Kuldeep eco

 India  Republic of Korea

Population 1,190,340,000 48,758,000

Area 3,287,240 km2 (1,269,210 sq mi) 99,392 km2 (38,375 sq mi)

Population Density 356/km² (922/sq mi) 491/km2 (1,271/sq mi)

Capital New Delhi Seoul

Largest City Mumbai – 13,922,125 (21,347,412 Metro)

Seoul – 10,464,051 (24,472,063 Metro)

Government Federal parliamentary constitutional republic

Unitary parliamentary constitutional republic

Official languages Hindi and English, 21 other constitutionally recognized languages

Korean

GDP (nominal) $1.367 trillion ($1,124 per capita) $991.147 billion ($20,265 per capita)

Country comparison

FOREIGN TRADE POLICY (S.KOREA)

Seoul stated in 1987 that its foreign trade policy was structured for further expansion, liberalization, and diversification. Because of the paucity of natural resources and traditionally small domestic market, South Korea has had to rely heavily on international trade as a major source of development. Seoul also sought to diversify trading partners to ease dependence on a few specific markets and to remedy imbalances in the present tendency to bilateral trade. 

Foreign direct investment is the acquisition of assets in a country by foreign entities for the purpose of control. FDI is ownership of at least 10% of a business.Increasing foreign investment can be used as one measure of growing economic globalization. Foreign direct investment (FDI) plays an extraordinary and growing role in global business.It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing.

   Foreign direct investment:

FDI IN SOUTH KOREA  Cumulative FDI inflows (net of ADRs/GDRs) during 1991-2006 

(up to June) is US$ 40.63 billion, including amount of acquisition of existing shares (upto 1999), RBI’s-NRI Schemes, stock swapped & advance pending for issue of shares. 

 South Korea ranks 9th & Cumulative FDI inflows (net of ADRs/GDRs) from South Korea is US$ 0.76 billion (2.07%), excluding FDI inflows received for acquisition of existing shares (upto 1999), RBI’s-NRI Schemes, stock swapped & advance pending for issue of shares. 

Total FDI approvals (net of ADRs/GDRs) during the last fifteen years are over US$ 70.33 billion. 

South Korea ranks 5th & accounts for about 3.78% with FDI approvals (net of ADRs/GDRs) of US$ 2.67 billion of the total investment approvals 

FDI OF VARIOUS COUNTRIES

RANK  COUNTRY AUG1991- MAR- 2002

2002-03 (APRIL-MARCH)

2003-2004 (APRIL-MARCH)

2004-2005 (APRIL-MARCH)

2005-2006 (APRIL-MARCH)

2006-2007 (APRIL-MARCH)

2007-2008 (APRIL-MARCH)

2008-2009 (APRIL-MARCH)

2009-2010 (APRIL-MARCH)

2010-2011 (APRIL-MARCH)

1 MAURITIUS 27,446

(6,632)

3,766(788)

2,609(567)

5,141(1,129)

11,441(2,570)

19,259(4,215)

44,483(11,096) 50,899

(11,229)49,633(10,376)

23,576(5,158)

2 U.S.A12,248(3,188)

1,504(319)

1,658(360)

3,055(669)

2,763(607)

2,763(607)

4,377(1,089)

8,002(1,802)

9,230(1,943)

4,247(926)

3 U. K4,263(1,106)

1,617(340)

769(167)

458(101)

1,164(266)

7,525(1,682)

4,690(1,176)

3,840(864)

3,094(657)

1,765(385)

4 NETHERLAND 3,856

(986)836(176)

2,247(489)

1,217(267)

340(76)

2,217(488)

2,780(695)

3,922(883)

4,283(899)

3,643(802)

5 JAPAN 5,099(1,299)

1,971(412)

360(78)

575(126)

925(208)

237(52)

3,336(815)

1,889(405)

5,670(1,183)

4,141(917)

6 SINGAPORE 1,997

(515)180(38)

172(37)

822(184)

