Marketing your business in Korea can be difficult, especially if you are not familiar with the language or culture. If you have a business that caters to Koreans, it is important to have an understanding of their customs and traditions so that your marketing efforts will be successful.
Here are some insights on how to market your business in Korea successfully.
Understanding Korean Market
The median age of the Korean people is 43.7 years old, which means that their population is aging rapidly. While only 12.7% of persons are under the age of 14, 72.2% are between the ages of 15 and 64, and 15% are older than 65, the majority (72%) of Koreans fall into this demographic
According to the most recent data provided by the World Bank, the population is increasing at a rate of 0.2 percent each year. In 2019, households have an average of 2.4 people. 27% of households live alone, 48% are made up of two or three people, 24% are composed of four or five individuals.
The gender ratio is one male to one female, with 81.8 percent of the population living in urban areas. Seoul, the Gyeonggi province, and Gangwon province are the most populous non-mountainous lowlands, with Seoul as the most densely populated city.
The largest cities are Seoul, Busan, Incheon, Daegu, Daejon, and Gwangju. The level of education is very advanced in these places. 88 percent of people aged 25 to 64 in Korea have completed higher secondary schooling, above the OECD average of 78 percent.
Furthermore, the proportion of people aged 25-34 with tertiary education is nearly 70% in 2019, far above the OECD average (45%).
The most common jobs in the workforce are administration and accounting, followed by salespeople. Following them come, administrators, office workers, and farmers.
In 2019, the average household net adjusted disposable income per capita in South Korea is $ 21,882, which is lower than the OECD average of $ 33,604.896.
Between the top 20% and the bottom 20%, there is a wide gap: those in the bottom 20% make less than $5,000 per year. Furthermore, Seoul's average salary is among Asia's highest, at approximately USD 2300.
In terms of employment, about 67% of Koreans aged 15 to 64 have a paid job, which is lower than the OECD average of 68%. Although income inequality appears to be stable, gender inequality is among the greatest in the OECD. Men are more likely than women (76% vs. 57%) to be in a paid job.
The gender pay gap in Korea is the widest among OECD countries, at 37.2 percent, contributing to making working life in Korea unappealing for women.
Consumer Behaviour in Korea
Korea is a consumer culture. Purchases are not only made for basic requirements but they are also done for image and status reasons. The slowing economy and high levels of debt have prompted some people in Korea to be more conscious of their spending, whether it's expensive or not. Successful brands with visible detailing are the most popular items among consumers.
Koreans are not brand loyal, and they are tech-savvy and concerned with branding. Koreans are extremely connected. In fact, more than 98% of South Korean households use the Internet on a daily basis, and over 85% of the population owns a smartphone.
Online shopping is now quite accessible. In 2019, 88.5% of the country's population uses e-commerce sites, with this expected to reach 94.4% in 2023. The use of the internet also enables consumers to research a product before purchasing it in a store.
Consumers are increasingly less likely to purchase products from their own country, and purchases of foreign goods are on the rise. Consumers explore, evaluate, and buy on social media. In terms of consumer decision-making, influencers and testers for well-known items are powerful. Consumers have become less interested in home goods while demand for imported products is increasing.
Korean consumers are more likely to alter their purchasing choices. Koreans are becoming increasingly interested in leisure time. Even if it is growing, consumption that is environmentally friendly isn't yet widespread.
Concerns over the environment have grown among young people. A new group of buyers has emerged, demanding "green labels" and looking for eco-friendly, or organic and natural choices. Among youngsters, worries about the environment are becoming more common.
In South Korea, there is a secondhand market that is developing, especially in flea markets and internet exchanges. In South Korea, the collaborative economy is flourishing.
If you want to use marketing techniques to convert consumers, the first thing you should do is get to know them. As a result, we propose that you look at Korean history and culture.
You may be familiar with K-Pop, K-Dramas, and Korean movies. These forms of entertainment might be a wonderful way to learn about Korean culture, but they are not enough.
Korea has a long and illustrious history, as well as a rich cultural tradition that dates back more than 4,000 years. For hundreds of years, Korea was a highly homogeneous nation.
Finding out about the history and cultures of Korea may be the most useful first step in understanding its consumers.
Read more about Korean history here
Best Digital Marketing Strategies and Channels in Korea
Korean businesses are adopting digital marketing strategies at a rapid pace. Digital marketing is an effective way to connect with your customers and reach them on their preferred channels, which makes it vital for the success of any business.
The organic search in South Korea is mostly controlled by NAVER, as it is in other countries. When attempting to enter the Korean market, foreign businesses frequently encounter difficulties because of the country's unique internet usage patterns.
PPC may dominate the SERP, and optimizing on NAVER Portal takes a different approach than traditional search engines, which might appear to be a challenge. However, with so much potential for company development, the market appears to be brimming with opportunities. Finding an experienced Korean SEO Agency that can provide local knowledge and content in your own language is critical
Korea Social Media
KakaoTalk is South Korea's most popular social network, with an estimated 48 million monthly active users. The software includes multimedia messaging services, free calls, event calendars, and in-app gift purchasing. Through the messaging platform, many businesses use the app for marketing purposes.
with 16 million users in 2015, it may be used to launch specialized marketing campaigns based on demographic and geographical information.” Using Facebook's "mobile target block" functionality with videos and focused advertising efforts is becoming more popular in Korea.
a subsidiary of Korea's Naver Corporation, Naver being the equivalent to Google in South Korea – is believed to have around 14 million users. Most popular in other Asian countries such as Japan and Thailand, LINE's "stickers," or larger emoticons, are gaining popularity among Korean users.
Korea Influencer Marketing
According to a recent report from Millward Brown Digital, 86 percent of women browse on social networking sites (SNS) before making a purchase, and 66% of consumers use what they learn from friends and relatives when buying online. In 2020, the influencer market in South Korea is expected to total $10 million, according to KOTRA.
Korea PPC and Advertising
Starting an advertising campaign in South Korea may be tough for non-Koreans, owing to the country's unique internet culture. Naver has a near-monopoly on the Search Engine Market Share, followed by Google and Daum.
Furthermore, South Korean online buying trends are significantly different from those in the West, which might be perplexing while developing new processes or analyzing data. Naver Advertising, with more than 42 million internet users, provides an excellent entry point and opportunities for rapid growth.
Best Digital Marketing Agency in South Korea
Inquivix is an exceptional digital marketing agency. Their goal is to deliver the highest return on investment to all clients, no matter how big or little their budget is. They use statistics to develop our plans and keep our customers up to date on our marketing efforts.