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Summer 2017

NEW BCCK LOGO LAUNCHED The BCCK’s new logo represents its unique role and new services

CHAMBER DONATES 70M+ TO ITS GOOD CAUSES BCCK gives back to the community through its Charity and CSR program

KOREA: OPPORTUNITY FOR BRITISH LUXURY The UK’s alliance of British luxury brands, Walpole, explains why Korea is a go-to-market

HWAYO GROWTH & PROMOTION THROUGH THE BCCK Creative Director, Lucia Cho, discusses company’s ambitions to grow their market in the UK


Platinum Members

BCCK

SUMMER 2017

About Us Formed in 1977, the British Chamber of Commerce in Korea (BCCK) is a membership-based, non-profit organisation that represents the business interests of its members in Korea. The Chamber represents a broad spectrum of British, international and Korean companies, which all share significant commercial interests in the country. The Chamber has over 330 members of which approximately 25% are Korean. The Chamber also works together with the British government to promote British trade, commerce and investment in Korea and to encourage business development between Korean and British companies. About FOCUS FOCUS is quarterly webzine distributed throughout the BCCK’s network both in the UK and Korea. Contributors Hwayo(Lucia Cho), Mike Gatting, North London Collegiate School Jeju, Nowak & Partner Co., Ltd., Mazars Sebit Corp. (Julien Herveau), HwangMokPark(ChanSik Ahn, Garam Song), Walpole(Charlotte Keesing) Advertisers British Airways, Dearment, EF Korea, Hwayo, Jo Malone London, Nespresso, Standard Chartered Bank, The Executive Centre. Photography Greg Samborski (www.gregsamborski.com)

Patron Members

FOR ADVERTISING & ARTICLE CONTRIBUTION ENQUIRIES BCCK Marketing & Communications Team marketing@bcck.or.kr, (+82) 2-6365-2307

BCCK FOCUS Issue No.02

Publisher: British Chamber of Commerce in Korea 14th Fl, The-K Twin Towers B-dong, 50, Jongro 1gil, Jongro-gu, Seoul, Korea (+82) 2-6365-2300 www.bcck.or.kr


CONTENTS

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Congratulatory Message 06 Chairman’s Message

Chamber Focus General Chamber News 07 Chamber donates upwards of KRW 70m to its four good causes 08 Our New Logo 09 The Investor: Korea attracts UK Retail Firms as Asia’s Trendsetter 09 BCCK CEO Speaks at Seminar on Fourth Industrial Revolution

Trade Services’ News 10 BCCK Publishes Article Series on Opportunities for UK Business in Korea 10 British Brands Continue to Show Strong Interest in Korea 11

Q2 Highlights

Events – Business 13 Breakfast Workshop: Brexit & the UK’s Snap General Election 13 Breakfast Forum: Women in the Korean Corporate World 14 2017 Korean Labour Market Trends: Mid-year Update 14 Breakfast Workshop on Outlook for North Korea in the Trump Era

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Events – Networking 15 BCCK holds Sherlock HolmesThemed Queen’s Birthday Ball 16 Bar night: BCCK first to hold event at the Four Season’s Charles H. Bar 16 BCCK Summer Pub Night Draws 100 17 BCCK Hosts Interview Evening with Author Michael Breen 17 BCCK Hosts Interview Evening with Cricketer Mike Gatting

Upcoming BCCK Events 18 Upcoming BCCK Events

UK-Korea Trade Focus 22 Lessons Learned: UK Successes in the Korean Market 24 Opportunity for British Luxury in Korea

People Focus 26 Hwayo: Spreading the ‘Authentic Korean’ Ethos, Interview with Lucia Cho 31 Five Questions with Cricketer Mike Gatting

Market Focus 34 Korea's Beauty Market: Trendsetter for Asia

36 Korea: A Key Market For UK F&B Franchisers 38 The Korean Property Rental System 42 CFO Briefing: What CFOs need to know about the payroll, tax and internal control environment in Korea

Legal Focus 45 Popularity of Virtual Currencies

Lifestyle Focus 47 An Educational Revolution is Happening on Jeju Island

Member Focus 50 Member Stories 54 Member CSR Activities 56 New Members 57 Member Offers

Special Focus: UK/ Korea 2017–18 Creative Futures 60 A message from Emma Dexter, Director Visual Arts


CHAIRMAN'S MESSAGE

CHAIRMAN'S MESSAGE It is with great pride that I am penning the first Chairman’s C ongratulator y Me s s age for the BCCK’ new webzine, FOCUS. Whether you are part of the UK or Korean business community, I am certain that you will be impressed with the breadth of insightful articles the team has put together for our second issue. The BCCK is the leading international and local business forum in Korea open to British, Korean and international enterprises. We organise a busy, high-value programme of events and activities, both business and social, to help you and your company grow and flourish. All our activities are dedicated to building networks, connecting companies and creating opportunities for our members. My main objectives this year are to work with the Executive Committee to ensure the Chamber continues to promote British interests by supporting British enterprises entering the Korean market, enhancing our business partnerships with British companies established in Korea, further developing our efforts around Corporate Social Responsibility (CSR) and promoting strong and lasting relationships with the Korean Government and business associations. We will continue to work closely with the British Embassy in Seoul and the Department for

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International Trade of the British Government as the best way to effectively raise our profile. We are also focused on building our advocacy services for our members in 2017. We were delighted that we were able to appoint Mr. Sean Blakeley as the Chamber’s CEO in September 2015. Sean’s enthusiasm and skills have added much to the Chamber’s development of events and services to British business and its members in 2016 and into 2017. Thanks in large part to his efforts, the BCCK has grown considerably over the past year. With the launch of FOCUS, I am proud to say that the Chamber has entered a new era of providing analysis, news, and advertising opportunities to its membership and the broader UK and international business community in Korea. As you go through the pages of this webzine, I believe you find just how vibrant the UK business community is in Korea and how active the Chamber is in building a platform for promoting the UK-Korean business relationship. Thank you.

STEVE DUCKWORTH BCCK CHAIRMAN


CHAMBER FOCUS | GENERAL CHAMBER NEWS

BCCK delegation visits Myongdo Welfare Centre to tour facilities and meet staff.

Chamber donates upwards of KRW 70m to its four good causes As part of its efforts to give back to the local community, the BCCK donated upwards of KRW 70m to its four good causes that were selected in 2016. The BCCK selects and provides funds to charity organisations and a non-profit scholarship program on an annual basis to help support the development of services that the organisations provide to the local community. The funds thus far have been provided to the Myongdo Welfare Centre, the Jeon Jin Sang Centre, Angels’ Haven, and the Chevening Scholarship. The BCCK supports the activities of the Myongdo Welfare Centre. Established in 1992, the centre supports the needs of over 700 children and adults with various learning disabilities. The centre aims

to provide services for children and adults with disabilities that reflect individual needs and choice while empowering them to become active and valued members of their communities. The centre offers a number of services including speech therapy, art therapy, computer education, and day care. On Tuesday, June 20, a BCCK delegation drawn from members Of its Charity & CSR Committee visited the Myongdo Welfare Centre at its facilities in Mokpo, South Jeolla province, to tour the organisation’s facilities and meet facilities and meet staff staff. The BCCK delegation included CEO Sean Blakeley, BCCK Events Senior Manager Minjung Ko; and BCCK Executive Committee and Charity & CSR Committee

BCCK FOCUS 07


CHAMBER FOCUS | GENERAL CHAMBER NEWS Martin Fryer, who heads the British Council in Korea; Graeme Salt, the headmaster at Dulwich College Seoul; and Daniel Barron, the head teacher at British International Kindergarten (BIK) Hannam (see image included). CEO Sean Blakeley said: “We are particularly proud of our support for the Myongdo Welfare Centre, which provides unique services to a section of Korean society. We look forward to continuing our support for the organisation in the future.” The Myongdo Welfare Centre’s Manager Sister Gerardine Ryan said: “The support of the BCCK has helped to build our new workshop which will allow us to expand our services, hire more people in need of work and further contribute to the local community. We are indebted to our members for their kind contributions.”

The BCCK’s other good causes include Angels’ Haven, which is an organization focused on providing nurseries, youth centres, senior welfare centres and group homes for under-served children, families and communities. The BCCK also supports the Chevening Scholarship, which awards one Korean student with a grant to study in the UK once per year. The BCCK’s two annual flagship events, the Queen’s Birthday Ball (QBB) and Christmas Lunch, both help raise funds for these good causes. The BCCK accepts applications on an annual basis from organisations seeking funding for their activities. Any organization that is registered as a charity is eligible for funding. The BCCK places a call for applications on its website in September each year.

Our New Logo

The BCCK has launched its new logo. The logo symbolizes and represents the unique role that the Chamber plays in the UK - Korean relationship and reflects the dynamic, professional and experienced nature of the BCCK. The logo consists of five crescent lines, each of which has its own distinct meaning. It represents the features within both the Korean and British flag. The circular shape is akin to the central circle featured in the Korean ‘Taeguki’ flag and the colours of red and blue are those of the Union Jack. The blue crescents on the outside of the circle

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represent both Korea and UK business, both of which interlock to form the circular shape. The three smaller crescents within the larger two represent the three areas that the BCCK contributes to synergise UK-Korea relations, through the promotion of trade, the forming of a platform to encourage networking, and the conducting of advocacy services. The three crescents complete the circle shape. The circular nature of the logo thus reflects our belief in the interconnectedness of the two countries and the synergetic values which both nations have.


The Investor: Korea attracts UK Retail Firms as Asia’s Trendsetter Sean Blakeley, CEO of the BCCK, was interviewed by The Investor on the state of UK-Korea trade relations and the outlook for the relationship in the future. During the interview, he noted that, “A lot of UK companies, including tech companies, are wanting to work with Korean multinationals for third country projects.” Click here for more information.

BCCK CEO Speaks at Seminar on Fourth Industrial Revolution

BCCK CEO Sean Blakeley spoke at a seminar entitled “Conference on Integration and Networking in the Fourth Industrial Revolution Era” hosted by Samkoo INC and the International Management Institute (IMI) at the Shilla Hotel on June 20. During the event, he made a

presentation on how companies in Korea and abroad can transform their management strategy. Click here for more information.

BCCK FOCUS 9


CHAMBER FOCUS | TRADE SERVICES' NEWS

BCCK Publishes Article Series on Opportunities for UK Business in Korea As part of efforts to raise awareness of the Korean market, the BCCK publishes regular articles on its website and social network platforms which focus on market trends and opportunities that exist for UK companies. Particularly relevant for those seeking opportunities in the market, they equip potential market entrants with essential and credible

information to do so. The most recent article, published on July 12, discusses Korea's franchise sector. Five articles have been published this year, and the topics have included beauty, F&B, fashion, ICT and healthcare. Read the articles here.

British Brands Continue to Show Strong Interest in Korea Despite political and economic uncertainties caused by such events as Brexit, UK companies continue to show a strong interest in the Korean market. Exemplifying this, Fortnum & Mason, a quintessential British brand, opened its first shopin-shop in Shinsegae Department Store's Main

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Store in Myeongdong on July 25. This highlights the strong consumer demand for premium British brands, which are associated with quality and value. Fortnum & Mason is en-route to capture some of the ever-growing USD 10 million imported tea market.


