Swedish companies have been doing business in South Korea for over 100 years. And since 2016, it’s been Sweden’s third-largest trading partner in Asia.
The first Business Climate Survey of Swedish companies in South Korea was conducted in 2009, and it’s been performed annually since 2014. This year’s survey shows a decline in performance, with more companies reporting losses and reduced profitability. Despite that, 57 per cent of respondents expect their industry turnover to increase, and 49 per cent plan to increase their investments over the next 12 months.
South Korea is experiencing an economic slowdown. Its political instability has become a major factor hindering growth, its former largest export destination (China) is now a rival in high-tech industries, and its construction industry is struggling lately due to elevated housing prices and reduced government investment in social overhead capital. Yet, despite all that, the investment outlook remains steady.
The ‘Swedish brand’ continues to be an asset in the South Korean market, with almost all respondents reporting it had a positive impact on business. The survey shows that Sweden is associated with values such as quality, innovation, and sustainability – traits that resonate well with consumers and partners in South Korea.
For three consecutive years, over half of South Korean consumers have been influenced by environmental aspects in their purchasing decisions. However, this year saw a decline in consumers’ consideration of environmental factors compared to previous years. Respondents highlighted several factors to explain the disparity, including high price sensitivity and the perception of sustainability as a liability or risk.
Want to read a full overview of the survey results with detailed analysis? Download the report today.
ABOUT THE SURVEY
This report aims to improve the understanding of Swedish companies’ performance in South Korea and highlight the opportunities and challenges in the South Korean market. This year’s Business Climate Survey was conducted with the participation of 51 Swedish companies active in South Korea. The respondents represent a diverse range of industries, a majority of which have over 1,000 global employees and have been doing business in South Korea for at least five years.
We extend our heartfelt gratitude to the participating companies and respondents who have contributed to this year’s edition of the Business Climate Survey in South Korea. Team Sweden in South Korea hopes this report offers valuable insights into the South Korean market and can serve as a crucial reference in bilateral trade dialogues between Sweden and South Korea.
