South Korea
December 10, 2008
South Korea at a glance
Capital: Seoul
Population: 48,379,392 (July 2008 est.)
Government Type: Republic
GDP: $1.206 trillion
Imports: $349.6 billion f.o.b.
Exports: $379 billion f.o.b.
South Korea’s population is one of the most ethnically and linguistically homogeneous in the world. Except for a small Chinese community (about 20,000), virtually all Koreans share a common cultural and linguistic heritage. With 48.38 million people, the Republic of Korea (commonly known as “South Korea”) has one of the world’s highest population densities. Major population centers are located in the northwest and southeast, and in the plains south of the Seoul-Incheon area.
Half of the population actively practices religion. Among this group, Christianity (49%) and Buddhism (47%) are South Korea’s two dominant religions. Though only 3% identify themselves as Confucianists, South Korean society remains highly imbued with Confucian values and beliefs. The remaining 1% of the population practice Shamanism (traditional spirit worship) and Chondogyo (”Heavenly Way”), a traditional religion.
South Korea is a republic with powers nominally shared among the presidency, the legislature, and the judiciary, but traditionally dominated by the president. The president is chief of state and is elected for a single term of 5 years. The 299 members of the unicameral National Assembly are elected to 4-year terms; elections for the assembly were held on April 9, 2008. South Korea’s judicial system comprises a Supreme Court, appellate courts, and a Constitutional Court. The judiciary is independent under the constitution. The country has nine provinces and seven administratively separate cities–the capital of Seoul, along with Busan, Daegu, Daejeon, Gwangju, Incheon and Ulsan. Political parties include the Grand National Party (GNP), Democratic Party (DP), Liberal Forward Party (LFP), Creative Korea Party (CKP), and Democratic Labor Party (DLP). Suffrage is universal at age 19 (lowered from 20 in 2005).
U.S. - South Korean Relations
The United States believes that the question of peace and security on the Korean Peninsula is a matter
for the Korean people to decide. Under the 1953 U.S.-Republic of Korea Mutual Defense Treaty, the United States agreed to help South Korea defend itself against external aggression. Since that time in support of this commitment, the United States has maintained military personnel in South Korea, including the Army’s Second Infantry Division and several Air Force tactical squadrons. To coordinate operations between these units and the South Korean armed forces, a Combined Forces Command (CFC) was established. Several aspects of the security relationship are changing as the United States moves from a leading to a supporting role. In 2004, agreement was reached on the return of the Yongsan base in Seoul — as well as a number of other U.S. bases — to South Korea and the eventual relocation of all U.S. forces to south of the Han River. U.S. troops are being redeployed from South Korea, as well.
As South Korea’s economy has developed, trade and investment ties have become an increasingly important aspect of the relationship between the two counties. South Korea is the United States’ seventh-largest trading partner (ranking ahead of larger economies such as France, India, and Italy), and there are significant flows of manufactured goods, agricultural products, services, and technology between the two countries. Major American firms have long been major investors in South Korea, while South Korea’s leading firms have begun to make significant investments in the United States. The implementation of structural reforms contained in the International Monetary Fund’s 1998 program for South Korea improved access to the country’s market and improved trade relations between the United States and South Korea.
The United States and South Korea launched negotiations on the U.S.-Korea Free Trade Agreement (KORUS FTA) on February 2, 2006. The KORUS FTA was signed on June 30, 2007, and is currently awaiting ratification in the U.S. Congress and the Korean National Assembly. The KORUS FTA is a comprehensive FTA that eliminates virtually all barriers to trade and investment between the two countries. Tariffs on 95% of trade between the two countries will be eliminated within 3 years of implementation, with virtually all the remaining tariffs being removed within 10 years of implementation; the FTA also contains chapters that address non-tariff measures in investment, intellectual property, services, competition policy, and other areas. The KORUS FTA is the largest free trade agreement South Korea has ever signed, and it would be the largest free trade agreement for the United States since the North American Free Trade Agreement (NAFTA) in 1992.
