Review focus: foreign business in Korea, Ministry of Finance, jurisdiction of the Ministry of Finance, controls on foreign investments in Korea, Ministry of Trade and Industry Boye Lafayette de Mente is one of our regular monthly columnists at the Asian Business Strategy & Street Intelligence Ezine. A noted author with over 30 years of experience in China, Japan, Korea and other Asian countries, Boye's tips on doing business in the region are both pragmatic and enlightening. Some material is taken from Boye's many books exploring Asian cultural and business Code Words, business etiquette, customs, and language. Asian Business Code Words Index NTC/Contemporary Publishing Company Asian Business Strategy & Street Intelligence Ezine What's New? Search the Asia Pacific Management Forum database of over 3,000 pages updated daily. Use this page's relevant keywords or clear the box and enter your own. Click options for complex or phrase search. ...Click on the icon for our full search facilities.

The Most Important Ministry June 2000 It is essential that the foreign business people in Korea familiarize themselves with the Ministry of Finance (MOF), which has jurisdiction over virtually every area or phase of business that pertains to foreign businesses operating in the country. These areas of business include the monetary system, banking, national taxes, national tariffs, foreign exchange, foreign economic cooperation, and property of the state and government financial accounting. The MOF also interprets and administers the Foreign Capital Inducement Law (FCIL) and the Foreign Exchange Control Law (FECL). The MOF is made up of eight bureaus and agencies, along with four external organizations. The bureaus and agencies are the following: Customs and Tariff Bureau Economic Cooperation Bureau Finance Bureau International Finance Bureau Planning and Management Office Securities and Insurance Bureau Tax Bureau Treasury Bureau The external organizations controlled by the Ministry of Finance are the Customs Administration, National Banks, Monopoly Administration, and the Office of National Tax Administration. The Customs and Tariff Bureau administers customs and tariffs regulations, and controls the entry of foreign goods into Korea through its tariff and nontariff barriers. The Economic Cooperation Bureau administers the Foreign Investment Control Law which controls foreign investment in Korea, the inflow and outflow of foreign exchange, and all foreign economic cooperation. The Finance Bureau controls the banking system, the non-banking financial system, and all financial policy. The International Finance Bureau is in charge of the Republic of Korea's (ROK) foreign exchange policy, international finance, and overseas investment. The Office of National Tax Administration includes a direct tax bureau, an indirect tax bureau, a collection and appeals bureau, and an investigative bureau. All tax assessment, collections, changes, and exemptions are controlled by this agency. The Powerful MTI Korea's Ministry of Trade and Industry (MTI) is credited with being the second most important government entity as far as business is concerned. It has jurisdiction over all manufacturing and trading of goods as well as after-sales services; it issues export licenses, sets import controls, has jurisdiction over the administration of patents, controls all government technical assistance programs, reviews the contents of technology inducement contracts - and requests changes in the contracts when it sees fit to do so. The MTI indirectly controls the Small and Medium Industry Development Corporation, the Korean Trade Promotion Corporation (KOTRA), Korean Traders Association (KTA), and the Korean Chamber of Commerce and Industry (KCCI). The Ministry of Trade and Industry also uses its power to play a key role in the application of nontariff barriers against foreign products to either limit their importation or keep them out of the country entirely. MTI is made up of the following bureaus and offices: Basic Industry Bureau Electronic Industry and Electrical Appliance Industry Bureau Free Export Zone Administrative Office International Trade Promotion Bureau Machinery Industry Bureau Planning and Management Office Small and Medium Industry Bureau Textile and Consumer Goods Industry Bureau Trade Bureau Another government body of special concern to the foreign business in Korea is the Ministry of Labor (MOL), which is made up of the Labor Policy Bureau, Labor Standards Bureau, Employment Security Bureau, Labor Insurance Bureau, Planning and Management Office, and the Vocational Training Bureau. The MOL has jurisdiction over all labor affairs in the country, including work rules, working conditions, labor welfare, worker's compensation insurance, vocational training, employment security, and labor dispute mediation. Labor policy making, wages, welfare, labor unions, and labor/management consultations come under the jurisdiction of the Labor Policy Bureau. Working conditions, industrial safety, and work rules for women, minors are controlled by the labor Standards Bureau.

This month's column is excerpted from Korean Etiquette & Ethics in Business, by Boye Lafayette De Mente available from NTC/Contemporary Publishing Company

© Boye Lafayette De Mente & the Asia Pacific Management Forum 2000

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