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European Business Confidence Survey 2022-2023
Discover the results of FKCCI and other European chambers of commerce in Korea's Business Confidence Survey 2022-2023.
In February 2023, FKCCI, ECCK, and nine other European chambers of commerce and business councils in Korea released the results of their annual European Business Confidence Survey. First launched in 2014 as a means to take a snapshot of European companies' perceptions, successes, and challenges in Korea, the Business Confidence Survey collected data from 184 participants and once again delivered meaningful insights about the state of bilateral business relations.
Despite a complex global context, European companies' efforts bore fruit last year, as Korean-European exchanges registered notable growths: +1.5% at USD 79.2 Bn for European exports to Korea, and +5.4% at USD 75.1 Bn for Korean exports to Europe. Consequently, the vast majority of respondents indicated being 'very content' or 'content' with the business performance of 2022; and 27% of them recorded an increase in sales of 5% to 10%, while 4 companies out of 10's sales grew by 10% or more.
Participants' outlook for the next two years was more contrasted. While 24% of them declared being 'highly optimistic' or 'optimistic' about their future in South Korea, 28% gave a 'highly pessimistic' or 'pessimistic' forecast. Nonetheless, 55% still plan on increasing their investment or operational expenses in the region, proving the Korean market's growing importance to European companies.
The survey also helped casting light on the challenges faced by the European community in Korea, with 53% of participants stating that doing business in the Peninsula became more difficult over the last two years, and 29% thinking reforms implemented in 2022 went against their activities' interests (vs. 14% saying it helped them).
Though the Korean economic growth and capacity for innovation are perceived as positive market parameters with high satisfaction scores, dissatisfaction scores regarding the legislative environment, the discretionary enforcement of regulations, and the transparency of policy-making and implementation remain high, with every fifth company reporting that foreign companies-related government policies within the past two years have become less fair or more discriminatory. While this number shows an 11% decrease compared to last year, 28% of European companies expect the situation to worsen in the future.
As the Korean-European business relations have prospered despite the difficult economic circumstances, and as the EU and Korea will celebrate 60 years of diplomatic relations in 2023, it is essential that the described shortcomings are addressed timely and adequately.
The results of the Business Confidence Survey 2022-2023 can be downloaded here:
