The Korean Business System - National Characteristics and the Impact of the FTA between Korea and the EU from a European Corporate Perception.

Abstract

In recent years, Korea has achieved considerable economic growth accompanied by potential business opportunities for international companies. The European Union is currently negotiating a Free Trade Agreement (FTA) aiming at increased trade and business relations. Hence, the Korean business system and its foundations in societal characteristics need to be taken into account by Europan political and economic actors. The purpose of this study is to identify those characteristics and to explore their linkages as perceived by European companies. In addition, their perception of the FTA’s impact on characteristics of the Korean business system will be explored. This research is based on the socio-economic approach of business systems theories. Empirical findings resulted in a comprehensive image of the Korean business system enriched by a European corporate assessment. For this, 10 semi-structured interviews have been conducted. While assessing the FTA positively, European companies expect this political measure to have a rather limited impact on their business activities. In the long term, it could be concluded that the FTA indirectly exerts influence on societal characteristics and linkages of the Korean business system.