Business Expenses In Korea

Business Expenses in Korea Corporate Establishment & Operating Costs plus Daily Living Expenses

Business Expenses in Korea

Contents Ⅰ. Expenses for the Establishment of a Company

4

Ⅱ. Employment Costs

9

Ⅲ. Logistics Expenses

12

Ⅳ. Public Utilities Charges

16

Ⅴ. Living Expenses

21

Ⅰ. Expenses for the Establishment of a Company 1. EXPENSES FOR ESTABLISHMENT OF A CORPORATION 1) Establishment of a Corporation in Large Metropolitan Areas For persons wishing to establish a corporation in larger cities such as Seoul or other large metropolitan areas with capital of 50 million won, the minimum amount under the Korean Commercial Code, the mandatory expenses will be as follows: Registration tax, which is 3 times higher than that for smaller metropolitan areas. And, if the corporation is established in Seoul, a public bond which is 0.1% of the capital must be paid. Expenses for the Establishment of a Corporation

Capital (KRW 50 million) won

US$1)

Registration Tax (1.2% of the Capital)

600,000

Education Tax (20% of the Registration Tax)

120,000

513 103

Certification of Establishment Fees(Notary's Office)

130,000

111

Search Fee for Company and Corporation Names

36,000

31

Stamp Duty

70,000

60

Public Bonds (for Seoul)

50,000

43

Public Fees for Applications

120,000

103

Fees for Authentication of Seal, Attested Copy of Register, plus submission

100,000

85

Fees for Legal Seals for Representative Director and Stockholders Basic Consulting Fee to a Judicial Scrivener Total

50,000

43

190,000

162

1,466,000

1,253

Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2) Expenses for Establishing a Corporation outside the Metropolitan Areas Expenses for the Establishment of a Corporation Registration Tax (0.4 % of the Capital) Education Tax ( 20% of the Registration Tax) Fee for the Certification of Establishment (Notary's Office)

Capital (KRW 50 Million) won

US$1)

200,000

171

40,000

34

130,000

111

Search Fee for Company and Corporation Names

36,000

31

Stamp Duty

70,000

60

Public Fees for Applications

120,000

103

Fees for Authentication of Seal, Attested Copy of Register, plus submission

100,000

85

50,000

43

Fees for Legal Seals for Representative Director and Stockholders Basic Consulting Fee to a Judicial Scrivener

190,000

162

Total

936,000

800

Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2. OFFICE RENT As of the first half of 2004, office rent per pyeong (3.3 ㎡), per month is 40,000~70,000 won in Seoul and 20,000~30,000 won in provincial cities. For example, for an office building in Teheran-ro, Seoul, the deposit for the lease contract is 615,000 won per pyeong and monthly rent is 60,000 won per pyeong. A jeonse deposit would be 396,000 won per

04 05

pyeong. Jeonse is a unique system, which is only found in Korea. With a jeonse contract, a deposit equal to 50~70% of the market price of the property is paid. During the period of the contract, no rent is paid and the leaseholder receives the full deposit at the end of the contract period. The average maintenance fee for shared areas is around 23,000 won per pyeong per month in Seoul. Seoul Jung-gu / Gangnam Yeouido / Jongro Mapo 70,414 60,031 43,964

Other 37,915

Unit: won/pyeong

Busan

Daegu

Incheon

27,397

19,813

23,921

Daejeon Gwangju 17,894

19,001

Ulsan 20,817

Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. PLANT LOT EXPENSES The prices of plant lots in major industrial complexes vary considerably, depending upon the price of the land adjacent to them and complex policies affecting them. The costs range from 70,000 won per ㎡ per year in Daebul National Industrial Zone in Jeonman to 435,000 won per ㎡ per year in Asan National Industrial Complex in Chungnam. The average is about 100,000 won per ㎡ per year. The cost for plant lots in the Industrial Zone is 20~50% lower than for those in the Support Zone. The following are exclusively for foreign companies and the lots are rented rather than sold: Pyeongdong Foreign Industrial Complex in Gwangju, Daebul Foreign Industrial Complex in Jeonnam, Ochang Foreign Industrial Complex in Chungbuk and Gumi Foreign Industrial Complex. Unit:1,000 won /㎡

Region

Complex Name

Industrial Facility Zone

Support Facility Zone

Gwangju High-tech Science Industrial Complex

122

Pyeongdong Foreign-exclusive Industrial Complex

Rent (40/year)

204 (Research Lots: 90) -

Gwangju

81 (Additional 10% of the land price for deposit for removal) Poseung Area: 430~435 Chungnam Asan National Industrial Complex Godae Area: 328 Bugok Area: 338 Chungbuk Ochang Foreign-exclusive Industrial Complex Rent: 1.3 / year Jeonbuk Gunjang National Industrial Complex 336 Daebul National Industrial Complex 70 127 Jeonnam Rent: 0.3 / year Daebul Foreign-exclusive Industrial Complex Deposit for Rental: 0.3 Gangwon

Bukpyeong National Industrial Complex

Gyeongnam Jinsa Foreign-exclusive Industrial Complex Anjeong National Industrial Complex Gyeongbuk

Gumi National Industrial Complex Gumi Foreign-exclusive Industrial Complex

Source: Korea Digital Industrial Complex (www.esandan.net) Note: Refer to the won-dollar exchange rate table at the end of chapter five

107

183 Rent: 1 / year 120

118 Rent (1.1/year) + Deposit for Rental

4. TAXES 1) Income Taxes ▶Corporate Income Tax The taxable income under the Corporate Income Tax Act (CITA) is as follows:

+ – + – – –

Net income in accordance with financial accounting standards additional amounts of earnings for tax purposes additional amounts of loss for tax purposes donations in excess of the maximum deductible amount tax loss carried forward non-taxable incomes deductible incomes

=

taxable income

The corporate income tax rates effective as of 2004 and 2005 are as follows: Taxable amount

2004

2005

100 million won or less

15% of the taxable income

13% of the taxable income

100 million won or more

15 million won + 27% of the amount in excess of 100 million won

13 million won+ 25% of the amount in excess of 100 million won

Note: Refer to the won-dollar exchange rate table at the end of chapter five

Any foreign-invested company eligible for tax relief is eligible for corporate income tax relief as follows: First, if the business is an industrial support service, high-tech or any of those businesses designated for the foreign investment zone, it is exempt from 100% of the corporate income tax until 2004 and this is then reduced to 50% for 3 years thereafter. If tax relief is applied for in 2005, the company is fully exempt from corporate income tax for the first 5 years and this is reduced to 50% for a subsequent 2 years. For example, the amount of corporate income tax relief granted for income generated by a business recognized as high-tech that starts operation in 2005 is computed as follows: <Example of Corporate Income Tax Relief> Amount of Corporate Income Tax

Unit: won

Year

Taxable Amount

2005

100 million

13 million

13 million (100%)

2006

200 million

13 million + 25 million

38 million (100%)

51 million

2007

300 million

13 million + 50 million

63 million (100%)

114 million

2008

400 million

13 million + 75 million

88 million (100%)

202 million

2009

500 million

13 million + 100 million

113 million (100%)

315 million

Amount of Relief

Cumulative Totals of Relief 13 million

2010

600 million

13 million + 125 million

69 million (50%)

384 million

2011

700 million

13 million + 150 million

81.5 million (50%)

465.5 million

Note: Refer to the won-dollar exchange rate table at the end of chapter five

Second, any foreign-invested company occupying free trade zones, free economic zones and the Jeju Investment Promotion Zone and any foreign developer in the free economic zones and the Jeju Investment Promotion Zone are eligible for 100% corporate income tax exemption for the first 3 years and a 50% reduction for 2 years thereafter.

