaded India and established the

Delhi Sultanate. In the early 16th century, theEmperor BABUR established the Mughal

Dynasty which ruled India for more than three

centuries. European explorers began

establishing footholds in India during the 16th

century. By the 19th century, Great Britain had

become the dominant political power on the

subcontinent. The British Indian Army played

a vital role in both World Wars. Nonviolent

resistance to British rule, led by Mohandas

GANDHI and Jawaharlal NEHRU, eventually

brought about independence in 1947.

Communal violence led to the subcontinent's

bloody partition, which resulted in the creation


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jung and the North's leader KIM Jong Il. In

October 2007, a second North-South summit

took place between the South's President ROH

Moo-hyun and the North Korean leader. Harsh

rhetoric and unwillingness by North Korea to

engage with President LEE Myung-bak

following his February 2008 inauguration has

strained inter-Korean relations.

of two separate states, India and Pakistan. The

two countries have fought three wars since

independence, the last of which in 1971

resulted in East Pakistan becoming the

separate nation of Bangladesh. India's nuclear

weapons tests in 1998 caused Pakistan to

conduct its own tests that same year. In

November 2008, terrorists allegedly

originating from Pakistan conducted a series of

coordinated attacks in Mumbai, India's

financial capital. Despite pressing problems

such as significant overpopulation,

environmental degradation, extensive poverty,

and widespread corruption, rapid economic

development is fueling India's rise on the

world stage.

Population Demographics

Population:

48,508,972

Age structure:

0-14 years: 16.8% (male 4,278,581/female

3,887,516)


17,196,840)

65 years and over: 10.8% (male

2,104,589/female 3,144,393)

Median age:

Total: 37.9 years

Male: 36.5 years

Female: 39.1 years

Population:

1,156,897,766

Age structure:


165,285,592)


359,795,835)

65 years and over: 5.2% (male

28,816,115/female 31,670,841)

Median age:

Total: 25.9 years

Male: 25.4 years

Female: 26.6 years


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Population growth rate: 0.266%

Net migration rate:

-0.33 migrant(s)/1,000 population

Urbanization:

Urban population: 81% of total population

Rate of urbanization: 0.6% annual rate of

change

Sex ratio:

At birth: 1.071 male(s)/female

Under 15 years: 1.1 male(s)/female

15-64 years: 1.04 male(s)/female

65 years and over: 0.67 male(s)/female

Total population: 1 male(s)/female

Economy - overview:

Since the 1960s, South Korea has

achieved an incredible record of growth and

global integration to become a high-tech

industrialized economy. Four decades ago,

GDP per capita was comparable with levels in

the poorer countries of Africa and Asia. In

2004, South Korea joined the trillion dollar

club of world economies, and currently is

among the world's twenty largest economies.

Initially, a system of close government and

business ties, including directed credit and

import restrictions, made this success possible.

The government promoted the import of raw

materials and technology at the expense of

Population growth rate: 1.407%

Net migration rate:

-0.05 migrant(s)/1,000 population

Urbanization:

Urban population: 29% of total population

Rate of urbanization: 2.4% annual rate of

change

Sex ratio:

At birth: 1.12 male(s)/female

Under 15 years: 1.13 male(s)/female

15-64 years: 1.07 male(s)/female

65 years and over: 0.91 male(s)/female

Total population: 1.08 male(s)/female.

Economic overview:

India is developing into an open-market

economy, yet traces of its past autarkic policies

remain. Economic liberalization, including

reduced controls on foreign trade and

investment, began in the early 1990s and has

served to accelerate the country's growth,

which has averaged more than 7% per year

since 1997. India's diverse economy

encompasses traditional village farming,

modern agriculture, handicrafts, a wide range

of modern industries, and a multitude of

services. Slightly more than half of the work

force is in agriculture, but services are the

major source of economic growth, accounting


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consumer goods, and encouraged savings and

investment over consumption. The Asian

financial crisis of 1997-98 exposed

longstanding weaknesses in South Korea's

development model including high debt/equity

ratios and massive short-term foreign

borrowing. GDP plunged by 6.9% in 1998, and

then recovered by 9% in 1999-2000. Korea

adopted numerous economic reforms

following the crisis, including greater openness

to foreign investment and imports. Growth

moderated to about 4-5% annually between

2003 and 2007. With the global economic

downturn in late 2008, South Korean GDP

growth slowed to 2.2% in 2008 and declined

0.2% in 2009. In the third quarter of 2009, the

economy began to recover, in large part due to

export growth, low interest rates, and an

expansionary fiscal policy. The South Korean

economy's long term challenges include a

rapidly aging population, inflexible labor

market, and overdependence on manufacturing

exports to drive economic growth.

for more than half of India's output, with only

one-third of its labor force. India has

capitalized on its large educated English-

speaking population to become a major

exporter of information technology services

and software workers. An industrial slowdown

early in 2008, followed by the global financial

crisis, led annual GDP growth to slow to 6.5%

in 2009, still the second highest growth in the

world among major economies. India escaped

the brunt of the global financial crisis because

of cautious banking policies and a relatively

low dependence on exports for growth.

Domestic demand, driven by purchases of

consumer durables and automobiles, has re-

emerged as a key driver of growth, as exports

have fallen since the global crisis started.

India's fiscal deficit increased substantially in

2008 due to fuel and fertilizer subsidies, a debt

waiver program for farmers, a job guarantee

program for rural workers, and stimulus

expenditures. The government abandoned its

deficit target and allowed the deficit to reach

6.8% of GDP in FY10. Nevertheless, as shares

of GDP, both government spending and

taxation are among the lowest in the world.

The government has expressed a commitment

to fiscal stimulus in FY10, and to deficit

reduction the following two years. It has

increased the pace of privatization of

government-owned companies, partly to offset

the deficit. India's long term challenges include

widespread poverty, inadequate physical and


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GDP (purchasing power parity):

$1.364 trillion

GDP (official exchange rate):

$832.5 billion

GDP - real growth rate:

0.2%

GDP - per capita (PPP):

$28,00

GDP - composition by sector:

Agriculture: 3%

Industry: 39.4%

Services: 57.6%

Labor force:

24.4 million

Labor force - by occupation:

Agriculture: 7.2%

Industry: 25.1%

Services: 67.7%

Unemployment rate: 3.7%

social infrastructure, limited employment

opportunities, and insufficient access to basic

and higher education. Over the long-term, a

growing population and changing

demographics will only exacerbate social,

economic, and environmental problems.

GDP (purchasing power parity):

$3.57 trillion

GDP (official exchange rate):

$1.236 trillion

GDP - real growth rate:

7.4%

GDP - per capita (PPP):

$3,100

GDP - composition by sector:

Agriculture: 17%

Industry: 28.2%

Services: 54.9%

Labor force:

467 million

Labor force - by occupation:

Agriculture: 52%

Industry: 14%

Services: 34%

Unemployment rate: 10.7%


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Population below poverty line: 15%

Household income or consumption by

percentage share:

Lowest 10%: 2.7%

Highest 10%: 24.2%

Distribution of family income:

Gini index: 31.3

Population below poverty line: 22.3%

Household income or consumption by

percentage share:

Lowest 10%: 3.6%

Highest 10%: 31.1%

Distribution of family income:

Gini index: 36.8

Cultural Issues

Ethnic groups:

Homogeneous (except for about 20,000

Chinese)

Religions:

Christian 26.3% (Protestant 19.7%, Roman

Catholic 6.6%),

Buddhist 23.2%,

other or unknown 1.3%,

none 49.3%

Languages:

Korean, English widely taught in junior high

and high school

Ethnic groups:

Indo-Aryan 72%,

Dravidian 25%,

Mongoloid

Other 3% .

Religions:

Hindu 80.5%,

Muslim 13.4%,

Christian 2.3%,

Sikh 1.9%,

Other 1.8%,

Unspecified 0.1%.

Languages:

Hindi 41%, Bengali 8.1%, Telugu 7.2%,

Marathi 7%, Tamil 5.9%, Urdu 5%, Gujarati

4.5%, Kannada 3.7%, Malayalam 3.2%, Oriya

3.2%, Punjabi 2.8%, Assamese 1.3%, Maithili


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Literacy:

Age 15 and over can read and write

Total population: 97.9%

Male: 99.2%

Female: 96.6%

Education expenditures:

4.6% of GDP

The Relative Status of Women and Men

The constitution stipulates equality of

all citizens before the law, but the norms and

values that guide gender relations in daily life

continue to be influenced by an ideology of

male superiority. The interplay between these

gender role ideologies complicates the patterns

and processes of social change in the area of

gender role performance and the relative status

of women and men.

One of the consequences of these dual gender

role ideologies is the behavioral pattern that

compartmentalize the social arena into public

versus private spheres and formal versus

informal situations within each sphere of social

action. The patriarchal gender role ideology

1.2%, Other 5.9%.

English enjoys the status of subsidiary official

language but is the most important language

for national, political, and commercial

communication.

Literacy:

Age 15 and over can read and write

Total population: 61%

Male: 73.4%

Female: 47.8%

Education expenditures:

3.2% of GDP

The Relative Status of Women and Men

Like the Kazakhs, Indian culture is also

traditionally a patriarchial one, with much

respect given to elderly men. India is a society

where the male is greatly revered. Therefore

women, especially the young girls, get very

little respect and standing in this country. The

women of the household are required to

prepare the meal for the men, who eat most of

the food. Only after the males are finished

eating, can the females eat. Typically the

leftover food is meager, considering the

families are poor and have little to begin with.

Whereas majority of the men always do the

outdoor work. In villages often females assists

their men at fields and farms. Starting from

birth, girls do not receive as much care and


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tends to guide people's behavior at group levels

in public informal situations as well as private

formal situations. Democratic egalitarianism is

more readily practiced at the societal level in

public, informal situations, and at the

individual level in private, informal situations.

Thus, a woman can and did run for the

presidency, but women are expected to behave

in a submissive manner in public, informal

gatherings such as dinner parties among

professional colleagues. In private, informal

situations such as family affairs, however,

urban middle-class husbands tend to leave the

decision making to their wives. Nonetheless,

male authority as the household head ( hoju ) is

socially expected and the law favors husbands

and sons over wives and daughters.

The main sources of social change in gender

status have been the women's movement and

the role of the state in legislating to protect

women's rights and improve their status. In

response to feminist activism, some men

organized the first National Men's Association

in 1999. Complaining of reverse sexism, they

asserted that laws enacted to prevent domestic

violence and sexual harassment unfairly favor

women and vowed to campaign to abolish theexclusively male duties of military service so

that both sexes may shoulder the duties of

national defense

.

commitment from their parents and society as

a boy would.

There many marriage and courtship

customs too followed in India, where males

domination can be seen.

Womens role in the society

Contrary to the common perception, a

large percent of women in India work. The

National data collection agencies accept the

fact that there is a serious under-estimation of

women's contribution as workers. However,

there are far fewer women in the paid

workforce than there are men. In urban India

Women have impressive number in the

workforce. As an example at software

industry 30% of the workforce is female. They

are at par with their male counter parts in

terms of wages, position at the work place.

In rural India, agriculture and allied

industrial sectors employ as much as 89.5% of

the total female labour. In overall farm

production, women's average contribution is

estimated at 55% to 66% of the total labour.

According to a 1991 World Bank report,

women accounted for 94% of total

employment in dairy production in India.

Women constitute 51% of the total employed

in forest-based small-scale enterprises.

Women in India now participate in all

activities such as education, politics, media, art

and culture, service sectors, science and

technology, etc. Indira Gandhi, who served as


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Womens role in the society

South Korean women are largely well-

educated, engaged in the economy, and blessed

with optimal maternal health services. Yet

recent World Economic Forum and United

Nations reports rank South Korean gender

empowerment among the lowest in the

developed world. The Asia Programs

February 14 event sought to explain these

apparent contradictions by looking at the status

of women in South Koreas labor force,

corporate world, and political realm.

Heisoo Shin of UN-CEDAW, singling out

civil society as the motor for change in

South Korea, sketched the evolution of the

nations womens movement. Korean feminist

groups were mostly established in the 1980s,

with legislation on domestic violence and

womens development beginning in the 1990s

and continuing today. Of particular note,

according to Shin, is the March 2005 decision

of South Koreas Constitutional Court to

abolish hoju, a family registry system that

identifies the head of household as a male and

that obliges family members to be registered

under him. The courts decision should

improve womens status in family and

marriage, according to Shin. What remains, she

concluded, is the challenge of changing mens

attitudes toward women

Prime Minister of India for an aggregate

period of 15 years is the world's longest

serving woman Prime Minister.

Even in India women are dominating

men in the field of education and sometimes

more qualified than their male counterparts.

With increasing competition among students,

men are not able to handle the stress as better

as their female colleagues. Women will indeed

play better role in future of India.

Treatment of Women

India also faces the same problem.

Besides these India is acclaimed as the biggest

destination where atrocities for women are

seen as common. Which includes dowry, child

marriage, rape, sexual harassment, eve teasing.


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Business Customs:

For the international business person,

doing business in foreign countries brings with

it cross cultural challenges. An understanding

of a country's business culture, attitudes and

etiquette is a useful way of establishing good

interpersonal relationships which ease the

business process.

To get information from a South Korean

importer, it is best to ask directly and explain

why you need it. South Koreans may require

more explanation before responding to

information requests than U.S. business people

are used to providing; for instance, a lengthy

discussion about the selling firm and its history

may be required. If you do not receive a

successful reply, there is nothing wrong with

politely asking again. In South Korea, it isoften seen as a sign of seriousness to continue

presenting your request. South Koreans will

rarely say no directly; instead they will say

something is very difficult.

Body language & Business etiquettes

Meeting and Greeting-

Greetings follow strict rules of

protocol.

Many South Koreans shake hands with

Business Customs:

The business culture of India is a

reflection of the various norms and standards

followed by its people. Indians have various

cultural yardsticks, which extend to their

business culture too. Thus, it is important that

a person visiting the country has an idea of the

business culture of India. Thus, it is important

that a person visiting the country has some

basic idea regarding the business ethics and

customs followed here. Having a good grasp

on Indian business culture will ensure that you

succeed in maintaining a well-earned affinity

with your business counterparts.

If you are unsure of how to deal with an

Indian when it comes to business, we are here

to simplify the task. Read on to know about

the things that are to be strictly adhered to,

while forming any kind of business

associations with Indians.

Body language and Business Etiquettes

Relationships & Communication

Indians prefer to do business with those

they know.

Relationships are built upon mutual


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expatriates after the bow, thereby

blending both cultural styles.

The person of lower status bows to the

person of higher status, yet it is the

most senior person who initiates the

handshake.

The person who initiates the bow says,

"man-na-suh pan-gop-sumnida", which

means "pleased to meet you."

Information about the other person will

be given to the person they are being

introduced to in advance of the actual

meeting.

Wait to be introduced at a social

gathering.

When you leave a social gathering, say

good-bye and bow to each person

individually.

Gift Giving Etiquette

Gifts express a great deal about a

relationship and are always

reciprocated.

It is inconsiderate to give someone an

expensive gift if you know that they

cannot afford to reciprocate

accordingly.

Bring fruit or good quality chocolates

or flowers if invited to a Korean's

home.

Gifts should be wrapped nicely.

trust and respect.

In general, Indians prefer to have long-

standing personal relationships prior to

doing business.

It may be a good idea to go through a

third party introduction. This gives you

immediate credibility.