Q2 Highlights In Q2 2017, the BCCK supported 16 companies in their efforts to enter the Korean market. Below are a number of examples of who was supported and testimonials regarding the assistance provided. The BCCK helped The Conran S h o p, a n i c o n i c B r i t i s h brand, to assess the Korean market ahead of their senior management’s, including the CEO, visit to the country. “We received excellent support from the BCCK on our recent trip to Seoul, which enabled us to work efficiently and maximise our available time. We came away from the trip with a clear understanding of the Korean market, the opportunity and next steps,” said Hugh Wahla, The Conran Shop CEO. The BCCK secured key, high-level meetings with major Korean companies for the company to deepen their understanding of the market and retail trends, enabling them to make highly informed business decisions. Read more about our services here. The BCCK assisted one of the largest British F&B franchises - PizzaExpress - to assess and evaluate Korea’s F&B market, opportunities within it, and the local food culture, which are all key factors for customer-centric brands like PizzaExpress. The BCCK arranged meetings with interested parties, which enabled PizzaExpress to gain a better understanding of the market, its trends, and to discuss potential partnerships. “The BCCK’s meticulous and professional work ethic has and will be instrumental in guiding us in making informed decisions as we look to enter the Korean market,” said John Lui, International Brand & Marketing Director of PizzaExpress. Read more about our services here.

T h e B C C K w e r e commissioned to manage the process of identifying and selecting potential partners for Trelleborg Industrial AVS in the Korean market. One of the strengths of the BCCK's Trade Services team is its expertise and proven outstanding track record in the industrial materials sector. "This project had a very tight time frame. The BCCK quickly carried out significant research identifying a number potential companies that had the ability and resource to satisfy the targets. They then organised meetings to determine and select the best candidate." said Tim Fisher, Sales Manager Asia Pacific of Trelleborg Industrial AVS. There were some challenges along the way, such as the short time frame, but the Trade Services team swiftly overcame those, and helped the UKbased company successfully appoint a partner. Read more about our services here. The BCCK helped Newburn Ellis, a UK law firm specialising in intellectual property, to develop relationships with Korean companies. With the implementation of the Korea-EU Free Trade Agreement (FTA) and the consequent increase of corporate transactions between Korean and European companies, the demand for legal assistance in intellectual property issues for Korean companies operating in the European market has risen. Recognising this opportunity, Mewburn Ellis, commissioned the support of the Chamber. “Working with the BCCK enabled us to access business opportunities in Korea that were otherwise, in practical terms, closed to us. The detailed and structured research report they provided gave us numerous leads which, combined with their excellent aftercare, meant the final results far outstripped our expectations,” explained Dr. Robert Andrews, a partner and patent attorney with the law firm. Read more about our services here. BCCK FOCUS 11


Advertise with the BCCK E-mail | The quickest way to approach high level members of Korea’s domestic and multi-national companies is through direct emails to the BCCK’s mailing list. Website | Our website is the onestop-shop for information about our events and activities. We offer opportunities to our members to advertise through banners or BCCK member offers. SNS | Need to get a message out about an upcoming event, recruitment offer, press release, or CSR success? Utilise our SNS network (Facebook, Linkedin, Instagram, Twitter and Google+) to to spread the message. Webzine | We offer advertising opportunities through our quarterly webzine, FOCUS. The webzine is offered through our website and sent out to our 3,500+ network of business contacts in Korea and the UK. Directory | The BCCK Membership Directory is the one place you can find out all about our members. Offered in print and online, we offer advertising space to help get your products and services out to a broader audience.

Contact us today to learn more at: E-mail: marketing@bcck.or.kr Phone: (+82) 2-6365-2307


CHAMBER FOCUS | EVENTS - BUSINESS

Breakfast Workshop: Brexit & the UK’s Snap General Election On June 14, the BCCK hosted a Breakfast Workshop at the Millennium Seoul Hilton, to explore the implications that the UK’s June 8 snap General Election will have on the Brexit process. The event featured Herbert Smith Freehills Chief Representative Mike McClure as the guest speaker. Mr. McClure discussed the background of the

general election, the current status of the Brexit process, and factors to consider moving forward. Ms. Melanie Barlow, Economic Counsellor at the British Embassy Seoul, provided welcoming remarks and fielded questions from the audience. Photos and the workshop presentation from the breakfast seminar can be found ‘here’.

Breakfast Forum: Women in the Korean Corporate World The BCCK proudly hosted a Breakfast Forum exploring gender equality and diversity issues in the Korean workplace on May 25 at the Grand Hyatt Seoul’s Sansoo Room. The event featured Ms. Stephanie Studer, The Economist’s Seoul Bureau Chief, as moderator and three executive-level panelists from Korea’s corporate world: Eun Ji Kim (National Sales Manager, British American Tobacco

Korea), Mark Sungrae Kim (Partner-in-Charge, Heidrick & Struggles Korea) and JiWon Oh (Leader, LNG Marketing Team & Government Relations, Shell Korea). Sue Kinoshita, the British Embassy Seoul’s Deputy Ambassador, made welcoming remarks to open the event. Photos taken at this breakfast forum can be found ‘here’.

BCCK FOCUS 13


CHAMBER FOCUS | EVENTS - BUSINESS

2017 Korean Labour Market Trends: Mid-year Update On July 5, the BCCK hosted a Breakfast Workshop on the latest trends in Korea’s labour market entitled ‘2017 Korean Labour Market Trends: Mid-year Update’. The event featured Robert Walters Korea Country Manager Duncan Harrison and was held at the Lotte Hotel Seoul. The workshop covered contents of the labour market trends including a half year overview; employment trends and outlook; and how to retain talent. Photos and the Salary Survey presentation from this event can be found ‘here’.

Breakfast Workshop on Outlook for North Korea in the Trump Era On April 25, the BCCK hosted a Breakfast Forum at Lotte Hotel Seoul, addressing the outlook for North Korea in the Trump Era featuring Dr. Andrei Lankov and Mr. Andrew Salmon. During the event, Dr. Lankov discussed the current state of affairs

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concerning North Korea and the possible impact of the new Trump administration policies on US-North Korean relations. Photos taken at the event can be found ‘here’.


CHAMBER FOCUS | EVENTS - NETWORKING

BCCK holds Sherlock HolmesThemed Queen’s Birthday Ball On Saturday, May 27, the BCCK hosted its annual Queen’s Birthday Ball (QBB) to celebrate Her Majesty Queen Elizabeth ll’s 91st Birthday at the Grand Hyatt Hotel Seoul. With leading sponsorship from Jaguar Land Rover and Standard Chartered Bank Korea, this year’s ball was themed around Sherlock Holmes, celebrating the 130th anniversary of the character. More than 300 guests from around 100 companies were transported back to Victorian England for an evening of cocktails, food, auctions and entertainment, all hosted by Mr. Holmes himself! The event drew over 70 sponsors and the proceeds from the raffle during the event went to the BCCK’s three good causes: Angel’s Haven, Myongdo Welfare Centre and the Chevening Scholarship, as well as a charity based in Manchester that helps to support victims of the May terror attack. Entertainment was provided by Dulwich College Seoul Senior Orchestra; jazz music by Downtown Seoul;

an acapella performance by the Yale University Choir; and a DJ set by DJ Fe n n e r. S p e c i a l thanks to Brigadier Huw Lloyd-Jones, the event’s MC; Dr. Yo un g H e e K im , who sang the British national anthem; Mr. Jacco Zwetsloot, who played Sherlock Holmes; and Mr. Alex Jensen, who auctioneered. Click here to take a look at the photos taken at the QBB or click here to relive the memorable night with a short video we put together.

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CHAMBER FOCUS | EVENTS - NETWORKING

Bar night: BCCK first to hold event at the Four Season’s Charles H. Bar On April 25, the BCCK had its first Bar Night at Charles H. Bar, Four Seasons Hotel Seoul. With support from Samil PwC, The Macallan, Four Seasons Hotel Seoul, TIWI and Jane Packer London, the event drew over 100 people from a variety of industries. The BCCK was the

first outside organisation to hold an event at this unique venue. Photos from the bar night event can be found here.

BCCK Summer Pub Night Draws 100 The BCCK held its annual Summer Pub Night on June 22 at the British Embassy Seoul’s Broughton’s Bar. Sponsored by Standard Chartered Bank Korea, the event featured great Italian food provided by

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Brera Kitchen & Bar District, and had a lucky draw with great prizes for the attendees to close the night on a high note. Photos from this event can be found here.


BCCK Hosts Interview Evening with Author Michael Breen On Tuesday, May 17, the BCCK hosted an Interview Evening with Michael Breen, author of recently published book, ‘The New Koreans: The Business, History and People of South Korea’ in Aston Hall at the British Embassy Seoul. The evening began with a networking session, with drinks and catering provided by Gavin’s Sausages, followed by a discussion on Breen’s book and

Q&A from the audience. The event was moderated by Reuters Foreign Correspondent, James Pearson. Books were on sale at a discounted price at the event, courtesy of Penguin Random House Korea. Photos taken at this event can be found here.

BCCK Hosts Interview Evening with Cricketer Mike Gatting On June 8, the BCCK hosted an Interview Evening featuring former British cricketer Mike Gatting, who was in Korea to promote grass roots cricket. During the event, the former national cricket team captain responded to questions from the event’s moderator, Graeme Salt, headmaster at Dulwich College Seoul, and from cricket fans in the audience. The event was held at the British Embassy’s Aston Hall, with food provided by Crave Catering. The event was part of the BCCK’s Interview Evening series. Past events have featured North Korean defector Hyeonseo Lee and author Michael Breen. Photos of this event can be found here, or you can find

out more about this interview in this webzine issue’s ‘People Focus’ section.

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CHAMBER FOCUS | UPCOMING EVENTS

Upcoming BCCK Events September 7

October 26

The BCCK will be hosting its annual Garden Party on September 7, at the British Embassy Seoul residence. In this extraordinary setting, we will showcase a range of British cocktails, British cuisine and wine while you network amongst like-minded people. The BCCK Garden Party is the most popular networking event of the year, and with limited tickets, be sure to reserve your space as soon as possible!

The BCCK will be holding its third annual pub night on October 26 at the British Embassy Seoul’s Broughton’s Bar. With the support and generosity of the BCCK’s sponsors, our Fall Pub Night is set to be one of our best! Be sure to save the date!

BCCK Garden Party 2017

RSVP Here!

September 21

Platinum & Patron Dinner The BCCK will hold its annual Platinum & Patron Dinner on Thursday, September 21. Held at the Ambassador’s Residence, the event brings together Platinum and Patron members with the British Ambassador and other important figures in the UK and Korean business communities. More Information Here!

September 28

Commonwealth Chambers’ Networking Event The BCCK is co-organising the 2017 Commonwealth Chambers Networking Event on September 28 along with the Australian Chamber of Commerce in Korea; Canadian Chamber of Commerce in Korea; Indian Chamber of Commerce in Korea; the New Zealand Chamber; and the South African Chamber of Commerce. This event features great food, entertainment and plenty of networking opportunities. More Information Here!

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Autumn Pub Night

More Information Here!

November 16 Beers with the BCCK

The BCCK will be holding its second ‘Beers with the BCCK’ event on November 16 at the BCCK office. With the chance to meet the team and network with fellow members and non-members alike, the gathering free to attend and is a great way to get updated on our activities and meet new people. Be sure to save the date! More Information Here!