1,218(275)

2,463(533)

12,319(3,073)

15,727(3,454)

11,295(2,379)

6,198(1,367)

7 GERMANY3,455(908)

684(144)

373(81)

663(145)

1,345(303)

319(70)

2,075(514)

2,750(629)

2,980(626)

473(104)

8 SWITZERLAND 1,200

(325)437(93)

207(45)

353(77)

426(96)

217(47)

1,039(258)

1,133(257)

3,017(629)

1,289(278)

9 FRANCE1,947(492)

534(112)

176(38)

537(117)

82(18)

365(80)

583(145)

2,098(467)

1,437(303)

1,569(340)

10 SOUTH KOREA 2,189

(594)188(39)

110(24)

157(35)

269(60)

281(62)

3,385(834)

5,983(1,287)

7,728(1,627)

2,746(598)

TOTAL (FDI ) 92,611

(23,829)14,932(3,134)

12,117(2,634)

17,138(3,754)

24,613(4,549)

42,138(9,270)

98,664(24,579)

123,025(27,331)

123,120(25,834)

64,083(14,025)

FDI inflows in INDIA AND KORES (US $ million)

Year India (US $ MILLION) Korea (US $ MILLION)

1999 2168 9838

2000 3568 9004

2001 5472 4086

2002 5627 3399

2003 4323 4384

2004 5771 8997

2005 7606 7055

SECTORS ATTRACTING HIGHEST FDI  IN INDIA

RANK SECTOR Amount of FDI Inflows2002-03 (APRIL-MARCH)

2003-04 (APRIL-MARCH)

2004-05 (APRIL-MARCH)

2005-06 (APRIL-MARCH)

2006-07 (APRIL-MARCH)

2007-08 (APRIL-MARCH)

2008-09 (APRIL-MARCH)

2009-10 (APRIL-MARCH)

2010-11 (APRIL-MARCH)

1 Electrical Equipments(including computer software &electronics)

3,075(644)

2,449(532)

3,281(721)

1,059(241)

11,786(2,614)

5,623(1,410)

7,329(1,677)

4,351(919)

2,617(574)

2 Transportation Industry

2,173(455)

1,417(308)

815(179)

672(153)

4,424(985)

6,989(1,743)

5,212(1,152)

5,754(1,208)

2,399(533)

3 Services Sector(financial & non-financial)

1,551(326)

1,235(269)

2,106(469)

1,708(388)

21,047(4,664)

26,589(6,615)

28,516(6,138)

20,776(4,353)

11,885(2,596)

4 Telecommunications(radio paging, cellular mobile,basic telephone services)

1,058(223)

532(116)

588(129)

688(156)

2,155(478)

5,103(1,261)

11,727(2,558)

12,338(2,554)

4,962(1,093)

5 Fuels (Power + Oil Refinery)

551(118)

521(113)

759(166)

81(19)

401(89)

5,729(1,427)

1,931(412)

1,328(272)

2,421(529)

6 Chemicals(other than fertilizers)

611(129)

94(20)

909(198)

741(169)

930(205)

920(229)

3,427(749)

1,707(362)

1,238(271)

7 Food Processing Industries

177(37)

511(111)

174(38)

156(36)

21,047(4,664)

26,589(6,615)

12,621(2,801)

13,586(2,844)

4,569(999)

8 Drugs & Pharmaceuticals

192(40)

502(109)

1,343(292)

452(103)

1,731(390)

930(205)

5,212(1,152)

5,754(1,208)

2,399(533)

9 Cement and Gypsum Products

101(21)

44(10)

1(0)

1,967(447)

2,121(467)

8,749(2,179)

8,792(2,028)

13,516(2,862)

3,762(834)

10 Metallurgical Industries

222(47)

146(32)

881(192)

479(109)

7,866(173)

4,686(1,177)

4,157(961)

1,935 (960)

