The South Korean market is wealthy, sizeable and digitally mature, making it very attractive to businesses wanting to expand internationally. This guide will explore how best to approach digital marketing in South Korea. From reading this guide, you will learn the current digital landscape in the country, including internet penetration rates, online trends and behaviors, device usage, and the dominant search engines and social networks. You will also learn about the complexities of language and culture in South Korea and what this means in terms of digital marketing. Finally, you will learn how to approach e-commerce in order to achieve success in South Korea.
Table of contents
- Introduction
- The Typical South Korean Internet User
- Device Usage in South Korea
- Search Engine Marketing in South Korea
- Social Media Marketing in South Korea
- The Local Culture and Language in South Korea
- E-Commerce in South Korea
- Conclusion
Introduction
South Korea is an attractive prospect to many businesses looking to expand internationally, and there are several reasons why.
The first reason is its size: it is a relatively large country, with a sizeable population, which means there will likely be a market for your product.
The appeal of this market only grows stronger when you realize that, according to the International Monetary Fund, South Korea is the fourth-largest economy in Asia in terms of GDP, after only China, Japan and India.
Another reason is its strategic geographical location. With its close proximity to the major economies of China and Japan, it is well-placed to do business with brands with a physical presence in either of these Asian powerhouses.
It is also a digitally mature nation. South Korea has a population of 51.7 million people. Of these people, around 98% are currently online.
However, it can be challenging to enter the South Korean market. South Korea has a truly unique digital landscape, with a mix of global and local platforms. Its unique cultural and linguistic background can also make things tricky for foreign brands trying to enter the South Korean market.
Never fear, this guide is here to shed light on how best to harness the power of digital marketing to succeed in South Korea.
The Typical South Korean Internet User
Let's begin by looking at who exactly the typical internet user is in South Korea.
There is an equal gender split, with 98% of men and women using the internet.
The table below shows internet penetration by age group in South Korea. As you can see, there are very high levels of internet penetration across the entire 3 to 69 age group (over 92%), with this then dropping off over the age of 70:
There is no major urban-rural digital divide in South Korea, with 98% of people in urban areas using the internet, along with 97% in rural areas.
The typical South Korean internet user spends 5 hours and 22 minutes online every day. So, what are these people doing online? Research by Meltwater and We Are Social found that the top three reasons South Korean users gave for using the internet were: finding information, filling up spare time and general browsing, and keeping up to date with news and events.
Let's briefly turn our attention to some key concerns of South Korean internet users. Online privacy is important to this group. According to recent research, 33% of South Korean internet users worry about how companies might use their online data, 21% decline cookies on websites, 18% use ad blocking tools, and 15% use a VPN to access the internet.
Device Usage in South Korea
Looking at device usage, 57% of internet traffic in South Korea comes from mobile phones, 42% comes from desktop computers, and 1% comes from tablets.
It is therefore important that your website is optimized to work well across a variety of devices, to meet the demands of internet users and provide them with a positive user experience when interacting with your brand and website.
Given the popularity of mobile, you may want to create an app, as this presents a big opportunity for brands wanting to target the South Korean market. If you create an app, make sure to localize the language, especially if you are B2C. Make sure your app functions correctly and is valuable for users, otherwise your brand might suffer not only from poor return-on-investment but also negative reviews.
Internet speeds are faster than the global median. South Korea ranks 9th in the world for fixed broadband speed, with a median speed of 259.62 MB per second. It ranks 7th for mobile internet speed, with a median speed of 225.29 MB per second.
Search Engine Marketing in South Korea
The uniqueness of South Korea's digital landscape starts with its search engine market. Unlike most other countries in the world, where Google reigns supreme, in South Korea, there is another big player in the market: Naver.
If you have not heard of Naver, it is a South Korean search portal provided by Naver Corp. Since the beginning, Naver's one and only target was the South Korean audience. Naver reflects not only the culture and language of South Korean internet users, but also their search patterns and behaviors. This local focus could well be the secret to its success – even with the emergence of Google, Naver remains a vital player in the country's online search landscape.
Looking at the search engine market shares, Naver has a market share of 46%, followed by Google with 45%, Bing with 5% and Daum with 1%. Since both Naver and Google have significant levels of popularity, it is important to include both Naver and Google in your SEO and PPC efforts.
