Hotel Management in South Korea

            Background

South Korea is a nation situated in the East Asia position that occupies the Southern Region of Peninsula (Goldstone, Kauffman & Toft, 2012).  The country has a dense population which creates a wider market for the business with a populace of about 50 million persons (Goldstone, Kauffman & Toft, 2012). South Korea got into short-lived economic crisis in the late 20 the century which was contributed by its feeble banking sector organizing (BBC, 2017). However, the country rapidly experienced economic as well as monetary reforms that placed the state at better growing positions economically. This is accounted to be a financial miracle given that it is among few countries that have shifted from being receivers to givers in the last two or so decades. South Korea has become a political and economic example for the global market whose developments has played part in improving the living values among its citizens. The willingness of the country to focus on developments similarly to its surrounding counties such as Japan and China makes it suitable for hospitality and business investments (Goldstone, Kauffman & Toft, 2012).

Political

South Korean political governance is categorized under a democratic system which is comprised of three major divisions the executive, legislature, and judiciary (Goldstone, Kauffman & Toft, 2012). The president being the head of the country means that there is centralization of authority which creates political readiness for economic growth as well as strong relationships with foreign countries. South Korea has acquired political stability since it adopted democratic governance. However, some political challenges are presented by its undesirable association with North Korea. The country got into economic crisis back in 1997 but it was only for the short run which was mainly facilitated by its economic as well as monetary reforms that brought about stability the next year (BBC, 2017). With the opening of fresh markets, the state has become one of the strongest economic and technological markets globally. The democratic system makes it easier for the coordination of economic ventures. In addition, the country has authoritative political and financial support from the United States. However, despite the fact that the country has been operating under democracy for more than two decades its military still possesses huge authority (BBC, 2017).

As far as the country political influence is concerned, the country is characterized by minimal populace development which is currently leading to having a high aging populace (Goldstone, Kauffman & Toft, 2012). In addition, the country is associated with a large and skilled workforce which creates easiness in the creation and growth of its economic background. South Korea holds a raging political past that is associated with rapid government modifications, reduced political liberty and military revolutions. However, the democratic procedure was rationalized in 1986 and the president was offered utmost authority (Goldstone, Kauffman & Toft, 2012). The ability to create policies became a direct one. However, the country is characterized by utmost political violence which creates instability which is costly for the country both politically and financially. Emissions standards are currently being breached in an alarming rate which is growing into unreasonable rate despite it being a smaller part of a lesser populace when equated to other nations (Goldstone, Kauffman & Toft, 2012).

Economic

The South Korean economic state is well guarded by governing policies given that it holds authoritative economic reforms which have continuously contributed to its stable growth. The country’s dominant export industry is the major influence for its continuous growth (HaeRan & Quentin, 2012). However, despite the fact that the country is characterized by economic growth in every sector and also offers a suitable economic surrounding for investments it is currently challenged by its severe policies that govern import businesses. Such policies affect the domestic industries thus making the country uncompetitive in the global context. It is expected that South Korea will experience a noticeable growth by the end of the next year by about 2 percent (HaeRan & Quentin, 2012). The country’s major drivers of the economy are the servicing and hospitality industries. It is expected that the hospitality sector will experience a 4 percent development for the coming year (HaeRan & Quentin, 2012).

Based on the latest surveys South Korea is popular for its well established and described investment laws and adequate assistance from the government and industrial agencies in regarding starting and growing businesses (HaeRan & Quentin, 2012). This study, therefore shows that there are enormous expansion economic opportunities for running a business in South Korea based on the dense population of the country it is clear that the hostel services have expansive chances for growth. The consistent pressures in North Korea are however creating economic uncertainties for the country. This is because the nuclear ventures are classified as the utmost hazards to the country’s economy that will ultimately result in irreversible issues. Despite the fact that the latest conferences have led to improved associations amid the two countries the uncertainties with regard to the interactions are more evident than certainties. This is now characterized as a major disadvantage for the country’s economic possibilities.

South Korea’s GDP is stable given that it has experienced a 9.5 percent growth after the crisis had occurred (HaeRan & Quentin, 2012). This is mainly influenced by its monetary and economic modifications by the administration. During the modifications, most banks became state-owned which in turn created economic liberty. This form of liberalization is essential given that it is gradually assisting the country to decrease its dependence on export trade. The country has lower import levels when equated to other nations in the same region. This is mainly driven by duties, taxation as well as trading restrictions which are rather severe on imports which have led to reduced import rate. Imports are low both for the locally and globally situated firms which impacts its economic stability (HaeRan & Quentin, 2012).