Economy
The Republic of Korea’s economic growth over the past several decades has been spectacular. Per capita GNP, only $100 in 1963, is now $25,000. South Korea is now the 13th-largest economy in the world.
In the early 1960s, the government of Park Chung Hee instituted sweeping economic policy changes emphasizing exports and labor-intensive light industries, leading to rapid debt-financed industrial expansion. The
government carried out a currency reform, strengthened financial institutions, and introduced flexible economic planning. In the 1970s Korea began directing fiscal and financial policies toward promoting heavy and chemical industries, consumer electronics, and automobiles. Manufacturing continued to grow rapidly in the 1980s and early 1990s.
In recent years, South Korea’s economy has moved away from the centrally planned, government-directed investment model toward a more market-oriented one. The nation bounced back from the 1997–98 Asian financial crises with some International Monetary Fund assistance, but based largely on extensive financial reforms that restored stability to markets. These economic reforms, pushed by President Kim Dae-jung, helped South Korea return to growth, with growth rates of 10% in 1999 and 9%in 2000. The slowing global economy and falling exports slowed growth to 3.3% in 2001, prompting consumer stimulus measures that led to 7.0% growth in 2002. Consumer over-shopping and rising household debt, along with external factors, slowed growth to near 3% again in 2003. Economic performance in 2004 improved to 4.6% due to an increase in exports, and remained at or above 4% in 2005, 2006, and 2007.
Economists are concerned that South Korea’s economic growth potential has fallen because of a rapidly aging population and structural problems that are becoming increasingly apparent. Foremost among these structural concerns are the rigidity of South Korea’s labor regulations, the need for more constructive relations between management and workers, the country’s underdeveloped financial markets, and a general lack of regulatory transparency. South Korean policy makers are increasingly worried about diversion of corporate investment to China and other lower wage countries, and by South Korea’s falling foreign direct investment.
Best Export Opportunities
U.S. exporters will find a very good market for agricultural products in South Korea since local agricultural output currently does not meet the demand of the processing industry. Other markets offering opportunities for importers are automotive parts and accessories, broadcasting equipment, and computer software, to name a few. For further information, please visit the Best Export Opportunities section of the Official Export Guide’s South Korea country profile.
Foreign Investment
Most senior policy makers of the South Korean government have a positive attitude toward foreign direct investment, making the country more attractive to outside investors. The country is still hampered by excessive regulations and a need for better protection of intellectual property rights. More detailed information on investing in South Korea is available in the Official Export Guide Country Profile of South Korea.
Transportation
Flying time for direct flights from the United States to South Korea ranges from 12 to 16 hours, depending on
the point of departure. Flights with connections can take as long as 18 hours, door to door. Incheon International Airport is the primary gateway for international travel to and from South Korea. The airport is one of the most modern in East Asia. Incheon Airport is currently only accessible by car or bus, bit construction of the Incheon International Airport Railroad (A’REX) is nearly complete. Airport buses and taxis are widely available.
Seoul’s public transportation system is very well organized. With nine subway lines and city buses that serve the entire city, as well as a multitude of taxis, traffic is the only major obstacle to movement. The seemingly endless rush-hour traffic can be a major hindrance, so early preparation, as well as patience, is required. Fortunately, buses take less travel time than taxis because of a bus-only lane traffic system. The Seoul Metropolitan Government maintains an English language interactive bus map that allows passengers to obtain bus route and schedule information based on point of origin and destination.
Public transportation is recommended for travel in South Korea. KTX provides high-speed transportation to major cities throughout South Korea. There are also intercity urban railway networks connecting Seoul to the rest of the country.










