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What are the Comparative Lessons? Ghana and Korea Ghana Korea? 1970 GNP Per Capita $250 $260 4% 1995 GNP Per Capita $400 $9,700 24x 2002 GNP Per Capita $2,000 $16,480 8x 1970-1995 Growth Per Year 2% 145% 61x 1970-2002 Growth Per Year 22% 195% 9x
Korea s Global Standing 2002 Categories Population GDP Trade FX Reserves Primary Energy Use Shipbuilding Electronics Production Steel Production Automibile Production Ranks 26th 12th 12th 4th 10th 1st 3rd 5th 6th
Korea s Global Standing Educational Attainment, 2001 % of Pop. (25-34 Ages) Rank Country who Attained Higher Education 1 Canada 50.5 2 Ireland 47.8 3 Japan 47.7 4 Korea 39.5 5 U.S. 39.1 6 Finland 38.2 7 Norway 37.9 8 Belgium 37.5 9 Sweden 36.9 10 Spain World 35.5 27.8
Korea s Global Standing Patent Registration, Top 10 Countries Rank Country Patents 1 United States 153,487 2 Japan 150,059 3 Korea 62,635 4 Germany 49,548 5 France 44,287 6 United Kingdom 40,638 7 Italy 32,476 8 Netherlands 21,403 9 Spain 20,066 10 Russia 19,508
Korea s Global Standing Broadband Usage, 2003 Broadband Subscribers (Thousands) Broadband Per 1,000 Population Rank Country 1 Korea 10,128 209.7 2 Hong Kong 989 133.8 3 Taiwan 3,000 132.7 4 Canada 3,600 111.8 5 United States 26,200 90.2 6 Iceland 25 89.0 7 Denmark 462 85.8 8 Singapore 392 85.1 9 Belgium 869 84.5 10 Sweden 693 78.1
Per 1,000 Population 250 Korea s Global Standing Broadband Usage, 2003 200 150 100 50 0 Hong Kong Canada Korea Taiwan U.S. Iceland Singapore Sweden Denmark Belgium
Korea s Global Standing Cellular Mobile Phone Usage, 2003 Rank Country Cellular Phones Per 1,000 People 1 Iceland 884 2 Ireland 764 3 Austria 733 4 United Kingdom 724 5 Finland 718 6 Taiwan 708 7 Germany 671 8 Singapore 595 9 Korea 580 10 New Zealand 557
Per 1,000 Population 600 500 400 300 200 100 Korea s Global Standing Internet Usage, 2003 0 U.S. Korea Taiwan Japan Germany
Foreign Participation in Finance Categories % of foreign participation Banking 38% Stock Market > 40% Life Insurance 13%
Top 10 Korean Banks By Asset Size, 2003 Rank Bank Asset Size (US$ Billions) 1 Kookmin Bank 144.6 2 National Agri. Cooperative Fed. 88.1 3 Woori Bank 75.3 4 Hana Bank 64.0 5 Chohung Bank 55.8 6 Industrial Bank of Korea 54.8 7 Korea Exchange Bank 54.6 8 Shinhan Financial Group 42.9 9 Koram Bank 31.7 10 Korea First Bank 27.2
Debt/GDP Ratio 80 Korea s Global Standing Debt To GDP Ratio, 2001 60 40 20 0 Korea Finland U.S. OECD Avg.
Korea s Global Standing As Proportion of Knowledge Intensive Manufacturing, 2000 Percent 20 15 10 5 0 Ireland Korea Germany OECD Avg.