December 1

Christmas Lunch Celebrating BCCK’s 40th Anniversary The BCCK will be holding is 40th Anniversary Christmas Lunch on December 1 at the Four Seasons Hotel Seoul. Sold out with a waiting list for five consecutive years, this event is the number one lunch event of the year and should not be missed. Be sure to save the date! Save the Date!


UK-KOREA TRADE FOCUS

BCCK Editorial Staff

UK brands are well placed to enter the Korean market, as Korean consumers understand the relative affordability and quality that come under ‘Brand Britain’. Korea is viewed as a test market across almost every sector, given the country’s proximity to the huge Chinese market along with the markets of Southeast Asia. Despite Korea’s reputation as being a tough place to do business, business deals are generally completed quicker than in Japan or China. As the following success cases highlight, the key to breaking into the market is, as always, finding the right partner and the right marketing strategy. Boots: Capturing the booming cosmetics market The most notable UK company that has entered the Korean market recently is undoubtedly Boots. The High Street retailor signed a franchise deal with hypermarket chain Emart in July 2016. Just months later, Boots opened its first outlet in Seoul’s Starfield Mall in the form of ‘Drugstore Boots’. The outlet opened only 10 months after the original deal was signed, highlighting the appetite for partnership on both sides. Following failures by both Walmart, Carrefour and other foreign retailors in Korea, Boots has adopted a different strategy to penetrate this

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Successes

Lessons Learned: UK Successes in the Korean Market

difficult market. Boots sought to tap into Emart’s formidable distribution network in Korea and the opportunity to build an Asia base in Korea. Emart focused on Boots’ extensive global sourcing capabilities and the opportunity to undercut market leaders Olive Young and Watsons. Both, of course, are eyeing Korea’s booming cosmetics market, which is expected to reach GBP 3bn by 2020. The partners aim to open up a dozen more outlets by the end of 2017. Leading Korean brands will be on sale, as well as ‘exclusive to Boots’ ranges. Brewdog: Eyeing Korea’s growing craftbeer drinking culture Scotland’s largest independent brewer, Brewdog, first arrived in Korea in December 2013 in a bid to replicate the successful business it had in Japan. Brewdog believed that its niche, handcrafted offerings would find an audience in Korea, which has a nascent but growing craft beer drinking culture. Korea’s alcohol market is dominated by subsidiaries of major conglomerates such as Oriental Brewery (OB), giving Brewdog the chance to reiterate their aim – as it always has been - to attract a niche market in the country. The company partnered with Indulge Co., which specializes in introducing unique


alcohol brands to the Korean market. Brewdog’s range of alcohol can be found in popular craft beer houses such as Springs Taphouse. Waitrose: Finding the right partner Waitrose entered into a partnership with the Shinsegae Group in 2012 with the aim of breaking into Korea’s ready meal market. Waitrose products had been present in Shinsegae Department Store (SDS) before 2012, but this agreement marked the UK supermarket giant’s formal step into the market. Through the agreement, Waitrose agreed to import over 160 Waitrose branded products into six SDS outlets. In 2013, SDS transferred the partnership with Waitrose to Shinsegae Food, an affiliate under the Shinsegae group responsible for the Shinsegae Group’s F&B business. At present, Waitrose products are sold most prominently in the lavish international food market of Shinsegae’s main Myongdong flagship store, comprising of products from their Waitrose Seriously, Love Life and essential Waitrose range. John Lewis: Testing the waters for expansion into Asia John Lewis, which has unavoidably shifted its attention to international markets amid low growth in the UK, has experienced success in Korea. The company formed a partnership with Shinsegae Department Store (SDS) in March 2012 – the first time the company had agreed to sell its products outside of the UK through a physical store. Despite fierce competition, John Lewis currently maintains a strong homeware presence within SDS. Recognizing that e-commerce and m-commerce increasingly dominate the sales of retail items, John Lewis

has strengthened its partnership with SDS and opened an online John Lewis shop on ssg.com, a comprehensive online shopping mall, in 2015. The success John Lewis has seen in Korea has reportedly given the company confidence to expand into other markets such as Singapore and Hong Kong. SuperJam: Winning over consumers through digital marketing SuperJam entered Korea in the early months of 2013 after SuperJam founder Fraser Doherty published the Korean version of his book, ‘SuperBusiness’. SuperJam reportedly sells half a million jars a year in Korea, a full two percent of all jam consumed in the country. In February 2016, SuperJam collaborated with famous K-pop boy band SuperJunior to create a new product called ‘Very Berry SJ X SJ Super Junior SuperJam’, appealing to the group’s extensive fan-base. Additionally, Doherty appeared on Lotte Home Shopping, a major home shopping network, which led to the sales of 100,000 jars of jam the following day. The brand has further invested in sampling events, tea parties, as well as publishing recipes of how their jam can be incorporated into Korean cuisine. SuperJam has recognized that digital marketing is a key factor to success in Korea’s F&B market, which is saturated by many foreign brands.

To learn about the BCCK’s market entry services, please contact us at trade@bcck.or.kr.

BCCK FOCUS 23


UK-KOREA TRADE FOCUS

Opportunity for British Luxury in Korea Charlotte Keesing Director of Public Affairs & International at Walpole

At recent Walpole member events with the British Ambassador to the Republic of Korea, Charles Hay, and the CEO of the BCCK, Sean Blakeley, discussed the undisputed importance of Asia’s fourth largest economy - Korea. Seen in the context of larger neighbours like China and Japan, Korea remains a high priority for British luxury brands looking at their Asia business and often makes an outsized contribution relative to its market size. According to Bain & Company, sales of luxury goods in Seoul alone reached USD 7.6 billion last year and the number of multi-millionaires in the city itself (those with net assets of GBP 10 million or more) has almost doubled over the last decade to 4410, according a report by New World Wealth. Walpole member brands including Burberry, Church’s, DAKS, Ettinger and Mulberry all report strong performance in the market and optimism for future growth. Delving deeper during the discussions, a number of important themes emerged as to why Korea presents such an interesting opportunity for British luxury

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brands despite the recent political developments. Ease of doing business Firstly and perhaps most importantly, there is the country’s uncomplicated framework for conducting business. Korea is ranked in 8th place for ease of doing business (by comparison China is placed at 96th and Japan at 27th). In terms of rule of law, regulatory efficiency and market freedom, Korea scores 91% for business freedom (China ranks 54% and Japan 82% respectively). Indeed many Walpole members reference the comparative ease of doing business in Korea as a contributing factor in their Asian strategies and subsequent business performance. Aligned to the ease of doing business, there are also practical routes to market through Korea’s family-run chaebols [conglomerates], which dominate the fashion and retail landscape. While the chaebols are currently under pressure to reform, their continued influence means that brands can rapidly expand with the right partnership.


Importance of the Chinese customer Secondly, Korea remains a popular regional shopping destination. As the Chinese consumer became a key driver for luxury globally, the influence of the Chinese tourists in Korea has grown. Chinese tourists are the biggest foreign spenders in Korea, with an average tourist spend around GBP 1530, six times that of the Japanese visitor to Korea. The recent political tensions between the US and China and the subsequent retaliatory measures by China on Korean imports as well as the blocking of group travel from China to Korea is of course being monitored closely. Generally, concerns for any longterm shift and impact are relatively low. The domestic Korean customer Member companies were all in agreement that the Korean consumers are highly sophisticated and discerning, tech savvy, with both a keen eye for creativity as well as a desire to seek out innovation and individuality. Importantly for British luxury brands, the Korean customer has a well-informed appreciation of highest levels of quality synonymous with brands such as DAKS, Church’s and Ettinger. Historical & cultural ties Beyond the desirability of British luxury goods and brands, there is also a deeper connection between Britain and Korea on a historical and cultural level. Britain and British brands are held in high regard and affection since the UK was the second country, after the US, to establish diplomatic relations with Korea

133 years ago. Today, that recognition and those early diplomatic and business relationships still play an important role in the appeal of the UK and British brands in the market. Korea as a trendsetter Another central theme to the conversations at recent Walpole events is Korea’s position as a trend setter across the region. Korean cultural capital sits at the crossroads of music, popular culture, fashion and entertainment, and the status and appeal of Korean TV, particularly the stars of reality TV and K pop culture were cited as especially influential. Products featured on the shows or worn by celebrities and digital influencers are immediate sell-outs. This resulted in brands prioritising working with Korean TV celebrities as central to their wider Asian strategies. Korea is also seen as innovator in terms of the retail landscape with inspirational in-store experiences, cutting-edge design and a willingness to support young designers and new brands. Charlotte Keesing is the Director of Public Affairs & International at Walpole. Walpole is the UK’s alliance of British luxury brands with members including Burberry, Alexander McQueen, DAKS, Harrods, Mulberry, Rolls-Royce Motor Cars and Yoox-Net-a-Porter. For more information please visit our website.

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PEOPLE FOCUS

Hwayo: Spreading the ‘Authentic Korean’ Ethos Interview with Lucia Cho BCCK Editorial Staff

Q. How did the KwangJuYo Group begin, and what links the Hwayo, Gaon and Bicena brands that lie within it? The Korean economy has been growing at a tremendous pace since the 1960s, with the majority of people in the country highly focused on the growth. This, however, has resulted in the neglect of Korean culture and people’s quality of life. The Korean population was so fixated on building companies and reviving the economy, that they overlooked the most basic, fundamental element of life: the appreciation of small, beautiful things around us. KwangJuYo Group was created as a reaction to this.

26 British Chamber of Commerce in Korea

KwangJuYo was established in 1963, when we opened a small ceramic studio, staffed with potters who created pieces that embodied Korean tradition and history. Business was good, but we quickly noticed that the majority of our customers were foreign rather than Korean collectors and began to ask ourselves why? We then realized that unless Korean people had the chance to utlise the art form, they would not be able to appreciate it. Thus, with the desire to change ceramics from a subject of art to that of living culture, Kwangjuyo started to produce tableware. We did this in the hope of cultivating a newfound appreciation of homegrown art. We were successful in the 1990s by positioning


ourselves as the top premium ceramic brand in the country, by providing people of high social status with exceptional ceramic pieces for special purposes such as weddings and gift-giving. Despite the success, we realised that our products were only used for special occasions, and not in daily life. We felt it was our responsibility as Koreans to educate people about using Korean ceramics while enjoying every day cuisine. This is why we decided to enter into the restaurant business – we wanted to offer people the opportunity to have the full experience of Korean tradition when it comes to fine dining. With that in mind, we opened Gaon and Bicena. Our goal was to inform the people about authentic Korean cuisine and food culture. When we opened our restaurant, we then noticed that we had an extensive list of wines, sake and other foreign alcohols, but no premium Korean spirit, so we decided to invest in developing a premium Korean alcohol brand to be served with fine dining. We didn’t know how much the whole process would cost or how long it would take, but we knew that it had to be done. That determination in turn created Hwayo. It actually took 10 years for us to make any profit, but it was worth it. KwangJuYo, Gaon, Bicena and Hwayo all revolve around the same ethos: Authentic Korean. I believe our efforts to revive and spread this concept of being ‘Authentic Korean’ has been well recognized and well-received by the public, and the Michelin stars for both Gaon and Bicena, and many awards for Hwayo, confirms this. Q. Can you briefly introduce Hwayo? ‘Distilled Soju Hwayo’ is a Korean liquor brand that we, the KwangJuYo Group, developed to complement our global strategy of raising the appreciation of Korean cuisine. We believe that liquor is not only a

product of culture, but also one that builds culture. The name ‘Hwayo’ means noble spirit and fire. It consists of one Chinese character that derives from the ‘so’ in ‘soju’. From this, you can ascertain that to distill Korean liquor, is to control fire. We are increasing our capacity this year by expanding our production system. We currently export to China, Hong Kong, Singapore, Indonesia, Japan, the United States, the United Kingdom, France, and some other countries as well.

