At a Glance In 2014–15 Korea’s recovery should continue with growth accelerating to 3.7%. Consumer sentiment has rebounded after a lull and domestic demand is expected to improve supported by a US$40 billion stimulus package. The government projects the economy will grow 4% in 2015. Franchise Glance “We consider South Korea as a developed market, meaning it is no different to the UK or the US… Korean consumers are demanding and expect high-performing products.” Hari Nair: Managing Director, Kimberly-Clark's.
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At a Glance
In 2014–15 Korea’s recovery should continue with growth accelerating to 3.7%. Consumer
sentiment has rebounded after a lull and domestic demand is expected to improve supported by
a US$40 billion stimulus package. The government projects the economy will grow 4% in 2015.
Franchise Glance
“We consider South Korea as a developed market, meaning it is no different to the UK or the
US… Korean consumers are demanding and expect high-performing products.” Hari Nair:
Managing Director, Kimberly-Clark's.
Recently everything seems prefixed with a K: K-Pop, K-food, K-beauty, K-movies; why not go to
your local K-culture festival, sure there must be one near you, or coming soon. Korean culture is
on fire at the moment and has been warmly received. Domestic franchisors have, quite rightly,
been riding this wave and rapidly expanding internationally-China being a franchisors first
choice. However for an overseas franchisor looking in, what is this market like?
GDP was US$1.2 trillion in 2013 and predicted to rise as consumer spending and confidence
grows through 2014 and 2015. The Hyundai Research Institute latest report predicts Korea will
expand by 3.5% in the first half of 2015 and 3.6% in the second half.
Considering Korea's comparatively slower Asian growth, it remains a good target for franchisors
owing to historical years of stable growth, an affluent consumer base and early advancement of
the country. The average disposable income per household per month was US$3150 in the
second quarter 2014, a rise of 2.8% from the second quarter 2013, with significant rises in
bakery, confectioneries & snacks, coffee & tea, and juice & beverages sectors (Statistics Korea).
The demand for foreign brands spans a range of sectors and recently a broader range of
channels. 65% of the population is classified as middle-class (OECD) so unlike many other Asian
countries there is not thegeneral trend of a new, emerging middle-class. Supported by media
and a relatively high degree of travel experience, the Korean consumers are knowledgeable in a