Business Meeting Etiquette

If you will be travelling to India from

abroad, it is advisable to make

appointments by letter, at least one

month and preferably two months in

advance.

It is a good idea to confirm your

appointment as they do get cancelled at

short notice.

The best time for a meeting is late

morning or early afternoon. Reconfirm

your meeting the week before and call

again that morning, since it is common

for meetings to be cancelled at the last

minute.

Keep your schedule flexible so that it

can be adjusted for last minute

rescheduling of meetings.

You should arrive at meetings on time

since Indians are impressed with

punctuality.

Meetings will start with a great deal of

getting-to- know-you talk. In fact, it is

quite possible that no business will be


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The number 4 is considered unlucky,

so gifts should not be given in multiples

of 4.

Giving 7 of an item is considered

lucky.

Wrap gifts in red or yellow paper,

since these are royal colours.

Alternatively, use yellow or pink paper

since they denote happiness.

Do not wrap gifts in green, white, or

black paper.

Do not sign a card in red ink.

. Use both hands when offering a gift.

. Gifts are not opened when received.

Business Meetings

Appointments are required and should

be made 3 to 4 weeks in advance.

You should arrive on time for meetings

as this demonstrates respect for theperson you are meeting.

The most senior South Korean

generally enters the room first.

It is a good idea to send both an agenda

and back-up material including

information about your company and

client testimonials prior to the meeting.

The main purpose of the first meeting is

to get to know each other.

Meetings are used to understand a

client's needs and challenges. They lay

the foundation for building the

relationship.

discussed at the first meeting.

Always send a detailed agenda in

advance. Send back-up materials and

charts and other data as well. This

allows everyone to review and become

comfortable with the material prior to

the meeting.

Follow up a meeting with an overview

of what was discussed and the next

steps.

Business Negotiating

Indians are non-confrontational. It is

rare for them to overtly disagree,

although this is beginning to change in

the managerial ranks.

Decisions are reached by the person

with the most authority.

Decision making is a slow process.

If you lose your temper you lose face

and prove you are unworthy of respect

and trust.

Delays are to be expected, especially

when dealing with the government.

Most Indians expect concessions in

both price and terms. It is acceptable to

expect concessions in return for those

you grant.

Never appear overly legalistic during

negotiations. In general, Indians do not

trust the legal system and someone's

word is sufficient to reach an


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Do not remove yourjacket unless the

most senior South Korean does so.

Have all written materials available in

both English and Korean.

Dress Etiquette

Business attire is conservative.

Men should wear dark- coloured,

conservative business suits with white

shirts.

Women should dress conservatively

and wear subdued colours.

Men should avoid wearing jewellery

other than a watch or a wedding ring.

Business Cards

Business cards are exchanged after the

initial introductions in a highly

ritualized manner.

The way you treat someone's business

card is indicative of the way you will

treat the person.

Have one side of your business card

translated into Korean.

Using both hands, present your

business card with the Korean side

facing up so that it is readable by the

recipient.

Examine any business card you receive

carefully.

Put the business cards in a business

agreement.

Do not disagree publicly with members

of your negotiating team.

Successful negotiations are often

celebrated by a meal.

Dress Etiquette

Business attire is conservative.

Men should wear dark coloured

conservative business suits.

Women should dress conservatively in

suits or dresses.

The weather often determines

clothing. In the hotter parts of the

country, dress is less formal, although

dressing as suggested above for the

first meeting will indicate respect.

Titles

Indians revere titles such as Professor,

Doctor and Engineer.

Status is determined by age, university

degree, caste and profession.

If someone does not have a

professional title, use the honorific title

"Sir" or "Madam".

Titles are used with the person's name

or the surname, depending upon the

person's name. (See Social Etiquette

for more information on Indian naming

conventions.)


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card case or a portfolio.

Never write on someone's business card

in their presence.

Wait to be invited before using

someone's first name without the title.

Business Cards

Business cards are exchanged after the

initial handshake and greeting.

If you have a university degree or any

honour, put it on your business card.

Use the right hand to give and receive

business cards.

Business cards need not be translated

into Hindi.

Always present your business card so

the recipient may read the card as it is

handed to them.

Government & Political Issues

Country name:

Conventional long form: Republic of Korea

Conventional short form: South KoreaLocal long form: Taehan-min'guk

Local short form: Han'guk

Abbreviation: ROK

Government type:

Republic

Capital:

Name: Seoul

Country name:

Conventional long form: Republic of India

Conventional short form: IndiaLocal long form: Republic of India/Bharatiya

Ganarajya

Local short form: India/Bharat

Government type:

Federal republic; authoritarian prime minister

rule.

Capital:

Name: New Delhi


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Administrative divisions:

9 provinces (do, singular and plural) and 7

metropolitan cities (gwangyoksi, singular and

plural)

provinces: Cheju-do, Cholla-bukto (North

Cholla), Cholla-namdo (South Cholla),

Ch'ungch'ong-bukto (North Ch'ungch'ong),

Ch'ungch'ong-namdo (South Ch'ungch'ong),

Kangwon-do, Kyonggi-do, Kyongsang-bukto

(North Kyongsang), Kyongsang-namdo (South

Kyongsang)

Independence:

15 August 1945 (from Japan)

National holiday:

Liberation Day, 15 August (1945)

Terrorism and counter-terrorism

South Korea has experienced more

than 30 suspected terrorism-related events

since 1958, including attacks against South

Korean citizens in foreign countries. The most

common types of terrorism used have included

bombings, shootings, hijackings, and

kidnappings. Prior to 1990, North Korea was

responsible for almost all terrorism-related

events inside of South Korea, including

multiple assassination attempts on its

presidents, regular kidnappings of South

Administrative divisions:

28 states and 7 union territories*; Andaman

and Nicobar Islands*, Andhra Pradesh,

Arunachal Pradesh, Assam, Bihar,

Chandigarh*, Chhattisgarh, Dadra and Nagar

Haveli*, Daman and Diu*, Delhi*, Goa,

Gujarat, Haryana, Himachal Pradesh, Jammu

and Kashmir, Jharkhand, Karnataka, Kerala,

Lakshadweep*, Madhya Pradesh,

Maharashtra, Manipur, Meghalaya, Mizoram,

Nagaland, Orissa, Puducherry*, Punjab,

Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar

Pradesh, Uttarakhand, West Bengal

Independence:

15 August 1947 (from the UK)

National holiday:

Republic Day, 26 January (1950)

Terrorism and counter-terrorism

Terrorism in India is primarily

attributable to religious communities and

Naxalite radical movements.

The regions with long term terrorist

activities today are Jammu and Kashmir,

Mumbai, Central India (Naxalism) and Seven

Sister States (independence and autonomy

movements). As of 2006, at least 232 of the

countrys 608 districts were afflicted, at

differing intensities, by various insurgent and

terrorist movements. In August 2008,


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Korean fisherman, and several high-profile

bombings.

Since 1990, most of the terrorist attacks

against South Korean citizens have occurred

abroad and have been related to the emerging

worldwide pattern of terrorism by international

terrorist organizations or deranged individuals.

The 1988 Seoul Olympic Games

provided a major stimulus for South Korea to

develop a national emergency response system

for terrorism-related events based on the

participation of multiple ministries. The 11

September 2001 World Trade Center and

Pentagon attacks and the 2001 United States of

America (US) anthrax letter attacks prompted

South Korea to organize a new national system

of emergency response for terrorism-related

events. The system is based on five divisions

for the response to specific types of terrorist

events, involving conventional terrorism,

bioterrorism, chemical terrorism, radiological

terrorism, and cyber-terrorism. No terrorism-

related events occurred during the 2002 World

Cup and Asian Games held in South Korea.

The emergency management of terrorism-

related events in South Korea is adapting to the

changing risk of terrorism in the new century

National Security Advisor M K Narayanan has

said that there are as many as 800 terrorist

cells operating in the country.

