东西方中心-美韩商业关系（USKCR）-超越华盛顿和首尔报告（英）-2023.12

Ms.SuHyunLee

Dr.HyungGulKim

Mr.ChristopherJohnson

Aseriesofbriefsexploringon-the-groundissuesinbilateraltradeandinvestmentby

Mr.NathanielHan

TheEast-WestCenterpromotesbetter

relationsandunderstandingamongthe

peopleandnationsoftheUnitedStates,

Asia,andthePacificthroughcooperative

study,research,anddialogue.Established

bytheUSCongressin1960,theCenter

servesasaresourceforinformationand

analysisoncriticalissuesofcommon

concern,bringingpeopletogetherto

exchangeviews,buildexpertise,and

developpolicyoptions.TheEast-West

CenterinWashingtonadvancesUS-Indo-

Pacificrelationsbycreatinginnovative

content,publications,exchanges,and

outreachactivities.

KoreaInternationalTradeAssociation

(KITA)isthelargestbusinessorganization

inKoreawithover73,000member

companies.Itwasfoundedin1946to

bolstertheKoreaneconomythrough

globaltrade.KITArepresentsthe

rightsandinterestsofKorea’sbusiness

communityandserveadiverserange

ofrolesincluding:providinghands-on

supporttobusiness,promotingprivate

sectortradecooperation,formulating

newtradestrategies,nurturingtrade

professionalsandbuildingtrade

infrastructure.

TheKoreaInstituteforIndustrial

EconomicsandTrade(KIET)isKorea’s

onlynationalpolicyresearchinstitution

thatspecializesinstudyingthenexus

whereglobaltradeandindustryintersect.

Firstestablishedin1976tosupportthe

industrialdevelopmentoftheKorean

economyandtopromotetheexpansionof

trade,KIEThasfornearlyahalf-century

servedasKorea’spreeminentthinktank

forindustryandtradepolicy.KIEThas

sinceitsinceptionfocusedonenhancing

nationalcompetitivenessandbolstering

industrialresilienceinresponse

tochangesintheglobalindustrial

environment.

TheUSMissionintheRepublicofKorea

iscomprisedoftheEmbassyinSeouland

ConsulateinBusan.Themissionofthe

UnitedStatesEmbassyistoadvancethe

interestsoftheUnitedStates,andtoserve

andprotectU.S.citizensintheRepublicof

Korea.

TheviewsexpressedinthispublicationarethoseoftheauthorsanddonotreflectthoseoftheEast-WestCenter,theUSEmbassySeoul,theKoreaInstituteforIndustrialEconomicsandTrade(KIET),KoreaInternationalTradeAssociation(KITA),oranyorganizationwithwhichtheauthorsareaffiliated.

Copyright©2023East-WestCenter

TABLEOFCONTENTS

preface

Introduction

Acknowledgments

SpecialThanks

2

4

5

USKCRResearchBriefs

GuidanceforSouthKoreanSmallandMediumEnterprises(SMEs)AssessingInvestmentOpportunitiesintheUnitedStatesfor

GlobalExpansion

DevelopingPreferentialInvestmentZonesforKoreanCompaniesinRuralAreasoftheUnitedStatesandDevelopingPreferential

InvestmentZonesforUSCompaniesinKoreanProvinces

UnderstandingCross-CulturalDecision-Making-OpeningtheDoorforKoreanBusinessesinJamesCityCounty,theHampton

RoadsRegion,andtheCommonwealth

ofVirginia

DevelopingResilientSupplyChainsfortheSemiconductorIndustry:AComparativeAnalysisofGyeonggiProvince

andArizona

6

15

28

33

4

2

3

1

1

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

preface

introduction

ThisreportistheculminationoftheUS-KoreaCommercialRelations(USKCR)–Beyond

WashingtonandSeoulproject.USKCRwasorganizedwiththesupportoftheUSEmbassyinSeoulandinpartnershipwiththeKoreaInstituteforIndustrialEconomicsandTrade(KIET)andthe

