The hotel industry in Korea began to develop relatively recently, its history is not more than a hundred years.

In old Korea, commoners who wanted to go to uncharted lands were treated negatively by the authorities. After all, this deprived the country of a part of its income, since it was ordinary people who were the main taxpayers.

In those days, mostly nobles traveled and their movements were connected with the service. Therefore, the state treated this favorably and provided travelers with interchangeable horses, which were paid from the treasury. The nobles spent the night at post stations, but often they stayed at rich estates located along their route. They gave shelter to travelers and "sovons", which served as clubs for the local elite.

Until the beginning of the twentieth century, trading in Korea was considered an unworthy occupation. While in Japan it flourished. Therefore, when Korea opened (1876) its country to foreign merchants, it was the Japanese who opened the first hotel here in Icheon. After reading Chinese characters in their own way, the Koreans gave her the name "yeogwan".

Soon after, such institutions began to appear in Seoul. In 1887, there was already a similar hotel with six rooms, owned by a Japanese entrepreneur. At that time, it fully met the needs of the capital. But already in 1906, the number of such hotels was much larger, and the largest of them already had 30 rooms.

At first, Korean yogwans responded to the Japanese model, but already around 1910 establishments began to appear that had warm floors and Korean-style bedding. In hotels, they were fed twice a day, and Japanese food was prepared in Japanese, and Korean food in Korean.

When many missionaries, diplomats and Western businessmen began to visit Seoul at the beginning of the 20th century, there was a need for European-style hotels.

Development of the hotel industry in Korea.

And in 1901, the king granted permission to Mrs. Sontag (the sister of our Russian diplomat Karl Weber) to open such a hotel. For these purposes, she was given ownership of a two-story building in the center of Seoul. A restaurant was opened on the ground floor, serving Russian and western cuisines, and on the second were numbers. This hotel operated until 1919.

And already in 1914, the first international class hotel, the Joseon, was opened in Seoul.

Here is a story of the development of the hotel business in Korea.

Small business in South Korea

According to the general classification adopted in South Korea, SMEs are enterprises where the number of employees does not exceed 300 people or where the contributed capital for industrial enterprises does not exceed $ 8.5 million (construction and transport companies not more than $ 3 million, large wholesale companies and hotels not more than $ 30 million) There is also another more detailed classification, in which the criteria differ significantly depending on the sector of the economy in which the enterprise is created. In addition, enterprises, more than 30% of which are owned by large conglomerates with assets of more than $ 500 million, cannot be considered SMEs.

To date, the total number of small and medium-sized enterprises in the Republic of Korea is more than 3 million. Of these, 900 thousand medium enterprises with 50-300 employees, 240 thousand small enterprises with 10-50 employees and 2.68 million micro companies with employing up to 10 people.

SMEs account for 99.8% of all currently registered companies in this country.

Of all SMEs, the largest share, about 31%, is employed in the wholesale and retail trade, while 21.4% in the hotel and restaurant business, 11.5% in manufacturing, 10% in transport, 3.9% in providing various kinds of cultural and entertainment and sports services, 3% in education, 2.9% in real estate, 2.5% in the construction sector, 2.4% in the provision of consulting business services and 1.9% in healthcare and social protection population.

The total volume of production of SMEs is about 50% of the country's GDP. SME exports account for about 35% of Korea's total exports.

An important role in the development of SMEs was played by the support provided by the Korean government.

The policy of the Government of the Republic of Korea to support SMEs dates back to 1966, when the fundamental law "On Small and Medium Enterprises" was adopted. However, the industrial policy of the government during this period of time was directed mainly towards large corporations rather than SMEs.

With the introduction in the mid-1970s of a policy aimed at developing severe and chemical industries, SMEs have already received more attention as a sector that supports the development of more large companies. During this period of time, the main policy was aimed at protecting the areas of activity of SMEs, by identifying certain industries where access for large corporations was closed.

In the 1980s, the policy to protect SMEs was further strengthened. During this period of time, a special Fund for the Promotion of SMEs was formed and a long-term 10-year program to support SMEs was adopted.

