PESTEE Analysis Korea
Political factors refer to political situation of the country and the extent to which it may affect and interfere with the project.
Political system of South Korea has undergone a huge transformation to become a democratic country in 1987. South Korea became a stable democracy with strong political and economic support from the US
The political landscape of the country include centralization of power which the implementation of economic reforms became faster and effective so that the country was fully focused on economic development and friendly to foreign investments, especially strengthening foreign relationships with emphasis on EU. ...view middle of the document...
| | |Transparent system |
The analysis of the economic variables which plays a critical role in compiling a business case for the project as this document indicates whether or not the project is worth investment helps to determine the future profitability of the project’s deliverable.
Foreign entrants is attracted by the strong export sector combined with positive investment climate in the South Korean market. The significant growth of Korean economy heavily relies on manufacture and export of electrical and electronic products and stands for an attractiveness of this country for investors. The financial and economic reforms allowed the country to note the Gross Domestic Product at the level of 1304.55 billion US dollars in 2014 in comparison to 2004 when it oscillated around 354 billion dollars (TradingEconomies.com, 2014).
|Current strengths: |Current challenges: |Future prospects |
|Successful economic reforms |Declining level of FDIs |Competitive tax policy |
|South Korea Economic freedom score is 70.3 |Low intensity of competitiveness|Liberalized service sector |
|Its GDP is $1.6 trillion |Low level of imports |Implementation of free trade agreements |
|Rate of unemployment is 3.4% | |(FTA) |
|The inflation rate is 4% | |Per capita income is very high |
|FDI inflow is $4.7bn (heritage.org, 2013) | |Corruption free environment, an educated & |
|Powerful export sector | |determinate workforce. |
|Approval of free trade agreement (FTA) | |Business friendly economy in the world |
|Competitive tax policy is adopted by the country | | |
Analyzing social factors is to determine whether the project and products will stand for benefit or risks in the country it is conducted. It impacts on projects in aspects of population growth rate, demographic landscape, education level (it will be mentioned as the last factor of report), spending power, lifestyle, attitudes to work.
The rapid urbanization (83% people lives in urban areas) and industrialization of South Korea heavily impacted and transformed the population which after years of limited access to goods, rapidly started to developed the demand for modern shopping environments and revealed...