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)
15-64 years: 72.3% (male 17,897,053/female
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:
0-14 years: 30.5% (male 187,197,389/female
165,285,592)
15-64 years: 64.3% (male 384,131,994/female
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
percentage is less than 50 percent of total
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
percentage is less than 50 percent of total
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
percentage is less than 50 percent of total
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:
$836.5 billion (31 December 2009)
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:
$278.8 billion (31 December 2009)
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