With the acceleration of the opening of the market South Korea and a corresponding increase in competition, after the accession of the Republic of Korea in 1990 to the WTO, the policy framework for supporting SMEs was revised and focused on autonomy and competitiveness. During this period of time, the government narrowed its policy to the areas of activity of SMEs, focusing on supporting the development of technologies. Special measures have also been taken to strengthen the competitiveness of SMEs by initiating structural transformation projects in companies, including investments aimed at automating the production process.

The 10-year development program of the government of the Republic of Korea, adopted in 2000, played a major role in the development of small businesses and private entrepreneurship. Its main goals are: to increase the share of small and medium-sized companies in the export of industrial products from 37% to 50%, while increasing the production of goods with high added value from 50 to 56%, and the employment of the population from 70 to 78%. Ensuring low interest rates on borrowed capital, stimulation of the most competitive companies - character traits this program.

As a result, at the end of 2008, a program of anti-crisis measures and economic development of the Republic of Korea for a 10-year period "New Growth Engines Initiative" appeared, which is intertwined with the previously developed program "747". The government allocated $5.48 billion for its development alone.

As part of the program, an investment fund was created to support small and medium-sized businesses through the privatization of a number of state-owned companies, the launch of a whole network of social programs to support vulnerable segments of the population. The program provides for an increase in the state's financial support for local administrations. Investments for the development of industry and infrastructure in the provinces are planned in the amount of $ 37.7 billion, which are distributed among 30 projects and are designed for 5 years. Under the program, the government expects to create about 880,000 new jobs within 5 years. Investment in private sector, as well as in new scheme its development within the framework of this anti-crisis program will amount to $68.4 billion and $74.7 billion, respectively, which, according to calculations, should increase the volume of output in the private sector of the economy to $253 billion by 2013.

Asian countries have repeatedly surprised the world with their ideas and capabilities. China, Japan, Korea - conquered many countries with the scale of their production, supplies and capabilities. What business ideas are currently popular in Asia and what we can adopt for ourselves in our Top Business Ideas.

Top 5 business ideas from South Korea

Many business ideas have already been implemented in Russia, the CIS countries, Europe and the USA. However, many niches are still free. An important factor in the implementation of a business idea is not only a competent calculation and its relevance, but also the suppliers of the selected goods and services. Search desired product, manufacturer or a specific brand and local companies will help organize the supply chain. Services, a list of wholesale and retail purchases can company. In addition, the company's employees will help with customs clearance.

In this segment, South Koreans offer unusual ideas: square watermelons, chips roll on a stick, potato hot dogs (sausage in mashed potatoes covered with french fries and poured with ketchup) and a bar with unusual cocktails. The visitor himself must make a cocktail from the ingredients offered on the touch screen and give it a name. All this can be used as a separate product or to diversify the already existing range.

Asians offer to diversify the restaurant business using grills built into each table. Visitors order either a ready-made dish or semi-finished products and cook soup, baked meat, vegetables, etc. themselves. This will create a cozy and unique atmosphere.

Surprise cafe. The interest of visitors is fueled by the fact that the ordered dish is received not by you, but by the following visitors. And you will receive the order of the previous visitor. This is not only unusual, but also develops a social orientation, cultivates generosity in people and fights greed.

1. Alcoholic second-hand

No, no, this is not the sale of unfinished alcohol. This is the idea of ​​selling unused alcoholic beverages. For example, many people are given elite alcohol that they don’t feel like drinking or it stands idle for a long time. It is these unpacked bottles and cans with beer and low-alcohol drinks that can be handed over to such a second-hand store and bought at a discount. In the CIS countries, such an idea can be very relevant.

1. Amusement Park 4D

A novelty that can be implemented in any country. The new park of 10 thousand square meters is replete with various interactive entertainment, avatars, live animators, holograms, etc. Capacity 3 thousand people. The developer company plans to open them all over the world and is ready for cooperation.

1. Hammock

In general, unusual items are the highlight of Asian manufacturers. Another novelty was the under-table hammock. Such a little thing will provide rest for the legs and relaxation. Plus, you do not need to buy chairs and coasters, it is easy to wash, clean and hang.