United States imposed numerous sanctions on Nigeria. After a period of increasingly strained relations, the death of General Abacha in June 1998 and his replacement by General Abubakar opened a new phase of improved relations. The bilateral relationship has continued to improve, and cooperation on many important foreign policy goals, such as regional peacekeeping, has been excellent. An estimated one million Nigerians and Nigerian Americans live, study, and work in the United States, while over 25,000 Americans live and work in Nigeria.
Agreement (TIFA) to advance the ongoing work program and to discuss improvements in Nigerian trade policies and market access. Among the topics discussed were cooperation in the World Trade Organization (WTO), market access, export diversification, commercial issues, trade capacity building and technical assistance, infrastructure, and investment issues.
over 41% of GDP and two-thirds of employment. Agriculture provides a big chunk of non-oil growth, which in 2006 reached 9%. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, or palm oil. Cocoa production, mostly from obsolete varieties and overage trees, is stagnant at around 180,000 tons annually; 25 years ago it was 300,000 tons. An even more dramatic decline in groundnut and palm oil production also has taken place. Although Nigeria was once the biggest poultry producer in Africa, corporate poultry output has been slashed from 40 million birds annually to about 18 million. Import constraints limit the availability of many agricultural and food processing inputs for poultry and other sectors. Fisheries are poorly managed. Most critical for the country’s future, Nigeria’s land tenure system does not encourage long-term investment in technology or modern production methods and does not inspire the availability of rural credit.
widespread poverty, especially in rural areas. A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2002 Nigeria’s per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria’s non-oil sectors, the economy continues to witness massive growth of “informal sector” economic activities, estimated by some to be as high as 75% of the total economy.
Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will likely expand as both a regional and international market player. Profitable niche markets outside the energy sector, such as specialized telecommunication providers, have developed under the government’s reform program. There is a growing consensus that foreign investment is essential to realizing Nigeria’s vast potential. Companies interested in long-term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market. However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully.

tropical jungle in the southwest, and the Chittagong Hill Tracts on the southeastern border with Burma and India are the least densely populated.
Although one of the world’s poorest and most densely populated countries, Bangladesh has made major strides to meet the food needs of its growing population, through increased domestic production augmented by imports. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the population faces serious nutritional risk. Bangladesh’s predominantly agricultural economy depends heavily on an erratic monsoonal cycle, with periodic flooding and drought. Infrastructure to support transportation, communications, and power supply is poorly developed, but it is improving. Bangladesh is limited in its reserves of coal and oil, and its industrial base is weak. The country’s main endowments include its vast human resource base, rich agricultural land, relatively abundant water, and substantial reserves of natural gas.
Most Bangladeshis earn their living from agriculture. Although rice and jute are the primary crops, maize and vegetables are assuming greater importance. The expansion of irrigation networks has led some wheat producers to switch to cultivation of maize, which is used mostly as poultry feed. Tea is grown in the northeast. Because of Bangladesh’s fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas.
Zia International Airport is located at Kurmitola, about 12 kilometers north of the city of Dhaka. The national air carrier, Biman Airlines, is the major domestic air travel provider. Private GMG Airlines has flights from Dhaka to Chittagong, Cox’s Bazaar, Jessore, and Sylhet. Lately GMG has been accorded permission to fly international routes. GMG now flies round-trip from Dhaka to Calcutta, New Delhi, Bangkok and Kathmandu and from Chittagong to Bangkok and Calcutta.
The United States established diplomatic relations with the newly formed Polish Republic in April 1919, but were cool during Poland’s time as part of the Warsaw Pact. A consular agreement was signed in 1972. The birth of Solidarity in 1980 raised the hope that progress would be made in Poland’s external relations as well as in its domestic development. During this time, the United States provided $765 million in agricultural assistance. Human rights and individual freedom issues, however, were not improved upon, and the U.S. revoked Poland’s most-favored-nation (MFN) status in response to the Polish Government’s decision to ban Solidarity. MFN status was reinstated in 1987, and diplomatic relations were upgraded.
again to healthy growth rates in 2003. Poland’s gross domestic product (GDP) grew at an annualized rate of 6.1% in the first quarter of 2008. Faster growth has begun to reduce persistently high unemployment, from nearly 20% in the middle of 2004 to 10.6% in April 2008. Tight monetary policy and dramatic productivity growth have helped to hold down inflation, which was 2.5% on average in 2007. The prospects for inflation in 2008 due to growing fuel and food prices are less optimistic. Poland’s current account deficit increased from 1.4% of GDP in 2005 to 3.7% in 2007. The budget deficit was only 1.5% of GDP in 2007, compared with 4.9% in 2002, and is likely to stay around a 2% level in 2008.
Newark. Delta, American, Northwest, and United have code-share relationships with various European carriers that serve Poland through their European hubs. No U.S. airline serves Poland directly at this time. In December 2007, Poland joined the Schengen area, which allows EU citizens to travel freely from Estonia to Portugal without border controls (except the UK, Ireland, Switzerland, Bulgaria, Romania, Cyprus, and Liechtenstein).
tainted re-election of former President Fujimori in June 2000, but improved with the installation of an interim government in November 2000 and the inauguration of the government of Alejandro Toledo in July 2001. Relations with current President Alan Garcia’s administration are positive. The United States continues to promote the strengthening of democratic institutions and human rights safeguards in Peru and the integration of Peru into the world economy.
in the 1990s, and measures taken since 2001 to promote trade and attract investment. President Garcia and his economic team have continued these policies. GDP grew 8.0% in 2006 and is projected to have grown by more than 7% in 2007. Recent economic expansion has been driven by construction, mining, export growth, investment, and domestic demand. Inflation is projected to have remained under 2% in 2007, and the fiscal deficit is only 0.6% of GDP. In 2006 external debt decreased to $28.3 billion, and foreign reserves were a record $17.3 billion at the end of 2006. Peru’s economy is well managed, and better tax collection and growth are increasing revenues, with expenditures keeping pace. Private investment is rising and becoming more broad-based. The government has had success with recent international bond issuances, resulting in rating upgrades. The Garcia administration is studying decentralization initiatives and is focused on bringing more small businesses into the formal economy.
Peru and the United States signed the U.S.-Peru Trade Promotion Agreement (PTPA) in April 2006 in Washington, D.C. The PTPA was ratified by the Peruvian Congress in June 2006 and by the U.S. Congress in December 2007. On December 14, 2007, President Bush signed legislation to implement the PTPA. On February 29, 2008, the President signed legislation to extend the Andean Trade Preference Act (ATPA) until December 31, 2008.
Calientes and between Cusco and Lake Titicaca in Puno. Ferrocarril Central Andino (FCCA) provides seasonal weekend tourist train services from Lima to Huancayo.
to expand peace negotiations by hosting talks, negotiations, and the Middle East and North Africa (MENA) Economic Conference. Multinational exercises, U.S. assistance to Egypt’s military modernization program, and Egypt’s role as a contributor to various UN peacekeeping operations reinforce the U.S.-Egyptian military relationship. An important pillar of the bilateral relationship remains U.S. security and economic assistance to Egypt, which expanded significantly in the wake of the Egyptian-Israeli Peace Treaty in 1979. The U.S. Agency for International Development (USAID) provided over $25 billion in economic and development assistance to Egypt between 1975 and 2002. There has been a shift in assistance from infrastructure, health, food supply, and agriculture toward market-based economic development, good governance, and training programs. The Commodity Import Program, through which USAID provides hundreds of millions of dollars in financing to enable the Egyptian private sector to import U.S. goods, remains one of the largest and most popular USAID programs. Since 2003, U.S. assistance has also focused more on economic reform, education, civil society, and other programs supported by the Middle East Partnership Initiative (MEPI).
