Tuesday, March 21, 2006

Korea Political Factor - IV

The potential political factors having negative impact on business environment of South Korea

  1. The North Korea government is still tough in Korea unification issue and their nuclear weapons plan that exert an unknown factor in society stability of South Korea. 
  2. Countries like Japan, China and Russia don’t want a unified Korea on their border. Japan doesn’t want an unstable situation, but may fear the economic power of a unified Korea.
  3. The possibility of the sudden collapse of North Korea, although it is not very high possibility now, may cause a chaotic situation that affect the growing economy of South Korea.
  4. The possibility of politicizing business, refer to item 1 in section VI for example, is crucial to affect the healthy development of the business and the confidence of investor.

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