Arriving in Seoul on our recent research trip to South Korea, we were once again struck by the vibrancy of this bustling capital, which offers a heady mix of culture, leisure, luxury, history and tradition. In a country of nearly 50 million inhabitants, around half of those are based in the capital and its satellite districts, giving the area the highest population density in the world.
The scale of this great metropolis means it is overflowing with opportunity, and Korea’s young people flock here to find work, not to mention take advantage of the many bars, shops and restaurants that Seoul has to offer.
However, there are two sides to the story. The country’s birth rate has been dropping since 2015, and in 2020 more deaths than births were recorded for the first time1. In short, the country is facing what some argue is a demographic crisis. And although the government is focused on rejuvenating Korea’s population and workforce, the backdrop can be challenging for companies, with many looking outside their domestic markets for long-term growth.
Our meetings on this trip provided a wealth of talking points, including:
- How a sizeable and tech-savvy retirement population is creating opportunities and ideal conditions for exploring new products and services, especially across healthcare and technology.
- The noticeable and ongoing improvement in the quality of Korean company meetings, with growing levels of access to management & board members and improving corporate governance.
- The fact that Korea’s heavy tech tilt gives it a strong, long-term advantage in AI. It is clear that companies investing in innovation, capacity, talent, and their stakeholder relationships will be rewarded.
- The way in which many companies have positioned themselves well to benefit from the AI trend. In particular, Korea’s diminishing workforce and technological excellence make it a front runner for increasing the use of AI within its domestic workplaces.
- Our visit to a market-leading computer testing socket and pin equipment company, the success of which has been built on traditional Korean values of humility, hard work, and attention to detail.
In our piece, we give more insight into Korea as a technologically-advanced nation with deep-seated industrial roots, and a culture where the modern and the traditional are rarely far apart.
Read the full piece here.