Market – Korea

• ST market research page –– here
• ST Research Report 2023 –– Download here
• ST TMS 2017 –– Download here

Click here for an overview slide for each finalized activity in the current year. ((Will follow))

Consumer Sentiment Index (CCSI) of Korea rose to 99.5 points in December of 2023 from 97.2 in a month earlier. It ended four consecutive months of decline in consumer confidence due to moderating inflation, a recovery in exports and hopes for an end to rate hikes. This has also influenced the travel sentiments through the steep increase of short haul travel extending to long haul travel early bird reservations.
STP remains the most attractive sales product in Switzerland also expanding the targets to higher age levels and family travelers. According to Consumer insights’ survey of 2023 Switzerland has the highest satisfaction rate of all travel destinations. The future concerns related to the steeply rising currency exchange rates which will influence the selection of future travel destinations.

The Korean economy is expected to grow at a slower pace in 2023 due to a number of risk factors, including the Russia-Ukraine war, the global economic slowdown, and domestic and foreign monetary tightening. The Bank of Korea expects the economy to improve in the second half of the year, but the growth rate is expected to remain below 2% and consumer inflation 3.4% in 2023. The Korean government is implementing a variety of policies, including expanding fiscal spending, lowering interest rates, and easing regulations, to overcome the slowdown in the economy. In 2024, the Korean economy is expected to show a moderate recovery thanks to the recovery of the global economy and efforts to boost domestic demand. The Bank of Korea has projected that the Korean economy will grow by 2.7% in 2024. This is a slight increase from the 2.2% growth rate in 2023. The Bank of Korea expected the economy to improve thanks to efforts to boost domestic demand and the recovery of the global economy.

Based on hotel stays in the first quarter of 2023, Korean tourists to CH has recovered by 70%. It is expected that the overseas travel will return to 2019 levels by the end of 2023, with a noticeable trend of longer vacation durations. The positive performance in the first quarter has motivated the Korean major KAs to secure a strong position in the market, anticipating a further increase in demand for international travel in the second half of the year. According to Consumer Insight Korea, 42.9% of respondents are planning to map out an overseas trip of more than 6 nights within the next 6 months. Consequently, major travel agencies are exerting considerable efforts to attract customers by offering unique products such as hotels near popular attractions, local restaurants, and places that are well-known on social media. They are differentiating their offerings to cater to various customer groups and targeting strategies to attract.

OTT services that delivering videos, TV shows, and movies over the internet, have been gaining popularity in recent years in Korea and this trend is expected to continue in 2023. Korean people prefer to watch a variety of content conveniently and to consume media content that is tailored to their interests. Metaverse and AI technologies are being used in a variety of fields, such as games, education, and entertainment and these technologies are expected to further develop and be used by more people in the future. Social media is still very influential and will have an increasingly greater impact on politics, society, and culture. In particular, short-form contents are gaining popularity, with 7 out of 10 Koreans having experience with short-form content and usage increasing by 12.4% year-on-year. Instagram and YouTube have the highest average daily access frequency of more than 4 times, followed by Instagram with high responsive behaviour and YouTube with the highest proportion of consumption time and information exploration.

To ensure a customer-centric approach and cultivate empathy with future guests, personas-based marketing strategy has been implemented. This involves thoroughly understanding customer needs, communication preferences, purchasing behaviours, and information-gathering patterns throughout the customer journey. By obtaining valuable insights, we can refine our marketing and communication strategies accordingly. In the Korean market, we have specifically identified three personas (Max, Kris, and Jo) out of six to guide our targeted marketing efforts. Find more information about the personas here.