Q. How is Hwayo different from other sojus? The fundamental difference is that Hwayo is not diluted. It takes about six months to make one bottle of Hwayo as we use the traditional production process of soju. We have five different types of Hwayo with a range of different alcohol percentages, allowing it to be consumed in a variety of ways – something other sojus do not have. We test each product and make sure they all have their own distinctive characteristic. We also put a lot of attention into the design and aesthetics of our bottles so consumers want to keep the bottles after they’re empty. We actually won a Red Dot Award for our packaging a couple years ago. We believe that Hwayo is definitely very different to the typical soju, and that it is a brand that inspires and creates movement within this industry for authentically Korean products.

BCCK FOCUS 27


PEOPLE FOCUS

Q. Hwayo has a variety of types. Can you describe each of their key features and target audience? Yes, we have five different types of Hwayo - 17”, 25, 41”, XP and 53”. The very first one we developed was the 41”, which is also the best, in our opinion. The balance is impeccable and it is more versatile than others as it can be consumed on the rocks as well as the base for a cocktail. After we created the 41”, we expanded our product line to open our target market to a more diverse consumer base - catering to everyone’s personal taste. The Head Director of the Hakkasan Group tasted our product line recently and I recall that she described the products in an accurate way, as being: 41” is for someone who likes hard liquor. The taste is similar to that of a green apple - very refreshing and extremely charming. 41” is undoubtedly the easiest to identify as a Hwayo product. 25” is for someone who already loves soju. It is extremely fruity with a hint of white pepper. This touch of white pepper allows the 25” to complement all cuisines. 17” is perfect for someone who enjoys sake as the alcohol content is the same. It perfectly balances fruity and floral tastes, and is for someone who

28 British Chamber of Commerce in Korea

appreciates a lower alcohol content. XP is ideal for someone who enjoys cognac or whisky. It has a very modern taste that resembles bourbon but with a slight twist. 53” is for someone who likes kaoliang alcohol (baijiu). It is very strong, but if you choose to have it on the rocks, the differentiating characteristic of the 53” will become obvious. Q. The UK is famous for its whisky and so consumer expectation of spirits is high. In your opinion, what is it about Hwayo that has met this expectation and captured the interest of British people since your 2014 launch in Fortum & Mason? As our goal is to spread the authentic Korean ethos globally, we felt extremely lucky and grateful to be placed in Fortnum & Mason in the UK. They recognise Hwayo not as a separate entity, but as a whole company - the KwangJuYo Group. This means that they acknowledge our other product lines including ceramics and food - that we are the total package, which is very valuable for us. Much like Hwayo, the UK values the tradition and history behind its products. I firmly believe this is what the British people see in our brand - that we are not merely selling a product, but also sharing the history


and tradition that comes with it. Q. What are your future plans for the UK market? London is renowned for its innovative business culture, but I personally believe British people can also be quite reserved, in the sense that they are constantly trying to control who they are and what they do. I view myself as a fairly free-spirited person, so I think I can share this energy with the UK market. The UK is simultaneously both a conservative market and a creative, eccentric market as well. I’ve noticed that with the British consumer, you can’t force them to buy something - they are stoic, so you have to let them form their own opinion. To do that effectively, you need to share your brand story; who you are as a company and what the product means to you. Hwayo is now focusing on exporting the 41” and 25” into the UK market to showcase what we believe the consumer would like the most. Currently, Hwayo’s main focus is to try and identify a good partner and distributor in the UK who believes in our potential to succeed in the market by utilising the support and expertise of the BCCK. Without that, it will be near impossible to satisfy my customers. To succeed in a tough market like the UK will not be easy, but I know my company and I are willing to devote the time and effort required to spread our appreciation of Korean alcohol and cuisine worldwide. Q. You promoted Hwayo through our 2017 Queen’s Birthday Ball. Did you find this valuable? Yes, we sponsored the BCCK’s 2017 Queen’s Birthday Ball and also set up a booth at the event. It was very rewarding to meet those attending and we had a great time as well. As we are relatively new to the UK market, we are still constantly learning more about its corporate business culture. Our participation at the QBB was a friendly gesture to say that we would like to make connections and be friends with those in the British business community. Seeing that we are now highly interested in entering the UK market, we need to make as many connections as we can with British corporations.

Currently, we are still in the early stages of the relationship, but the future looks incredibly promising with connections that we have already made and the prospective relationships to come. The QBB was a great opportunity to showcase our brand’s philosophy to a large number of people whom we would like to make future connections with.

Q. Is there anything you would like to add? Ultimately, we are doing this for our country, Korea, which is the best investment any business can make. Spreading the experience of authentic Korean not only nationwide, but also globally. Our nationwide strategy includes being sold at small supermarkets out in rural parts of Korea, as well as large, premium department stores in major cities. Once we achieve nationwide success, we believe going global will be much easier. We can proudly say that our product is 100% Korean made: the rice, water and everything in the product is all sourced and produced here in Korea. I strongly believe that the authenticity of Hwayo is our selling point, giving us the competitive advantage against other sojus in the market. If you wish to find more information on the businesses and products mentioned in this article, please click on the following links: Kwangjuyo Group Gaon Bicena Hwayo Special thanks to Ms Lucia Cho, Creative Director of the Kwang JuYo Group, for her contribution to this article.

BCCK FOCUS 29


PEOPLE FOCUS

Five Questions with: Cricketer Mike Gatting BCCK Editorial Staff

Mike Gatting played first-class cricket for Middlesex from 1975 to 1997, and for England from 1977 to 1995, captaining the national side in 23 test matches between 1986 and 1988, including an Ashes-winning series. Since his retirement Mike has promoted cricket in the UK and worldwide through his county, Middlesex, and the Marylebone Cricket Club (MCC). The BCCK hosted an Interview Evening with Mike Gatting on June 8 at the British Embassy Seoul’s Aston Hall to get his thoughts on the game in general and the future for cricket in Korea. Q. What first brought you over to Asia? I first got involved with work in Asia through the Hong Kong Cricket Club where I am a patron. A gentleman called Rodney Miles who, along with his wife, wanted to help children in China get off the streets by having them play cricket. For the most part, Chinese children have never heard of cricket, so trying to get cricket into their lives was a challenge. We visited a number of British, international and local schools, to see whether students would take to the game and we were pleasantly surprised to see how popular it was. When visiting these schools, there

were occasions when around 30 students would join a game we had started before lunch, and by the time the game finished, there would be about 120 students involved - all thinking it was a great game – this was great to see! Currently in China, there are tournaments in Beijing and Shanghai for under 9s; under 11s; and under 13s, but we would like to see more. The International Cricket Council recently decided to formally set up in China which will help to support exposure and popularity of the sport. Q: What do you think of the potential for cricket to grow as a sport in Korea? I think there is potential in Korea as the children here enjoy sports and are keen to try new games. If we can involve them early, between the ages of 5 to 8 in cricket, they can have the option to pursue the sport at that point. Children love to run around, throwing and hitting balls, which are the three key ingredients to cricket, so the interest will be there, we just need to highlight cricket as an option early on. In addition, the work of organisations such as Dulwich College Seoul that will start up a hub to encourage their students to participate in after-school or weekend

BCCK FOCUS 31


PEOPLE FOCUS

cricket sessions will help at the grass roots level. On top of that, Korea is now a part of the International Cricket Council, which makes them part of the international cricket family. Their involvement at this level will help increase awareness of the sport in the country. Q: Is cricket more likely to be adopted in a country where baseball is popular? The popularity of baseball definitely helps to understand the mechanics of cricket, but cricket is a slightly more complicated game. At Dulwich College Seoul, we held a cricket training session where some students had experience of playing baseball, which was certainly helpful for them to quickly adapt to the new game, but as cricket is a more tactical and endurance-based sport, there are other skills to learn. These can be developed early on or transferred from another sport, for example when children finish junior baseball and choose not to pursue the sport; they are prime candidates to become future cricketers, so this is helpful to increase the chances of cricket being taken up by children. In terms of watching the sport, I believe the Korean audience would definitely enjoy the quicker T-20 or IPL format as it has some features akin to those in baseball.

32 British Chamber of Commerce in Korea

Q: Do you think technology helps the younger generation to learn cricket? My two children watched videos of my younger self play all throughout their childhood, and people say that my youngest son is a carbon copy of me when he bats – so it helped him! I certainly believe that technology plays a big part in how children learn things nowadays, so I am sure that to some extent cricketing skills can be learnt through videos online. Cricket, however, is a team sport, which means that even though you personally perform well utilising the skills you have learnt, you are still reliant on your teammates and your ability to work with them. These types of skills need to be learnt offline, so whilst online learning can help, offline experience is vitally important. Q: Do you think cricket has the potential to inspire people internationally? Yes, most definitely. I am a firm believer that all sports, not just cricket, help build bridges and inspire people. For example in Africa, there are a number of states that have shown promising potential to become strong cricketing nations and in doing so, have linked themselves to the global cricketing world. Afghanistan is another example where cricket has overcome the difficulties of war, through the creation of a national team that is now playing international cricket. When you understand the history of cricket, you can clearly see that it has been a success in all regions of the world and helped to bring nations together and I think it will continue to do so.


www.nespresso.com/kr


MARKET FOCUS | BCCK CHAMBER BLOG

Korea’s Beauty Market: Trendsetter for Asia Stella Kim Manager at the BCCK Trade Team

Korea is the 10th largest beauty market in the world, worth some GBP 5.9bn. Already well-known as a global beauty hub, it is no surprise that legendary British pharmacy chain Boots has just opened stores in the country. Korean consumers, particularly millennials, are strong buyers of foreign beauty brands and are very receptive to using new products. Both men and women alike want natural, ‘trendy’ products which can help them to look and feel good. Consumers in Korea are conscious of global trends and drive such trends regionally. Korea is a key beauty market and one that British companies should not miss out on! Korean Consumers: Buying Lots of Diverse Products! Koreans use more beauty products daily than any other country in the world. The average Korean woman uses seven basic skincare, four make-up, four body care, and three hair products whereas the average woman in the west uses only half that number. Furthermore, while westerners have a very high brand loyalty and rarely change products they use, Koreans regularly switch their brands to try products that are on-trend. As such, Korean consumption patterns starkly differ from those of their western counterparts as they buy more products and diversify those they use – good news for any new entrant to this market. ‘Menaissance’ Signals Rise in Men’s Skincare and Cosmetics Sales The term ‘Menaissance’ – a portmanteau of Male