KoreaInternationalTradeAssociation(KITA).Theproject’soverarchinggoalistohighlightthe

localimpactofUS-Koreatradeandinvestmentanditsvaluetocommunitiesinbothnations.Tothisaim,theEast-WestCenterinWashingtonbroughttogetheracohortofeconomicdevelopmentandcommercialaffairsspecialistsfromtheUnitedStatesandSouthKoreaforaprofessionalexchangeandresearchprogram.EachmemberoftheUSKCRcohort,followingtheirindividualexpertiseandinterest,undertookresearchthatsoughttoelucidate“on-the-ground”issuesaffectingUS-Korea

commercialrelationsoutsideofeithernation’scapital.Thiscogentandtimelyresearchhasbeen

capturedinthebriefsthatmakeupthisreport.TheEast-Westisproudtobringtheknowledgeandinsightsofthefollowingprofessionalstotheforeinthisreport:

Mr.ChristopherJohnson

(USA)

Mr.NathanielHan

(USA)

Dr.HyungGulKim

(Korea)

Ms.SuHyunLee

(Korea)

AssistantDirectorofthe

KoreanCorporate

ServicesGroup,

SavillsNorthAmerica

ResearchingthechallengesfacedbyKoreancompaniesastheyentertheUSmarket.

AssociateProfessor

SpecializinginForeignDirect

InvestmentandSpecial

EconomicZones,Transnational

LawandBusinessUniversity

(TLBU)LawSchool

Researchingthedevelopment

ofpreferentialinvestment

zonesforKoreanCompanies

inRuralAreasoftheUnited

Statesandpreferential

investmentzonesforUS

CompaniesinKorean

Provinces.

DirectorofEconomic

Development,

JamesCityCounty,Virginia

Researchingapproaches

tocross-culturaldecision-

makingandopeningthedoor

forKoreanbusinessesto

locateinJamesCityCounty,

theHamptonRoadsregion,

andtheCommonwealth

ofVirginia.

InternationalTradeand

EconomicPolicyResearcher,

KoreaNational

DiplomaticAcademy

Researchingtheglobal

valuechain(GVCs)ofthe

semiconductorindustryinthe

USandKorea.

2

Additionally,overthecourseoftheproject,theUSKCRcohortadvancedtheirresearchthrough

virtualandin-personworkshops,atwhichcohortmembersexchangedideaswithoneanotherand

engagedwithotherprofessionalsinvolvedinUS-Koreacommerce.Duringthevirtualworkshops,thecohortdialoguedwithrepresentativesfromtheUSForeignCommercialServiceandthe

SoutheastUSKoreanChamberofCommerce.

In-personworkshopswereheldinKoreaandtheUnitedStates.TheKoreanworkshopwasheld

inBusan,SouthKorea,withsitevisitsintheneighboringCityofUlsan.InUlsan,thecohorttouredHyundaiMotor’sassemblylineandportoperations,discussedthechallengessmallandmedium

KoreanfirmsfacewhenenteringtheUSmarketwiththeUlsanChapteroftheKoreanSmalland

MediumBusinessConvergenceAssociation(“KSMBCA”),andmetwiththeFoundationforIndustry-CollegeCooperationatUlsanUniversity.InBusan,cohortmemberspresentedtheirresearchtopicstoseniorleadershipandresearchersfromKITAandKIET.

TheUSworkshopwasheldinAtlanta,Georgia,asKoreaninvestmentintheareaiswidespread

anddynamic.Theworkshopfeaturedaroundtablewithrobustattendancefromtheeconomic

developmentandbusinesscommunities,includingfirmsfromtheautomotive,semiconductor,

realestate,andsolarsectors.StatesideprogrammingconcludedwithavisittotheCuriosityLabatPeachtreeCorners,atechincubatorandaccelerator.

StatesideprogrammingconcludedwithavisittotheCuriosityLabatPeachtreeCorners,apubliclyfundedlivinglabprovidingcompaniestheresourcesandinfrastructuretoimagine,build,and

validatenext-generationIoT,smartcity,andmobilitytechnologies.

USKCRtourofHyundai’sproductionfacilityandfactoryport.