06 07

Meanwhile, with respect to the dividends paid to foreign investors by any foreign-invested company engaged in a line of business eligible for tax relief, the income tax on the dividends generated during any relief period is either exempted or reduced at the same rate as the corporate income tax relief. In other words, during any period in which the corporate income tax is fully exempted, the personal income tax on dividends is fully exempted as well. Likewise, during any period in which the corporate income tax is reduced by 50%, the personal income tax on dividends is also reduced by 50%. Further, where any advanced technologies essential to strengthen the international competitiveness of a domestic industry are imported by contract, the corporate and personal income taxes imposed on the payments for the technologies paid to the foreign individual, corporation or economic cooperative body are fully exempt for five years from the date of the first payment scheduled under the contract.

▶Personal Income Tax 4 Progressive personal income tax rates are applicable. Personal income taxes are imposed comprehensively on income from interest, dividends, real estate, business and earnings, but separately on severance benefits and capital gains. Taxable Income 10 million won or less

Tax Rates 9% of the taxable income

Over 10 million won

900 thousand won + 18% of the amount in excess of 10 million won

Over 40 million won

6.3 million won + 27% of the amount in excess of 40 million won

Over 80 million won

17.1 million won + 36% of the amount in excess of 80 million won

Note: Refer to the won-dollar exchange rate table at the end of chapter five

Similar to corporate income tax relief, personal income tax relief is available for employees of the eligible foreign-invested companies. In addition, certain foreign specialists who begin employment before December 31, 2006, are eligible for full exemption from personal income tax for their first 5 years in Korea. Furthermore, the income of a foreign specialist is tax exempt if s/he provides services in Korea for a Korean national under a technology transfer contract under the Foreign Investment Promotion Act (FIPA).

2) Taxes on Real Estate Any foreign-invested company eligible for income tax relief is also eligible for tax relief with respect to property tax, acquisition tax, comprehensive land tax and registration tax imposed on real estate.

▶Acquisition and Registration Taxes The taxes imposed when a property is purchased include acquisition tax (2% of the purchase price), registration tax (3% of the purchase price) and value added tax (10% of the purchase price of the building, deductible or refundable for businesses) as well as other

taxes such as special taxes for rural development (10% of the acquisition tax) and local education tax (20% of the registration tax). The abovementioned taxes also increase, depending on whether the property is located in a congestion restricted zone or not. In addition, a housing bond must be purchased (exempted or reduced for registered foreigninvested companies in proportion to the ratio of foreign investment). < Taxes imposed on purchase of 100 million won building > Tax Acquisition tax Special tax for rural development Value added tax Registration tax Education tax Total

Unit: won

Tax Rate

Outside Congestion Restricted Zones

Congestion Restricted Zone

2% of the purchase price

2,000,000

6,000,000

10% of the acquisition tax

200,000

600,000

10% of the purchase price 3% of the purchase price 20% of the registration tax

Deductible 3,000,000 600,000 5,800,000

Deductible 9,000,000 1,800,000 17,400,000

Relief Full exemption Deductible Full exemption 800,000/ 2,400,000

Note: Refer to the won-dollar exchange rate table at the end of chapter five

▶Taxes on Purchasing Property Property tax (0.3% to 7% of the price of the building), comprehensive land tax (0.2% to 5% of the price of the land), local education tax (20% of the property tax and comprehensive land tax) and a special tax for rural development (10% or 15% of the comprehensive land tax) are levied when a property is purchased. Where a non-urban factory building is constructed or expanded within the Metropolitan Congestion Control Region, the property tax is five times as much (0.3%×5= 1.5%).

▶Taxes on Sale of Property Value-added tax (10% of the sale price of the building) is levied at all times together with capital gains tax (9% to 36%) and resident tax (10% of the capital gains tax) for individuals, or corporate income tax (15% and 27%, or 13% and 25% starting from 2005) and resident tax (10% of the corporate income tax) for corporations.

3) Taxes on Import of Capital Goods Customs duty, special excise tax and value-added tax are exempted on capital goods brought in by a foreign-invested company as a means of outbound or domestic payment and contributed by a foreign investor, or the capital goods brought in by a foreign-invested company as a contribution to capital. Tax

Customs duty

Special excise tax and value added tax

08 09

Relief

100% for 3 years

100% for 3 years

Requirements - Industrial support service business - High-tech business - Designated business in foreign investment zones - Occupant of free trade zone - Occupant of free economic zone - Foreign-invested developer in free economic zones and the Jeju Investment Promotion Zone - Occupant of Jeju Advanced Science & Technology Complex, Jeju Investment Promotion Zone or Jeju Free Trade Zone - Industrial support service business - High-tech business - Designated business in foreign investment zones

Ⅱ. Employment Costs 1. WAGES The average monthly wages for factory workers, office workers and other workers are as follows: Unit: won

Line of Business

Factory

Meat, fruit, vegetable, fat and oil processing

965,371

Office and Other 1,488,634

Dairy and ice cream manufacturing

1,861,967

2,057,879

Processed grain products, starch and feed manufacturing

1,665,807

2,113,892

Miscellaneous food manufacturing

1,329,807

1,782,701

Beverage manufacturing

1,861,690

2,057,783

Spinning

1,252,731

1,673,163

Fabric and weaving

1,319,168

1,750,546

Knitting and crocheting

1,276,098

1,776,107

Dyeing and textile processing

1,395,007

1,705,227

Other textile product manufacturing

1,239,837

1,642,948

Garment manufacture

1,050,573

1,747,389

Fur processing and fur product manufacturing

1,386,455

1,906,178

Leather garment manufacturing

1,515,044

1,979,654

Bags, purses and other leather article manufacturing

1,264,923

1,840,833

Shoe manufacturing

1,078,100

1,658,146

Sawmill and lumber processing

1,269,197

1,408,655

Wood, cork and carved product manufacturing

1,345,334

1,520,494

Pulp, paper and cardboard manufacturing

2,334,080

2,456,156

Corrugated cardboard, paper containers and other paper product manufacturing

1,422,210

1,721,057

Publishing

2,018,942

1,790,010

Printing and other related business

1,512,350

1,580,958

Reproduction of recorded materials

1,554,984

1,923,370

Refined petroleum product manufacturing

3,938,941

2,722,173

Basic chemical manufacturing

2,650,136

2,655,308

Pharmaceutical manufacturing

1,852,401

2,208,922

Other chemical manufacturing

1,699,111

2,036,512

Synthetic fiber manufacturing

2,703,751

2,766,125

Rubber product manufacturing

1,660,279

1,773,280

Plastic product manufacturing

1,402,431

1,697,323

Glass and glass product manufacturing

1,927,213

2,419,244

Ceramic manufacturing

1,280,897

2,288,541

Cement, lime, plaster and cement, lime and plaster product manufacturing

1,793,090

1,836,790

Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office Note: Refer to the won-dollar exchange rate table at the end of chapter five

▼ ▼

Unit: won

Factory

Office and Other

Other non-metal mineral product manufacturing

Line of Business

1,549,180

1,716,251

Basic iron and steel manufacturing

2,394,756

2,185,922

Basic precious and non ferrous metal manufacturing

1,893,490

2,117,436

Metal casting

1,661,223

1,836,768

Structural metal products, tanks and steam generator manufacturing

1,695,768

1,983,238

Other fabricated metal product manufacturing and metal treatment

1,460,467

1,650,130

General purpose machinery manufacturing

1,646,042

1,900,875

Machine tool manufacturing

1,750,863

1,987,930

Other special purpose machinery manufacturing

1,731,967

1,892,281

Weapons and ammunition manufacturing

1,416,667

1,351,852

Other home appliance manufacturing

1,660,643

2,233,923

Computer and office equipment manufacturing

1,766,184

2,583,148

Electric motor, generator and transformer manufacturing

1,444,689

1,907,291

Power distribution and electric control device manufacturing

1,500,672

1,810,933

Insulated wire and cable manufacturing

1,652,745

2,047,792

Storage battery and primary battery manufacturing

2,070,056

1,995,922

Light bulb and lighting equipment manufacturing

1,274,601

1,596,119

Other electrical equipment manufacturing

1,288,159

1,719,155

Semiconductor and other electronic component manufacturing

1,891,618

2,526,208

Telecommunication devices and broadcasting equipment manufacturing

1,569,859

2,037,426

Broadcasting receiver and other AV device manufacturing

1,389,915

2,019,975

Medical device manufacturing

1,272,577

1,652,737

Measuring, testing, navigation and other precision instrument manufacturing

1,488,856

1,718,628

Spectacle, camera and other optical device manufacturing

1,228,256

1,563,993

Clock and clock part manufacturing

1,407,889

1,680,571

Automobile engine and automobile manufacturing

2,743,072

3,007,059

Automobile body and trailer manufacturing

1,582,018

1,803,163

Automobile part manufacturing

1,683,306

1,871,372

Shipbuilding

2,760,994

2,342,244

Railway equipment manufacturing

2,372,320

2,192,442

Aircraft, spacecraft and parts manufacture

2,976,257

2,823,219

Other transport equipment manufacturing

1,433,096

2,003,426

Furniture manufacturing

1,312,772

1,529,414

Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office Note: Refer to the won-dollar exchange rate table at the end of chapter five

10 11

2. MANDATORY SEVERANCE PAY Mandatory severance pay is a benefit guaranteed at all times by law and must be no less than the average wage for 30 days for each consecutive year of service. If the employment period is less than one year, the computation is as follows: severance pay = average wage×30 days×(number of days of consecutive service ÷ 365) The average wage is calculated by averaging the amount paid over the three months prior to the date of resignation or retirement, divided by the total number of days in the three months. If the severance pay calculated in accordance with company regulations is below the mandatory severance payment, the difference must be paid. In addition, any transfers made to the national pension fund in advance, from the severance pay, should be deducted from the final severance payment. <Example> If employment commenced on Feb. 1, 1995 and the date of resignation or retirement was May 15, 2002, and the average wage was KRW 55,000, the length of service is 7 years, 3 months and 15 days + 1 day. In this case: 7 years×55,000 won×30 days = 11,550,000 won 3 months×55,000 won×30 days / 12 months = 412,500 won 16 days×55,000 won×30 days / 365 days =72,329 won Therefore, the total amount of severance pay is 12,034,829 won

3. INSURANCE PREMIUMS Employment Insurance

Mandatory applicable premises

Any premises with one full-time employee or more

Workmen’s Compensation Insurance

Any premises with one full-time employee or more

Premium

Paid by the 0.45% of the employee total wage

-

Paid by the 0.7% to 1.3% of the total employer wage

0.4% to 31.7% of the total wage

National Health Insurance

National Pension Scheme

Total

Any corporation, professional business establishment and sole proprietor employing Any premises with one full-time one full-time employee or more, and any employee or general business more establishment or sole proprietor employing five full-time employees or more 2.105% of the 4.5% of the standard standard 7.055% monthly monthly remuneration remuneration 2.105% of the 4.5% of the standard standard 7.705%~ monthly monthly 39.605% remuneration remuneration

Total premiums

1.15% to 1.75% of the total wage

0.4% to 31.7% of the total wage

4.21% of the standard monthly remuneration

9% of the standard monthly remuneration

Payment

Annually; lump sum in advance or 4installments

Annually; lump sum in advance or 4installments

On the 10th of each month

On the 10th of each month

14.76%~ 46.66%

Ⅲ. Logistics Expenses 1. LAND TRANSPORTATION 1) By Rail Quantity Less than10㎏

Unit: won

Up to 200km

Up to 300km

Up to 400km

Over 401km

900

1,200

1,600

1,900

15㎏

1,200

1,600

2,100

2,350

20㎏

1,500

1,950

2,500

2,750

25㎏

1,800

2,300

2,850

3,200

30㎏

2,100

2,650

3,200

3,600

35㎏

2,400

3,000

3,600

4,000

40㎏

2,750

3,300

4,000

4,450

45㎏

3,050

3,700

4,350

4,850

50㎏

3,350

4,000

4,750

5,250

55㎏

3,650

4,350

5,100

5,700

60㎏

3,950

4,700

5,500

6,100

65㎏

4,300

5,050

5,850

6,500

70㎏

4,600

5,400

6,250

6,900

75㎏

4,900

5,750

6,600

7,350

80㎏

5,200

6,100

7,000

7,750

85㎏

5,500

6,450

7,350

8,200

90㎏

5,800

6,800

7,750

8,600

95㎏

6,100

7,100

8,100

9,000

100㎏

6,400

7,450

8,500

9,400

Source: Office of Korea National Railroad Note: Refer to the won-dollar exchange rate table at the end of chapter five

2) By Road Distance

Up to 2 Tons

Unit: won

Up to 5 Tons

Up to 7 Tons

Up to 10 Tons

Up to 12 Tons

every 0.5ton over 12 Tons

Up to 10km

26,130

38,550

50,380

70,430

80,990

1,920

Up to 30km

43,060

63,210

81,840

108,340

122,040

2,870

Up to 50km

56,400

82,010

106,430

140,350

157,700

3,720

Up to 70km

62,380

92,070

122,150

159,040

178,060

4,120

Up to 100km

70,800

106,500

142,740

182,850

203,900

4,840

Up to 200km

108,310

145,580

185,160

236,280

266,150

6,310

Up to 350km

148,920

196,170

240,790

295,300

330,470

7,880

Up to 460km

180,520

237,830

287,510

350,020

389,500

9,320

Up to 510km

193,150

254,510

306,210

373,850

413,100

9,890

9,920

15,420

18,020

20,930

22,190

540

every 50km over 510km

Source: Seoul Freight Forwarders Associatio Note: Autonomic Fare System since Jan. 1, 1998 (Transportation costs differ depending on the company since Jan. 1, 1998) Refer to the won-dollar exchange rate table at the end of chapter five

12 13

3) Containers < Freight Tariffs for Containers (Return) >

Unit: won

40FT

20FT

Incheon - Seoul

176,000

158,000

Incheon - Busan

898,000

808,000

Incheon - Daegu

616,000

554,000

Incheon - Gwangju

629,000

566,000

Incheon - Cheonan

363,000

328,000

Incheon - Daejeon

492,000

443,000

Incheon - Chuncheon

439,000

395,000

Busan - Seoul

863,000

777,000

Busan - Daegu

393,000

354,000

Busan - Gwangju

537,000

483,000

Busan - Daejeon

548,000

493,000

Busan - Cheonan

616,000

537,000

1,004,000

904,000

Busan - Chuncheon

Source: Korea International Trade Association Note: Refer to the won-dollar exchange rate table at the end of chapter five

2. SEA TRANSPORTATION Routes Busan → Incheon Incheon → Busan Busan → Gwangyang Gwangyang → Busan Gwangyang → Incheon Incheon → Gwangyang

Unit: won

Size

Tariff

20 FT 40 FT 20 FT 40 FT 20 FT 40 FT 20 FT 40 FT 20 FT 40 FT 20 FT 40 FT

249,000 298,000 196,000 245,000 125,000 185,000 125,000 185,000 190,000 270,000 170,000 210,000

Source: Coastal Shipping Tariffs, Hanjin Transportation Co., Ltd. Note: V.A.T. not included Refer to the won-dollar exchange rate table at the end of chapter five

Container CY/ CY Container CY/ CY Container CY/ CY Container CY/ CY Container CY/ CY Container CY/ CY



Unit: US$

Destination

20FT

40FT

New York

3,490

4,650

Los Angeles

1,995

2,515

Rotterdam

1,525

3,050

Hamburg

1,525

3,050

650

800

Fukuoka Kobe

550

700

Yokohama

550

700

Shanghai

250

450

Dalian

250

450

Hong Kong Sydney Singapore Dubai

250

550

1,050

2,100

600

1,200

1,300

2,600

Source: Logispia (www.logispia.net): KL-Net’s portal site specializing in logistics Note: The above tariffs are approximations only. Because tariffs vary according to shipping companies, type of freight and quantities

3. AIR TRANSPORTATION EXPENSES Destination

~45㎏

45㎏+

100㎏+

500㎏+

New York

49.4

4.5

4.15

4.0

4.0

San Francisco

49.4

3.8

3.5

3.4

3.3

London

64.9

7.6

6.6

6.1

5.1

Paris

64.9

7.6

6.6

6.1

5.1

Frankfurt

64.9

7.6

6.6

6.1

5.1

Tokyo

29.0

1.4

-

-

-

Osaka

29.0

1.2

-

-

-

Shanghai

32.1

2.9

2.7

2.5

-

Sydney

52.0

6.7

6.2

5.3

-

Singapore

32.1

4.3

4.0

3.4

-

Dubai

64.9

7.9

-

-

-

Note: The above tariffs are approximations only. Tariffs vary according to airline companies, discount rates for specific items, and type of goods

14 15

300㎏+

Unit: US$/kg

4. SPECIAL DELIVERY TARIFFS A special delivery service is classified as same day delivery and next day delivery. Approximations are as follows: <Same Day Delivery Service>

Unit: won

In the same area To another area Within Seoul Outside Seoul (Seoul Metropolitan Area)1)

8,000

Remarks

10,000

12,000

- Standard Freight (Weight: within 30kg, Size: The total of length, width, and height of the box within 160cm) - Same terms apply to cases for more than one items and other extra charge for both same day delivery and next day delivery

Source: Express Business Headquarters, Hanjin Co., Ltd. Note: 1)Outside Seoul means Seoul Metropolitan Area, including Bundang, Pyeongchon, Ilsan, Gwangmyeong, etc. Refer to the won-dollar exchange rate table at the end of chapter five



Unit: won

Light-weight Type S

Small parcels Type A

Medium parcels Type B

1kg or less

10kg or less

20kg or less

30kg or less

40kg or less

Size 60cm or less (length+width+height)

120cm or less

140cm or less

160cm or less

200cm or less

5,000

6,000

7,000

8,000

15,000

To another area

6,000

7,000

8,000

9,000

20,000

Jeju Island

8,000

9,000

10,000

11,000

25,000

Classification Weight

Within the same area

Large parcels Type C

Extra Large parcels Type D

Source: Express Business Headquarter, Hanjin Co., Ltd. Note: To islands: 4,500 won is added to the basic rate (Delivery service not available for Type D) Areas: Seoul Metropolitan area, Chungcheong-do, Gangwon-do, Yeongnam, Honam and Jeju Island Refer to the won-dollar exchange rate table at the end of chapter five

In the above table, if the weight of a parcel is heavier than its size limit, the weight applies for billing. Likewise, if size is bigger than its weight limit, size applies.

Ⅳ. Public Utilities Charges 1. ELECTRICITY 1) Industrial Power Contracted for less than 300 kW Unit: won

Classification

Basic Charge (won/kW)

Low Voltage Power High Voltage A High Voltage B

Power Consumption (won/kWh) Summer (July, August)

Spring, Autumn (April~June, September)

Winter (October~March)

4,150

63.8

48.1

51.9

Option 1

4,400

63.5

48.0

51.4

Option 2

5,060

60.1

44.6

48.2

Option 1

4,060

62.6

47.2

50.6

Option 2

4,690

59.4

43.9

47.5

Source: KEPCO (Korea Electric Power Corporation, www.kepco.co.kr) Note: High Voltage A: Standard Voltage Range between 3,300V and 66,000V / High Voltage B: Standard Voltage 154,000V Option 1: Lower basic charge but higher consumption charge. Suitable for facilities using power for less than 200 hours per month Option 2: Suitable for facilities using power for 200 hours to 500 hours per month Refer to the won-dollar exchange rate table at the end of chapter five

2) Industrial Power Contracted for between 300kW and 1,000 kW Unit: won

Classification

Basic Charge (won/kW)

Power Consumption (won/kWh) Time

Midnight Option1

4,400

High Voltage A Option2

Option1

5,070

4,060

High Voltage B Option2

4,690

Summer (July, August)

June

32.5

32.5

Winter April, May, (October~ March) September 32.5

32.5

Daytime

88.2

60.6

50.3

56.8

Evening

60.5

50.3

60.6

68.1

Midnight

29.2

29.2

29.2

29.2

Day time

84.9

57.2

47.0

53.4

Evening

57.2

47.0

57.2

64.8

Midnight

32.2

32.2

32.2

32.2

Day time

85.4

58.7

48.7

54.9

Evening

58.7

48.7

58.7

65.9

Midnight

28.9

28.9

28.9

28.9

Day time

82.1

55.5

45.5

51.8

Evening

55.5

45.5

55.5

62.6

Note: Midnight: 22:00-08:00, Daytime: 08:00-18:00, Evening: 18:00-22:00 Refer to the won-dollar exchange rate table at the end of chapter five

16 17

Spring, Autumn

3) Industrial Power Contracted for over 1,000 kW Unit: won

Power Consumption (won/kWh) Classification

Option 1

Basic Charge (won/kW)

Electrical Load Time Zone

4,400

High Voltage A Option 2

Option 1

High Voltage B

Option 2

Option 3

Option 1

High Voltage C

Option 2

Option 3

5,070

4,060

4,500

4,990

4,020

4,590

4,940

Spring, Autumn Summer Winter (April~June, (October~March) (July, August) September)

Light

32.5

32.5

32.5

Medium

69.2

50.8

58.6

Maximum

118.6

69.2

81.3

Light

29.1

29.1

29.1

Medium

65.9

47.6

55.2

Maximum

115.2

65.9

7.9

Light

32.2

32.2

32.2

Medium

68.8

50.5

58.2

Maximum

118.2

68.8

80.7

Light

29.8

29.8

29.8

Medium

67.2

48.6

56.2

Maximum

117.9

67.2

79.3

Light

28.4

28.4

28.4

Medium

64.5

46.6

54.1

Maximum

113.1

64.5

76.1

Light

31.8

31.8

31.8

Medium

68.5

50.2

57.7

Maximum

117.6

68.5

80.3

Light

30.2

30.2

30.2

Medium

68.4

49.5

57.1

Maximum

117.5

68.4

79.8

Light

28.0

28.0

28.0

Medium

64.2

46.3

53.6

Maximum

112.5

64.2

75.7

Note: High Voltage C: Standard Voltage of 345,000V and above Refer to the won-dollar exchange rate table at the end of chapter five

Load Light Medium Maximum

Spring, Summer, Autumn

Winter

22:00~08:00

22:00~08:00

08:00~10:00, 12:00~14:00

08:00~16:00

17:00~22:00

20:00~22:00

10:00~12:00, 14:00~17:00

16:00~20:00

2. WATER RATES <Water Rates by Region >

Unit: won/㎥

Seoul

Busan

Daegu

Incheon

Gwangju

Daejeon

506

592

440.8

511.3

501.9

406.9

Ulsan

Provinces (Average)

657.4

517.9

Source: Statistics on 2002 Water Supply, Dec. 2003, Ministry of Environment Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. WASTE MANAGEMENT EXPENSES < Unit Cost for Waste Management according to Categories > Unit Price for Waste Management

Category of Wastes

Unit: won/ton Unit Price for Waste Management

Category of Wastes

Waste oils

271,000

Waste halogenated organic solvents

526,000

Waste non-alogenated organic solvents

271,000

Waste synthetic resins and rubbers

271,000

Wastes from paints, lacquers

305,000

Waste agrichemical, waste toxic substance, asbestos(dusts and fibers)

