Most leading multinational equipment manufacturers operate in Korea. In computing services, 10 large local systems integration companies account for about 80 percent of the total market.
In the web service and digital contents areas, creative local players are dominating the market. Large multinational companies are trying to penetrate the Korean market to get their new products tested by the active consumer group.
Getting your product into market
Both domestic and foreign equipment manufacturers supply direct to telecommunication service providers, usually on a tender basis. End users generally do not conduct business direct with foreign suppliers outside Korea.
A local presence, through an agent, branch office or co-operation with a domestic company is therefore necessary as operators expect prompt in-market maintenance and after-sales service.
New Zealand exporters interested in entering the market are recommended to identify opportunities with leading local manufacturers and distributors.
Participation in ICT related events such as the World IT Show, the Korea Electronics Show and working with Korean industry associations through New Zealand Trade and Enterprise are cost effective ways to identify appropriate local partners.
Regulations
Most telecommunications equipment and components are imported under HS Code headings 8517, 8525, 8527 and 8529. Please check with New Zealand Trade and Enterprise for current duty rates for individual products.
There are no import taxes on software imports.
Telecommunications equipment imports are not restricted. However in some cases, products need to be tested and approved by the appropriate authorities prior to import. The import of software is not restricted and no regulations exist in relation to technical standards and labelling.
Korea Telecom and private service providers all have their own specifications and approval processes.
Opportunities
- Korea is to spend more than 4.2 trillion won (about NZ$5.31 billion) to develop green technology in electronics products and communications services to reduce energy consumption, lower costs and boost manufacturing productivity.
Challenges
- Korean customers have a strong preference for customised services by service and software providers. Foreign vendors are often expected to accommodate requests for modifications to their original software products to meet the demands of the local language and business environment.
- Many well-known overseas players and strong local suppliers are active in this established market. New Zealand companies may find it difficult to penetrate this market without a good reputation and a strong technological advantage.