3

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

Acknowledgments

TheEast-WestCenterispleasedtoreleasethisreportcontainingtheresearchoffouroutstandingindividualswhoaredeeplyandsubstantivelyengagedinUS-Koreacommercialrelationsatthe

national,state,provincial,andlocallevels.WegivesincerethankstoMr.NathanielHan,Dr.HyungGulKim,Mr.ChristopherJohnson,andMs.SuHyunLeefortheirworktoexamineissuescriticaltounderstandingandtoenhancingUS-Koreatradeandinvestment.

ThisprojectwasmadepossiblewithgeneroussupportfromtheUSEmbassyinSeoulandwith

thecontributionsofthemanyorganizations,officials,andexpertswhoparticipatedintheseries

ofworkshopsheldintheUnitedStatesandinKoreathatinformedtheparticipants’research.We

particularlywishtothankourpartnersinKorea—theKoreaInstituteforIndustrialEconomicsandTrade(KIET)andtheKoreaInternationalTradeAssociation(KITA)—forworkingcloselywiththeEast-WestCentertoensurethesuccessofthiseffort.

IthankEWCProgramManagerRossTokolaforthedevelopmentandmanagementofthisprojectaswellasEWCInfographicandDesignSpecialistMs.JeanetteSimmonsforthedesignofthis

publication.ImostespeciallywishtothankEWCProgramsCoordinatorMr.LanceJacksonforhis

tirelessdedicationtoleadingprojectcoordination,forprovidinghisexpertiseoncommercialaffairsbothtoconvenekeystakeholdersandtoguideprojectworkshopdiscussions,andforseeingthis

projectandpublicationthroughtocompletion.

TheEast-WestCenter’sfoundingmissionistopromotecollaborativestudy,exchange,andresearchtoenhanceunderstandingandbetterrelationsbetweentheUnitedStatesandtheIndo-Pacific.WearepleasedtopresentUS-KoreaCommercialRelationsBeyondWashingtonandSeoulasavaluableresourcetocontributetotheadvancementoftheUS-Korearelationship.

Sincerely,

Dr.SatuLimaye

VicePresident,East-WestCenter

Director,Research&East-WestCenterinWashington

4

SpecialThanks

Sponsor

USEmbassyinSeoul

PartnerOrganizations

KoreaInstituteforIndustrialEconomicsTrade(KIET)

KoreaInternationalTradeAssociation(KITA)

CollaboratingOrganizations

TheUlsanChapteroftheKoreanSmall&MediumBusinessConvergenceAssociation

TheUlsanAssociationofSmallandMediumBusinessConvergence,acoalitionof300smallandmediumenterpriseslocatedinUlsan,SouthKorea,aimstopromotethedevelopmentofmembercompaniesandthegrowthofthelocaleconomy,therebyadvancingKorea’seconomicprosperity.

UlsanUniversityIndustry-AcademicCooperationinitiative

TheUniversityofUlsanislocatedinthe“industrialcapitalcity”ofSouthKorea,themetropolitancityof

Ulsan,andprovidesawiderangeofopportunitiesforpracticallearningandresearch,fieldtraining,andjobsthroughdiversifieduniversity-industrygovernmentcooperationprojects.

CuriosityLabatPeachtreeCorners

CuriosityLabatPeachtreeCorners,apubliclyfundedlivinglabprovidingcompaniestheresourcesandinfrastructuretoimagine,build,andvalidatenext-generationIoT,smartcity,andmobilitytechnologies,islocatedwithina500-acretechparkinPeachtreeCorners,GA,avibrantsuburbofAtlanta.

TheGwinnettChamber

TheGwinnettChamberchampionsbusinessandservesmorethan2,000membercompaniesinthemetroAtlantaareawithprogramsandinitiativesthatprovidenetworkingandexposureopportunitiesforgrowth.

Recognizedforitslocal,regional,andglobalimpact,theorganizationearnedits5-staraccreditationfromtheU.S.ChamberofCommerceandwasnamed‘ChamberoftheYear’bytheAssociationofChamberofCommerceExecutives(ACCE)in2023.

InvestAtlanta

InvestAtlanta,theofficialeconomicdevelopmentauthorityfortheCityofAtlanta,strivestoadvanceAtlanta’sglobalcompetitivenessbygrowingastrongeconomy,buildingvibrantcommunities,andincreasingeconomicprosperityforallAtlantans.