34 British Chamber of Commerce in Korea

and Renaissance – has emerged in Korea over the last couple of years to describe the new millennial Korean man who is both image-conscious and lifestyledriven. As opposed to older generations of men who worked to save money for their future, the younger Korean man is living by the new adage ‘YOLO’ (you only live once) as they make more short-term, imagebased lifestyle choices. Indicative of this, Korean men are the world’s top per-capita consumers of skincare products, four times higher than men in second-placed Denmark, according to Euromonitor International. Keen to look good and open to spending on products that help them to do so, Korean men make the market one full of opportunity for brands with men’s products in their ranges. Bulldog, a British natural men’s grooming brand, for example, successfully entered Korea with an exclusive partnership with Olive Young – the country’s largest H&B store chain. Now Bulldog ranks number one in Olive Young’s men’s skincare category. Rising Demand for Cosmeceuticals as Functionality and Results Seen to be Key Korean consumers are increasingly interested in cosmeceutical products that deliver dermaceutical benefits. Referring to cosmetic products with bioactive ingredients purported to have medical or drug-like benefits, cosmeceuticals, and particularly those in the beauty and anti-aging space, are very popular in Korea. In a country where almost


one in two people receive laser treatments as a cosmetic procedure, cosmetic products that deliver similar dermaceutical effects are in high demand. As such, pharmaceutical companies are now beginning to pay attention to this part of the beauty market. Functional cosmetics that claim to have skin regeneration, wrinkle prevention, whitening, acne and anti-aging effects now make up 33% of the total Korean beauty market, up from 24% in 2014. Consumers Looking for and Buying Natural Products Korean consumers are keen to look natural and spend ethically. As such, they buy skincare products to help them achieve fair and natural skin rather than invest in make-up products which seek to cover or correct blemishes – only using colour makeup to achieve a more ‘natural look’. Consumers in Korea are also very concerned with the ingredients of the products they use and their impact on the environment. The preference for eco-friendly products is such that many download mobile applications that flag toxins and carcinogen levels in cosmetic products.

Starting in Korea Heightens Chances for Success in Asia ‘Hallyu’, or the ‘Korean wave’, refers to the increase in popularity of Korean culture throughout the world. The influence of their films, songs, dramas and fashion can be found anywhere from the streets of Tokyo to Paris. Keen to know what the latest trends are every year, hundreds of thousands of tourists, mainly from China, visit Korea. A large proportion of these tourists come with the primary purpose of purchasing high-quality beauty products that are popular within Korea. As a result, UK companies that successfully enter the market will find that the brand awareness for their products will spread far beyond the borders of the country. A successful product launch in Korea can help heighten the chances for success throughout the region. Read more about the BCCK’s Market Entry services or connect with our Beauty sector specialist directly.

BCCK FOCUS 35


MARKET FOCUS | BCCK CHAMBER BLOG

Korea: A Key Market for UK F&B Franchisers Inwha Lee Coordinator at the BCCK Trade Team

What do Shake Shack, McDonald’s, Starbucks and Magnolia Bakery have in common? They are all popular food and drinks businesses, but are also franchises of international brands in Korea. Korea’s franchise market has significantly grown over the past several years and across multiple sectors including hospitality, apparel, cleaning services and educational institutions. Franchising in Korea’s F&B space, however, is particularly significant as it accounts for 57% of this GBP 70.3bn-strong market. Korea’s affluent middle class loves foreign food and is hungry to dine out for authentic dishes from abroad. This all presents opportunities for UK franchisers looking to introduce their brands into the Korean and wider Asian market. Franchisees A-plenty! Korea’s consumer restaurant industry is the 9th

36 British Chamber of Commerce in Korea

largest in the world, valued at GBP 59bn. Currently, the country’s F&B franchise market includes a total of 4,844 franchise brands and 208,104 franchisees. Japan, on the other hand, has only 1,300 F&B franchise brands. Familiar with the franchise business, entrepreneurial but risk-averse, Korean businesspeople see the option to franchise a foreign F&B restaurant as appealing because it requires relatively low initial investment and overhead costs are minimal. Ultimately, this means that the route to profit is quicker than that of developing their own brand, menus and stores. Hunger for Authentic Foreign Cuisine Ten years ago, Korea was awash with locally-run western food restaurants that falsely claimed to sell authentic western food. Undiscerning and unware of what a real pasta, pizza or curry might taste like, Korean consumers flocked to such establishments.


However, in recent years, the increase of middleclass people travelling and studying abroad has meant that they are now more aware of what authentic foreign food is. No longer will a poorlymade pasta, pizza or burger be accepted in Korea. Franchises like California Pizza Kitchen and Shake Shack Burger have been successful in Korea as a result. Keen to meet the demand of these consumers, domestic F&B franchisees like SPC, Hyundai Green Food and others, are on the lookout to bring in food and drink chains from abroad. Desserts: A Whole New Category Desserts, a category traditionally absent in Korea, is now one of the fastest growing segments in the F&B market. Foreign dessert brands, ranging from afternoon tea products to ice cream, have begun to cash in to the growing demand for foreign dessert products in the country. Unilever, owner of the British ice cream brand Magnum, recently partnered with Binggrae in January 2017 for distribution of ice cream brands of Magnum and Cornetto. Premium chocolate brand Godiva has witnessed considerable growth in partnership with Shinsegae Department Store. Magnolia Bakery, partnered with Hyundai

Green Food, is now selling 4,500 to 5,000 cupcakes per day with an average monthly revenue of over GBP 400,000. Korea: A Key Test Market for Asia British brands are particularly well-placed to secure opportunity in Korea’s F&B franchising market. The UK’s F&B brands not only have global name recognition but also offer western-style systems operations and management to potential franchise partners in the country. In general, Korea is considered a test market for many brands before entering other Asian markets, as China and Southeast Asian countries look to and follow trends seen in Korea. The significant number of Chinese tourists that visit Korea each year also provide UK brands in the country with further opportunity to heighten their name recognition across Asia. With this in mind, UK F&B brands considering their Asia strategy should seriously consider this market. Read more about the BCCK’s Market Entry services or connect with our Franchise sector specialist directly

BCCK FOCUS 37


MARKET FOCUS

The Korean Property Rental System

- Search, rent and furnish an office and commercial space in Korea Nowak & Partner Co., Ltd.

The Korean rental system differs in several ways from rental systems that are common in Europe. A higher demand for liquidity in the financial plan needs to be considered. A current lease agreement is also required to establish a branch in Korea, without which the registration in the commercial register and tax office log is not possible. The Korean rental system is generally divided into two groups, “Jeonse (전세)” and “Wolse (월세)”. Jeonse In its present form, Jeonse is a rental system that is only found in Korea. The tenancy begins with the initial security deposit of a single amount which is usually about 40% to 60% of the market value of the

38 British Chamber of Commerce in Korea

property. The security deposit can even be as much as 80% of the current market value of a property. Unlike in most of Europe, the interest yield on the deposit will not be paid to the tenant, but the landlord can keep this as income. No additional monthly rent is paid. On expiry of the contract period, the original deposit will be refunded in full. Wolse is a split system in which usually one to three "annual rents" are deposited as security and additional monthly rent is paid. The interest income from the Wolse deposit is also kept by the landlord. This system is commonly used in the commercial sector.


Office

Rental fees in Seoul, as of: 05-2017

Location

Size

Deposit

Monthly rental fee*

Premium

100m²

50.000.000 KRW

4.500.000 KRW

Premium

250m²

100.000.000 KRW

7.500.000 KRW

2nd Grade

100m²

35.000.000 KRW

3.500.000 KRW

2nd Grade

250m²

55.000.000 KRW

5.500.000 KRW

Fringe area

100m²

30.000.000 KRW

1.500.000 KRW

Fringe area

250m²

30.000.000 KRW

2.500.000 KRW

*excluding VAT

Apartment Location

Rental fees in Seoul, as of: 05-2017

Size

Jeonse (Deposit)

Wolse (Deposit )

Wolse (Monthly rental fee)

Premium

84m²

550.000.000 KRW

50.000.000 KRW

1.700.000 KRW

Premium

112-114m²

650.000.000 KRW

50.000.000 KRW

1.900.000 KRW

2nd Grade

84m²

400.000.000 KRW

50.000.000 KRW

1.300.000 KRW

2nd Grade

112-114m²

480.000.000 KRW

50.000.000 KRW

1.500.000 KRW

Fringe area

84m²

300.000.000 KRW

50.000.000 KRW

800.000 KRW

Fringe area

112-114m²

350.000.000 KRW

50.000.000 KRW

1.000.000 KRW

EX: 1USD = 1055 KRW as of May 2017

The Pyeong (평) In Korea, by law, the metric system is used. However, Koreans still prefer to use the old Korean unit area “Pyeong (평)”. One Pyeong is 3.3058m². Many properties are often referred to by the gross area, known as “Gong-geub Myeon-joek (공급 면 적)” in Korean, which can differ considerably from the useable space (net area), known as “Joenyong Myeon-jeok (전용 면적)” in Korean, due to the different calculation methods of construction law. This net area is often known colloquially as “SilPyeong (실평)”. The maintenance service costs are calculated based on the gross area. The location search and selection should be made

primarily from an economic point of view, where the rental cost is only one aspect among many. Consideration should be given to a good connection to the transportation infrastructure (subway, bus, highway and possibly an airport), as well as proximity to customers and access to qualified personnel. Sometimes potential employees consider the prestige of the office location when deciding whether to accept an employment offer. For companies which employ staff from Europe countries, especially if they come to Korea with their children, it may be advisable to select a location with proximity to suitable educational facilities and expatriate-style housing.

BCCK FOCUS 39


MARKET FOCUS For the search of a non-commercial property, there are several Korean websites, which may be used in order to get an initial orientation. Commercial real estate is difficult to find over the internet, as offers are commonly outdated and without pictures. In this case, it is advisable to restrict the search area and to cooperate with local estate agents, as well as the physical inspection of the prospective properties in order to make an appropriate selection.

it is advisable to restrict the search area and to cooperate with local estate agents, as well as the physical inspection of the prospective properties in order to make an appropriate selection.

Renting is typically done via certified realtors, known in Korean as a “Boodongsan (부동산)”. It is highly recommended to check the registration of a broker and to cross-check it with the district administration on the basis of registration number and name. Furthermore, every broker should have an insurance policy to the value of at least 100 million Korean won (approx. € 70,000), which should later be attached to the contract. The commission rates are determined by the district administration and vary between commercial and residential properties. Two(2)-year contracts are common. The rental contracts are usually very simple, although a brief examination by a Korean lawyer is still recommended to avoid any misunderstandings, but also as a backup in consideration of the expectations from HQ. When finalizing the contract it is important to ensure that all the (Korean) parties’ seal impression certificates are present, as these notarize the validity of the seal. The rental agreement must be completed prior to the registration of the actual incorporation. At this point in time, the foreign investor will not have

40 British Chamber of Commerce in Korea

a seal. But the contract can be signed by signature and possibly even a thumbprint. The contract should be formulated in such a way that it automatically transfers from the investor to the company once this has been set up. If you are interested in this topic and would like to read the full article and learn more about topics such as: • tenant protection, •b  enefits of expatriate housing rental in the name of the company, • f urniture and setup, • e nding or terminating of the contract, • o r how to register the contract properly Please visit the Nowak & Partner homepage Author: Elias Peterle, Nowak & Partner Email the Author Co-Author: Jin Hyuk Chung, Korean Attorney at Law at HMP Law Email the Co-Author Please note that for topics relevant to the currently effective Korean law; we are not liable for the accuracy, completeness or timeliness of any information.