Mumbai has been the most preferred

target for most terrorist organizations,

primarily the separatist forces from Pakistan.

Over the past few years a series of attacks

including explosions in local trains in July

2006, to the most recent and unprecedented

attacks of 26 November 2008, where two of

the prime hotels, a landmark train station and a

Jewish Chabad house, in south Mumbai, were

attacked and sieged.

Terrorist attacks in Mumbai include:

-12 March 1993 - Series of 13 bombs go off

killing 257

-6 December 2002 - Bomb goes off in a bus in

Ghatkopar killing 2

-27 January 2003 - Bomb goes off on a bicycle

in Vile Parle killing 1

-14 March 2003 - Bomb goes off in a train in

Mulund killing 10

-25 August 2003 - Two Bombs go off in cars

near the Gateway of India and Zaveri Bazaar

killing 50

-11 July 2006 - Series of seven bombs go off

in trains killing 209

-26 November 2008 to 29 November 2008 -

Coordinated series of attacks killing at least

172.

-On 13 February 2010, a bomb explosion at

the German Bakery in Pune killed fourteen

people, and injured at least 60 more.


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Jammu-Kashmir is affected since last 3

decade, North-east also faces major threat

from terrorist. Several other states like Bihar,

Jharkhand, Orissa, Andhra Pradesh,

Maharashtra and Chhattisgarh are majorly

affected by Naxalite.

Other than this the religious separatist

and extremist groups of Hinduism & Islam

have carried out several acts of terrorism

including attack on Akshardham temple

(Gujrat), Blast in Macca Masjid(Hyderabad),

Jama Masjid (Delhi), Malegaon (Maharashtra),

Sankat Mochan temple (Varanasi).

The government of India has declared

several domestic and international groups and

organizations as terrorist & banned them,

because of their involvement in several

terrorist activities. These include Lashkar-e-

toiba, PWG, ULFA, BODO, CPI-ML, AL-

Qaeda, Hamas, Muslim Brotherhood, SIMI,

Jamat-ud-Dawa, etc.

Currency

Currency Regulation

South Korea Currency bears its legacy from

the united Korean currency called Won, first

used as Korea's currency between 1902 and

1910. With the birth of South Korea in 1945,

the Won was accepted as the currency of South

Korea. South Korean Currency Won, is closely

related to the Chinese Yuan and Japanese Yen

as all three are derived from a Chinese

character meaning round shape.

Currency Regulation

Currency regulation in India is

governed primarily by the Law on Currency

Regulation

and the Reserve Bank of Indias

regulations. The national currency, the Rupee

`, is freely convertible, and few restrictions are

placed on the import and export of foreign

currency to and from India. Indian legal

entities, their branches and representative

offices inside and outside the country, citizens


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South Korea Currency, Won was first

subdivided into 100 jeon, for which only bank

notes were issued by the Bank of Joseon.

These notes were similarly designed as the

older notes of the Japanese occupation period,

however with two significant changes. The

new notes got rid of the clause about

exchangeability with the Japanese Yen, and the

badge of the Government of Japan, paulownia,

was replaced by South Korea's national flower,

the Rose of Sharon. In 1950, the new central

bank, Bank of Korea was established which

took over the duties of Bank of Joseon to

handle South Korea currency.

Four government entities are in charge

of foreign exchange activities in South Korea:

the Ministry of Finance and Economy

(MOFE), the Bank of Korea (BOK), the

Financial Supervisory Service (FSS), and theKorea Customs Service (KSS). The ministry

sets the overall foreign exchange policy, and

the Bank of Korea holds and manages the

foreign reserves, while managing all

transactions pertaining to foreign trade and

capital movements. It also supervises money-

changers and foreign-exchange brokers, and

provides foreign-exchange banks with foreign

currency loans. The FSS supervises financial

institutions that are involved in foreign-

exchange activities. The KSS has some

foreign-exchange regulatory responsibilities

towards international trade. Apart from these

of India and individuals who have Indian

residence permits are considered to be

residents for currency regulation purposes.

This includes Indian subsidiaries of foreign

companies and Indian individuals who travel

or reside temporarily abroad. Foreign legal

entities, their branches and representative

offices, and foreign citizens, except for those

who have Indian residence permits, are treated

as nonresidents for currency regulation

purposes.

Transactions between residents and

nonresidents may be conducted in any

currency.

In contrast, currency transactions in

foreign currency between residents are

prohibited,

with certain exceptions.

The purchase, sale, or exchange of

foreign currency in India may be conducted

only through authorized banks and currency

exchanges that are licensed by the Reserve

Bank of India to perform foreign-currency

transactions. The purchase, sale, or exchange

of foreign currency other than through

authorized entities is prohibited.

Both residents and nonresidents may

have foreign-currency and Rupee accounts in

Indian banks, which they can use for their

personal and business needs.


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government regulatory and supervisory

institutions, banks involved in foreign

exchange have the authority to engage in such

financial transactions, including international

banking.

South Korea currency valuation with respect to India ( Rupee vs. Won )

1 Won = 100 jeon

1 Won = 0.03937 Indian Rupee

1 Rupee = 100 paise

1 Rupee = 25.420 Korean Won

Trade Barriers

Foreign goods and services that run into

direct competition with South Korean offerings

are often subject to market access barriers.

Both South Korean and foreign goods andservices often face regulatory issues coming

from excessive government oversight, which

leads to increased costs.

In agriculture South Korea uses high tariffs to

protect its politically important farm sector

while farm activists have used mass protests to

target wholesalers and retailers to block sales

of imported foods. The pact with the United

States is aimed at cutting out beef tariffs that

can range up to 40%.

An import tax of 8% on building materials

hurts foreign firms who use the materials more.

Traditionally, India has imposed tariffs

and other restrictions to protect its farm-based

domestic economy. As of 2010, the Indian

economy is 23% agriculture, 16% industriesand 61% services.

India's Prime Minister, Manmohan

Singh, now promotes freer trade. His

government has reduced controls on foreign

trade and investment. To give foreigners

unfettered access to India's vast and growing

market of 1.1 billion consumers, more reforms

are required.

Averaging 12.5% on non-agricultural

items in 2010, Indian tariffs are now

competitive with other countries that belong to

the Association of South East Asian Nations

(ASEAN). Consequently, India has more than


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Sectoral Restrictions

Beef cattle breeding : Foreign-investment

percentage is less than 50 percent of total

investment amount.

Coast water fishery : Foreign-investment


investment amount

Publication of newspapers, magazines and

other periodicals : Foreign-investment

percentage for newspapers is less than 30

percent of total investment amount.

Others is less than 50 percent of total

investment amount.

Satellite broadcasting : Foreign-investment

percentage is less than 33 percent of the total

doubled its trade with ASEAN members.

China is now India's second-largest

trade partner, after the United States. Sino-

Indian trade has grown an average of 32% per

year since 1996, and reached US$28 billion in

2010. Following a recent economic summit in

India's commerical capital, Mumbai, both

countries set a deadline of October 2008 to

complete feasibility studies for a regional

trading arrangement. Key to this agreement is

the reduction or removal of trade barriers.

Sectoral Restrictions

Hotel & Tourism: 100% FDI is permissible

in the sector on the automatic route.

Private Sector Banking: Non-Banking

Financial Companies (NBFC) 49% FDI is

allowed from all sources on the automatic

route subject to guidelines issued from RBI

from time to time.

Insurance Sector: FDI up to 26% in the

Insurance sector is allowed on the automatic

route subject to obtaining license from

Insurance Regulatory & Development

Authority (IRDA)

Telecommunication: In basic, cellular, value

added services and global mobile personal

communications by satellite, FDI is limited to

49% subject to licensing and security

requirements and adherence by the companies

(who are investing and the companies in which


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investment amount

Radio and television broadcasting : Not

permitted

Scheduled and non-scheduled

transportation by air : Foreign-investment


investment amount

Power transmission, distribution and sales

business : A foreigner should not be the

largest share holder.

