
The 2024/25 Korea Business Confidence Survey (Image courtesy of the European Chamber of Commerce in Korea)
SEOUL, March 25 (Korea Bizwire) — European companies operating in South Korea are increasingly dissatisfied with their business performance and the country’s regulatory environment, according to a new survey released Monday.
The 2024/25 Korea Business Confidence Survey, conducted by the European Chamber of Commerce in Korea (ECCK), the Korean-German Chamber of Commerce and Industry (KGCCI), and nine other European chambers, surveyed 139 CEOs of European companies in South Korea.
The share of companies satisfied with their business performance in Korea has dropped significantly — from 68% in 2022 to 58% in 2023, and now down to just 45% in 2024.
One key factor cited was a sharp decline in profitability. Only 27% of companies reported earnings before interest and taxes (EBIT) growth of more than 5% in 2024, compared with 54% in 2022 and 42% in 2023.
Additionally, 62% of respondents said their market share remained unchanged last year, and only 24% reported growth — a significant decrease from 53% in 2022 and 38% in 2023.
Looking ahead, only 36% of CEOs believe South Korea’s importance in their global strategy will increase over the next two years, down from 59% in 2022 and 53% in 2023.
Despite these challenges, more than half of the surveyed companies plan to invest in hiring this year, while 22% indicated plans to invest in new facilities, and 12% intend to boost research and development (R&D) spending.
The most pressing concern identified by European firms was inconsistent regulatory enforcement and legal uncertainty, which they see as major barriers to doing business.
Nevertheless, the report noted that South Korea remains an attractive market, earning high marks for customs processes, tax procedures, and openness to foreign goods and services.
The ECCK expressed cautious optimism: “While uncertainty persists, we believe that as Korea continues to adapt to global trends, European companies will find meaningful opportunities for success,” the chamber said in a statement.
Ashley Song (ashley@koreabizwire.com)