- The Digital X
- Jun 30
- 7 min read
Updated: Jul 1
South Korea has increasingly become a booming market with strong inbound and outbound demand — making it a prime expansion destination for Japanese companies. From cultural differences to nuanced marketing strategies, succeeding in Korea requires a deep understanding of the local business landscape.
In this comprehensive guide, The Digital X — with over 18 years of expertise in digital marketing — answers your top questions:
What objectives and advantages do Japanese firms gain by entering the Korean market?
How do business cultures differ between South Korea and Japan?
We also share insights from our work with leading corporations and feature success stories to guide your entry strategy. If you’re planning expansion into South Korea, this article is a must-read.
Why Japanese Companies Are Expanding into South Korea: Key Benefits
With Japan’s declining birthrate and aging population, the domestic market continues to shrink, raising concerns over decreasing consumer demand and weakened purchasing power.
As a result, many Japanese companies are turning to overseas markets to secure new growth opportunities — and South Korea has emerged as one of the most attractive destinations for expansion.
Here are two major reasons why South Korea is a strategic choice for Japanese businesses:
1. Highly Developed Infrastructure and Digital Readiness
South Korea boasts world-class infrastructure — not only in transportation and utilities, but also in digital connectivity and business systems.
According to DataReportal, as of early 2024, South Korea’s internet penetration rate is 97.2%, and social media usage stands at an impressive 93.4%. The country is recognized globally for its advanced IT environment and digital-first consumer behavior.
This makes digital marketing — especially via social platforms — extremely effective and measurable for foreign brands entering the market.
2. Geographic Proximity and Growing Cross-Border Demand
Japan and South Korea share similar lifestyles and cultural norms, allowing businesses to enter the market with relatively lower localization costs. Transport and logistics are also more affordable due to close proximity.
The two countries have become increasingly interconnected through tourism and commerce. According to the Japan National Tourism Organization (JNTO), roughly 6.96 million South Koreans visited Japan in 2023 — a 125% increase year-over-year.
Meanwhile, statistics from the Korea Tourism Organization (KTO) show that more than 11.03 million Japanese travelers visited South Korea in 2023, a 245% year-over-year increase.
Young generations in both countries are especially receptive to each other’s culture, creating fertile ground for marketing and brand engagement.
Culturally, Japan and South Korea share many similarities—ranging from etiquette (e.g., removing shoes indoors) to using chopsticks, and even similar sentence structures in language, which makes communication and learning more accessible than Western languages.
In recent years, Japanese cultural exports such as anime, J-pop, tea ceremonies, and kimono have gained popularity in South Korea. Conversely, Korean culture — K-pop, K-dramas, Korean cuisine, and cosmetics—continues to captivate audiences in Japan, especially among women.
Reference: Korea.net
4 Key Traits of Successful Japanese Businesses in the Korean Market
As Japanese companies look to expand globally, South Korea is emerging as a strategic and culturally accessible destination. While the two countries share certain similarities, successful business entry into Korea requires more than just proximity — it demands deep cultural and operational alignment.
Here are four key traits that distinguish Japanese companies thriving in Korea:
1. Cultural Sensitivity to Business Etiquette
Top-performing Japanese companies in Korea understand that Japanese business etiquette doesn’t always apply — and may even backfire — in the Korean context.
Korean business culture is heavily influenced by Confucian values. Respect for hierarchy, seniority, and familial relationships is deeply embedded, often more so than in Japan. Successful companies recognize the importance of these dynamics and ensure their teams are trained to respect local expectations.
For example:
Never leave the meeting before the Korean counterpart does.
Younger or junior staff should initiate greetings.
Always be mindful of hierarchical relationships during interactions.
Additionally, business in Korea is highly relationship-driven. Face-to-face interactions, especially over meals, are crucial for building trust. While digital meetings may be convenient, in-person dining is still seen as essential in Korean deal-making culture.
Japanese firms that fail to understand and respect these nuances often lose trust at the initial stage — something that’s difficult to recover from.
2. Speed and Decisiveness in Business Decisions
One of the most critical success factors in the Korean market is speed.
Korea’s well-known “Ppalli Ppalli” (빨리빨리) culture — meaning “hurry up” — extends beyond daily life into business. Korean companies expect quick responses and fast decision-making. A delayed response may be interpreted as a lack of interest or commitment.
In contrast, Japanese companies tend to take a more cautious and consensus-driven approach. While this may ensure quality, it can be seen as indecisiveness in Korea.
To succeed, Japanese companies must adjust to Korea’s fast-paced environment, where agility and responsiveness are valued just as much as reliability.
3. Understanding Korea’s Top-Down Business Culture
Korean companies generally follow a top-down management structure. Decisions often come from executives with little internal debate, and once approved, are executed immediately.
This contrasts with the Japanese approach, which emphasizes cross-functional coordination and stakeholder alignment before decisions are made.