526,000

Waste acidic or basic solutions, Waste alkali

297,000

Slag (designated waste)

146,000

Other wastes from business premises for incineration

266,000

General wastes from business premises for burial

67,000

Other wastes designated for burial

98,000

residues resulting from the treatment of animal waxes

205,000

residues resulting from the treatment of vegetable waxes

149,000

Waste batteries

Waste lubricant oils

45,000

Glass waste

13,000 21,000

Waste drum Waste cable

200 21,000

Sawdust out of

21,000

Waste pneumatic tires

65,000

32,000

Waste synthetic resin

31,000

Wood waste and scrap Waste solid plastic container

Source: Ministry of Environment, www.me.go.kr Note: Refer to the won-dollar exchange rate table at the end of chapter five

In addition, the unit cost for waste management for construction wastes is 23,000 won/ton and for infectious waste is 773,000 won/ton

4. COMMUNICATION EXPENSES 1) Postage ▶Regular mail Size

Standard

Non-Standard

Unit: won

Weight

Regular Post

Up to 5g

160

240

Over 5g up to 25g

190

280

Over 25g up to 50g

210

310

Up to 50g

280

420

90

130

every 50g thereafter Source: Ministry of Information and Communication Note: Refer to the won-dollar exchange rate table at the end of chapter five

18 19

Express Post

▶Parcel Post

Unit: won

Destination Regular Parcel

Express Parcel

Same Zone

2kg

5kg

10kg

20kg

30kg

1,500

2,000

2,500

3,500

4,500

Different Zone

2,000

2,500

3,000

4,000

5,000

Same Zone

2,500

3,000

3,500

4,500

5,500

Different Zone

3,000

3,500

4,000

5,000

6,000

Note: Refer to the won-dollar exchange rate table at the end of chapter five

Type of Parcel

Additional Charge

Value up to 1 million won Insured Parcels up to 2 million won

Fragile Parcels

Remarks

50% added to the basic postage

Insured for 100,000 won and over

80% added to the basic postage

up to 3 million won

100% added to the basic postage

Includes fragile, chilled and frozen goods

50% added to the basic postage

Parcels must be picked up at point of origin

Note: Refer to the won-dollar exchange rate table at the end of chapter five

Parcels received at

Post Offices

Collected from place of business

Separate Postage Payment Subsequent Postage Payment Separate Postage Payment Subsequent Postage Payment

5%

10%

15%

20%

-

10 items or more

50 items or more

100 items or more

-

100 items or more

250 items or more

500 items or more

2~5 items

6~9 items

10~49 items

50 items or more

10 items or more

50 items or more

100 items or more

500 items or more

2) Telephone Charges ▶Wired Telephone The connection fee is 60,000 won, including V.A.T. and the basic monthly charge is 5,200 won, not including V.A.T.

-Regular Time Zone (08:00 21:00 weekdays & Saturdays): 39 won for every 180 seconds -Discount Time Zone (Public Holidays and 21:00 ~ 24:00, 00:00 ~ 08:00 weekdays & Saturdays) 39 won for every 258 seconds

< Long Distance Calls > Billing Time Zone

Unit: won

Zone 1 (Billing Distance Within 30km)

Zone 2 (Billing Distance Outside of 30km)

Regular

39/180 seconds

14.5 won/10 seconds

Discount

39/200 seconds

13.1 won/10 seconds

Special Discount

39/258 seconds

10.2 won/10 seconds

Source: KT (tel.up2.co.kr) Note: Refer to the won-dollar exchange rate table at the end of chapter five

▶Internet Access

Unit: won

3 year contract 2 year contract 1 year contract (15% discount) (10% discount)

Monthly Fee

(5% discount)

No contract

Remarks

25,500

27,000

28,500

30,000

ADSL, VDSL etc.

Modem Rental per month

3,000

3,000

3,000

10,000

Free of charge after 3 years

Installation Fee

30,000 (At the time of connection), 10,000 (To transfer the connection)

Source: KT (megapass.up2.co.kr) Note: Megapass Lite Refer to the won-dollar exchange rate table at the end of chapter five

▶Mobile Phones Different companies charge differently. The figures below are approximate for using a mobile for more than 360 minutes per month. Unit: won

Billing System

Basic Monthly Rate

Call Charge

Included in Basic Rate

Premium

52,000

17 / 11 / 9

380 minutes of local calls

Premium Plus

55,000

17 / 11 / 9

380 minutes of local calls, 400KB of data & 30 text messages per month

Source: SK Telecom (www.speed011.co.kr) Note: Refer to the won-dollar exchange rate table at the end of chapter five

5. GAS RATES Unit: won/㎥

Region Seoul

Heating for Business Use 477.01

General Use Air-conditioning Business Use 1 Business Use 2 (May-September) 458.03

414.41

365.99

Gyeonggido

483.27

464.73

420.67

270.16

380.92

Busan

533.42

470.82

425.75

317.98

389.62

Daegu

524.13

461.53

463.63

314.08

381.22

Changwon

525.22

462.77

411.18

312.22

423.63

Gwangju

515.06

477.61

438.79

311.38

388.04

Yeosu

561.59

494.99

494.19

301.87

416.73

Daejeon

523.92

478.04

461.32

303.74

389.95

Wonju

584.82

509.65

507.65

380.95

484.05

Source: Korea City Gas Association (www.citygas.or.kr) Note: Refer to the won-dollar exchange rate table at the end of chapter five

20 21

259.54

Industrial Use

Ⅴ. Living Expenses 1. HOUSING About 60% of foreigners in Korea live in Itaewon, Hannam-dong, and Dongbuichondong, in Yongsan-gu, Seoul. These areas seem to be preferred because they are near the city center and create a comfortable living environment. Quite a few high-ranking Korean Government officials and foreign ambassadors also live in these areas. In Itaewon there are apartments and villas as well as luxurious residences with gardens. It is also adjacent to the Yongsan American Army base. Other residential areas for foreigners include Seongbuk-dong, Pyeongchang-dong and Yeonhi-dong. Seongbuk-dong is very near Mount Bukhan and has picturesque views and clear air. Pyeongchang-dong, is within walking distance of Mount Bukhan and also boasts superb views and a convenient living environment. Yeonhi-dong benefits from being near schools for foreign children, such as Seoul Foreign School and the British and Chinese schools. Most foreigners seem to prefer housing in the order of apartments, houses and villas.

1) Rents in the Seoul Area <Apartments>

Itaewon-dong

Ichon-dong

Hannam-dong

Samseong-dong

Unit: 10,000 won

Size

No. of Bedrooms/Bathrooms

(Jeonse) Property Deposit

Monthly Rent

22 pyeong

3/1

16,000~17,000

150~195

31 pyeong

3/2

24,000~26,000

200~250

48 pyeong

4/2

38,000~40,000

300~350

53 pyeong

4/2

40,000~42,000

330~380

25 pyeong

3/1

15,000~16,000

100~120

33 pyeong

3/2

23,000~26,000

170~200

40 pyeong

4/2

29,000~33,000

240~260

21 pyeong

2/1

11,500~15,000

120~130

28 pyeong

2/1

17,500~21,000

150~180

33 pyeong

3/2

23,000~26,000

180~230

42 pyeong

3/2

28,000~35,000

250~300

25 pyeong

3/1

19,000~20,000

100~150

33 pyeong

3/1

28,000~30,000

170~200

44 pyeong

4/2

34,000~39,000

250~300

Source: Real estate related websites Note: In the case of monthly rent, sometimes a deposit is required or, alternatively, a deposit can be paid in order to decrease the monthly rent Refer to the won-dollar exchange rate table at the end of chapter five