According to the constitution, there is no private enterprise in the DPRK. Establishments belong to the state, and those opened by foreigners are officially registered and pay taxes. In fact, the situation is more complicated: since the mid-2000s, privately owned trade and services have been developing in the country. The state looks at this situation in two ways. On the one hand, entrepreneurship is contrary to the ideological principles of the Juche, on the other hand, it causes economic growth and saves the country's population from poverty.

Business development in the DPRK

In the crisis decade of the 1990s, people appeared in the country who understood that without additional sources their income is at risk of starvation. Therefore, bypassing the prohibitions, they began to smuggle goods and currency from China, creating the first illegal points of private business. The same was true for agriculture. where possible, people set up "illegal" vegetable gardens to grow soybeans and corn.

With the coming to power of Kim Jong-un, the situation has been simplified. The new North Korean leader, who spent his youth in Europe, understood that without market relations the country will not get out of the crisis. And although there is no official private enterprise in Korea to this day, underground private organizations feed hundreds of thousands of people.

Two "illegal" areas are developed in the country - the organization of business on the territory of the DPRK and illegal part-time work in other countries - China and Russia.

The best developed areas are:

• retail trade in food and household goods;
• points Catering;
• service sector - hairdressers, ateliers for repair and tailoring, workshops household appliances;
• enterprises for the manufacture of consumer goods.

The immigrant workers are mostly women. They are in demand in China, where they work in cafes and restaurants, sewing workshops, look after children and the elderly. Prostitution is also widespread. Men earn extra money at woodworking and construction enterprises.

Conditions for foreigners

Before the start of the sanctions policy against the DPRK, residents of Europe and other Asian countries could develop private trade relations with Korea. Retail chains and enterprises producing fittings for furniture, clothing and other household needs were in the greatest demand.

The imposition of sanctions led to the following consequences:

• on the territory of the country it was forbidden to create new and financially develop existing firms;
• for a number of persons, free crossing of the border of the DPRK was limited;
• a trade veto was imposed on North Korean metallurgy and light industry goods.

China and Russia partially continued relations with the country, who did not fully support the sanctions. Residents of the European Union are prohibited from doing business - this threatens with millions in fines and imprisonment. The introduction of sanctions of this kind hit the economy of both sides of trade relations.

Promising business sectors

For citizens of the Russian Federation business with North Korea i is possible, although the instability of the political environment increases the risk. The DPRK has embarked on the path of establishing relations with Moscow, so a number of concessions will be offered to entrepreneurs who want to start a business in Korea. At the same time, to formalize relations with the republic, you will have to obtain dozens of state-level permits, and the entrepreneur needs to prepare for the fact that security services will monitor his activities.

Promising industries for business relate primarily to the service sector and light industry. For investments in large industrial enterprises Opportunities are few as the industry is under strict government control.

Demanded areas for businessmen are:

• production and sale of food products;
• agricultural industries;
• retail sale of clothing and household items;
• repair and maintenance companies.

Corruption is very high in North Korea. Bribes are given to receive good place in kindergarten and school, for getting a lucrative position, for “blurring” the eyes of officials. There are no official statistics for the country, but without shadow investments, problems with the law threaten and local population and citizens of other countries.

Business from scratch in Korea

South Korean business is different from the way business is done in other Eastern countries.

• 1. How to start a business from scratch in South Korea
• 2. How to make money in South Korea?

Military action in the conflict between North and South Korea forced the state to take on the main expenses for business development. In heavy postwar period a number of corporations were created here that repeated the Japanese model. They were privately owned and financed and supported by the state. These corporations carry out their activities today, being very versatile, that is, supervising not one, but several industries at once.

For example, Samsung Electrical Corporation, founded in 1938, is also known in South Korea as a manufacturer of quality cars. And Samsung also owns a chain of expensive resort hotels, including on Jeju Island, known as the "Island of Lovers." In the same period, LG, Daewoo, Hyundai corporations were created. The latter receives its main income from shipbuilding, and the production of automobiles occupies only a small fraction of the power of the corporation.

It is worth noting that all these corporations do not divide spheres of influence among themselves, but produce almost the same range of products: electronics (including space), cars, ships, etc. And at the same time, competing on such dense market, these companies coexist peacefully. Otherwise, the destruction of one corporation by another would undermine the economy of South Korea.

