Doing Business in South Korea: Market Entry, GTM Strategy & Growth Potential

The population of South Korea is 51,600,388, and is growing at the rate of -0.14%. The GDP per capita, which represents the potential spending power of the people, is $68,624, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

81.18% of South Korea’s population lives in urban areas. 60.88% of the population is of working age (15-59). 96.09% of the population has internet access and 94% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks South Korea #6 overall for market attractiveness,  rising 2 places over the past year.

How we can help you grow in South Korea:

Accuracast offers a comprehensive range of international digital marketing services to support brands looking to grow their presence in South Korea. Whether you need an international SEO agency, an international advertising agency, or an international social media marketing agency specialising in South Korea, we’ve got you covered.

How Digitally Mature is the Market in South Korea

The digital search demand score for South Korea is 32.18.

South Korea recorded 6 million monthly searches on our benchmark keyword set, but this translates to lower than average search activity per 1,000 people. Advertising costs are a lot cheaper than average, though, which makes it a lot more affordable to reach target audiences in the country. You could reach 2.75 times as many people in South Korea for the same budget as the UK.

The market isn’t very competitive either, which means brands can enter the market and gain a foothold easier than in many Western countries.

Successful market entry requires more than Korean-language localisation. Businesses need to adapt their search strategy, payment experience, customer support and digital presence to local platforms and cultural nuances.

Go-To-Market Strategy Considerations for South Korea

The purchasing power score for South Korea is 65.67, and the country scores 96.77 for digital readiness.

South Korea’s GDP per capita (PPP) is $68,624, which places it 30th globally, based on this index’s data. Inflation has outpaced GDP growth in the past year, which could reduce spending power if it continues down that trajectory.

The country scores very high on digital connectivity, as ~95% of the population is online and connected to 5G.

Financial & payment infrastructure

In terms of financial infrastructure, South Korea scores 72.83.

The country has one of the most advanced digital payment ecosystems in the world. Last year, mobile and digital payments accounted for the majority of total card spending in South Korea. Companies entering the market will find Korean customers accustomed to debit and credit cards, mobile payments, QR code payments, and app-based “simple payments”.

Naver Pay, Kakao Pay, Toss Pay and Samsung Pay are the most popular payment services in the country. The local payment experience is not the same as accepting Visa or Mastercard in the UK or US. Koreans usually select their card issuer and then authenticate via the bank/card app, rather than entering card details on a website. Airwallex, Checkout.com, Adyen and Stripe now support Korean local cards and wallets.

Regulatory & business setup friction

From a business expansion point of view, South Korea scores 69.75 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

South Korea has a well developed regulatory system. There are a number of sector-specific rules, licensing requirements and local compliance obligations that new entrants into the market need to navigate. The Regulatory Reform Committee has created sandboxes that allow new technologies and business models to operate temporarily under modified regulatory conditions to accelerate innovation. However, the regulatory body is rather active at regulating new technology like AI, data and fintech.

Most importantly, under the Foreign Investment Promotion Act, overseas investors are free to invest in Korea, meaning there isn’t a requirement to have a local partner, except in certain sectors that are considered strategically important.

The Personal Information Protection Act (PIPA) can be more demanding than simply applying a GDPR framework. Sectors like finance, healthcare, food and chemicals face significant licensing and compliance requirements.

The score of 40.95 indicates the costs and friction associated with setting up a business presence in South Korea.

Companies can establish a Korea branch, subsidiary or liaison office fairly easily and relatively quickly (as little as two weeks). However, the standard threshold for a company to qualify as a foreign-invested company (FIC) in Korea is roughly US $75,000 (KRW ₩100 million).

Government setup costs are not high, but the document requirements and process of opening a corporate bank account can feel onerous. Korean subsidiaries also must follow local accounting rules, have local tax obligations, and might require audited accounts, though not all businesses require a Korean subsidiary – a Liaison Office might be an easier alternative to reduce initial setup friction.

South Korea market attractiveness change

Compared to last year, the overall International Growth Index score for South Korea has changed 1.89 points, moving the country 2 places higher from 2025, to rank #6 in 2026.

The past twelve months have seen the Korean economy shift from relatively slow growth to a much stronger recovery. This is witnessed in their ranking improvement on the index. The biggest driver of this has been the extraordinary growth of the Korean semiconductor industry, which is driven by investment in AI infrastructure and high-bandwidth memory.

Semiconductor exports in August 2026 accounted for 41% of total exports, and were triple their level a year earlier!

Most Popular Social Media Platforms in South Korea:

1. KakaoTalk
2. YouTube
3. Naver Blog
4. Instagram
5. Naver BAND
6. Facebook
7. KakaoStory
8. Daum
9. Naver Cafe
10. TikTok

It’s worth noting that both Naver and Google command a significant share of the local search market. Different sources estimate Naver share between 40-60% of the market. Google is estimated to have 40-46% market share. This means businesses must build a presence on both search engines to maximise audience reach.

The national language is Korean. English is spoken by roughly 20% of the population. Marketing teams should seriously consider localising website content for search, and social media and advertising content into Korean to engage the local audience effectively.

What Are the Risks of Expanding into South Korea

While new market expansion can be exciting, it is important to also consider the risks when entering a market like South Korea.

While the South Korean economy is currently doing well, it is important to note that this growth is driven largely by the semiconductor and technology sectors. On the other hand vehicle exports and non-tech manufacturing is struggling. Over-dependence on the semiconductor industry is also a risk.

Inflation is also a concern, as mentioned earlier, and the recovery is adding inflationary pressure to the market.

Other risks to consider are local competition. While the market isn’t over-crowded on search and in digital advertising channels, the presence of some established local providers has made it difficult for foreign businesses to establish a local foothold.

North Korea is also a noteworthy risk businesses should consider. Tensions with their neighbour are ever-present, and a significant escalation in tensions could negatively impact business.

Exceptionally low birth rates and a rapidly aging population are also a long-term consideration for business in Korea, much as is the case with Japan.

How Does South Korea Compare to Other Top Markets?