South Korea

South Korea’s economic situation in 2025 shows signs of moderation and adjustment. Inflation remains relatively contained, with CPI around 2–2.4%, while household debt - at roughly 89.5% of GDP - continues to pose a structural risk. The economy is facing a growth slowdown: official forecasts by the Bank of Korea have been revised down to around 0.8% for 2025, reflecting weak domestic demand and global trade headwinds. For Swiss exporters, conditions suggest a need for caution: sectors with stable demand - such as premium goods or niche technologies - may fare better, and companies should carefully assess regional market conditions and consumer credit exposure before entering or expanding.

Swiss exporters should note that South Korea has maintained a strong trade surplus, with total exports reaching approximately US$ 275 billion in the first five months of 2025. However, exports to China have declined significantly, particularly in the semiconductor sector, due to U.S. export controls. This suggests opportunities for Swiss exporters in sectors less affected by geopolitical tensions, such as luxury goods, which have seen growth in markets like watches and jewelry.

Swiss companies have significant opportunities in South Korea, particularly in sectors such as medtech, precision machinery, and digital healthcare, where Swiss expertise is highly valued. Additionally, the growing interest in advanced technologies like life sciences and digital innovation aligns well with Swiss strengths. Furthermore, niche consumer markets, including high-end beverages and cosmetics, present promising avenues for Swiss exporters.

Promising sectors for Swiss exporters include medtech, MEM, precision machinery, cleantech, digital healthcare, and biopharmaceuticals. South Korea's strong interest in Switzerland's advanced technologies, particularly in life sciences and digital innovation, aligns well with these sectors. Additionally, niche opportunities in consumer sectors such as food, cosmetics, and high-end beverages offer potential for Swiss companies.

Swiss exporters face challenges such as fluctuating currency exchange rates, which can impact pricing competitiveness, and regulatory changes in key markets that may alter trade terms. Additionally, geopolitical tensions can disrupt supply chains, necessitating contingency planning. To mitigate these risks, exporters should consider diversifying their market presence and hedging against currency risks.