A feature of the business of this country is that 10-12 such corporations own 85% of all South Korean business. The rest is occupied by a small and medium business. In South Korea, the dream of every graduate is to work for one of these giant corporations. Such activity is the guarantor of stable career growth and lifelong employment. You can get to such an enterprise only after a huge number of various internships, training, psychological and professional tests. Probation is 2 years. The South Korean worker, like the Japanese, is constantly improving himself and has almost no free time. Naturally, it is very difficult for a European person to start and work in such conditions.

Among people who are superficially familiar with South Korean business, there is a myth that despite being busy and sitting for a long time at the workplace, the staff here does nothing, which breeds low productivity.

In fact, the work is in jerks:

vigorous activity- break - vigorous activity

In fact, the whole day is spent at work.

There is also a myth about industriousness oriental man. In fact, if you methodically, persistently and constantly do some work, the state provides you with everything you need, and this brings a good income, necessary to cover running costs. In addition, the income of a wage worker in South Korea allows him to travel and develop. In South Korea, your corporation is your home, and the corporation itself is merged with the state apparatus.

Once upon a time, the state provided loans and stimulated the development of such companies. Today it supports them in times of crisis, but it itself has the opportunity to rely on them.

On the video: Business ideas abroad

The corporations themselves were founded by families that were once in power in the country, they are still managed by these families, and leadership positions in them are inherited. A similar model exists in Japan. This system has been actively criticized as potentially corrupt, but it works very effectively.

Today there is a serious division between corporations and the state, but corporations play a big role in the life of the state, shaping both political and economic models. It is also worth noting that corporations seriously compete with each other, both for a place in the market and for government subsidies and participation in government projects. The applicant can be immediately kicked out of the interview if he accidentally turned out to be dressed in corporate colors of one of the competitors. People work in corporations with their whole families. And getting a job is much easier if someone from the family is already working in this company.

Today, a new phenomenon has developed here - startups. In South Korea, they are understood and developed in their own way. There is a so-called "Unicorn Club". Minimum start-up capital startup from this club - a billion dollars. But there are not many of them - about 15. They are financed, as a rule, by universities, and subsequently the developing and profitable business is sold to large corporations.

Another feature: despite the openness of South Korea for investment, large foreign business cannot come here. Of course, there is no official ban, but they will not let it develop.

There is another paradox: Korean goods made in the country for domestic distribution are of very high quality, but the quality of goods made under the same Korean brands, but in other countries and for the non-Korean consumer, is much lower, as is their price. Near Beijing and near Shanghai there are gigantic production zones owned by Korean corporations, and there you can buy Korean goods cheaper than in South Korea itself.

The high price of goods in South Korea is due to very high requirements for their quality. This is basically very dear country. You can open here small business, having 10-12 thousand dollars. But you simply cannot work with this money. Rent, equipment, and labor are very expensive. If once people fled from South Korea, now almost a million expats live here - foreigners who have the right to live and work in the country, doing legal and legal business.

This right is granted by the D-8 visa, this is a special work visa.

On the video: How to make money in Korea

On the video: Types of visas to Korea

If you have any development in the field, for example, bioengineering, you can write to one of the universities, and perhaps they will provide you with a laboratory and all the conditions for work and development. But in order to come and start a business in Korea, you must not only have a minimum capital of 200 thousand dollars, but also demonstrate the profitability of this business, i.e. Korea restricts the presence of foreigners on its territory. To become a citizen of this country, a person must be useful to her. That is, if you are not a well-known scientist and not a big businessman, then most likely you have no chance of getting a South Korean passport.

Previously, South Korean products, having a quality comparable to Japanese, were somewhat cheaper, which gave them a head start in the market and allowed corporations to develop, but today there is a pressure factor from cheaper Chinese, Indonesian and Malaysian goods. Therefore, South Korea is slowly losing its advantage in external business. For example, Chinese cars are already competing with Korean ones.

As for the external market, it is closed. An exception can only be some unique product, which has no analogues in the country. However, Koreans are not eager to buy imported products. They respect domestic manufacturer for guaranteed high quality. This applies to both non-food items and food products.

