Horizon South Korea

As Asia's fourth-largest economy and a major industrial power, South Korea is establishing itself as one of the most advanced technology markets. Semiconductors, batteries, AI, robotics, and the future of mobility: the country is investing heavily to strengthen its leadership in strategic industries and consolidate its position in global value chains.

Supported by large groups and a very dynamic technological ecosystem, South Korea is rapidly developing new technologies and deploying them on a large scale thanks to the effective articulation between public innovation and private initiatives.

It therefore offers numerous opportunities for industrial, technological and commercial partnerships for French companies, particularly in advanced industry, energy, mobility and digital technology.

Solène D'ALCANTARA DE QUERRIEU – Head of Asia Pacific Development – ​​Bpifrance

KEY FIGURES

• Population : 51,6 million inhabitants
• GPD : 1937 billion (in USD)
• 11ème world economic power
• Currency Korean Won (KRW)
• Exchange rate regime : Floating

COUNTRY RISKS

• High exposure to global risks: A strong dependence on exports, particularly to the United States and China, which increases the country's vulnerability to global cycles
  and to tariff tensions.
• Energy vulnerability: Dependence on imported oil and liquefied natural gas makes the economy sensitive to price fluctuations and geopolitical tensions in the Middle East.
• Demographic aging: The transition to a “super-aged society” is hindering growth potential, weighing on consumption and exacerbating budgetary challenges related to the pension system.
• Volatile political environment: Despite the return to normal institutional functioning since 2025, the political scene is exposed to recurring episodes of tension and is likely to revive financial volatility.

AREA OPPORTUNITIES

• cutting-edge export industry: A competitive and internationally oriented industrial fabric, dominated by semiconductors, automotive (including electric and hydrogen) and shipbuilding. Sectors supported by strong external demand.
• Increased investments: Extensive public and private support: USD 101 billion injected into innovation, and a USD 21 billion National Growth Fund dedicated to key technologies (batteries, AI, semiconductors, hydrogen and biotech).
• Tech dynamics: South Korea combines massive R&D funding – more than 5% of GDP – with a high-performing venture capital ecosystem that benefits innovation and helps steer the country towards high-value technologies.
• A favorable financial environment: The inclusion of sovereign bonds in the WGBI in April 2026 will enhance liquidity in the bond market, while governance reform of chaebol conglomerates improves transparency and access for international investors.

To discover the full content, check out our edition Horizon South Korea.