Foreign-investment percentage is less than 50

percent of total investment amount.

Wholesaling of Meat : Foreign-investment


investment amount.

Beverages - The EU says South Korea has five

government agencies overseeing labelling,

with foreign liquor companies are asked to

provide 18 pieces of information for labels.

The layers of bureaucracy add significant

costs.

Investment in South Korea

Despite the unprecedented global economic

crisis, Korea did relatively well to maintain its

investment is being made) to the license

conditions for foreign equity cap and lock- in

period for transfer and addition of equity and

other license provisions.

ISPs with gateways, radio-paging and end-to-

end bandwidth, FDI is permitted up to 74%

with FDI, beyond 49% requiring Government

approval. These services would be subject to

licensing and security requirements.

No equity cap is applicable to manufacturing

activities.

FDI up to 100% is allowed for the following

activities in the telecom sector :

ISPs not providing gateways (both for satellite

and submarine cables);

Infrastructure Providers providing dark fiber

(IP Category 1);

Electronic Mail; and

Voice Mail

The above would be subject to the following

conditions:

FDI up to 100% is allowed subject to the

condition that such companies would divest

26% of their equity in favor of Indian public in

5 years, if these companies are listed in other

parts of the world.

The above services would be subject to

licensing and security requirements, wherever

required.

Trading:

Trading is permitted under automatic route

with FDI up to 51% provided it is primarily

export activities, and the undertaking is an


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FDI amount at the $11-billion level. According

to the Ministry of Knowledge Economy, it

stood at $11.48 billion in 2009, down 1.9

percent from $11.7 billion in 2008. The slight

decrease shows that the nation was not

severely affected by the worldwide turmoil

because its economy has been rapidly

emerging from the recession.

Criteria for Business Categories Criteria

for Designation Manufacturing, industry

support service, Foreign investment amount

should be more than US$30 million hi-tech

business.

Tourist hotel business, floating tourist Foreign

investment amount should be more than

US$20 million Hotel business, general

recreation service, general resort facility

provider, international convention facility.

Complex cargo terminal business, Foreign

investment amount should be more than

US$10 million Establishing and operating site

for public pick-up/delivery center, Business

operating harbor facilities, Business operating

airport facilities, logistics industry, SOC

facilities establishment business

Research facilities Foreign investment amount

should be more than US$5 million - Regular

employment of more than 10 full-time

researchers with 3 years or above research

export house/trading house/super trading

house/star trading house. However, under the

FIPB route:-

100% FDI is permitted in case of trading

companies for the following activities:

exports; bulk imports with ex-port/ex-bonded

warehouse sales; cash and carry wholesale

trading; other import of goods or services

provided at least 75% is for procurement and

sale of goods and services among the

companies of the same group and not for third

party use or onward transfer/distribution/sales.

Power:

Up to 100% FDI allowed in respect of projects

relating to electricity generation, transmission

and distribution, other than atomic reactor

power plants. There is no limit on the project

cost and quantum of foreign direct investment.

Drugs & Pharmaceuticals:

FDI up to 100% is permitted on the automatic

route for manufacture of drugs and

pharmaceutical, provided the activity does not

attract compulsory licensing or involve use of

recombinant DNA technology, and specific

cell / tissue targeted formulations.

FDI proposals for the manufacture of

licensable drugs and pharmaceuticals and bulk

drugs produced by recombinant DNA

technology, and specific cell / tissue targeted

formulations will require prior Government

approval.

Roads, Highways, Ports and Harbors:

FDI up to 100% under automatic route is


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experience olding master's degrees or higher.

BUSINESS CATEGORIES WHERE FOREIGN INVESTMENT

IS RESTRICTED

Postal service, central bank, individual-

business mutual aid, pension, stock and

future exchange, other financial market

management, clearing house

Legislative, administrative, judiciary,

foreign diplomatic missions to Korea,

and other international and foreign

organizations.

Research and development of

economics, other research and

development on liberal arts and social

science

Educational organizations (infant

school, primary and secondary

educational institutions,special

educational institutions)

Artist; religious organizations;

organizations of industries, experts,

environment movement, politics, labor

movement, etc.

The Korean government enforces, if

applicable, the restrictions on foreign

investment by capping the number of stocks

that foreigners can acquire.

To enhance transparency in foreign investment

restriction, the Korean government enforces

permitted in projects for construction and

maintenance of roads, highways, vehicular

bridges, toll roads, vehicular tunnels, ports and

harbors.

Pollution Control and Management:

FDI up to 100% in both manufacture of

pollution control equipment and consultancy

for integration of pollution control systems is

permitted on the automatic route.

Call Centers in India:

FDI up to 100% is allowed subject to certain

conditions.

Business Process Outsourcing BPO in India

FDI up to 100% is allowed subject to certain

conditions.

Government Incentives:

Regional Incentives:-

An industrial undertaking set up in a

specified underdeveloped state or union

territory or in a specified industrially

underdeveloped district, and which

commenced manufacturing or production

before 31 March 1995, is eligible for a 30 per

cent tax exemption on its profits for the 10

years beginning with the year in which

manufacturing or production takes place.

Similar benefits are available to small-

scale industrial undertakings that began

manufacturing or producing articles or

operating cold storage plants before 31 March


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the Consolidated Public Notice for Foreign

Investment. This system is to help foreigners

easily understand changes made in the laws

and regulations relevant to foreign investment

as the Korean government consolidates such

changes and places public notification every

year.

Foreigners are not allowed to invest in the

companies that are engaged, in any way, in

businesses where foreign investment is

prohibited and/or partially permitted. In the

case where a foreigner intends to invest in a

company that is engaged in more than two

businesses where foreign investment is

limitedly permitted, the foreigner cannot invest

exceeding the investment ratio prescribed for

the business with the lowest ratio for foreign

investment permission.

The overall freedom to conduct a business is

well protected under South Koreas regulatory

environment. Starting a business takes an

average of 14 days, compared to the world

average of 35 days. Obtaining a business

license requires much less than the world

average of 18 procedures and 218 days.

Closing a business is easy.

2000.

An industrial undertaking set up

before March 2000 in a particular class of

backward state specified in the 8th

Schedule of

the Constitution backward areas stipulated by

the central Government as Category A is

eligible for 100% tax exemption on its profits

for the first 5 years and 30% for the next 5

years.

Similar benefits are available for an

industrial undertaking set up in an industrially

backward district stipulated by the central

Government as Category B. The exemption for

such undertakings is 100% on profits

for the first 5 years and 30% for the next 3

years.

Sectoral incentives:-

An industrial undertaking set up in any

part of India for the generation of power, or its

generation and distribution, before 31 March

2003, is eligible for 100% tax exemption

on its profits for the first 5 years and for 30%

for the next 5 years.

All the profits of an undertaking that

begins commercial oil production in any part

of India after 1 October 1998 are exempt from

tax for the first 7 years.

A specified enterprise that develops,

maintains and operates new infrastructure

facilities set up on or after 1 April 1995 is

entitled to tax exemption of 100% on profits

for the first 5 years of operation and 30% for


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Government Incentives:

The Korean government's attitude toward

foreign direct investment is positive and senior

policy makers clearly realize the value of FDI.

In his first years in office, President Lee

Myung-bak has espoused a foreign investment-

friendly philosophy. He has taken important

steps to reverse the former Roh Moo-hyun

government's (2003-2008) ambivalent attitude

toward foreign investment and push back

against a vocal minority of the Korean public

opposed to foreign direct investment (FDI).

President Lee Myung-bak, who was

inaugurated in 2008, promised more practical

and transparent market opening to drive

another foreign investment boom, and FDI

rebounded to USD 11.7 billion in 2008 and

USD 11.5 billion in 2009.