Korea s Future Challenges Source: Ministry of Economy and Finance
Korea s Short-Term Economic Challenges % Changes Delayed Economic Recovery 2002 2003 (2002-2003) Economic Growth 6.3 3-52% Equity Investment Growth 6.8-1.2-118% Consumption Growth 2.8-1.1-139% Remaining Financial Market Uncertainties % Changes 2002 2003 (2002-2003) Household Debt (US$ Bil.) 392 408 4% Credit Card Delinquency Ratio (%) 5.5 14.3 160% Persons with Bad Credit (Mil.) 2.64 3.72 41%
Korea s Visions and Strategy #1 Source: Ministry of Economy and Finance
Korea s Visions and Strategy #2 Source: Ministry of Economy and Finance
Korea s Visions and Strategy #3 Source: Ministry of Economy and Finance
US$ Billions 700 600 Korea: Gross Domestic Product 1970-2003 Percent Change, Year Ago Gross Domestic Product - L Growth Rate - R 50 40 500 400 300 30 20 200 10 100 0 0 70 75 80 85 90 95 00-10
15 Overcoming the Asian Contagion Korea s Recent GDP Growth, 1995 Prices Percent Change, Year Ago 10 5 0-5 -10 90 91 92 93 94 95 96 97 98 99 00 01 02 03
US$ Thousands 13 Korea s Real GDP Per Capita 2000 Prices Percent Change, Year Ago 10 12 11 5 10 9 0 8-5 7 6 90 91 92 Real GDP Per Capita - L Percent Growth - R 93 94 95 96 97 98 99 00 01 02 03-10
Millions 50 45 40 35 30 25 Korea s Population 1960-2003 Population - L Population Growth - R Percent Change, Year Ago 3.5 3.0 2.5 2.0 1.5 1.0 0.5 20 60 65 70 75 80 85 90 95 00 0.0
Millions 23 22 21 20 19 18 17 16 Economically Active Population 1985-2003 Working Population - L Growth Rate - R Percent Change, Year Ago 5 4 3 2 1 0-1 15 85 87 89 91 93 95 97 99 01 03-2
Percent 8 Korea s Unemployment Rate 12-Month Moving Average 7 6 5 4 3 2 1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Percent 25 Korea s Interest Rates Short Term and Long Term 20 15 10 5 0 1994 3-Month CD Long-Term Government Bond 1995 1996 1997 1998 1999 2000 2001 2002 2003
Percent Change, Year Ago 10 8 6 4 2 0 Korea s Inflation Rate Consumer Price Index -2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Percent 4 Korea s Budget Balance Government Surplus/Deficit as Percent of GDP 2 0-2 -4-6 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Index 115 Korea s Consumer Confidence Consumer Confidence Index 110 105 100 95 90 85 80 1999 2000 2001 2002 2003
KRW/US$ 1800 Korea s Exchange Rate Won Per US Dollar 1600 1400 1200? = +90%? = -31% 1000 800? = +32% 600 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
US$ Billions 4 Korea s Trade Balance Merchandise Exports Minus Imports 2 0-2 -4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
US$ Billions 50 40 Korea s Foreign Trade Total Exports, Imports, and Trade Balance Exports Imports Trade Balance 30 20 10 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
4 3 2 1 0 Korea s Trade With United States US$ Billions Exports, Imports, and Trade Balance -1-2 94 95 96 97 98 99 00 01 Exports Imports Trade Balance 02 03
3.5 3.0 2.5 2.0 Foreign Direct Investment in Korea Foreign Investment Inflows US$ Billions FDI (Quaterly) - L FDI (Annual) - R US$ Billions 10 8 6 1.5 4 1.0 0.5 2 0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 0
Foreign Direct Investment in the U.S. Property, Plants, and Equipment US$ Billions 12 10 8 6 4 2 1999 2000 2001 0 Taiwan Korea Singapore Hong Kong Malaysia China Indonesia Philippines
Foreign Direct Investment in the U.S. Employment Thousands 35 30 25 20 15 10 5 1999 2000 2001 0 Hong Kong Korea Taiwan Singapore China Malaysia Philippines Indonesia