Itaewon-dong

Hannam-dong

Seongbuk-dong

Pyeongchang-dong

Samseong-dong

Unit: 10,000 won

Size

No. of Bedrooms/Bathrooms

Monthly Rent

38 pyeong

3/1

190

50 pyeong

3/2

320

80 pyeong

4/2

600

97 pyeong

4/2

900

34 pyeong

3/2

230

41 pyeong

3/2

300

62 pyeong

4/2

450

82 pyeong

4/2

800

43 pyeong

3/2

250

50 pyeong

3/2

450

85 pyeong

3/3

750

113 pyeong

4/3

1,200

39 pyeong

3/2

100

71 pyeong

4/2

600

108 pyeong

5/5

850

25 pyeong

3/1

100

50 pyeong

4/2

300

95 pyeong

5/2

600

Note: Refer to the won-dollar exchange rate table at the end of chapter five



Unit: 10,000 won

Size Itaewon-dong

Hannam-dong

Pyeongchang-dong

Samseong-dong Yeonhi-dong

No. of Bedrooms/Bathrooms

50 pyeong

4/2

500

103 pyeong

4/4

800

93 pyeong

5/2

800

125 pyeong

7/3

900

70 pyeong

4/3

700

100 pyeong

4/3

1,100

62 pyeong

5/1

400

140 pyeong

5/2

800

60 pyeong

4/2

500

90 pyeong

5/4

800

Note: Refer to the won-dollar exchange rate table at the end of chapter five

22 23

Monthly Rent

2) Housing according to Region <Apartments> Region

Busan

Gwangju

Daejeon

Jeonnam Jeonbuk Gyeongbuk Gyeongnam

Gyeonggi

Unit: 10,000 won

Size (unit: pyeong)

No. of Bedrooms/Bathrooms

Jeonse (Deposit System)1)

Monthly Rent (Deposit Amount)2)

28

3/1

8,000~9,000

20~30 (5,000~6,000)

48

4/3

10,000~14,000

50 (7,000)

60

5/3

11,000~15,000

70 (6,000)

24

2/1

4,000~4,500

35 (1,500)

47

4/2

7,000~8,000

60 (3,000)

24

3/1

8,000~9,000

30~40 (2,500~4,000)

32

3/2

10,000~12,000

40~60 (3,000~7,000)

49

4/2

15,000~17,000

30~40 (9,000~10,000)

24

3/1

24

3/1

2,800~3,000

25 (1,000)

41

4/2

7,700~85,00

100 (1,000)

28

3/2

5,000~5,600

45 (500)

26

3/1

7,000~8,000

25 (4,500)

32

3/2

9,500~10,000

40 (5,000)

28

3/2

5,500~6,500

30~50 (1,000~3,000)

44

4/2

7,000~8,000

45~60 (3,000~4,000)

68

5/2

9,000~10,500

80~100 (1,000~2,000)

20 (300)

Note: 1)In the Jeonse system, which is unique to Korea, the lessee pays the deposit amount (about 50%~70% of the market value of the property) in advance and then does not pay any rent. The deposit is fully refunded at the end of the contract period 2)The monthly rent plus deposit option is not necessarily parallel with market values. Refer to the won-dollar exchange rate table at the end of chapter five

Most rental properties also require a deposit. For example, the lessee of a 28 pyeong apartment with 3 bedrooms and 1 bathroom pays an initial deposit of 50-60 million won and then a monthly rent of 200,000~300,000 won. The deposit is fully refunded at the end of the contract period.

2. HOTEL EXPENSES In Seoul, a room in a 5-star hotel costs approximately 350,000 won per night. For first class hotels (4-star) it is 140,000 won per night and for second class hotels (3-star) it is usually less than 100,000 won.

<Seoul>

Unit: won/night

Premium Hotels

First Class Hotels

Name

Room Rate

Name

COEX Inter-Continental

340,000

Academy House

Hyatt

370,000

Hilton

340,000

JW Marriott Lotte

Second Class Hotels

Room Rate

Name

Room Rate

80,000

Airport

93,000

Best Western New Seoul

160,000

Astoria

75,000

Bugak Park

130,000

Boorim

78,000

400,000

Centro

140,000

Brown

62,000

360,000

Crown

146,410

Central

85,000

Renaissance

370,000

Hamilton

135,000

City Palace

Sheraton Walker Hill

360,000

Itae won

140,000

Dynasty

Shilla

360,000

Jongno Crown

143,000

Green Park

90,000 120,000 65,000

Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. BASIC EXPENSES

Unit: won

Unit Coke

Price

600㎖

740

Orange Juice

1.5ℓ

2,110

Mineral Water

500㎖

350

Beef (Tenderloin)

600g

40,000

Pork

600g

7,000

Chicken

1kg

3,500

1

3,500

Apple Kerosene

1

718

Diesel Oil

1

853

Unleaded Gasoline Cigarettes

1 1 packet (20)

1,358 1,500~2,000

Source: First Quarter, 2004, Korea Price Information Note: Refer to the won-dollar exchange rate table at the end of chapter five



Unit: won

Unit Regular Restaurant

Lunch

First Class Hotel restaurant

Lunch (Buffet)

Regular Chinese Restaurants

Jajangmyeon

Special Chinese Restaurants

Lunch (Set Menu)

5,000~8,000 25,000~50,000 3,500 15,000~35,000

Regular Japanese Restaurants

Hot Fish Stew

Special Japanese Restaurants

Lunch (Set Menu)

Regular Korean Restaurants

Rice & Side Dishes

Special Korean Restaurants

Lunch (Set Menu)

25,000~50,000

Pizza Hut

Family Size Pizza

24,900~28,900

Bar

Budweiser 1 bottle

4,000~8,000

McDonalds

Hamburger

1,000~3,600

Source: Websites for restaurants and the above brands Note: Refer to the won-dollar exchange rate table at the end of chapter five

24 25

Price

10,000 15,000~35,000 5,000~8,000

4. MEDICAL EXPENSES There are nine general hospitals and more than 10 private hospitals that run clinics for foreigners in Korea. Unit: won

Treatment Fees First medical examination

55,920

Second medical examination

51,140 734,000 674,000

VIP room

624,000 Hospital room rates per day

580,000 354,000

Single room

276,000 Twin room

195,000

Source: International Clinic, Severance Hospital Note: Refer to the won-dollar exchange rate table at the end of chapter five

5. TUITION FOR FOREIGN SCHOOLS There are more than 60 foreign schools in Korea, which provide education for the American, British, Japanese, French, German and Chinese communities. Sixteen schools are located in Seoul or nearby. Generally, students have to hold a foreign passport and, at least one parent is interviewed by school staff. The following is a summary of the curricula and tuition fees of some of the foreign schools in Seoul.

1) Seoul Foreign School American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School. British Curriculum: Offers an education based on the National Curriculum of England and Wales. Admission Fees Pre-school Elementary School

- Application Fee : 220,000 won or US$180

Middle School High School British School

Other Expenses

Tuition Fee 5,900,000 won and US$2,700 10,900,000 won and US$5,200 1,400,000 won and US$5,400

- Registration Fee: 440,000 won or US$365

14,750,000 won and US$6,000 11,900,000 won and US$6,100

- Annual School Bus Fee : 1,920,000 won or US$1,600 - High School Senior Fee : 204,000 won or US$170 - Early Exam Fee(per exam) : 60,000 won or US$50 - IB Fee-Junior Year : 660,000 won or US$550 - IB Fee-Senior Year : 1,320,000 won or US$1,100

*Homepage: www.sfs.or.kr *Phone: 82-2-320-3100, Fax: 82-2-322-4105 Note: Refer to the won-dollar exchange rate table at the end of chapter five

2) Seoul International School American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School. Admission Fee Pre-school Elementary School

8,590,000 won and US$4,100 420,000 won (or US$350)

Middle School

9,340,000 won and US$4,500 10,390,000 won and US$5,000

High School

Other Expenses

Tuition Fee

10,840,000 won and US$5,200 - Transportation Fare (Option) : US$1,500 - Semester Exam : 60,000 won - A.P Exam Fee : 200,000 won - High School Graduation Fee : 200,000 won - Book Deposit ·Elementary School : 100,000 won ·Middle School : 150,000 won ·High School : 200,000 won