South Koreas export-oriented economy, which

is one of Asias most vibrant and successful,

scores above the world average in nine of the

10 economic freedoms. It has long benefited

from relative openness to global trade and

investment, and South Korea has been

pursuing additional trade agreements,including agreements with the United States,

India, and the European Union. The overall

regulatory environment has gradually become

more efficient and transparent. Improving the

efficiency of the tax system and making tax

rates more competitive have been part of the

the subsequent 5 years. Such facilities include

roads, highways, bridges, airports, ports, rail

systems, activities related to irrigation,

sanitation or water supply or any other public

facility of a similar nature notified in the

Official Gazette. The exemption is available

for any 10 consecutive years of the first 12

years of developing, maintaining and operating

such infrastructure facilities. The limit for

claiming the exemption increases from 10

consecutive years out of 20 years in the case of

operating and maintaining a highway project.

An enterprise set up before 31 March

2000 and engaged in the business of providing

basic or cellular telecommunications services,

including radio paging, domestic satellite

service or network and electronic data

interchange services is entitled to 100% tax

exemption on profits for the first 5 years. The

exemption is 30% for the subsequent 5 years.

A similar exemption is available for operating

industrial parks set up and operating before 31

March 2002.

An approved company set up before 1

April 1999, and engaged in scientific and

industrial R&D, is eligible for 100% tax

exemption on its profits for 5 years.

An approved undertaking engaged in

developing and building housing projects that

commenced development and construction on

or after 1 October 1998, and completes them

before 31 March 2001, are entitled to 100%

tax exemption on the profits.


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governments reform agenda. Property rights

and the rule of law are well maintained in a

transparent manner.

The impact of the global financial turmoil on

the banking sector has been relatively modest;

monetary stability is relatively well

maintained, and inflation is under control.

South Koreas overall economic freedom is

limited by lingering corruption and a low level

of labor freedom. The labor market remains

rigid despite some efforts by government to

enhance flexibility.

Korea fully recognizes rights of private

ownership and has a well-developed body of

laws governing the establishment of corporate

and other business enterprises. Private entities

may freely acquire and dispose of assets;

however, the Fair Trade Act may limit cross-

ownership of shares in two or more firms if theeffect is to restrict competition in a particular

industry.

Korea liberalized its property ownership law in

1998. The Alien Land Acquisition Act (as

amended) grants even non-resident foreigners

and foreign corporations the same rights as

Koreans in purchasing and using land. Korea

took further steps to liberalize its property

ownership laws by implementing the Real

Estate Investment Trust (REIT) Act in 2001,

which supports sound indirect investments in

real estate and restructuring of corporations.

An enterprise that begins operating a

hotel before 31 March 2001 in a hilly or rural

area, place of pilgrimage or other such place

earmarked by the central Government for

development of tourism infrastructure, is

entitled to a 50% exemption on profits for the

first 10 years.

And for a hotel which commences

functioning before 31 March 2001 in any place

other than metropolitan cities, the exemption is

30% on profits for the first 10 years. In

addition, 30% tax exemption is available on

profits for the first 10 years of an enterprise

that begins operating ships before 31 March

1995.

Export incentives and free trade zones:-

A complete tax holiday is provided to

companies that are set up in FTZs for the first

10 years of operation. These FTZs are Kandla

Free Trade Zone (KAFTZ), Gujarat; Santa

Cruz Electronics Export Processing Zone

(SEEPZ), Mumbai; Madras Export Processing

Zone (MEPZ), Tamil Nadu; Cochin Export

Processing Zone (CEPZ), Kerala; Noida

Export Processing Zone (NEPZ), Uttar

Pradesh; and Falta Export Processing Zone

(FEPZ), West Bengal. Approved, newly

established 100% export-oriented industrial

undertakings and units in electronic hardware

and software technology parks are entitled to a

similar tax holiday.

A domestic company or a resident non-


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The REIT Act allows investors to invest funds

through an asset management company, and in

real property such as office buildings, business

parks, shopping malls, hotels and serviced

apartments.

Almost no restrictions remain on foreign

ownership of stock in Korean firms. As of

2000, Korean law permits foreign direct

investment through mergers and acquisitions

with existing domestic firms, including hostile

takeovers. Nonetheless, no hostile takeovers

have occurred in Korea in part because of the

lack of relevant implementation regulations for

the Foreign Investment Promotion Act.

The Korean government allows the following

general incentives for foreign investors:

Cash grants for the creation and expansion of

workplaces for high-tech business plants and

R&D research centers;

Reduced rent for land and site preparation for

foreign investors;

Grants for establishment of convenience

facilities for foreigners;

Reduced rent for state or public property; and

Preferential financial support for investing in

major infrastructure projects.

Private property is secure, and expropriation is

highly unlikely, but the justice system can be

corporate assessee engaged in the hotel or

travel agency business can enjoy an exemption

of 50% on the profits derived from services

provided to foreign tourists, plus any portion

of the remaining profits that are transferred to

a reserve account from the profit and loss

account. Profit must be received in convertible

foreign exchange.

A 50% tax exemption is available on

profits from projects such as construction of

any building, road, dam, bridge, assembly or

installation of any machinery or plant, or

construction of any structure executed outside

India. The said exemption should be credited

to a Foreign Project Reserve Account and

utilized for the purpose of business within the

next 5 years, and not be used for distribution

by way of dividends or profits. A similar tax

exemption benefit is available on profits from

housing projects awarded on the basis of a

global tender and aided by the World Bank.

The amount of tax exemption should be

transferred to a Housing Projects Reserve

Account and utilized for the purpose of

business within 5 years.

A resident tax payer engaged in the

export of manufactured goods or computer

software is allowed a deduction from profits

on the basis of the ratio of export turnover to

total turnover.

The proceeds must be received in convertible

foreign exchange.

Other incentives:-


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inefficient and slow. The protection of

intellectual property rights needs to be

improved, as piracy of copyrighted material is

significant.

A foreign institutional investor

investing in shares and securities in India

would be liable to tax at 10% on its long-term

capital gains and 30% on short-term capital

gains. The minimum period of holding in the

case of equity shares would be more than one

year to be considered long term, and three

years in the case of other securities.

Dividends, interest or long-term capital

gains of an infrastructure capital fund or

infrastructure capital company that earns from

investments made on or after 1 June 1998 in

any enterprise engaged in the business of

developing, maintaining and operating any

infrastructure facility, and which has been

approved by the central Government, is

exempt from tax.

Dividends paid by domestic

companies to their shareholders are exempt

from tax. However, the domestic company

would have to pay an additional tax termed

as tax on distributed profits which is

computed at the rate of 10 per cent of the

amounts distributed as dividends by the

domestic company.

Legal Issues

Constitution:

It was first adopted on July 17, 1948 and

amended nine times subsequently.

Constitution:

26 January 1950; amended many times


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Legal system:

The legal system of South Korea is a civil law

system that has its basis in the Constitution of

the Republic of Korea.

Suffrage:

19 years of age; universal

Corruption:

Despite significant improvements in

recent years, Korea's political structure still

tolerates a degree of non-transparency in the

formation of laws and regulations. When

combined with still-inadequate institutional

"checks and balances" and a societal structure

heavily based on personal ties, opportunities

and incentives for corruption and influence

peddling sometimes occur.

Bribing a Korean official is a criminal act.

Penalties for bribery range from probation to

life imprisonment, depending on the amount

involved. Legislation has been approved

bringing Korea into compliance with the

OECD initiative against international bribery.