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MARKET FOCUS

CFO Briefing: What CFOs need to

know about the payroll, tax and internal control environment in Korea

Julien Herveau Mazars Sebit Corp.

Korea was ranked fifth among 190 countries in the 2017 annual World Bank report ranking countries in terms of the ease of doing business. However, when we deal with payroll and related issues, any foreign CFO will have to overcome some quirks related to the Korean employment environment. We have listed below the main questions we usually hear from foreign CFOs.

From an employer perspective, what are the usual employee-related costs to be considered in Korea? When setting up in Korea and estimating the payroll costs, a CFO should consider the following costs in addition to the gross salary: • Social insurances (covering medical, pension, unemployment and industrial accident) would have to be paid by the employer and the employee. The cost for the employer is c. 9% of the gross salary amount.

Compulsory social insurances

Employer

Employee

Health and long-term care insurance

Standard monthly income x 3.06% x 1.0655

Standard monthly income x 3.06% x 1.0655

National pension

Standard monthly income x 4.5%

Standard monthly income x 4.5%

Employment insurance

Wage x 0.9%

Wage x 0.65%

Industrial accident compensation insurance

Wage x rate applicable depending on the industry (from 0.7% a 34%)

Total

around 9% the salary (but depending on the industry)

around 8% of the salary

In practice the above rates may vary from time to time. Some contributions may also be capped in some cases.

42 British Chamber of Commerce in Korea


• Severance benefit will have to be considered as well. According to Korean Labor Law, the employer should pay the average wage for one month per year of continuous employment as retirement allowance when an employee retires. Companies should progressively implement a retirement pension plan (either a defined benefit retirement pension plan, DB plan, or a defined contribution retirement pension plan, DC plan). From an accounting perspective, a DB plan will have to be measured by an actuary for Group accounting purposes under International Financial Reporting Standards (IFRS). In practice, the additional employees’ benefits usually amount to between 17% and 25% of the gross salary amount. In the case of expatriates, CFOs should also refer to social security agreements. For example, for British expatriates in Korea, we should refer to the Convention on Social Security between the Government of the Republic of Korea and the Government of the United Kingdom of Great Britain and Northern Ireland. This convention is a contributions-only convention. We should also note that, regarding pension contributions paid in Korea by U.K. citizens, that no lump-sum reimbursement would be provided when they leave the country.

From an employee’s perspective, what are the main deductions from the gross salary and the main benefits to be considered? The employee salary is usually subject to two main types of deduction: • S ocial insurance (covering medical, pension, unemployment and industrial accident) for c. 8% of the gross salary. Please refer to the table above. • Personal income tax: the tax is withheld every month, based on the monthly salary. The final tax payable is adjusted in February of the following year, based on actual deductions (e.g. dependent deduction) and tax credit allowed from the Korean tax law (such as insurance premium, medical expense, educational expense and donation). When employees have more than their regular wage income, they need to report their other income when preparing their annual tax return. For foreigners, when their taxes are not withheld in Korea, they have to report their taxable income either through a taxpayer association on a monthly basis or through the annual tax return for foreigners. In the case that the personal income tax is withheld by a taxpayer association, a tax credit of 10% is applied, under certain conditions. Moreover, although the personal income tax rate is a progressive rate in Korea, foreigners have the

BCCK FOCUS 43


MARKET FOCUS option to apply a flat rate of 20.9%, under certain conditions. How is the payroll process usually organized in Korea? Foreign investors tend to outsource their payroll activities to a third party (accounting firm, law firm, specialized payroll provider) for better confidentiality and internal control. However, it’s not compulsory and this activity can also be done in-house. For an efficient payroll process, the following steps are taken: • C ollection of variable data during the month (joiners, leavers, bonus, salary increase…) • Preparation of the payroll report, including the variance analysis with the previous month. • A pproval of the repor t by the company’s management (in Korea or at the regional/central level). • Distribution of pay slips, usually electronically, to the employees. Payment, the same day, of the net salary. The payment date is fixed by the company, but can be different from one company to the other. Usually, the payment date is the 26th of the month. • F iling of social insurances and payment of withholding taxes to the National Tax Service by the 10th of the following month. The HR and payroll process should follow the requirement from the “Private Information Protection Act” (“PIPA”). The PIPA law covers the obligations regarding the collection of personal information and also the use and management of video recording devices. From a compliance standpoint, what are the main risks when operating in Korea, and how do you manage them? Entertainment expenses with clients (diner, karaoke, golf club memberships) can be a significant financial burden for the company and these expenses are not

44 British Chamber of Commerce in Korea

always justified from a business perspective. Foreign investors should therefore discuss with their local team about their needs from a business perspective and set clearly defined budgets and application guidance (amount, type of expense). The approach should be similar for travel expenses. Moreover, considering the recent anti-bribery law in Korea (Kim Young Ran Law), internal policies should also clearly state what is and what is not allowed when dealing with civil servants or journalists. Foreign investors should also take into consideration the following practices often seen in Korean business organizations: • A Confucian hierarchy and the desire not to lose face which prevents sharing information within the company and with the head office. • The “pali-pali” attitude which may trigger some risks of bypassing existing controls in order to achieve business results quickly. The implementation of proper internal controls for sensitive transactions and appropriate segregation of duties (especially for entities with small operations) should be considered to minimize the risk of fraud. Using third parties for accounting, payroll or cash management may also mitigate any segregation of duties issues, especially for small entities in Korea.

This article has been prepared to provide information on doing business in Korea. It does not constitute any legal, tax or other professional service advice. For ease of reading, references to existing laws and regulations are excluded. For specific accounting, tax, payroll or internal control questions, please refer to the applicable laws and regulations and seek advice from a professional.


LEGAL FOCUS

Popularity of Virtual Currencies Chan Sik Ahn

Tech & Comms Team HMP Law

Garam Shon

Tech & Comms Team HMP Law

Virtual currency is the newest hot issue among investors. It is now generating profit far exceeding the profit levels of stocks or bonds. The most famous of virtual currencies, Bitcoin, jumped from KRW 300,000 to approximately KRW 3 million in two years, whereas Ethereum went up from KRW 10,000 at the beginning of this year to approximately KRW 200,000 at present, despite a mid-July price drop. Virtual currency deals involve such players as an exchange, a user, and a miner. In this article we look at the Korean legal regulations that are relevant to each of these players. What is Virtual Currency? Bitcoin, the most famous of virtual currencies, was devised by Satoshi Nakamoto, a then-unknown programmer. As bitcoin is traded on decentralized networks without a central control tower that issues and maintains the currency, but rather by blocks that are chained together to arrange deals – hence, the new term “blockchain”. State Regulations on Virtual Currencies The position taken by various states regarding virtual currencies can be one of allowance, disallowance, or deferral. In this regard (i) states that allow virtual

currencies include the United States, Germany, the United Kingdom, and Japan, (ii) some states such as China and Russia do not even permit the exchange of virtual currencies, and (iii) meanwhile, Korea is one of the states that has not yet determined whether to allow or disallow virtual currencies. Current Korean Regulations on Exchange of Virtual Currencies The exchange of virtual currencies means the buying and selling of those virtual currencies that are already in circulation. As there is no law in Korea that prohibits the exchange of virtual currencies, such exchange is not illegal, so long as it does not conflict with existing laws. To be more specific, the operator of a virtual currencies exchange market needs to register as stipulated by the Act on Consumer Protection in Electronic Commerce. In this regard, while the exchange of virtual currencies by users is not prohibited, the remittance of money abroad for purposes of purchasing virtual currencies is not allowed under the Foreign Exchange Transactions Act. Bithumb and Coinone are examples of virtual currencies exchange markets based in Korea.

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LEGAL FOCUS

Current Korean Regulations on the Issuance of Virtual Currencies The ‘issuance of virtual currencies’ means to issue new forms of virtual currencies to attract investment. Unlike exchange of virtual currencies, the issuance of virtual currencies (through an Initial Coin Offering, or ICO) is not an area of active discussion in Korea. In May 2017, BOScoin of Korea raised approximately KRW 13.6 billion (USD 12 million) through an ICO in only 17 hours. As such, the importance of ICOs is expected to increase in the future. The issuance of virtual currencies is similar to an IPO (Initial Public Offering) in that virtual currencies are openly sold to the public. However, since an ICO is largely different from an IPO as it does not involve the receipt of stocks or securities, the general view in light of the current legal regime is that regulations regarding public offerings under the Financial Investment Services and Capital Markets Act do not apply to ICOs. Nevertheless, “the business of receiving any investment under an agreement to pay an amount exceeding such investment in the future” may be subject to punishment under the Act on Regulation of Conducting Fundraising Business Without Permission.

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Prospects of Future Regulation on Virtual Currencies According to media reports, Bithumb, one of the well-known Korean virtual currencies exchange markets, accounts for 12% of the entire world market. The Korean Financial Services Commission created a task force for the regulation of virtual currency, but it has yet to decide on whether to regulate the same, and if so, the degree of regulation. Although it is difficult to predict the course of future regulations, in view of the reality that virtual currencies are already being actively exchanged as well as the importance of Fintech, full disallowance as in the case of China does not seem to be feasible. Thus, it is important to continually monitor the trends signaled by regulating authorities, particularly keeping in mind such matters as (i) whether virtual currencies constitute “a means of electronic payment” under the Electronic Financial Transactions Act, and (ii) whether virtual currency issuing procedures are regulated under the Capital Markets Act.


LIFESTYLE FOCUS

An Educational Revolution is Happening on Jeju Island North London Collegiate School Jeju

innovating in education for more than 160 years. To its first overseas campus, the school brings a tradition of academic excellence routed in a philosophy of subject passion and a love of learning.

Artist impression of Jeju Island’s Global Education City

More famous as a beautiful holiday destination with stunning landscapes, tangerine groves and expansive beaches, Jeju Island is also home to a bold educational experiment. In the mid 2000’s, the Korean government recognized the need for change in the education system and developed the idea of the Global Education City (GEC) in an effort to offer an alternative approach to the sometimes stifling and rigid environment in Korean schools. The long-term plan for the GEC is to offer a capacity of up to 15,000 students across 10 international schools on the 940acre site. In 2010, ground was broken at the site of North London Collegiate School Jeju. A coup for the GEC project, NLCS UK is one of the leading independent schools in England and has been successfully

Now the most established of Jeju’s new state of the art boarding schools in the GEC, NLCS Jeju is setting the standard for a new approach to international education in Korea. Jeju offers an excellent environment for education with space for university style facilities, a setting that encourages outdoor activities and easy access to Seoul, Shanghai, Beijing and Tokyo.

NLCS Jeju, take a virtual tour

From a Big Idea to Big Outcomes August 2017 marks the beginning of North London Collegiate School Jeju’s 7th academic year. In that short space of time, student numbers have grown from 430 to almost 1,300 and this quantifiable

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LIFESTYLE FOCUS

NLCS Jeju students celebrate success at the Valedictory ceremony

measure of success is backed up by exceptional exam results and university destinations of 4 sets of graduates, including US Ivy League and UK Russell Group universities, including Oxford and Cambridge.

maximum. Again this year, within the 2017 cohort, 40% of students scored 40+ points, which is more than 4 times the world average and enough to gain entry into the most prestigious universities.