*Home page: www.sis-lhs.gyeonggi.kr *Phone: 82-2-2233-4551, Fax: 82-31-759-5133 Note: Refer to the won-dollar exchange rate table at the end of chapter five

3) Korea International School American Curriculum: Offers Kindergarten, Elementary, Middle and High School. Admission Fee Kindergarten Elementary School

700,000 won1)

Middle School

8,800,000 won and US$5,800 9,900,000 won and US$6,500

High School Other Expenses

Tuition Fee 8,800,000 won and US$5,800

11,000,000 won and US$7,600 - Bus Fare 1,850,000won2) - Book Deposit Fee: 200,000 won

*Home page: www.kis.or.kr *Phone: 82-2-561-0509, Fax: 82-2-576-0709 Note: 1)Initial Registration Fee and Admission Testing Fee 2)One-way or half-year bus fare options are not available. Refer to the won-dollar exchange rate table at the end of chapter five

4) Lycee Francais de Seoul French Curriculum: Offers Kindergarten, Elementary, Middle and High School. Unit: won

Admission Fee Kindergarten Elementary School

6,668,000 None

Middle School

9,804,000 - Annual School Bus Fare : 1,600,000 won

*Home page : lyceeseoul.ifrance.com, www.lfseoul.org *Phone: 82-2-535-1158, Fax: 82-2-593-5444 Note: Refer to the won-dollar exchange rate table at the end of chapter five

26 27

6,668,000 9,064,000

High School Other Expenses

Tuition Fee

5) Deutsche Schule Seoul German Curriculum: Kindergarten and Elementary Schools Unit: won

Admission Fee Kindergarten

Tuition Fee

110,000

5,500,000

700,000

12,000,000

Elementary School Middle School High School Other Expenses

- Annual School Bus Fare : 2,500,000 won - Lunch meal allowance is additionally required

*Home page : www.dsseoul.org *Phone: 82-2-792-0797, Fax : 82-2-797-1954 Note: Refer to the won-dollar exchange rate table at the end of chapter five

6) Japanese School Japanese Curriculum: Kindergarten, Elementary School, Middle School Unit: won

Admission Fee

Tuition Fee

Kindergarten

200,000

Elementary School

160,000

Middle School

160,000

Other Expenses

- Heating Expenses (November-February): 30,000 per month - School Bus Fare: 105,000 per month

*Home page: http://sjshp.or.kr *Phone: 82-2-574-0348, Fax: 82-2-572-6972 Note: Refer to the won-dollar exchange rate table at the end of chapter five

For non-members of Seoul-Japan Club (SJC), admission fee and tuition fee are higher than shown in above table.

6. TRANSPORTATION EXPENSES 1) Airfares Domestic airfares in Korea are affected by both seasonal and competitive factors. For comparison purposes, please see the table below. A departure tax of 5,000 won is levied on all departures from Incheon International Airport and 4,000 won for domestic terminals.

Unit: won

Economy Class Route

Business Class

Discount Rate

Normal Rate High Season Rate Discount Rate

(Mon ~Thurs)

(Fri ~Sun)

Normal Rate

Seoul / Incheon-Busan

62,400

66,500

Seoul / Incheon-Jeju

73,400

78,400

Jeju-Seoul / Incheon

82,300

Seoul / Incheon-Daegu

54,400

58,000

60,900

74,400

78,000

80,900

Seoul-Gwangju

54,900

58,500

61,400

74,900

78,500

81,400

Seoul-Ulsan

61,900

65,900

69,400

81,900

85,900

89,400

Seoul-Jinju / Sacheon

65,400

69,900

73,400

85,400

89,900

93,400

Seoul-Pohang

58,400

62,500

65,400

78,400

82,500

85,400

Seoul-Yangyang

51,400

55,000

57,900

71,400

75,000

77,900

Busan-Jeju

56,900

60,500

63,400

76,900

80,500

83,400

Busan-Yangyang

61,900

66,000

69,400

81,900

86,000

89,400

Gwangju-Jeju

49,900

53,500

56,400

69,900

73,500

76,400

Daegu-Jeju

62,400

66,900

70,400

82,400

86,900

90,400

Cheongju-Jeju

64,400

68,900

72,400

84,400

88,900

92,400

Ulsan-Jeju

61,400

65,400

68,900

81,400

85,400

88,900

Gunsan-Jeju

54,900

58,500

61,400

74,900

78,500

81,400

Seoul-Yeosu / Suncheon

62,900

67,400

70,900

-

-

-

Yeosu / Suncheon-Jeju

50,900

54,500

57,400

-

-

-

Jinju / Sacheon-Jeju

55,900

59,500

62,400

75,900

79,500

82,400

Wonju / Hoengseong-Jeju

74,800

80,400

84,300

94,800

100,400

104,300

Mokpo-Jeju

44,400

47,500

49,900

-

-

-

High Season Rate

(Mon~Thurs)

(Fri~Sun)

69,900

82,400

86,500

89,900

82,400

93,400

98,400

102,400

103,300

Source: Public Utilities Charge, Korea Price Information Note: Based on the Tariffs of Korean Air (KAL) Refer to the won-dollar exchange rate table at the end of chapter five

2) Railroad The following is a schedule of Korean railroad fares: <Passenger Fare for KTX (high-speed express) Seoul-Busan Line> Gwang Cheonan, Yongsan -myeong Daejeon Asan Seoul Yongsan Gwangmyeong Cheonan,Asan Daejeon Dongdaegu Milyang Gupo

10,600

10,600 10,600

11,400 11,100 10,600

19,700 19,400 17,300 10,600

Source: April, 2004, Office of Korea National Railroad Note: Refer to the won-dollar exchange rate table at the end of chapter five

28 29

Dongdaegu 34,900 34,600 32,800 23,500 15,700

Unit: Won

Milyang

Gupo

Busan

39,700 39,400 37,700 28,300 21,000 10,600

43,500 43,200 41,500 32,100 24,800 10,600 10,600

45,000 44,700 42,900 33,600 26,200 12,200 10,600 10,300

<Passenger Fare for KTX Honam Line>

Unit: won

Seo -daejeon

Nonsan

19,800

23,700

27,000

30,800

35,500

10,600

10,600

13,200

18,600

Seoul Seodaejeon

Iksan

Nonsan

Jeon -geup

10,600

Iksan

Song -jeongri

Mokpo

Gwang -ju

36,900

41,400

36,600

20,000

24,400

19,700

Naju

10,600

14,200

15,900

20,500

15,500

10,600

10,600

12,000

17,300

11,600

10,600

10,600

12,800

10,600

10,600

10,600

-

10,600

-

Jeongeup Songjeongri Naju Source: Office of Korea National Railroad Note: Refer to the won-dollar exchange rate table at the end of chapter five

3) Express Buses Domestic express bus fares vary according to destination and class of service. <Seoul Departures > Gyeongbu Line

Unit: won

Guma Line

Yeongdong Line

Pyeongtaek

4,700

Masan

24,400

Wonju

8,100

Cheonan

5,600

Changwon

24,700

Jecheon

Cheongju

8,200

Jinju

21,300

Gangreung Sokcho

18,800

Honam Line Nonsan

13,700

10,500

Jeonju

15,400

15,800

Gunsan

16,100

Daejeon

10,200

Namwon

19,100

Gimcheon

15,200

Gwangju

20,800

Daegu

19,400

Mokpo

24,000

Gyeongju

23,400

Suncheon

25,600

Ulsan

26,100

Yeosu

28,000

Busan

27,500

Note: Refer to the won-dollar exchange rate table at the end of chapter five

4) Taxis (Seoul) Classification Ordinary Taxi

Unit: won

Basic Charge 1,600 / 2km

Charge by Distance 100 / 168m

Charge by Time 100 / 41sec

Deluxe Taxi

4,000 / 3km

200 / 205m

200 / 50sec

Van (Jumbo) Taxi

4,000 / 3Km

200 / 205m

200 / 50sec

Note: Refer to the won-dollar exchange rate table at the end of chapter five

5) City Buses (Seoul)

Unit: won

Classification

Fare

Main Line, Branch Line Ordinary Bus

800

Circular Bus, Village Bus

500

Major Main Line Bus

800~1,000

Wide Area Bus

1,400

Limousine Bus (Airport Bus)

6,500~12,000

Note: Bus Tariffs effective as of July, 2004 Refer to the won-dollar exchange rate table at the end of chapter five

6) Subway Fares There is a flat fare of 800 won for trips within the city zones that are less than 12 kms long. For trips between 12 and 42 km, there is a surcharge of 100 won for every 6 km; and for trips greater than 42 km, another 100 won is added for every 12 km. <Subway Fares for Major Subway Stations> Line No.