On the video: How to start a business in Korea

There are also farmers' markets in South Korea, which have almost no effect on the economy. Many sellers in such markets do not even pay taxes. If you are walking around big cities South Korea, then you may get a double impression. Before you are chic, expensive buildings and very simply dressed people. This is due to the country's agricultural past and rapid urbanization. Today at agriculture only 12% of citizens are involved.

On the one hand, the legislation here is very transparent, but on the other hand, since the entire South Korean market is divided among several corporations, it is almost impossible to build a business here. There is simply no free niche for him. Especially if you are a foreigner. Even if you manage to create something, then very soon you will sell it to the Koreans. This is a very restaurant nation. There are such international chains as Starbucks and KFC, but Koreans do not really like them, preferring their small restaurants. All attempts by Russian business to break into the South Korean food market have failed. Russians just don't have basic knowledge about Eastern business. And they also lack connections in this country. South Korea is very picky when it comes to choosing partners. You have to prove to her that she needs you, and if not, then you and your business have no chance.

On the video: Business immigration to Korea

Expert - Alexey Maslov.

The Republic of Korea, or, as it is also called, South Korea, is confidently becoming one of the economic leaders today. And this applies not only to the Asian sector - in some categories on the world market, it can compete with such giants as India, China and the United States. Many Korean-made products are comparable in quality to European counterparts, but at a much cheaper price, which makes importing very profitable even taking into account logistics costs. Korean business ideas arouse no less interest in Russia.
In turn, South Korean manufacturers are also very interested in entering the Russian market. It is one of the priority areas for big business and is also being actively developed by medium and small companies. And the only significant obstacle to direct contact is the difference in mentality and characteristics business etiquette. This is the main thing to pay attention to when planning how to start a business with South Korea (but we will talk about business etiquette a little later).

How to find business partners from South Korea

Do-it-yourself search on business websites - there are many international platforms in the network where intermediaries (usually emigrants from former union republics) offer the selection of business partners or the purchase and resale of specific goods from South Korea. Last option is suitable for small business- small online stores, private entrepreneurs, etc.

The advantage of this option is its simplicity, minimal efforts to organize cooperation, low risks, and the absence of a language or mentality barrier. But there are two drawbacks: firstly, this scheme is optimal only for small wholesale parties, and secondly, it implies an inevitable markup on goods from the intermediary. In addition, both parties do not have direct contacts and cannot agree on mutually beneficial terms of the transaction.

Collaboration with KOTRA - as a branch of the Korea Trade-Investment Promotion Agency in Novosibirsk, we organize interaction between South Korean and Russian companies interested in trade cooperation. The Novosibirsk branch of KOTRA has been operating since 2004, on the one hand, contributing to the promotion of business ideas from South Korea on the Russian market, and on the other hand, helping Russian companies find suitable business partners in Korea.

KOTRA services include:

• Organization of exhibitions, trade missions and meetings for South Korean manufacturers in Russia;
• Assistance to Russian companies that would like to participate in business events in the Republic of Korea;
• Search for partners for Russian companies interested in importing Korean business ideas and goods;
• Services of translators during business negotiations and translation of necessary documentation;
• Organization of negotiations between Russian and Korean businessmen (including online).

You can get an idea of ​​the circle of KOTRA business partners and the scope of their activities by visiting the page. Here you can also fill out an application to search for a supplier of the products you need in Korea.

For Russian entrepreneurs, our services are absolutely free. Each company from among our clients is assigned a personal manager who can not only select business partners, but also advise on how to start a business with Korea, what features of Korean business etiquette should be taken into account when negotiating, etc.
It is worth noting that for Korean entrepreneurs, especially for large companies, it is very important that acquaintance with a new business partner begins with recommendations from a third party. It is not uncommon for Russian businessmen to attempt to establish direct contact with suppliers over and over again failing. However, the same companies were able to secure lucrative contracts when they were recommended by an intermediary with a good reputation in South Korea.

The non-profit trading agency KOTRA has been organizing contacts between Russian and Korean companies since 1988 and today has offices in 86 countries around the world. We enjoy confidence in the South Korean business environment, which allows us to successfully fulfill our functions as a link between Korea and Russia.

face to face meetings- business meetings for Russian and Korean businessmen are held in the Siberian region several times a year in order to establish business contacts. Such meetings involve professional translators so you don't have to worry about the language barrier. High level confidence in the KOTRA organization on the part of the South Korean business makes the meetings very effective, almost all of them end with specific agreements and the signing of contracts.
The section provides information on successful business negotiations with South Korean suppliers held by KOTRA for last years. So, only in 2018, 4 trade delegations were organized, which were attended by official suppliers of South Korean cosmetics, agricultural equipment, food, household chemicals, metal cutting tools, household products, etc. Russian entrepreneurs can take part in such meetings free of charge - just send an application.