MetroAtlantaChamber

TheMetroAtlantaChamber(MAC)representsorganizationsacrosstheAtlantaregion,afast-growing

andprosperousmetropolisspanning29counties.MACsupportsforeigncompaniesenteringtheUSmarket,

assistsdomesticcompanieswithinternationalexpansions,andadvocatesforabusiness-friendlyandinclusiveclimate.

SoutheastUSKoreanChamberofCommerce

SoutheastUSKoreanChamberofCommerce(SEUSKCC),buildingbusinessrelationships,supporting

economicgrowth,promotinginvestments,anddevelopingfriendshipsbetweenKoreaandtheUnitedStates.

5

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

USKCRResearchBriefs

GuidanceforSouthKoreanSmallandMediumEnterprises(SMEs)AssessingInvestmentOpportunitiesintheUnitedStatesforGlobalExpansion

1

NathanielR.Han

AssistantDirectorandTeamLeadofKoreanCorporateServicesSavillsNorthAmerica

ExecutiveSummary

TheprevailingpoliticalclimateintheUnitedStatesstronglyemphasizesa“protectAmericaand

buyAmerican”approach,significantlyinfluencingconsumermarkets,businesses,andcurrenttaxpolicies.ThisshifttowardslocalizationnecessitatesastrategicrecalibrationofbusinessmodelsforcompaniesoperatingintheUSmarketandtargetingUSconsumers.Bothsmallandmedium-sizedenterprises(SMEs),alongsideestablishedmultinationalconglomerates,shouldproactivelyplan

localizationeffortswithintheirinternationaloperations,particularlyintheUnitedStates.

Insummarizingthisbrief,threemainpointsemerge.Firstly,thebriefwillhighlightthe

opportunitiesforSouthKoreanSMEsandhowtoleveragetheirconnectionsinSouthKoreaforUSmarketentry.Secondly,thebriefsystematicallyoutlinesthecriticalfactorsSMEsshouldconsider

whendevelopingacomprehensiveinvestmentplan.Lastly,thebriefwillconciselydiscussessentialconsiderationsforexpertsguidingSouthKoreanSMEsthroughtheprocessofUSmarketentry.

ThisbriefissharedwiththemodestaspirationthatitmayenhanceinteractionswithinUS-Koreacommercialrelations.

Introduction

MajorcompaniesbasedinSouthKorea,formallytheRepublicofKorea(ROK),haveannounced

morethan$100billioninnewinvestmentsintheUnitedStatessincethebeginningoftheBiden-HarrisAdministration,whichwillcreateover40,000newjobsintheUnitedStates.1ThesurgeintheseinvestmentscanbeattributedtothecomprehensiveeffortsofthepresentUSgovernmentinreshapingthedomesticmarket.SouthKoreanenterpriseseyeingtheUnitedStates,theworld’sleadingconsumermarket,seemtohaveastutelyanticipatedtheshiftinmarketdynamics.For

manyfirms,thisprudencepromptedswiftentryintotheUSmarket.Analysisofthesevanguardinvestmentsrevealsafocusonthefollowingindustrialsectors:

1.TheWhiteHouse,FACTSHEET:RepublicofKoreaStateVisittotheUnitedStates,April26,2023,

/

briefing-room/statements-releases/2023/04/26/fact-sheet-republic-of-korea-state-visit-to-the-united-states/#:~:text=Major%20ROK%20and%20U.S.%20Investments,date%20is%20the%20United%20States.

6

a.Semiconductors,

b.ElectricVehicles(EVs)andBatteries,

c.Biotechnology,

d.Cleanenergy,and

e.Culture.

Whiletheselargeinvestmentmovesarespearheadedbymultinationalconglomerates(MNCs),thetrendpavesthewayforSMEswithgenuinetechnological,manufacturing,andresearchcapabilities.TheseSMEsaspiretoemulatetheirlargercounterpartsandpenetratetheUSmarket,yetthey

encounterformidableobstaclessuchastimeconstraints,financialburdens,andunforeseenrisks.IncontrasttoMNCs,whichcanleveragefinancialresourcestoengageconsultantsandconduct

extensiveresearchaheadofinvestmentdecisions,SMEsmustdependonlimitedinformationandlocalcommunitynetworksforreferrals.