Unit: won

Names of Stations

1

2

Fare

Incheon City Hall

1,200

Suwon

1,400

Guro Industrial Complex

800

Gueui

800

Yeonshinnae

3

800

Suseo

4

1,000

Mia

800

Sadang

800

Note: Tariffs as of July, 2004 Refer to the won-dollar exchange rate table at the end of chapter five

7. CULTURAL EXPENSES Movie tickets cost 7,000 won per showing. Drama, live performances and concerts vary according to the event. <Ticket Prices for Live Shows>

Unit: won

Classification Age

Ticket Price Ordinary

20,000

College Students

15,000

Teenagers R seat Seat

S seat A seat

Special Events

10,000 Large Theatre Small Theatre

20,000

Large Theatre

20,000~30,000

Small Theatre

15,000

Large Theatre Small Theatre

All Seats

Source: Korean Culture & Arts Foundation Note: Refer to the won-dollar exchange rate table at the end of chapter five

30 31

30,000~50,000

20,000 10,000~20,000

Green fees at Korean golf courses vary considerably and are determined by types of membership, and regarding reciprocal privileges for guests. Often the number of holes played will also affect the fee. Most clubs in the greater Seoul metropolitan, charge green fees averaging: ·Members: 25,000 won per person for both weekdays and weekends ·Non-Members: Weekdays: 140,000 won per person Weekends: 180,000 won per person ·Cart Rental: 80,000 won each ·Caddie fee: 80,000 per caddie (tipping expected)

8. INTEREST RATES 1) Market Rates Bonds

Unit: %

02.1Q

02.2Q

02.3Q

02.4Q

03.1Q

03.2Q

03.3Q

03.4Q May,2004

3 Year Maturity Government Bond

6.1

6.23

5.48

5.32

4.82

4.31

4.41

4.64

4.54

3 Year Maturity Corporate Bond

7.0

7.01

6.29

5.93

5.39

5.31

5.59

5.44

5.07

Source: Bank of Korea

2) Loan Rates

Unit: won,%

Limit

Rate

Kookmin Bank

0.5 million

7.75~8.49

Koram Bank

0.5 million

7.9~15

Korea Exchange Bank

0.3 million

8.0~11.5

Korea Industrial Bank

0.5 million

8.20~11.70

Hana Bank

0.5 million

8.50~11.90

Korea Citibank

0.5 million

8.90~17.00

Note: Refer to the won-dollar exchange rate table at the end of chapter five

< Won-dollar exchange rate over the last three years> Basic Rate

December 2002

December 2003

November 2004

1,200.40

1,197.80

1,047.90

The Invest KOREA global network is at your service ■ HEAD OFFICE Seoul, KOREA 300-9, Yomgok-dong, Seocho-gu, Seoul, Korea Tel: (82-2) 3460-7543/7545 Fax: (82-2) 3460-7946/7 www.investkorea.org

■ EUROPE Frankfurt, GERMANY Tel: (49-69) 242-9920 Fax: (49-69) 25-3589

Berlin, GERMANY Tel: (49-30) 2096-2637 Fax: (49-30) 2096-2635

■ NORTH AMERICA

Vienna, AUSTRIA Tel: (43-1) 586-3876 Fax: (43-1) 586-3979

Helsinki, FINLAND Tel: (358-9) 638122 Fax: (358-9) 638611

■ ASIA & OCEANIA

New York, U.S.A Tel: (1-212) 826-0900 Fax: (1-212) 888-4930

Hamburg, GERMANY Tel: (49-40) 23-2235/2638 Fax: (49-40) 23-3998

Singapore Tel: (65) 6221-3055 Fax: (65) 6223-5850

Los Angeles, U.S.A Tel: (1-323) 954-9500 Fax: (1-323) 954-1707

Munich, GERMANY Tel: (49-89) 2424-2630 Fax: (49-89) 2424-2639

Sydney , AUSTRALIA Tel: (61-2) 9299-1790 Fax: (61-2) 9299-1792

Chicago, U.S.A Tel: (1-312) 644-4323 Fax: (1-312) 644-4879

Paris, FRANCE Tel: (33-1) 55-35-88-88 Fax: (33-1) 55-35-88-89

Melbourne, AUSTRALIA Tel: (61-3) 9699-3833 Fax: (61-3) 9699-3811

Dallas, U.S.A Tel: (1-972) 243-9300 Fax: (1-972) 243-9301

London, U.K. Tel: (44-20) 7491-8057 Fax: (44-20) 7491-7913

Washington D.C. , U.S.A Tel: (1-202) 857-7919 Fax: (1-202) 857-7923

Brussels, BELGIUM Tel: (32-2) 203-2142 Fax: (32-2) 203-0751

San Francisco, U.S.A Tel: (1-650) 571-8483 Fax: (1-650) 571-8065

Milano, ITALY Tel: (39-02) 795147, 795813 Fax: (39-02) 798235

Atlanta, U.S.A Tel: (1-770) 508-0808 Fax: (1-770) 508-0801

Zurich, SWITZERLAND Tel: (41-1) 202-1232 Fax: (41-1) 202-4318

Miami, U.S.A Tel: (1-305) 374-4648 Fax: (1-305) 375-9332

Oslo, NORWAY Tel: (47) 23 32 76 50/3 Fax: (47) 22 11 02 70

■ JAPAN Tokyo Tel: (81-3) 3214-6951 Fax: (81-3) 3214-6950

Osaka Tel: (81-6) 6262-3831 Fax: (81-6) 6262-4607

Nagoya Tel: (81-52) 561-3936 Fax: (81-52) 561-3945

Fukuoka Tel: (81-92) 473-2005 Fax: (81-92) 473-2007

■ CHINA

32 33

Detroit, U.S.A Tel: (1-248) 355-4911 Fax: (1-248) 355-9002

Stockholm, SWEDEN Tel: (46-8) 30-80-90 Fax: (46-8) 30-61-90

Shanghai Tel: (86-21) 6219-7592 Fax: (86-21) 6219-6015

Toronto, CANADA Tel: (1-416) 368-3399 Fax: (1-416) 368-2893

Copenhagen, DENMARK Tel: (45) 3312-6658 Fax: (45) 3332-6654

Hong Kong Tel: (85-2) 2545-9500 Fax: (85-2) 2815-0487

Vancouver, CANADA Tel: (1-604) 683-1820 Fax: (1-604) 687-6249

Amsterdam, NETHERLANDS Tel: (31-20) 673-0555 Fax: (31-20) 673-6918

Taipei, TAIWAN Tel: (886-2) 2725-2324 Fax: (886-2) 2757-7240

Business Expenses in Korea Corporate Establishment & Operating Costs plus Daily Living Expenses

www.investkorea.org

The investment promotion arm of KOTRA December 2004