PBEC Opinion Piece South Korea 2025Executive Summary
This PBEC opinion piece on South Korea’s economic forecast for 2025 highlights the challenges posed by political instability, which may dampen growth prospects unless stability is restored.
Key sectors such as manufacturing, infrastructure, technology, and renewable energy present significant opportunities for Korean businesses, particularly in international markets like China, the Philippines, Indonesia, Vietnam and Thailand. The investment climate is influenced by the need for reform and stability to attract both domestic and foreign investments.
South Korea’s strategic advantages, including its skilled mobile workforce, middle-class incomes, rich culture, tax incentives and robust R&D environment, position it favorably for direct foreign investment, particularly in technology and green energy sectors. However, the ongoing political challenges necessitate careful navigation of economic policies to maintain stability and growth by year-end.