InanefforttoalleviatethesechallengesandaddresskeyconcernsfromSMEs,thisbriefcompiledinsightsgleanedfrompersonalexperiences,expertguidanceandinterviews,alongwith

informationfromdiversemediasources.Recognizingthateachcompany’scircumstancesandthecorrespondinglocalgovernmentresponsesvary,thepresentedmaterialsweremeanttoserveasguidelinesratherthanabsolutetruths.

EngineercontrolroboticsautomaticarmsmachineweldingElectricVehiclecaratfactory..(GettyImages)

7

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

AssessingthePresentUSInvestmentLandscapeAmongSouthKoreanMNCsandPotentialOpportunitiesforSMEs

PresentInvestmentLandscapeAmongSouthKoreanMNCs

Aspreviouslyhighlightedintheintroduction,thepresentUSadministrationhassuccessfully

enticedasubstantialnumberofMNCs,includingthosefromSouthKorea,toinvestintheUnited

States.ThisaccomplishmentisattributedtopioneeringandproactivemeasuressuchastheCHIPS&ScienceActandtheInflationReductionAct.Theeffectivenessoftheseinitiativesisevident,withtheanticipationthatMNCswillcatalyzesubstantialgrowthinkeysegmentsoftheUSeconomyin

thefuture.TheSouthKoreancompaniesthathaveofficiallyaffirmedtheircommitmenttoinvestingover$1billionintheUnitedStatesareasfollows:2

a.SamsungElectronicsanditsaffiliateshighlightedover$17billiontobuildanewsemiconductorsiteinTaylor,Texas,and$12billionwithpartnerstobuildelectricvehiclebatteryplantsintheUnitedStates,

b.HanwhaQCellsannounceda$2.5billioninvestmentinGeorgiatoexpandtheirplantinDaltonandbuildanewplantinCartersvillethatwillproducecriticalcomponentsforsolarpanels,

c.LGChemicalsannouncedplanstoinvest$3.2billioninaplanttomanufactureEVbattery

materialsinClarksville,Tennessee,whichwillproduceenoughcathodebatterymaterialstopower1.2millionEVsannually,

d.LGEnergySolutionannounceda$5.6billioninvestmentinQueenCreek,Arizona,tobuild

advancedbatterymanufacturingfacilities.Also,thecompanyannounceda$3billioninvestmentinitsHolland,Michigan,batterymanufacturingplanttoinstallnewproductionlines,

e.SKHynixcommittedtoinvest$15billioninthesemiconductorsectorthroughresearchand

development(R&D)programs,materials,andthecreationofanadvancedpackagingandtestingfacility,

f.HyundaiMotorsGroupandKiaMotorsbrokegroundonOctoberof2022toconstructanEV-dedicatedplantinGeorgiawithaninvestmentof$5.5billion,3

g.SKOnandHyundaiMotorsGrouparecollaboratingtobuildanEVbatterycellplantinBartowCounty,Georgia.4

2.TheWhiteHouse,FACTSHEET:Biden-HarrisAdministrationHighlightsNearly$200BillionofPrivateSectorInvestmentsfrom

theAsia-PacificintotheUnitedStatesSinceTakingOffice,November16,2023,

/briefing-room/state

-ments-releases/2023/11/16/fact-sheet-biden-harris-administration-highlights-nearly-200-billion-of-private-sector-investments-from-the-asia-pacific-into-the-united-states-since-taking-office/.

3.RussBynum,“HyundaiBreaksgroundon$5.5BelectriccarplantinGeorgia,”AssociatedPressNews,October25,2022,https://

/article/technology-georgia-electric-vehicles-savannah-congress-3b44cdc012d3fcccf447f0d1b909584ey-georgia-elec-tric-vehicles-savannah-congress-3b44cdc012d3fcccf447f0d1b909584e.

4.StateofGeorgia,HyundaiMotorGroupandSKOnToBuildEVBatteryFacilityinBartowCounty,December8,2022,https://www./press-release/hyundai-motor-group-and-sk-build-ev-battery-facility-bartow-county.