In Korea, the key to smooth collaboration is securing access to the decision-maker. Unlike Japan — where approaching a sales representative might be enough — success in Korea often hinges on building relationships with executives who hold real authority.
4. A Fully Localized Marketing Strategy for Korea
Successful Japanese businesses in Korea don’t just translate — they localize.
They adapt their digital marketing strategies to reflect Korean consumer behavior, which includes:
Prioritizing platforms like NAVER, Korea’s dominant search engine
Using Kakao, Instagram, and YouTube for social media engagement
Collaborating with local influencers and bloggers to build trust and relevance
It’s important to note that Google SEO tactics that work in Japan or globally may not be effective in Korea. NAVER has its own algorithms and user behaviors, requiring tailored SEO strategies.
For more insights on Korean localization, see:
[Case Study Insights] How Japanese Companies Are Succeeding in the Korean Market
To wrap up, let’s examine two real-world success stories of Japanese companies operating in South Korea. These examples illustrate key strategies that contributed to their achievements.
Featured Case Studies:
Cross-Border E-Commerce: IT&BASIC Japan Co., Ltd.
Food Business: Calbee, Inc.
Case Study 1: Cross-Border E-Commerce – IT&BASIC Japan Co., Ltd.
IT&BASIC Japan identified a growing demand from Korean tourists for over-the-counter Japanese medicines and cosmetics—items frequently purchased as souvenirs from Japanese pharmacies.
Recognizing this inbound trend, the company launched a cross-border e-commerce business during the COVID-19 pandemic, targeting Korean consumers interested in Japanese pharmaceutical products.
The company attributes much of its success to leveraging NAVER, South Korea’s leading search engine. According to an interview with Digima, they focused on:
Publishing product reviews via NAVER Blog
Optimizing visibility on NAVER Shopping
Enhancing engagement through localized SNS marketing strategies
This approach helped them drive qualified traffic and conversion from Korean consumers actively searching for Japanese products online.
Reference: Digima
Case Study 2: Food Business – Calbee, Inc.
Calbee, a leading Japanese snack company, has also achieved impressive success in the Korean market.
In 2011, Calbee established a joint venture, Haitai-Calbee, and by 2014 launched a major hit: the Korean version of its “Potato Chips Shiawase Butter” under the name “Honey Butter Chip.” The product became a massive sensation across Korea.
Calbee was one of the earliest Japanese food brands to enter Korea, beginning its strategic efforts as early as 2003. A key factor behind their success was securing a licensing partnership with Haitai Confectionery, the third-largest snack company in Korea at the time.
By establishing a joint venture, Calbee gained critical access to local consumer insights. This enabled them to develop flavor profiles that resonated deeply with Korean preferences, turning Honey Butter Chip into a cultural phenomenon
References: JoongAng Ilbo, Calbee
Frequently Asked Questions (FAQs)
Here are some of the most common questions we receive about digital marketing in South Korea:
What are the latest trends in digital marketing in South Korea?
To stay updated on the latest trends and data-driven insights, please refer to our in-depth article:
2024 Guide to Digital Marketing Trends in South Korea | Data-Driven Insights
How can I effectively promote my brand in South Korea?
If you’re looking to increase brand awareness in Korea, we’ve outlined key promotional strategies and critical considerations in the following article:
How to Boost Brand Awareness in Korea: 3 Proven Promotional Tactics (2024 Edition)
How do I attract Korean inbound tourists using Instagram hashtags?
Check out our guide that features the Top 10 Korean hashtags for inbound marketing as well as localized hashtags for all 47 Japanese prefectures:
Instagram Hashtag Strategy for Korean Visitors: Boost Inbound Reach with Localized Hashtags
How do I attract Korean inbound tourists using Instagram hashtags?
Check out our guide that features the Top 10 Korean hashtags for inbound marketing as well as localized hashtags for all 47 Japanese prefectures:
Instagram Hashtag Strategy for Korean Visitors: Boost Inbound Reach with Localized Hashtags
Which video streaming platforms are most popular in South Korea for advertising?
For a breakdown of the top-performing Korean OTT platforms and how to leverage them for ad placements, please refer to:
Top 5 Video Streaming Platforms in Korea for Marketing | OTT Market Trends
Expand Your Business in South Korea with The Digital X
At The Digital X, we provide end-to-end support for Japanese companies looking to expand into the South Korean market through effective digital marketing strategies.
Our team includes native marketers based in each region, enabling us to deliver localized insights, culturally relevant marketing plans, and actionable strategies tailored for the Korean business environment.
Doing business in South Korea requires a deep understanding of local values, consumer behavior, and cultural nuances. With our proven track record and in-market expertise, we’re here to help you navigate the Korean market with confidence.
Ready to scale your business in South Korea? Contact The Digital X today for a consultation.