Swedish companies have been doing business in South Korea for over 100 years. The Swedish business communities have grown following the Swedish export growth, and more networking activities have been organised since the establishment of the Swedish Chamber of Commerce Korea (SCCK) in 2012.
Today, more than 130 Swedish companies are active in South Korea in a wide variety of industries and sectors, with the majority of them having a small local team that represents a big global firm. While most companies have been present for several years, there are also many new arrivals in recent years.
Across all company sizes, more than 50 per cent reported that they were profitable, with a higher ‘profitable’ percentage the larger the company. Small companies had the most difficulties, with 25 per cent of them saying they were in the red.
Global economy and local conditions result in lower turnover expectations for 2023. There is a clear downward trend this year in terms of future expectations: It is reported that only 61 per cent of Swedish companies expect turnover to increase, down almost 20 per cent from last year.
Increased investment plans of Swedish companies in South Korea have shrunk by some 14 per cent compared to last year to 48 per cent but are on par with the survey results from 2021
The Swedish brand has demonstrated a noteworthy and increasing influence on business in South Korea, presenting an advantageous opportunity that Swedish companies should capitalise on. According to the survey this year, an impressive 92 per cent of respondents acknowledged the positive impact of the Swedish brand on their business in South Korea.
Please download the report to fully overview the results with a detailed analysis.
ABOUT THE SURVEY
The Business Climate Survey targeting Swedish companies in South Korea has been carried out since 2009 and annually since 2014 by Team Sweden. The purpose of this report is to increase the understanding of Swedish companies’ performance in South Korea and deepen our appreciation of the opportunities and challenges that exist in the South Korean market.
The survey was conducted in March 2023. The survey targeted country managers and country representatives who have an overview of their company’s performance and results in 2022. Out of 122 eligible companies, 62 respondents replied with a 51 per cent response rate. With it, the survey result can be trusted with a 95 per cent confidence level.
We would like to extend our most sincere gratitude to the participating companies and respondents who have contributed to this report.