8

CapitalizingonOpportunitiesforSMEsAmidstSignificantInvestmentsbySouthKoreanMNCs

Venturingintoanewbusinessenvironmentcanbedaunting,andestablishingabusinessina

foreigncountrycanproveevenmorechallengingthaninitiatinganewenterprise.Whilelaunchingabusinessinafamiliarsettingallowsforleveragingexistingnetworks,information,andresources,enteringanewcountrynecessitatesovercominglanguageandculturalbarriersthatsurpassthe

challengesofstartingfreshinaknownenvironment.Consequently,companiesoftenfindtheprospectofinternationalexpansiontobeintimidating.

Inthejuxtapositionbetweenexpandingabusinessintoanewcountryandstartinganewbusinessdomestically,theforemostandformidableobstacleissecuringareliablebusinesspartnerwhen

expandinginternationally.Thisextendsbeyondmereassistance;itentailsfindingpartnerswho

willnotonlysupportyourendeavorsbutalsoengageinpurchasingyourproducts,utilizingyour

services,andcontributingtoyourfinancialsuccess.Consideringthesefactors,itbecomesevidentthatthescenarioforSMEstrailinglargeKoreanMNCsintotheUnitedStatesisquitefavorable.Thecriticalaspect,thebusinesspartnerastheprimarysourceofprocurement,isalreadyestablished.ManySouthKoreanSMEsarealreadycognizantofthesedynamics,andnumerousMNCsintheir

initialstagesareinclinedtocapitalizeonthem,oftenbringingSMEsalongintheprocess.Theseintegratedgroupsarecommonlyreferredtoasindustrial/businessclustersandpositthatUS

municipalitiesofferingtaxincentivesarealsoprioritizingtheformationofsuchclusters,therebyachievingabalanceinsupplyanddemand.

Whilethestraightforwardapproachoutlinedearliermayseemsufficient,therealityofbusinessisfarmoreintricate.SouthKoreanMNCs,whichinitiallyenticedSMEswithfavorabletermsandconditions,areunlikelytocommittoexclusivesupplyagreementsindefinitely.Instead,theymaypatientlyawaittheexpirationofexclusivecontracts,seekingcompaniesthatcanprovideslightlybetter-qualityproductsatamarginallylowercostandfasterdeliveryfortheirownbenefit.

Simultaneously,municipalitiesthatwereinitiallysupportivemaynaturallybecomelesssoasmoresmallbusinessesenterthesceneandclusterstakeshape,leadingtoreducedemphasisontax

incentives.

Amidstthesedynamics,SMEsarenotpronetocomplacency.WhileSMEsmayhaveenteredthemarketwiththeaimofsecuringexclusivesupplycontractsfromlargeMNCs,theyaredriventopursueadditionalbusinessandprojects.AsrecognizingtheattractivenessofamarketextendsbeyondasinglelargeMNC,SMEsnaturallygravitatetowardsareaswithmoreopportunitiesforgrowthandexpansion.

9

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

NavigatingDecision-MakingComplexitiesinUSMarketEntryforSouthKoreanSMEs

TheoutlineoftheUSmarketentryprocesscandiffer,andspecificstepsmayvarybasedonthe

company’sperspectiveandnatureofbusiness.However,drawingfrompracticalexperience,

thoroughresearch,andrelevantcasestudies,theprocessgenerallyconsistsofthefollowingsteps:

1)Phase1–Evaluation&Examination

2)Phase2–Development&Optimization

3)Phase3–Implementation&Execution

4)Phase4–Administration&Management

Beforedelvingintothespecificsofeachphase,acrucialpointshouldbehighlighted.Whilethe

outlinedstepsmayseemsequential,theyneednotadheretoastrictlinearprogression.Notably,

theinitialtwophasesarecontinuousanditerativeprocessesthatculminateinthethirdphase—

Implementation&Execution.Thesetwophasesarepivotal,involvingdecision-making,detailed

budgetfinalization,andacomprehensivereviewofbusinessfeasibility.Arguably,itisprudentto

allocatesubstantialtimeandresourcestotheseendeavorsbeforemakingsignificanthumanand

financialinvestments.Itisacommonobservationthatdedicatingmoretimeandresourcestofine-tuningtheinitialtwophasesresultsinasmoothertransitiontosubsequentstages.

