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Why Invest in Korea?

Why Invest in Korea?

Since 1980, the per capita income of Korea has increased from USD 2,300 to USD 30,000 in 2010, while the gross domestic revenue increased from USD 88 billion to more than USD 1.46 trillion in the same time frame. This increase looks continuous. As follows, our company formation agents in Korea present a few reasons why foreign entrepreneurs choose to invest in Korea.

1. The fiscal strength of Korea

All major credit rating agencies, Standard & Poor’s, Moody’s and Fitch, have rated Korea to their highest ratings since it was first upgraded in 1986.

Even though it is ranked under the U.S. and the U.K., Korea is graded higher than Japan among the developed jurisdictions, which is an important reason to invest here, in our Korea company formation advisors’ opinion.

Moreover, Korea is a country with one of the lowest levels of sovereign debt, 34.5% of the GDP(gross domestic product) and the local government has registered a budget surplus in 9 out of the last 10 years.

2. Korea has a booming economy

The economy of Korea is ranked the 15th in the entire world by the nominal gross domestic product (GDP) and the 12th by the purchasing power parity (PPP).

However, one of the main reasons why invest in Korea is maybe the fact that the local economy is regarded as both a stable high-income developed state and a member of the Next Eleven countries, which means it has a strong growth potential for the following years.

Despite the fact that it lacks natural reserves and it is overpopulated, Korea is at the present the seventh largest exporter and the tenth largest importer in the entire world.

Our Korea company registration consultants can assist you in starting a business in Korea

3. An advantageous stock market

The stock market in Korea is competitively valued, however, there are only a few companies with ADRs (American Depositary Receipts) trading in the U.S.

The stock market in this country is trading at less than 12 times earnings, which is a deep discount to valuations for the U.S. market.

Recently, the local index increased by less than 2%. Viewing the excellent prospects of the country, that transforms it into a great buy.

If you need to know more reasons to invest in South Korea, or for help to open company in Korea, please get in touch with us.