It is exceptional for such a young school to consistently achieve these results; and places NLCS Jeju among the top international schools in Asia. The school's philosophy of subject passion and a love of learning are at the center of this rapid progress. However, what makes the school so special is not only the distinctly British approach to curriculum, but the balance students achieve to complement their studies. It is this balance that helps make NLCS Jeju students so attractive to the best universities in the world.

This year, NLCS Jeju students have accepted offers to top universities including NYU, Johns Hopkins, Stanford, Duke, Princeton, Cambridge, Imperial College London, University College London, London School of Economics, University of Sydney and University of Hong Kong to name a few.

The Class of 2017 International Baccalaureate (IB) results continue the successful trend in NLCS Jeju students exam results. This year a noteworthy 3 students have achieved perfect scores of 45 points, which puts them in the top 0.1% worldwide. To put this into context, of the 159,400 students from over 136 countries only 218 individuals achieved a

48 British Chamber of Commerce in Korea

Mr Friend, Principal commented, "these results not only reflect exceptional outcomes for our graduating students, but also reflect the dedication and skill of the teachers that have guided our students towards these achievements. We're all immensely proud of these results and I believe that this gives further evidence of just what an inspirational NLCS education can engender.� It would seem that the great Jeju educational experiment is paying dividends.


MEMBER FOCUS | MEMBER STORIES

MEMBER STORY 01

Denby Korea: Premium quality tableware brand

hosts event, indicating continuous business growth Denby is 100% England made premium tableware with over 200 years of design and craftsmanship history. It has been a year since Denby launched in Korea, which was their first subsidiary in Asia. Denby is made using local iron-tich clay and unique glaze recipes. Still using many traditional hand-crafting techniques and time-honoured skills, each piece passes through at least 20 pairs of hands. The Denby approach has always been about creating beautiful and practical tableware that’s designed for modern life, with ranges that can be confidently used in the oven, dishwasher, microwave and freezer. Denby was famous in Korea even before it was distributed by Denby Korea and now the brand is available in department stores, factory outlets, TV home-shopping channels and hypermarkets. Currently, 58 concessions are present at department stores around South Korea, highlighting the continuous demand for Denby products.

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To thank all the consumers who love Denby, Denby Korea held a special event and promotion. Denby hosted a cooking class with famous chef Wonil Lee and a class with florist Jane Packer about decorating a small wedding. In addition, various new content and events are regularly posted on Facebook and Instagram, increasing our social media presence. As part of our consumer promotion strategy, Denby recently implemented a 'redemption sale' in all department stores from June 29 to July 16 which is the first time this has been done since the company’s creation. The event’s theme was 'get new Denby with your old dishes'. This gave consumers the opportunity to purchase Denby products with a 50% discount for both Denby and non-Denby users. Denby-hosted events and promotions will continue into the second half of 2017. For more information, please visit the Denby Korea website, Facebook or Instagram


MEMBER STORY 02

Conrad Seoul wins three titles at the ‘World Travel Awards’ Conrad Seoul has won three commendations ‘Asia's Leading Lifestyle Hotel 2017’, ‘Asia's Leading Luxury City Hotel 2017’, and ‘South Korea's Leading Hotel 2017’ - at the 2017 World Travel AwardsTM. Most prestigiously, Conrad Seoul was named ‘Asia's Leading Luxury City Hotel 2017’ for the third year running. The World Travel Awards™ acknowledges quality, and is often referred to as the “Oscars of the travel industry”. Mark Meaney, the General Manager of Conrad Seoul expressed his gratitude stating, “The biggest attribute of this accolade is our team members, who consistently strive for a more inspired stay experience for our guests, in hope they will create ever lasting memories. We will continue to do our utmost to be the best luxury hotel in Korea, in Asia, and beyond”.

C onrad Seoul is loc ated in the acclaimed International Finance Centre (IFC) in Seoul’s Yeouido Business District. Conrad Seoul has added a new definition to luxurious hospitality by enhancing guest experiences, founded on the motto of “Never Just Stay, Stay Inspired”. As part of this, Conrad Seoul offers a personalized ‘Stay Inspired 1/3/5’ program, connecting the guest with unique ‘only-here’ experiences.

MEMBER STORY 03

AstraZeneca: MOU with KHIDI On June 26, AstraZeneca Korea announced that it has signed a memorandum of understanding (MOU) with the Korea Health Industry Development Institute (KHIDI) to continue conducting their Oncology Research Program and selected four research projects to support. The selected project teams will each receive research funding from AstraZeneca via their respective institutes and gain access to a specified list of AstraZeneca’s compounds for preclinical testing, as part of their open innovation

platform. AstraZeneca Korea and KHIDI started the program in 2014 to support preclinical researches in cancer contributing to enhancing new medicine research capabilities in Korea and the development of new treatments in the field of oncology – an area of high unmet medical need in the country.

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MEMBER FOCUS | MEMBER STORIES

MEMBER STORY 04

Shakespeare at Dulwich College Seoul: A Must! Should young people read and perform old English from the time of Shakespeare when they are still getting to grips with modern English? It is a valid question but one for limited debate at Dulwich, where it is a must. Dulwich College’s Founder, Edward Alleyn, worked with Shakespeare himself in the early 17th century and so Shakespeare’s works have been enjoyed and studied closely by Dulwich students for close on 400 years. This year, Dulwich College International entered into an exclusive relationship with the Royal Shakespeare Company in England to ensure actors and drama teachers from England would visit each Dulwich school overseas every year. At Dulwich College Seoul, workshops for students took place in March and teachers from the school joined others from the Dulwich group in a professional development study week based in Shanghai.

52 British Chamber of Commerce in Korea

At the end of the school year, students from Year 6 (aged around 11 years old) presented a tremendous performance of A Midsummer Night’s Dream. The play was challenging, demanding an understanding and ef fective por trayal of the relationships between the characters, as well as a mastery of the Shakespeare’s language. On both counts, the students excelled. The Year 6 Production is now a rite of passage, an important event signifying the students’ final days of the journey through primary school where in recent years, students have also performed Macbeth, The Tempest, and Romeo and Juliet. For students of this age, deep understanding of such great stories can only be developed through performance: that is why a Shakespeare play will be a part of every student’s experience at Dulwich College Seoul for years to come.


MEMBER STORY 05

SCBK’s new staff “Smart Learning” App for learning on the go! Why Smart Learning is great! One, it’s simple! • C an complete courses through mobile devices anywhere, anytime without having to log onto external networks! • S ign up for mandatory e-learning and classroom courses! • E-learning and test status data is live interfaced with the PC version Two, it’s smart!

Standard Chartered Bank Korea (SC First Bank) launched ‘Smart Learning’, a new mobile learning application, on March 27. The newly introduced application was a success and was well received by the staff, reaching 1,000 downloads in only three days and with 60% actually utilizing the app for learning. Smart Learning allows users to complete their mandatory e-learning courses not only when they are at work, but also while commuting, at home, or during their spare time on mobile devices (smart phones, tablet PCs). In addition, the app offers courses on hobbies and self-development for free. It contributes in increasing staff productivity by providing solutions to employee needs as the application provides an effective working environment and diverse learning channels.

• Push alarms notify users so they don’t miss the completion date. Easy to find out the status of my learning courses Three, it’s diverse! • V arious free courses offered including humanities, business, and latest trends in liberal arts

Smart Learning will continue to update microlearning contents and develop and invest in the application so it can be utilized as a social learning (a virtual platform where staff members can communicate and learn from each other) platform.

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MEMBER FOCUS | MEMBER CSR ACTIVITIES

MEMBER CSR ACTIVITY 01

Robert Walters Korea Holds Global Charity Day The United Kingdom-based global recruitment firm Robert Walters has been holding a charity fundraiser called “Global Charity Day” every October in Korea since the local office was established in 2010, with all proceeds going to charity. On Robert Walters Korea’s latest Charity Day, each executive and staff member conducted a wide range of fundraising activities taking advantage of their individual skills and talents. This time, the funds were contributed to international relief and development agency Oxfam Korea, which supports people suffering from poverty in 94 countries all over the world. Robert Walters Korea also has a cultural contribution program, supporting museums and galleries in Korea. Robert Walters Korea has continuously been emphasizing the importance of returning profits to society and is committed to developing a corporate

54 British Chamber of Commerce in Korea

culture where all employees enjoy doing charitable activities together and are eager to participate. Sponsoring the art museum is one of several global initiatives of the Robert Walters Group. Its head office in the UK has provided support for the Victoria and Albert Museum and the Saatchi Gallery in London. Robert Walters Korea is putting great effort into its sponsorship activity as the Seoul Museum of Art’s first foreign company sponsor to support the interaction and development of culture and the arts in Korea. The total amount of the money raised was 13 million won and will be used to support the development of a variety of special projects, exhibition with Korean and world-renowned artists, and meaningful social educational programs.


MEMBER CSR ACTIVITY 02

Four Seasons Hotel Seoul Creates ‘Nanoom’ Volunteer Community In May 2016, Four Seasons Hotel Seoul created a volunteer community called 'Nanoom' with the purpose of helping community in need. Every month, a group of employees volunteer to

visit a food bank in Jongro called "Angel's Food" where they give a helping-hand to do anything from cooking and serving food to cleaning and engaging with people in need.

BCCK FOCUS 55


New Members List (Summer 2017) New Patron Members

New Corporate Members Adecco Korea BBC Worldwide COEX Crave Catering Daehyun Accounting Corporation

Dearment Gyeongnam Provincial Government Hannuri Accounting & Tax Kelly Services Korea Lotteria

Nestle Nespresso O’Callaghan Holdings The Executive Centre Wilson Parking

New Overseas Corporate Members Associated Seafoods David Collins Studio Gieves & Hawkes Hardy Amies Isolated Systems

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Kent & Curwen Lulu Guinness PizzaExpress R A Smart Simon Harris

Tech21 The Conran Shop The National Gallery Trinity Brands Thomas Pink Waitrose


MEMBER FOCUS | MEMBER OFFERS

Member Offers

Special offers are periodically provided to BCCK members!

RDI Worldwide: 25% discount on one-day HR workshops RDI Worldwide works with Korean and international organisations to support professional development and management training. RDI Worldwide is offering BCCK members a 25% discount on their flagship management training programmes. This offer applies to: Lego Serious Play, an innovative way to develop team dynamics and promote effective management; Situational Leadership: a globally recognised methodology from Ken Blanchard; Performance Coaching (individuals or in groups); and Cross-Cultural Management, for better working in multinational companies. BCCK members who book a workshop with RDI (up to 30 people) are able to receive 25% off the facilication fee. Only BCCK members are eligible to receive this discount! Click here to access the discount!

British Airways: 10% discount off tickets to UK and Europe British Airways, the UK’s leading airline, is offering BCCK members an exclusive 10% off all flights to the UK and Europe. The discount also applies to online-only exclusive deals through BA. Only BCCK members are eligible to receive this discount! Click here to access the discount!

Park Hyatt Busan: 10% discount on daily base rate Park Hyatt Busan is a luxurious, intimate, and residential-style hotel located in the heart of Busan, Korea’s largest port city. Park Hyatt Busan is offering BCCK members with a 10% discount based on a daily basis rate. *Black out dates: 7/30 – 8/6, 8/13 – 14, 10/1 - 02 & 22, 11/17 – 19, 12/24 & 31 Only BCCK members are eligible to receive this discount! Click here to access the discount!