Phase1–Evaluation&Examination

Theprimaryoutcomesoftheinitialphaseencompasstheassessmentandevaluationofcompetitiveandviablesitesacrossvariouscountiesandstates.Thisincludesscrutinizingsiteselectioncosts

andconductingathoroughriskanalysis.Additionally,thephaseinvolvesfinancialplanning

assistanceandstrategicguidanceprovidedbyconsultantsandlocalexperts.Anessentialmilestoneofthisphaseisobtainingsecondopinionsfromtheinputofconsultantsduringsuccessiverounds

ofelimination—secondopinionsaidinnarrowingdownpotentialsitelocations.Theevaluationandexaminationprocessalsoincludesacomprehensivereviewoflogisticsandregionalfactors,along

withanexaminationfromanaccountingandtaxonomicperspective.Moreover,thisstageinvolvescoordinatingintroductionstoadditionallocalexpertsorconsultants,atasktypicallyaccomplishedthroughlocalprofessionalnetworks.

Phase2–Development&Optimization

Thisphaseencompassesstrategicsessionsdedicatedtositeselection,involvingbothinternal

assessmentandexternalcomparisonswithconsultants.Theincorporationprocessshouldbe

undertaken,includingareviewofcorporatedocuments,entitystructuring,andregistration

procedures.Athoroughexaminationofstateandlocaltaxesisconducted,involvingnegotiationwherenecessary.Additionally,consultationissoughttocomprehendandassesstaxincentive

10

packages.Thetaxationandaccountingimpactofofferedincentivesisscrutinized,andanevaluation

orimpactanalysisshouldbeperformedfromataxationperspective.Simultaneously,effortsshouldbedirectedtowardunderstandingthenuancesofdoingbusinessintheUnitedStatesandthe

selectedlocality,withadvisorysessionswithlocalexperts.

Phase3–Implementation&Execution

Inthisphase,ameticulousreexaminationoftheincentivepackage,focusingoneachcompany’s

taxandaccountingramifications,isimperative.Essentialinformationregardingeachcompany’sinsurancerequirementsshouldbegatheredthroughdiscussionswithinsuranceprovidersor

agencies.Thisphasealsoincludesthecrucialstepofopeningbankaccounts.Globalmobility

considerations,particularlyforexpatriatesfromSouthKorea,shouldbefactoredintotheprocess.Thoroughreviewsareconductedtoidentifythetaxnexusescreatedbyeachcompanyand

assessmentofallintercompanyloansbetweentheheadquartersandUSentities.Atthispoint,

anyagreementsorservicecontractsshouldbeundertakentopavethewayforbusinessinitiation.

Phase3shouldalsoinvolveacomprehensivewalkthroughofdoingbusinessintheUnitedStates,leveragingtheresourcesoflocalnetworks,includingconsultants,experts,andprofessional

organizations.Ultimately,theprimaryfocusofthisphaseisonmeticulouspreparationandinspection,bothbeforeandduringthecommencementofbusinessoperations.

Phase4–Administration&Management

Thefinalstageispivotalforensuringthelong-termsustainabilityofUSoperations.Itmarks

theopportunemomenttoforgeenduringpartnershipswithlocalexperts,professionals,andconsultants.Also,buildingstrongrelationshipswithoutsourcingcompaniesthatarecrucial

forefficientandprofitableUSoperationsisapriority.Talentmanagementtakescenterstage,encompassingstrategichiringpracticesandcommunityengagementinitiatives.Asthefirst

yearofoperationconcludes,detailedpreparationsaremadeinaccountingandtax,potentiallynecessitatingauditsforaccuratereporting.Thisperiodisinstrumentalforrevisitingtax

considerationsidentifiedinearlierphases,especiallyforcompaniesseekingtoqualifyforincometaxreturns.

11

US-KoreaCommercialRelationsBeyondWashingtonandSeoul

GuidingSouthKoreanSMEsinUSMarketEntry:Public,Private&Ko