What to bring to Russia from Korea

Among Korean products that are in high demand on the Russian market, skin care and decorative cosmetics are in the lead. In terms of quality, it is not inferior to many European and Japanese brands, but it is much cheaper to purchase. Manufacturers offer favorable wholesale prices, which, even taking into account delivery and customs costs, make it possible to make the retail price for the end buyer not too high - in the middle market segment.

Today, major cosmetic brands in South Korea are adapting their products to European type skin, which is known to be different from Asian. This is a significant argument in favor of paying attention primarily to large, well-known players in this market when choosing a supplier. We help Russian entrepreneurs understand these nuances and establish contacts with the right South Korean companies. You can read more about how to start developing this business in our article.

What else to bring to Russia from South Korea, besides cosmetics? In fact, the list of products that are in high demand on the Russian market is quite large.

Main import items from Korea:

• cosmetics,
• Food,
• auto parts,
• agricultural machinery,
• Appliances,
• equipment for the food industry,
• dental materials.

South Korean products of major brands fully meet European quality standards, have international certificates, so it inspires confidence in the end user. For instance, dental clinics willingly buy Sewon Medix dental implants, and beauty salons buy MJ Care and BILLIDIAN cosmetics.

Other an important factor is that certain Korean products have already won the trust of Russian consumers. Thus, Korean cars Kia, Hyundai, Daewoo are very popular, respectively, original auto parts have been and remain an important direction of import from Korea.

Among the promising ones are Korean business ideas regarding recycling different types garbage, water purification, environmentally friendly sources of electricity. The latter direction is still at the beginning of its development in our country, which means that the market is far from being oversaturated and there are favorable conditions to start.

Business Etiquette

South Korean negotiating traditions differ significantly from Russian and European business etiquette, which causes a certain percentage of failures when trying to establish contacts with Korean suppliers. In Korea, a lot of attention is paid to age and social hierarchy- it is customary to greet those present according to seniority, and to negotiate only with those who are equal in social status(occupies similar positions in the company).
Also, any manifestations of swagger, an informal style of conversation, and a reduction in physical distance are highly discouraged. Even if we are talking about a business dialogue at a buffet table, you should not approach the interlocutor at a distance of less than an outstretched arm.

Features of Korean business etiquette:

• Koreans attach great importance punctuality and compliance with the minutes of the meeting - the postponement of the date or being late is unacceptable.
• In Korea, a handshake is rarely used as a greeting, but if your partner extends their hand out of respect for you, you should not shake it too hard, let alone shake it. The traditional gesture in Korea is a slight bow, holding the right wrist with the left hand.
• For potential business partners, it is advisable to bring English-speaking Business Cards, which will indicate what position the negotiator occupies in the company.
• At the beginning or end of the meeting, Korean partners can ask personal questions about family, health, children - this is a courtesy.
• For negotiations, men should choose the most strict suit in dark colors with a white shirt and without a bright tie. For women, it is better to give preference to a business dress or a jacket with a skirt (trousers are not recommended).
• At exhibitions and other business events, it is optimal if a Russian company is represented by a third party - it is not customary to get acquainted yourself.
• It is worth remembering that Koreans take verbal agreements seriously and usually carry them out with great precision without any prompting. If they manage to establish contact, they show themselves as very reliable business partners, but in return they demand the same attitude.
• Small souvenirs for partners will increase the chances of success in negotiations when it comes to the first meeting.

As you can see, Russian and Korean features of business etiquette have significant differences. international organization KOTRA aims to establish a productive dialogue between these countries and a mutually beneficial partnership. We are interested in promoting business ideas from Korea and are ready to help Russian companies find free suitable supplier bypassing all the "pitfalls". If there are no manufacturers you need, just fill out an application and we will search for the appropriate company.