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MEMBER FOCUS | MEMBER OFFERS

Member Offers

Special offers are periodically provided to BCCK members!

British Council: 15% discount on myClass English courses The British Council is a world leader in English language teaching. The organisation operates two adult centres at Euljiro and Gangnam and offers customised English courses that will meet the specific English skills needs of any organisation. The British council is offering BCCK members a 15% maximum discount on a myClass English course. Only BCCK members are eligible to receive this discount! Click here to access the discount!

Dearment: 10% discount on all fresh flower products over 50,000 KRW Dearment is a Seoul based florist which offers a variety of flower products including dry flowers, flower baskets and flower vases, as well as services such as the provision of wedding bouquets, flower subscriptions and flower deliveries. Dearment is offering BCCK members a 10% discount on all purchases of fresh flower products over 50,000 KRW. Only BCCK members are eligible to receive this discount! Click here to access the discount!

Truefitt & Hill: 10% discount on all services and products Truefitt & Hill is a British premium male grooming shop with a 211-year history located in central Seoul. Truefitt & Hill is offering BCCK members a 10% discount on all services and products Only BCCK members are eligible to receive this discount! Click here to access the discount!

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Top Reasons to Join the BCCK ADVOCACY In the post-Brexit era, we are a key voice for British business and our members in Korea. We have a professional team to discuss about the direction of business of this changing situation and work closely with the Korean and British

governments, along with the British Embassy Seoul. Just this year, we held a members-only breakfast workshop event with Mr. John Alty, a key representative in discussions between the UK and Korea over a possible new trade deal.

ADVERTISING AND SPONSORSHIP BCCK members can maximize their company exposure through our online and of fline advertising platforms. We distribute an annual member directory, a quarterly webzine, and are active on Facebook, Linkedin, Twitter, and Instagram. Our annual membership

directory is distributed offline to all our member companies. Members can also take advantage of sponsorship opportunities at our events, including providing products to raffle at our events or having company logos on our event flyers and banners.

NETWORKING The BCCK hosts the largest and trendiest net working events for the international community in Korea. Our diverse membership – 25% of our membership is Korean - and business network stretching from Korea to the UK ensures that you will be meeting new and interesting people at our events. We also host

a busy calendar of content-driven forums and workshops for our members on topics that are relevant to business leaders in Korea. We host special breakfasts featuring interesting speakers from the UK like the Lord Mayor of the City of London or the head of the British Council.

BUSINESS OPPORTUNITIES We are a hub for British business in Korea. The BCCK has an active trade and investment ser vices team that help UK brands find opportunity in Korea and, increasingly, Korean brands to enter the UK market. Already we have helped such brands as SuperGroup and Linguaphone identify partners and better understand the Korean market. We are also

JOIN NOW!

increasingly helping Korean companies enter the UK market utilizing our strong network in the UK. Our position as a hub for inbound and outbound market-entry enquiries makes us uniquely positioned to connect and promote business between our members both in Korea and the UK.


SPECIAL FOCUS: ‘UK/KOREA 2017–18 CREATIVE FUTURES’

A message from Emma Dexter, Director Visual Arts I am delighted to introduce our visual arts highlights for the UK/Korea 2017–18 Creative Futures. The British Council Collection was established in 1938 to encourage dialogue between artists and audiences internationally and we are delighted that the exhibitions at Aram Art Gallery and SeMA will further nurture relationships between the UK and East Asia. The Painting Show opened on 5 July at Aram Art Gallery, GoyangAramNuri Arts Centre. Created by the British Council with Aram Art Gallery, the exhibition brings together recent works by 15 British

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and eight Korean artists, including Dexter Dalwood, Lucy McKenzie, Jeong Zik-Seong and Jisan Ahn.The Painting Show demonstrates the richness and vigour of contemporary painting, and also draws parallels between the artistic practices across Korea and the UK. I am delighted to announce that Willie Doherty, one of Northern Ireland’s most celebrated artists, had his first solo show in Korea from 8 July to 6 August at Art Sonje Centre. Many joined us for a series of special screenings introduced by the artist on 7 July, and explored Doherty’s distinctive relationship with histories of social unrest and memory.


This autumn, we will celebrate the opening of two major exhibitions that are a result of collaborations between UK collections and the museum sector in Korea. In August, NUDE: Masterpieces from Tate is unveiled at the Seoul Olympic Museum of Art (SOMA) and in September, the Seoul Museum of Art (SeMA) will present highlights from the British Council Collection. We are delighted to be working closely with SeMA on this timely and often humorous exhibition that explores the cultural habits of the UK as it undergoes a time of rapid change. Two generations of British Pop Art come to Korea in 2017: a solo exhibition dedicated to the work of Richard Hamilton (1922-2011) at the National Museum of Modern and Contemporar y Ar t (MMCA); and Julian Opie’s first solo presentation at a public museum at Suwon IPARK Museum of Art (SIMA). Widely regarded as the father of Pop Art, Richard Hamilton’s pioneering work simultaneously embraced and criticised the possibilities presented by mass media and popular culture from the 1950s to the present day. Representing a new generation, Julian Opie has developed a bold graphic style to

create ultra-modern portraits rendered in paint or glimmering L.E.D. panels. Finally, we extend our heartfelt congratulations to Blast Theory, the UK’s preeminent artist-group and winner of the 2016 Nam June Paik Award. You cansee their ground-breaking show at the Nam June Paik Centre in November, which is an extravaganza of interactive media, performance and digital technologies. There are so many opportunities to enjoy visual arts from the UK through the latter half of the year of UK/ Korea Season and I would like to welcome you to join any of these wonderful exhibitions. * Emma Dexter is Director Visual Arts of the British Council based in London

Video UK/Korea 2017–18 Highlight - Part 1 Over the first half of UK/Korea 2017–18 we have welcomed many UK artists visiting a range of cities in Korea for festivals and performances. What were their responses to the question about Creative Futures? What kind of events are waiting for you in the latter half of the year? Watch the video to find out. Click here for more information

BCCK FOCUS 61


SPECIAL FOCUS: ‘UK/KOREA 2017–18 CREATIVE FUTURES’

Events Opera in Cinema

4th. PRODUCTION IMAGE © ROH. PHOTOGRAPHER CATHERINE ASHMORE

The Royal Opera House screens opera and ballet productions live across the world. Enjoy the worldclass productions at Lotte Cinema near your home and meet the opera Les Contes D’Hoffmann, where Vittorio Grigolo leads an excellent cast including Thomas Hampson, Sonya Yoncheva, Christine Rice and Sofia Fomina in Offenbach’s fantastical operatic drama. Click here for more information

The Painting Show

Has Bean by Neal Jones © Neal Jones and Southard Reid

The Painting Show presents a selection of recent works by 15 British artists and eight Korean artists. This exhibition will be held at Goyang Aramnuri Aram Art Museum from 5 July to 24 September. You can experience the richness and vigour of contemporary painting by artists from the UK and Korean at this special exhibition. Click here for more information

The Art of Dissonance British Council collection highlighting diverse nature of British society, will be showcasing an exhibition at the Seoul Museum of Art. This will be the first British contemporary art exhibition in 20 years held in public museum in Korea! Rachel Maclean, The Lion and The Unicorn, 2012 (film still). © the Artist, Commissioned by The Edinburgh Print

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Click here for more information


Events NUDE : Masterpieces from Tate Masterpieces from Tate: Nude presents over 100 works selected from the Tate collection with the theme of naked body at Seoul Olympic Museum of Art from 11 August to 25 December. The exhibition includes works of various media including paintings, sculptures, prints, drawings and photographs by Pablo Picasso, Henry Matisse, JWM Turner, August Rodin, Francis Bacon, David Hockney, Tracey Emin and more. Do not miss this unique opportunity to see those masterpieces. Click here for more information

Reviews The 19th SEOUL International Women’s Film Festival British feminist film activist and critic, Sophie Mayer, presented the lecture 'Something Different: How feminist filmmakers changed cinema and the world' on pioneering female directors and their works. Read more about Sophie’s lecture on our blog. (Korean version only) Click here for more information

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SPECIAL FOCUS: ‘UK/KOREA 2017–18 CREATIVE FUTURES’

Reviews Atomos Wayne McGregor, the creative engine of British Contemporary art, returned to Korea after 12 years. This time he presented Atomos, one of his innovative works that best expresses his artistry. The exquisite and eloquent movements of the dancers were harmonised with video and lighting perfectly, and they captivated audiences. Read our review. (Korean version only)

Atomos production shot. Photo by Ravi Deepres 10

Click here for more information

UK-Korea Creative Education: Research and Roundtable Creative education specialists from the UK have visited Korea last month as part of UK-Korea Creative Education research programme designed in collaboration with Royal Society of Arts(RSA) and Korea Arts & Culture Education Service (KACES). In the roundtable discussions the delegates shared their thoughts on the impact of creative education, and how we could solve the challenges both countries are facing. Find out more about their findings and opinions on creative education. (Korean version only) Click here for more information

The Wheel House by Acrojou at UMTF Acrojou, a British dance and circus company, performed The Wheelhouse at the 16th Uijeongbu Music Theatre Festival. Performed outdoor with its rolling house-wheel, it delivered a touching love story of a couple on a quest to survive on a deserted planet. Read more on our blog. (Korean version only) The Wheel House by Acrojou_8 © 2017 Uijeongbu Music Theatre Festival

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Click here for more information


ADVERTISE IN OUR NEXT ISSUE! Reserve Your Space Now for FOCUS Fall 2017! The BCCK will be launching its next issue of FOCUS in October 2017! The webzine will feature articles about living, working and doing business in Korea and offers a great opportunity for you to raise your company’s visibility through our 3,500+ contact database from the British, Korean and international business communities. Secure your space for the Fall 2017 issue to advertise your services or products to the BCCK’s extensive network. The webzine will also be available through our website and other online platforms.

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BCCK Webzine ‘FOCUS’

Advertisement Rates Advertising Space Location

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H. Back Cover

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400,000 KRW

600,000 KRW

*Please note that all prices are subject to 10% V.A.T. **Advertising spaces are limited. Advertisers will be given spaces on a first come, first served basis

Contact Marketing & Communications Coordinator Mijung Lee

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+82) 2-6365-2307

mijung.lee@bcck.or.kr

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The gift of Jo Malone London is always uniquely special. Unexpected scents wrapped with finesse for a lasting impression. Indulge your VIP clients and colleagues with exclusive and extraordinary gifts. We offer the unparalleled service from choosing, wrapping, to delivery of the gift all in an exclusively stylish manner. To discover more about the Corporate Gifting, Please contact below Corporate Sales Representative. Jo Malone London Corporate Sales Representative Email : jmlcorporatesales@kr.estee.com Tel : 02.3440.2548


“We offer the best quality of flowers for your perfect occasion.” - Made to order - Wedding flowers - Flower subscription - Flower styling - Corporate displays - Flower classes


BCCK FOCUS Summer 2017  
BCCK FOCUS Summer 2017  

A quarterly magazine published by the British Chamber of Commerce in Korea. This issue has interviews with Lucia Cho, the Creative Director...