The Supreme Prosecutor in each province is

responsible for ferreting out corruption. Many

business leaders and officials, including former

ministers and former presidents, have been

found guilty of corruption in recent years,

Legal system:

Based on English common law; judicial

review of legislative acts; accepts compulsory

ICJ jurisdiction with reservations; separate

personal law codes apply to Christians,

Hindus, and Muslims

Suffrage:

18 years of age; universal

Corruption:

India is one of the most attractive

investment places in the world thanks to its

low cost labour and the stable political climate.

India has liberalised the economy during the

last 20 years and the government has a

business-friendly policy. The business climate

is on the other hand hampered by acumbersome bureaucracy and pervasive

corruption at all levels of government. The

political system is characterised by deep-

rooted patronage systems and public officials

have vested interests in their positions.

Corporate integrity is also very low, as

scandals regularly highlight Indian companies'

payment of kickbacks both when operating

inland and abroad. The federal structure of

government means that huge differences in the

level of corruption and the responses to it exist

between one state and the other.

Positive developments in relation to


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sometimes for offenses committed years

earlier. Few have paid heavy fines or served

much time in prison.

The controversial Anti-Corruption Law passed

by the National Assembly in 2002 is now in

effect. Most notably, this law created the Korea

Independent Commission against Corruption

(KICAC), which was semi-autonomous and

empowered to investigate public complaints of

corruption at every level of government. The

Anti-Corruption & Civil Rights Commission

(ACRC) was launched in 2008 by integrating

the Ombudsman of Korea, the KICAC and the

Administrative Appeals Commission. With the

consolidation of these three organizations, the

public is provided with one-stop service to

address public complaints, file administrative

appeals and fight corruption.

Contract Law :

Korea has its own civil code. Primarily,

civil disputes are regulated by this code.

However, in some areas such as employment

or lease, special statutory code is applied,

preventing the application of civil code.

Especially, the transaction between merchants

is regulated by Commercial Code. This Code is

similar to UCC.

In Korea, the leading theory of contract law is

contract should be performed in good faith.

corruption and investment:

-The Right to Information Act 2005 (RTI Act)

has worked as a powerful instrument to

enhance governance transparency.

-The RTI Act grants access to administrative

documents within 30 days and has been

actively used to hold public officials

accountable for their decisions and to monitor

public spending.

-The Supreme Court has taken some bold steps

by upholding corruption charges in cases

involving politicians and high-ranking

government officials.

-The government has striven to simplify

administrative procedures and to reduce

physical encounters with public officials that

could open the way for facilitation payments.

-The National Portal of India is a good

example of these simplification efforts.

Contract Law :

Indian contract law regulates contract

law in India. The main contract law in India is

codified in the Indian Contract Act which

came into effect on September 1, 1872 and

extends to whole of India except the state of

Jammu and Kashmir. It governs entering into

contract, execution of contract, and the effects

of breach of contract.

Indian Contract Act really codifies the

way we enter into a contract, execute a


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Contract, like in US, is concluded by mutual

assent (offer and acceptance). However, there

is no concept of consideration. Instead, we

have 14 types of contract in civil code. Thus,

we have principles applicable to certain types

of contract as well as applicable to general

contract. For example, we have gift contract in

civil code.

The concept of illegality and frustration of the

purpose of contract are defenses available in

Korean Contract Law. However, in reality,

written contract is more welcomed in courts.

Assignment and delegation of contract are

generally recognized.

As for the recovery, generally, only

expectancy damage is allowed, not reliance

damage. The expectancy damage is limited to

ordinary damages damages that a

reasonable person could have anticipated in the

circumstance. However, one can recover

special damages if he or she can prove that

the other party knew or could have known the

special circumstances. If obligee fails to

mitigate the damage, the damages are reduced

to the extent reasonably expected. Ordinarily,

obligee can recover pecuniary damage for

breached contract.

One of the distinguishing characteristics of

Koreas Contract Law is deposit clause.

Deposited money is presumed to be liquidated

contract, implement provisions of a contract

and effects of breach of a contract. Basically, a

person is free to contract on any terms he

chooses. The Contract Act consists of limiting

factors subject to which contract may be

entered into, executed and breach enforced. It

only provides a framework of rules and

regulations which govern formation and

performance of contract. The rights and duties

of parties and terms of agreement are decided

by the contracting parties themselves. The

court of law acts to enforce agreement, in case

of non-performance.

Section 1 of Contract Act provides that

any usage or custom or trade or any incident of

contract is not affected as long as it is not

inconsistent with provisions of the Act. In

other words, provision of Contract Act will

prevail over any usage or custom or trade.

However, any usage, custom or trade will be

valid as long as it is not inconsistent with

provisions of Contract Act. The Act extends to

the whole of India except the State of Jammu

and Kashmir; and came into effect on 1-9-

1872.

It must be noted that contract need not

be in writing, unless there is specific provision

in law that the contract should be in writing.

[e.g. * contract for sale of immovable property

must be in writing, stamped and registered. *

Contracts which need registration should be in

writing * Bill of Exchange or Promissory Note

must be in writing. * Trust should be created


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damages. Therefore, a party can breach the

contract if he gives up the deposit before

neither party takes a step to perform it. The

other party could breach the contract by

returning the twice amount of the deposit.

Human Rights:

Human rights in South Korea have

evolved significantly from the days of military

dictatorship and reflects the state's current

status as a constitutional democracy. Citizens

regularly choose the President and members of

the National Assembly in free and fair

multiparty elections.

The government generally respects the humanrights of its citizens; however, there are

problems in some areas. The police and prison

personnel have at times physically and verbally

abused detainees, although such abuses have

declined in recent years. The National Security

Law criminalizes speech in support of

Communism or North Korea; though it is

unevenly enforced and prosecutions decline

every year, there are still over 100 such cases

brought annually. Women and minorities

continue to face legal and societal

discrimination. As a country of origin, women

were trafficked primarily for sexual

in writing * Promise to pay a time barred loan

should be in writing, as per Limitation Act *

Contract made without consideration on

account of natural love and affection should be

in writing ]. A verbal contract is equally

enforceable, if it can be proved.. A contract

can be enforced or compensation/damages for

breach of contract can be obtained through

Civil Court.

Human Rights:

The situation of human rights in India is

a complex one, as a result of the country's

large size and tremendous diversity, its status

as a developing country and a sovereign,

secular, democratic republic, and its history as

a former colonial territory. The Constitution of

India provides for Fundamental rights, which

include freedom of religion. Clauses also

provide for Freedom of Speech, as well as

separation of executive and judiciary and

freedom of movement within the country and

abroad.

Human rights violation has always been

a concern for Indian lawmakers. Custodial

deaths, infanticides, human trafficking, rapes,

religious riots, caste discrimination, defence

force torturing & killing of civilians,

disappearance of police and defence personels,

atrocities and genocide by police personels, etc

are major areas of concern for National

Human Rights Commission.

It is often held, particularly by Indian


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exploitation to and from the United States,

sometimes through Canada, as well as to other

Western countries and Japan.The government

has recently implemented strict laws to curb

prostitution and human trafficking and to aid

trafficking victims.

human rights groups and activists that

members of the Dalit or Untouchable caste

have suffered and continue to suffer

substantial discrimination.

Although human rights problems do

exist in India, the country is generally not

regarded as a human rights concern, unlike

other countries in South Asia. Based on these

considerations, the report Freedom in the

World 2006 by Freedom House gave India a

political rights rating of 2, and a civil liberties

rating of 3, earning it the highest possible

rating of free.