(407)4,402

SECTORS ATTRACTING HIGHEST FDI  IN SOUTH KOREA

Ranks Sector Amount of FDI inflows In Rupees In US$

%age with FDI inflows from South Korea

1. Electrical Equipments (including computer software & electronics)

3,630.5 78.7 41.49

2. Metallurgical Industries

2,286.8 51.0 26.13

3. Food Processing Industries

858.5 18.7 9.81

4. Transportation Industry

558.6 12.8 6.69

5. Industrial Machinery

146.8 3.2 1.68

Total of the above 7,481.2 164.4 85.8

(i) Amount includes the inflows received through FIPB/SIA route, acquisition of existing shares & RBI’s automatic route only. (ii) The amount of FDI inflows in respect of the Country & Sector specific data is not provided by RBI, Mumbai prior to January 2000.

SHARE OF TOP SECTORS ATTRACTING FDI INFLOWS FROM SOUTH KOREA :(from January 2000 to June 2006)

(Amount in million)

Success of Korean Companies in India

Indian Companies in South Korea

http://www.indochamkorea.org

BANKING SECTOR

Banking sector in South Korea.

Korea's financial sector includes a diversely commercial banking system, a wide range of secondary financial institutions, and a securities market. 

There was a substantial change in the environment of the financial sector in the mid-1980s. In 1986, 

The cornerstone of financial liberalization was laid in December of 1988, with the extensive deregulation of interest rates of banks and non-bank financial services industry, entry barriers were further lowered and, in 1989, three new commercial banks were established. In a similarly motivated development, a number of securities investment trust companies were set up in 1989 and, in the four-year period from 1987 to 1990, eighteen life insurance companies were established. The latter comprised thirteen domestic companies and five joint-venture companies. In addition, four foreign life insurance companies were allowed to open branches in Seoul.

Banking sector in India.

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India  which, upon India's independence, became the State Bank of India

BANK CAPITAL TO ASSETS RATIO (%) IN SOUTH KOREA AND INDIA  Bank capital to assets ratio (%) in South Korea. The Bank capital to 

assets ratio (%) in South Korea was reported at 9.0 in 2007 Bank capital to assets ratio (%) in India. Bank capital to assets is the 

ratio (%)  in India was reported at 6.4 in 2007. Capital and reserves include funds contributed by owners, retained earnings, general and special reserves, provisions, and valuation adjustments

Year % (India) %(Korea)

2002 5.5 7.2

2003 5.9 7

2004 6.6 8

2005 6.4 9.3

2006 5.7 9.2

2007 6.4 9

DOMESTIC CREDIT PROVIDED BY BANKING SECTOR (% OF GDP)  INDIA AND KOREA

YEAR % (INDIA) %(KOREA)

2001 54.65  92.4

2002 58.86  96.78

2003 57.44  99.29

2004 59.28  94.94

2005 60.12  99.39

2006 63.32  99.91

2007 64.22  101.85

2008 71.59 112.6

Domestic credit provided by banking sector (% of GDP) in India. The Domestic credit provided by banking sector (% of GDP) in India was reported at 71.59 in 2008,.

 Domestic credit provided by the banking sector includes all credit to various sectors on a gross basis Domestic credit provided by banking sector (% of GDP) in South Korea. The Domestic credit provided by banking sector (% of GDP) in South Korea was reported at 112.60 in 2008, 

DOMESTIC CREDIT TO PRIVATE SECTOR (% OF GDP) IN INDIA AND KOREA

Domestic credit to private sector (% of GDP) in India. The Domestic credit to private sector (% of GDP) in India was reported at 51.35 in 2008, 

Domestic credit to private sector (% of GDP) in South Korea. The Domestic credit to private sector (% of GDP) in South Korea was reported at 109.07 in 2008

YEAR % (INDIA) %(KOREA)

2001  29.08  90.39

2002  32.81  95.68

2003  32.06  97.65

2004  36.62  92.45

2005  40.57 95.14

2006 44.95  95.14

2007 47.32  99.65

2008  51.35  109.07