Korea: Market snapshot

The Republic of Korea is home to Asia’s fourth-largest economy, behind China, India, and Japan and just ahead of Indonesia.

But in February 2025, the government’s Korea.net site reported that the country’s 2024 per capita gross domestic product was estimated to have exceeded that of Japan and Taiwan, according to data published by the Ministry of Economy and Finance, Bank of Korea, and Statistics Korea.^a It has been a bumpy ride since then.

The country’s GDP contracted by 0.2% in the first quarter of 2025 but rallied with second-quarter growth of 0.6%. The Wall Street Journal credited “resilient exports and policy support, as the central bank delivered monetary easing and the government stepped up fiscal stimulus” for the rebound.^b But the CIA World Factbook notes that while Korea’s manufacturing sector, led by the semiconductor and automotive industries, remains strong, the country must contend with “slow growth amid declining construction investment, export risks, and recent political instability” in addition to an aging workforce.^c

The country’s population was nearly 52,082,000 in 2024, and its labor force numbered more than 29,713,000. Women represent 43.8% of the workforce.

An export-driven economy

Korea’s 2024 export volume was about $835.14 billion, up from $769.24 billion in 2023. Leading export commodities include integrated circuits, cars, refined petroleum, plastics, and machine parts. Its largest export partners are China, the U.S., Hong Kong, Japan, and Taiwan. Major natural resources include coal, tungsten, graphite, molybdenum, and lead, and the country has strong hydropower potential.

Import volume was estimated at $758.72 billion for 2024, essentially on par with $758.41 billion in 2023. Integrated circuits, natural gas, crude petroleum, machinery, and cars are Korea’s leading import commodities, and its largest import partners are China, the U.S., Japan, Germany, and Australia.

New AI legal framework

In December 2024, the Korean government passed the Act on the Development of Artificial Intelligence and Establishment of Trust, known as the AI Basic Act, which is slated to take effect in January 2026. The law establishes a comprehensive AI regulatory framework, and the U.S. Department of Commerce International Trade Association calls it “a pivotal development for U.S. companies operating in or entering the Korean Artificial Intelligence market.”^d

It further elaborates that “The act establishes legal grounds for establishing a national AI control tower, an AI safety institute, and various governmental initiatives in R&D, standardization, and policies. The legislation also mandates separate initiatives to support the national AI infrastructures, including training data and data centers, and fostering SMEs [small and medium-sized enterprises], startups, and talent in the AI field. More importantly, the act assigns transparency and safety responsibilities to businesses that develop and deploy ‘high impact’ AI and generative AI.”^d

The regulatory environment

Companies interested in exploring Korean market opportunities may need support in meeting regulatory and compliance requirements. The organizations below offer such resources.

The Korea Testing & Research Institute “completes over a half million tests and certification requests per year for over 30,000 businesses” and has “a global partner network connecting 180 overseas organizations in 40 countries.”

The Korean Testing Certification Institute has a five-decade history of supporting “clients in the fields of machinery, electricity, electronics, lighting, renewable energy, chemistry, and medicine.” It also offers “product quality test and evaluation service” for such industries as machinery, metallurgy, electrical/electronics, lighting, chemistry, environment, and construction.

Korea Testing Laboratory describes itself as “Korea’s only public comprehensive testing and certification organization” and states that it “studies evaluation methods for technological performance and safety in order to contribute to the successful establishment of the Fourth Industrial Revolution technologies.”

Further trade resources

The U.S. Department of Commerce International Trade Administration’s South Korea Country Commercial Guide provides guidance on everything from doing business in the country to the digital economy.^e

An overview of the status of the U.S.–Korea Free Trade Agreement is available at https://www.trade.gov/us-korea-free-trade-agreement. Further resources include the U.S.–Korea Business Council, the American Chamber of Commerce in Korea, and the Korean Chamber of Commerce and Industry in the USA.

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