Percent 70 60 50 40 30 20 10 Ownership Concentration As % of Total Market Capitalization, Top 15 Families 0 Philippines Korea Singapore Taiwan Indonesia Thailand Hong Kong Malaysia Japan
Korean Enterprise Reform Diversified Ownership & Shareholder Rights Strict Family Conglomerate Control
Korean Labor Reform Unrestricted Labor Market Lifetime Employment
Korean Financial System Reform Functioning Capital Markets Government Dominated Bank System
Korea: Building A Global Brand Image
Korea Cohosts The World Cup
Republic of Korea: Full Democratization President Impeached
North Korea: Nuclear Threat
Hyundai An Unusual Business Story Dramatic entry into market Sudden fall from favor Remarkable return to success A lot of lessons learned
Cars 450,000 Hyundai U.S. Sales 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1986 1987 1998 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Big Turnaround: U.S. Sales Cars 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1998 1999 2000 2001 2002 2003
2003 Sales Through December 31 Import Brand Sales Top Ten Brand Toyota Honda Nissan Hyundai Volkswagen Lexus Mazda Mitsubishi BMW Kia Total Vehicle Sales 1,595,661 1,878,929 675,762 400,221 302,686 259,775 258,865 256,810 240,859 237,471 Rank 1 2 3 4 5 6 7 8 9 10
Hyundai s Improving Image in U.S. 60 Awareness Overall Opinion Buying Consideration 53% 39% increase 50 40 38% 37% 68% increase 30 22% 31% 158% increase 20 10 12% 0 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03
3.5% 11.7% 22.2% 33.6% 35.0% 35.3% 35.3% 36.7% 37.1% 40.6% 42.3% 46.3% 46.5% 49.9% 50.2% 50.8% 54.3% 57.1% 58.1% 59.3% 60.8% Isuzu Oldsmobile Mazda Mercury Jeep Pontiac Chrysler Mitsubishi Volkswagen Nissan GMC Dodge Buick Kia Saturn Subaru Hyundai Honda Ford Toyota Chevrolet Retention & Conquest Rates: Non-Luxury Brands 37.6% 43.3% 43.7% 44.7% 45.2% 46.4% 52.7% 55.9% 58.1% 60.3% 60.4% 62.2% 62.5% 63.7% 64.5% 69.1% 70.6% 73.8% 74.9% 79.8% 82.9% 32% Ford Chevrolet Dodge Oldsmobile Mercury Buick Saturn Pontiac Toyota Jeep Honda Nissan GMC Subaru Chrysler Mitsubishi Volkswagen Isuzu Mazda Kia Hyundai Suzuki Retention Conquest < Top 5 >
Hyundai s Demographic Improvements Examining owner demographics of two of Hyundai s newest models show how far the company has come. The demographic profile of Santa Fe and Tiburon owners relative to their competitive set shows very few differences indicating that Hyundai has been successful in attracting a similar-type buyer as some of the more established brands. Med. Age Med. HHI Married Male College Grad+ Med. Age Med. HHI Married Male College Grad+ Santa Fe 48 $61k 67% 37% 48% Tiburon 38 $61k 45% 50% 45% Escape 48 $63k 66% 34% 48% Celica 37 $57k 35% 41% 48% RAV4 48 $59k 58% 29% 51% Eclipse 38 $59k 45% 43% 39% CR-V 47 $62k 66% 36% 64% Mustang V6 40 $58k 50% 45% 38%
J. D. Power Initial Quality Survey (IQS): Six-year Trend Things Gone Wrong Problems Per 100 300 250 200 150 100 269 257 194 224 203 203 192 175 156 Improvement since 1998 IQS Hyundai 53% Industry 26% 145 143 125 50 0 176 177 167 177 154 157 147 150 133 133 133 131 1998 IQS 1998 2Q IQS 1999 IQS 1999 2Q IQS 2000 IQS 2000 2Q IQS 2001 IQS 2001 2Q IQS 2002 IQS 2002 2Q IQS 2003 IQS 2003 2Q IQS Industry Hyundai
Hyundai Motor Manufacturing Alabama Start of Production: March 2005 Product: Sonata ( 05), SUV ( 06) Location: Montgomery, Alabama Capacity: 300,000 Units Ground Breaking: April 2002 Investment: US $1 Billion
Hyundai Motor Company Vision Strengthen Product Expand Line-up Global Presence Establish Eco-Mgmt System GLOBAL TOP 5 Enhance Brand Value