Balance of Payment

Investment (gross fixed):

29.3 % of GDP

Budget:

Revenues: $199.9 billion

Expenditures: $213.7 billion

Public debt:

23.5% of GDP

Investment (gross fixed):

32.3% of GDP

Budget:

Revenues: $129.8 billion

Expenditures: $214.6 billion

Public debt:

58% of GDP


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Inflation rate (consumer prices):

2.8% of GDP

Stock of money:

$73.16 billion (31 December 2009)

Stock of domestic credit:

$937 billion (31 December 2009)

Market value of publicly traded shares:


Agriculture - products:

Rice, root crops, barley, vegetables, fruit;

cattle, pigs, chickens, milk, eggs; fish

Exports - commodities:

semiconductors, wireless telecommunications

equipment, motor vehicles, computers, steel,

ships, petrochemicals

Exports - partners:

China 21.5%,

US 10.9%,

Japan 6.6%,

Hong Kong 4.6%

Imports:

$317.5 billion

Imports - commodities:

Machinery, electronics and electronic

Inflation rate (consumer prices):

10.9%

Stock of money:


Stock of domestic credit:

$1 trillion (31 December 2009)

Market value of publicly traded shares:

$1.227 trillion (31 December 2009)

Agriculture - products:

Rice, wheat, oilseed, cotton, jute, tea,

sugarcane, lentils, onions, potatoes; dairy

products, sheep, goats, poultry; fish

Exports - commodities:

Petroleum products, precious stones,

machinery, iron and steel, chemicals, vehicles,

apparel.

Exports - partners:

UAE 12.87%,

US 12.59%,

China 5.59%

Imports:

$268.4 billion

Imports - commodities:

Crude oil, precious stones, machinery,


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equipment, oil, steel, transport equipment,

organic chemicals, plastics

Imports - partners:

China 17.7%,

Japan 14%,

US 8.9%,

Saudi Arabia 7.8%,

UAE 4.4%,

Australia 4.1%

Reserves of foreign exchange and gold:

$270 billion

Debt - external:

$333.6 billion

Stock of direct foreign investment - at home:

$96.19 billion

Stock of direct foreign investment - abroad:

$74.6 billion

fertilizer, iron and steel, chemicals

Imports - partners:

China 10.94%,

US 7.16%,

Saudi Arabia 5.36%,

UAE 5.18%,

Australia 5.02%,

Germany 4.86%,

Singapore 4.02%

Reserves of foreign exchange and gold:

$274.7 billion

Debt - external:

$223.9 billion

Stock of direct foreign investment -at home:

$157.9 billion

Stock of direct foreign investment - abroad:

$76.62 billion

Physical Forces

Topography

Location:

Eastern Asia, southern half of the Korean

Peninsula bordering the Sea of Japan and the

Yellow Sea

Area:

Total: 99,720 sq km

Topography

Location:

Southern Asia, bordering the Arabian Sea and

the Bay of Bengal, between Myanmar and

Pakistan.

Area:

Total: 3,287,263 sq km


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Land: 96,920 sq km

Water: 2,800 sq km

Land boundaries:

Total: 238 km

Border countries:

North Korea 238 km

Coastline:

2,413 km

Climate:

Current Weather temperature, with rainfall

heavier in summer than winter

Terrain:

mostly hills and mountains; wide coastal plains

in west and south

Natural resources:

coal, tungsten, graphite, molybdenum, lead,

hydropower potential

Land use:

Arable land: 16.58%

Permanent crops: 2.01%

Land: 2,973,193 sq km

Water: 314,070 sq km

Land boundaries:

Total: 14,103 km

Border countries:

Bangladesh 4,053 km, Bhutan 605 km, Burma

1,463 km, China 3,380 km, Nepal 1,690 km,

Pakistan 2,912 km

Coastline:

7,000 km

Climate:

Current Weather

varies from tropical monsoon in south to

temperate in north

Terrain:

Upland plain (Deccan Plateau) in south, flat to

rolling plain along the Ganges, deserts in west,

Himalayas in north.

Natural resources:

Coal (fourth-largest reserves in the world), iron

ore, manganese, mica, bauxite, titanium ore,

chromite, natural gas, diamonds, petroleum,

limestone, arable land.

Land use:

Arable land: 48.83%

Permanent crops: 2.8%


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Other: 81.41%

Infrastructure

Industries:

Electronics, telecommunications, automobile

production, chemicals, shipbuilding, steel.

Industrial production growth rate:

-0.6%

Electricity - production:

440 billion kWh

Oil - production:

46,090 bbl/day

Natural gas - production:

499 million cu m

Natural gas - proved reserves:

50 billion cu m

Natural hazards:

Occasional typhoons bring high winds and

floods; low-level seismic activity common in

southwest

Other: 48.37%

Infrastructure

Industries:

Textiles, chemicals, food processing, steel,

transportation equipment, cement, mining,

petroleum, machinery, softw

pharmaceuticals

Industrial production growth rate:

8.2%

Electricity - production:

723.8 billion kWh.

Oil - production:

878,700 bbl/day.

Natural gas - production:

38.65 billion cu m.

Natural gas - proved reserves:

1.075 trillion cu m.

Natural hazards:

Droughts; flash floods, as well as widespread

and destructive flooding from monsoonal rains;

severe thunderstorms; earthquakes.


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Transport System:

Airports: 116

Airports - with paved runways:

Total: 72

Over 3,047 m: 4

2,438 to 3,047 m: 21

1,524 to 2,437 m: 13

914 to 1,523 m: 12

Under 914 m: 22

Airports - with unpaved runways:

Total: 44

914 to 1,523 m: 2

Under 914 m: 42

Heliports: 510

Pipelines:

Gas 1,423 km;

refined products 827 km

Railways:

Total: 3,381 km

standard gauge: 3,381 km 1.435-m gauge

(1,843 km electrified)

Transport System:

Airports: 352

Airports - with paved runways:

Total: 249

Over 3,047 m: 21

2,438 to 3,047 m: 57

1,524 to 2,437 m: 75

914 to 1,523 m: 81

Under 914 m: 15

Airports - with unpaved runways:

Total: 103

Over 3,047 m: 1

2,438 to 3,047 m: 3

1,524 to 2,437 m: 8

914 to 1,523 m: 43

Under 914 m: 48

Heliports: 40

Pipelines:

Condensate/gas 2 km;

Gas 7,542 km;

Liquid petroleum gas 2,163 km;

Oil 7,659 km;

Refined products 7,201 km

Railways:

Total: 64,015 km

Broad gauge: 52,808 km

1.676-m gauge (18,172 km electrified)


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Roadways:

Total: 103,029 km

Paved: 80,642 km

Unpaved: 22,387 km.

Waterways:

1,608 km; (most navigable only by small

craft).

Merchant marine:

Total: 819

By type:

Bulk carrier 201,

Cargo 246,

Carrier 5,

Chemical tanker 132,

Container 69,

Liquefied gas 40,

Passenger 5,

Passenger/cargo 21,

Petroleum tanker 67,

Refrigerated cargo 15,

Roll on/roll off 9,

Vehicle carrier 9

Foreign-owned: 33 (China 9, France 1, Japan

15, US 8)

Narrow gauge: 8,473 km

1.000-m gauge; 2,734 km

0.762-m gauge and 0.610-m gauge.

Roadways:

Total: 3,320,410 km (includes 200 km of

expressways).

Waterways:

14,500 km

5,200 km on major rivers and 485 km on

canals suitable for mechanized vessels

Merchant marine:

Total: 324

By type:

Bulk carrier 94,

Cargo 78,

Chemical tanker 23,

Container 15,

Liquefied gas 11,

Passenger 4,

Passenger/cargo 12,

Petroleum tanker 87

Foreign-owned: 8 (China 1, Hong Kong 1,

Jersey 1, Malaysia 1, UAE 4)

Registered in other countries: 56 (Cyprus 2,

Dominica 2, Liberia 1, Malta 4, Marshall

Islands 8, Nigeria 1, Panama 17, Singapore 19,

unknown 2)


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Ports and terminals:

Inch'on, P'ohang, Pusan, Ulsan

Ports and terminals:

Chennai, Haldia, Jawaharal Nehru, Kandla,

Kolkata (Calcutta), Mormugao, Mumb

Documents

BUSINESS ANALYSIS of South Korea & India