United States Department of Commerce

Doing Business in Korea: 2013 Country Commercial Guide for U.s. Companies United States Department of Commerce

Publisher Marketing: The long-anticipated Korea-U. S. Free Trade Agreement (KORUS) went into force on March 15, 2012, becoming our nation's largest FTA since NAFTA. The Agreement is expected to increase U. S. exports to Korea by approximately USD 10-12 billion. In 2011, more than 20,000 SMEs exported $13.9 billion in goods to South Korea, a 22% increase from known SME exports in 2010. Total 2011 U. S.-Korea trade exceeded USD 100 billion for the first time ever, also surpassing that mark in 2012. Total U. S. exports in 2012 exceeded USD 42.3 billion. Korea is the United States' eighth largest export market. The U. S. is the third largest exporter to Korea, with an 8.3 percent market share of Korea's total imports. Key competitors include China with 15.5 percent, Japan with 12.4 percent, and the EU's 27 nations with 9.7 percent. With the EU having already implemented its FTA with Korea, U. S. firms will now be on more equal footing with the benefit of KORUS implementation. (China's trade reflects significant re-export activity.) Korea's projected 2013 GDP growth forecast is 2.8%, according to the International Monetary Fund. Its commercial banks maintain strong reserves in the case of a possible global slowdown or difficulties in the Euro Zone. Korea will continue to focus its development on key economic growth sectors. Patents, trademarks and industrial designs issued by the Korea Intellectual Property Office (KIPO) reached 400,815 in 2012. The increasing trend in local patent and trademark filings reflects the move toward more technology-intensive and capital-intensive industries and services.