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 II.  BILATERAL TRADE WITH THE PHILIPPINES
     Value in US$ Million

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• South Korea offers vast market opportunities as it was ranked as the 9^th importer of products and services (13^th as importer of products) from the World in 2006 with a ready market of about 49 million people.  
  
  

• Seoul, the capital of the Republic of Korea, has an urban population of 9.82 million, or 21% of the total national population. Combined with the neighboring suburbs, where an additional 13.5 million people reside, it forms a huge market with 23.32 million consumers or 48% of the total population.  Like other major global cities, Seoul possesses the characteristics of a vast consumer market.  
  
  

• As living conditions improve in Korea, the demand for intangible services such as education, travel and health services and communications increases. Consumption for educational aids such as audio and video types, reference books for different educational levels, and products for adult education aimed at both office workers and housewives, are rising as interest in education grows as a means of self-improvement.  
  
  

• New interest in health and beauty is boosting spending on health treatments and exercise, and with the expansion of medical insurance coverage, expenditures on health care are increasing rapidly.
  
   

• As Korea moves toward the realization of an information society, spending on communications and information is skyrocketing. The growing demand for software accompanied by the flood of new computers is typical of the growth in service industry consumption
  
   

• Changes in Korean lifestyle and dietary culture, along with remarkable development in socio-economic environment, have resulted in significantly expanded demand for processed food and beverage products. Increasing affluence, more women in the workforce, and a well-traveled younger generation looking for foods with an international flavor are promoting the rise in popularity of convenience stores, bulk retail outlets, and western-style and family restaurants. The demand for products such as frozen vegetables, sauce preparations, and confectionery item is growing and the domestic processing industry lacks the capability to supply these items.  Additionally, local agricultural output currently does not meet the demand of the local processing industry.  
  
  

• Korean consumers like natural, fresh food products such as health foods, functional foods, and diet foods. As a result, the organic market is a segment that has been developing rapidly. Koreans have always looked to their food to provide a functional or health benefit and foods made without the use of pesticides or insecticides are appealing.
  
   

• Korea is well known as one of the leading markets for alcoholic beverage consumption. While traditional rice wine consumption is decreasing, western products are dominating the market.  Whisky, beer and wine are important items for the food service sector.

Source:  US Gain Reports, Korea Importers Association (KOIMA). How to Access the Korean Market

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1. http://www.korea.net  - The Official Website of the Republic of Korea
   
   

2. http://english.customs.go.kr/  - Korea's Custom's Service. Information on Korea's Tariff Database. FREE ACCESS
   
   

3. http://english.kotra.or.kr  - Korea Trade-Investment Promotion Agency website. Various information on promoting trade and investment in the Republic of Korea. FREE ACCESS

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