Population: 48,422,644

Economy Overview:

Since the early 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four decades ago GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, it joined the trillion dollar club of world economies. Today its GDP per capita is 14 times North Korea's and equal to the lesser economies of the European Union. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. Growth plunged to a negative 6.9% in 1998, then strongly recovered to 9.5% in 1999 and 8.5% in 2000. Growth fell back to 3.3% in 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth in 2002 was an impressive 7.0%, despite anemic global growth. Economic growth fell to 3.1% in 2003 because of a downturn in consumer spending and recovered to an estimated 4.6% in 2004 on the strength of rapid export growth. The government plans to boost infrastructure spending in 2005. Moderate inflation, low unemployment, an export surplus, and fairly equal distribution of income characterize this solid economy.

General Business Practices.

Provide a brief description of languages used in business transactions and in court proceedings.

The official language of Korea is the Korean language. It is used in both business transactions and court proceedings. Therefore, if court proceedings are initiated, all documents in foreign language must be translated into Korean language and when required, the translated version must be notarized by a Notary Public prior to filing a lawsuit in the Courts.

- What is the primary monetary unit used in business transactions?

The monetary unit in Korea is the Korean won (KWN).

- Is there any basic or professional etiquette to follow that might facilitate business proceedings?

Prompt reply and simple expressions are recommended in all business proceedings as the peoples are rather hot tempered.

Collections

This will form the major part of the information. This is further broken down into six areas, identified below

A. Background

- Estimate the volume of the collection work done in your country.

There is no data about the volume of the collection work performed in Korea.

- Is the collections work handled by lawyers, professional collection agencies, or both?

The collection work is handled by both the lawyers and the professional collection agencies in Korea. But if court proceedings are initiated, it is mandatory to secure the service of a lawyer. However, the collection agencies are allowed not to collect the consumer debt but to collect the commercial debt only.

- Is the collection work done on both consumer and commercial accounts?

Collection work for both consumer and commercial accounts are done. But the professional collection agencies are not allowed to handle the consumer accounts.

B. Please describe any licensing or bonding requirements applicable to collection lawyers or agents.

The collection agency must have the license from the government for the collection work with more t