This success story arises from the following service: Business Setup Services in South Korea
An Israeli company, operating an international school for language learning via the internet, aimed to enhance its presence in the South Korean market through direct sales to Korean consumers and by offering local service and support.
TARGET: ENHANCING SALES AND SUPPORT IN THE KOREAN MARKET
Despite having tens of thousands of students worldwide and significant global marketing experience, the company had not effectively penetrated the Korean market as it had in other regions. Moreover, the company sought an alternative to establishing a subsidiary in South Korea, preferring a different operational structure to achieve its goals in the market.
CHALLENGE: ENTERING A NEW MARKET WITH AN APPROPRIATE OPERATIONAL STRUCTURE
The market for language studies in South Korea is highly competitive, featuring many local and international providers. Challenges such as winning over potential students, catering to a diverse and heterogeneous audience, adapting to local payment preferences, and offering prompt telephone support during Korean work hours made market entry difficult. Additionally, the desire to enter the market without establishing a local subsidiary necessitated the development of a novel operational structure.
WORK PROCEDURE: FORMULATING A BUSINESS PLAN AND ESTABLISHING A LOCAL REPRESENTATIVE MODE
Initially, KOISRA's business development team evaluated various operational structures that would allow the Israeli company to directly engage in the Korean market without setting up a subsidiary. After consultation and considering several options, a structure operating under KOISRA's existing legal entity in South Korea was selected. KOISRA was chosen for its extensive experience providing local representation and conducting diverse commercial and marketing activities for Israeli companies in Korea.
Under the agreed structure, KOISRA would offer the Israeli company a Korean legal framework for operations, along with development, business facilitation services, and marketing plans tailored to local market specifics. Services provided included office and administration support, equipped workspaces, recruitment of local employees, and handling of telephone, postal, and dispatch services.
In developing the business and marketing plans, KOISRA's research team informed the Israeli company about the Korean market structure and language learning sector, identified potential customers, proposed market penetration strategies, recommended local market adjustments, and estimated the operation's budgetary needs. Concurrently, KOISRA's business development team sourced candidates for the support and sales centers and set up a suitable office.
RESULT: DIRECT SALES IN THE KOREAN MARKET THROUGH A LOCAL OFFICE
Upon hiring and training the appropriate staff, the local center in KOISRA's offices commenced full operations in line with Korean business hours. The bilingual team enabled seamless collaboration with the Israeli company's professional team. The executed business and marketing plan included service and product localization for Korean consumers, media campaign launches, and a unique payment model accommodating local payment methods without requiring the Israeli company to open a local bank account.