Cultural

South Korea is associated with Cultural stability because it accommodates diversity and supports religious freedom. The country is associated with the utmost literacy rate globally based on its phonetic state of its written language that offered a sole language to all Koreans (HaeRan & Quentin, 2012). Koreans utilize a single language with over 70 million individuals speaking Korean in the global context (HaeRan & Quentin, 2012). Its language, grammar, and well as the wording is close that that of Japanese and the major dialect are mainly linked to the individual’s social status. The differences are mainly characterized by modernization and the growth of the industrial economy. According to Goldstone, Kauffman & Toft, (2012), 60 percent of the entire populace is said to be comprised of middle-class persons which therefore demonstrate its financial stability and extensive business opportunities. Their domestic and foreign cuisines are highly valued particularly by families and during events.

With the presence of high literacy, skills and expertise the wages rate in South Korea are higher than when equated with those from the associated nations (Kwon, 2006). However, despite its stability, the nation’s low rate of births presents challenges given that it is faced with difficulties of an aging populace. Despite the rapid growth of modernization and urbanization the government spends minimal in social benefits. The fact that individuals are paid high implies that most individuals are willing to play part in the industries and the consistent flow of labor into the economic industries works to ensure that consistent production and increased yields are generated (Kwon, 2006). This aspect is categorized as the major support for the improved living standards for the citizens as compared to other countries (HaeRan & Quentin, 2012).

Legal    

South Korean Judiciary is grounded on the American and German justice system. The system is particularly an expertise based and equally independent but it is not completely free from government control (Goldstone, Kauffman & Toft, 2012). In that, the legal systems lack jury within all the proceeding trials and cases are heard by one up to three judges. This pressure has created controversies on how the government can increase the participation of the public into the system in order to create uniformity and promote development. Being a stable country in regard to its economic status it is rather saddening that it is ranked 40th in regard to transparency which demonstrates the need for modification (Goldstone, Kauffman & Toft, 2012). The system is, however, supportive of economic growth both for the international and foreign firms. Most of its policies are supportive of business growth which is the main source of the stability that has been experienced in the recent (Goldstone, Kauffman & Toft, 2012).

Demographic

South Korea is popular for its dense population which is above ten times the international typical. Based on the increased migration level this has resulted in an economic growth positioning the country as the fifteenth globally (Sang & Boon, 2016). 70 percent of the country’s land is however not exactable based on its hilly nature and thus the populace is located in common locations leading to its dense populace location (HaeRan & Quentin, 2012). In this context, most individuals relocate to the urban regions in search of economic opportunities as well as businesses. The increased urban development has led to various issues for the county. In that there are high-rise buildings are created in the quest of alleviating the housing shortage. This has resulted in serious hardships on most individuals who are pressured to move their neighborhoods given that the rent rates are a bit higher in the created buildings (Sang & Boon, 2016). The location of industries in the urban locations has resulted in increased pollution some issues that the country is still trying to deal with today. Based on the low fertility rate, the country is associated with the highest aging population which means that the target for the young populace is minimal. This implies that for the hospitality industry the target should mainly target on the aged populace (Sang & Boon, 2016).

In summing up, in regard to international tourism development, South Korea presents fertile expansion opportunities. The government being a democratic one makes it easier to control and enhance economic development. The government offers increased support for financial growth but its political tension and poor association with North Korea continues to present challenges. The country is characterized by the highest literacy level which implies that the workforce is skilled (Sang & Boon, 2016). The political willingness for South Korea demonstrates the economic opportunities for the hospitality business. The hospitality business can acquire success because of an intense population which creates a wider market for such businesses. The supportive policies make it more suitable for businesses given that the government is willing to increase economic stability.

 

 

 

References

BBC. (2017). South Korea Country Profile. Retrieved from http://www.bbc.com/news/world-asia-pacific-15289563

Goldstone, J. A., Kauffman, E., & Toft, M. D. (2012). Political demography: How population changes are reshaping international security and national politics. New York: Oxford University Press.

HaeRan, S., & Quentin, S. (2012). How Culture and Economy Meet in South Korea: The Politics of Cultural Economy in Culture-led Urban Regeneration. International Journal of Urban and regional Research. DOI: 10.1111/j.1468-2427.2012.01161.x

Kwon, O. Yul. (2006). A Cultural Analysis of South Korea's Economic Prospects. Pp. 213-231. Global Economic Review. http://dx.doi.org/10.1080/12265080500117541

Sang, O.S & Boon, T.T. (2016). South Korea’s Demographic Dilemma. Retrieved from http://www.eastasiaforum.org/2016/03/25/south-koreas-demographic-dilemma/