2.5 million hectares (6 million acres) of fertile soil in the Nile Valley and Delta. Some desert lands are being developed for agriculture, including as part of the ambitious Toshka project in Upper Egypt, but some other fertile lands in the Nile Valley and Delta are being lost to urbanization and erosion. Warm weather and plentiful water permit several crops a year. Further improvement is possible, but land is worked intensively, and yields are high. Cotton, rice, wheat, corn, sugar cane, sugar beets, onions, and beans are the principal crops. Increasingly, a few modern operations are producing fruits, vegetables, and flowers, in addition to cotton, for export. Although the desert hosts some large, modern farms, more common traditional farms occupy an acre each, typically in a canal-irrigated area along the banks of the Nile. Many small farmers also have cows, water buffaloes, and chickens.
Egypt has long been the cultural and informational center of the Arab world, and Cairo is the region’s largest publishing and broadcasting center. There are eight daily newspapers, with a total circulation of more than 2 million, and a number of monthly newspapers, magazines, and journals. Most political parties have their own newspapers, and these papers conduct a lively, often highly partisan, debate on public issues. Egyptian ground-broadcast television (ETV) is government controlled and depends heavily on commercial revenue. ETV has two main channels, six regional channels, and three satellite channels. Of the two main channels, Channel I uses mainly Arabic, while Channel II is dedicated to foreigners, broadcasting news in English and French as well as Arabic. Egyptian satellite channels broadcast to the Middle East, Europe, and the U.S. East Coast.
U.S. relations with Vietnam have become deeper and more diverse in the years since political normalization. The two countries have broadened their political exchanges through regular dialogues on human rights and regional security. They signed a Bilateral Trade Agreement in July 2000, which went into force in December 2001. In 2003, the two countries signed a Counter-narcotics Letter of Agreement (amended in 2006), a Civil Aviation Agreement, and a textile agreement. In January 2007, the U.S. Congress approved Permanent Normal Trade Relations (PNTR) for Vietnam. Since entry into force of the U.S.-Vietnam Bilateral Trade Agreement on December 10, 2001, increased trade between the U.S. and Vietnam, combined with large-scale U.S. investment in Vietnam, evidence the maturing U.S.-Vietnam economic relationship. Other signs of the expanding bilateral relationship are a Bilateral Air Transport Agreement signed in December 2003 and a Bilateral Maritime Agreement signed in March 2007 that opened the maritime transport and services industry of Vietnam to U.S. firms. Cooperation in other areas, such as defense, nonproliferation, counterterrorism, and law enforcement, is also steadily growing.
Economic stagnation marked the period after the reunification of North and South Vietnam but, in 1986, the Sixth Party Congress approved a broad economic reform package called “Doi Moi” (renovation) that introduced market reforms and dramatically improved Vietnam’s business climate. Vietnam became one of the fastest-growing economies in the world. Vietnam’s consumer price index in 2006 was 7.5%. Average annual foreign investment commitment has risen sharply as a result of the U.S.-Vietnam Bilateral Trade Agreement and Vietnam’s drive toward membership in the World Trade Organization (WTO). The 2007 investment commitment is expected to have reached $10 billion, matching the $10 billion level of 2006. From 1990 to 2005, agricultural production nearly doubled, transforming Vietnam from a net food importer to the world’s second-largest exporter of rice.
Sales of equipment and technologies associated with growth in Vietnam’s industrial sector and implementation of major infrastructure projects continue to be a major source of commercial activity for U.S. firms. Aviation, telecommunications, information technology, oil and gas exploration, and power generation will continue to offer the most promising opportunities for U.S. companies over the next few years as infrastructure needs continue to expand with Vietnam’s pursuit of rapid economic development. Key U.S. agricultural inputs to production, such as hardwood lumber, cotton, hides and skins, and feed ingredients, also continue to play a key role in helping fuel Vietnam’s export-led manufacturing strategy. Detailed information for U.S. suppliers on Vietnam’s promising import markets may be found in the Country Trade Sourcebook’s 