So, how should you approach search marketing on Naver? Naver is a platform with many unique characteristics, so it is important to understand the platform clearly before attempting to do SEO or PPC.
Let's look at some screenshots to see what Naver looks like. The first image below shows the Naver homepage, before the user has made a search. The second screenshot shows the search engine results page for the search query "Starbucks" (in Korean). As you can see, Naver looks totally different from Google, with Naver being much "busier" with content.
Naver search engine results pages often contain many different Naver services, including Blog, Cafe, News, Shopping, Encyclopedia, Maps and more. The SEO system on Naver is designed to promote these subsidiary services of Naver above others, so remember to create content across Naver's own platforms as part of your Naver SEO strategy. This will help you to have an organic online presence in the South Korean market, as well as encourage audience engagement.
We have a range of content available to help you navigate Naver's complex search marketing landscape:
- How to succeed with Naver SEO in South Korea
- A guide to search advertising on Naver
- Social media on Naver: The Blog, the Post, or the Cafe?
The above resources should give you a good grounding in search marketing on Naver, but we understand that you may need additional support or advice, so please feel free to get in touch if you would like more bespoke consultancy or practical help.
Do not forget that Google is also a popular search engine in South Korea. If you want more in-depth information on how to succeed at search marketing on Google, we have this guide to on-page optimization for Google and this guide to search and display advertising on Google.
We cannot stress enough how vital it is to have a strong presence on the search engines in South Korea. Recent research has found that search engines are the number one main channel for online brand research in South Korea, as well as the number one source of brand discovery.
However, be aware that 18% of South Korean internet users use an ad blocking tool. This means you do not want to rely completely on search advertising. Your organic SEO and content marketing efforts must also be given the attention they deserve in order to reach those internet users who have turned on an ad blocker.
Preparing Your Website for South Korea
At the center of your organic and paid strategies should be your website, so make sure to think carefully about it and prepare it before you enter the South Korean market.
Check that your geotargeting is correctly set up for your South Korean website. This will vary depending on how you structure your domains, but you are likely to need hreflang tags correctly implemented to ensure that your South Korea-targeted pages rank above your other country pages.
You should also check your website speed from within South Korea, and if the loading speed is slow, consider hosting your website on a local server. You do not want to go through all the effort of creating, designing and localizing your website, just to have those efforts undone by poor loading speeds and high bounce rates as a result.
If you sell products on your website, make sure to display prices in the local currency, use local weights and measurements, and accept local online payment methods, such as Naver Pay or Kakao Pay.
Make a point of creating and displaying local content, telling stories that are relatable and relevant to the local audience. This also includes the visuals and photos that accompany your written content.
And finally, be aware you will likely need to adapt your website design to fit the needs and preferences of the local audience. What appeals to a Western audience when they land on your website is not the same as what appeals to a South Korean audience, so your design needs to change to match their expectations and what they respond to. The example below shows how Nike adapted its homepage for the South Korean market:
Social Media Marketing in South Korea
Social media is very popular in South Korea. Research by Meltwater and We Are Social found that among its sample of South Korean internet users, 97% were social media users. The average internet user spends 1 hour and 14 minutes on social media every day and uses an average of 4 social platforms every month. The most common reasons for using social media are filling spare time, keeping in touch with friends and family, and finding content (e.g. articles and videos).
So, where are South Korean social media users spending their time? As you can see in the graph below, KakaoTalk is the most popular social platform in South Korea, followed by Instagram. Both these platforms are used by more than half of all South Korean internet users every month.
With 97% of South Korean internet users being social media users, it is vitally important for brands to have a social media presence when targeting South Korea. You should use social media to communicate and engage with potential customers, and it is also a useful way of understanding and getting to know your target audience. You should aim to create content that triggers emotions in users by offering real value or a real connection with your brand.
However, be aware that your social media strategy will need to differ significantly for South Korea compared to how you do it for other countries.
The first big difference is South Korea's number-one social platform: KakaoTalk. You may not be familiar with this platform, so let's begin by explaining exactly what it is. KakaoTalk is a messenger app which was launched in 2010. With KakaoTalk, you can: send and receive messages, photos and videos; take part in group chats; use emojis; and make voice and video calls. All these functions are available for free.
But KakaoTalk is not just a simple messenger app. It also has features such as Kakao Gift, Kakao Shopping, Kakao News – and most importantly for businesses, KakaoTalk Channel. KakaoTalk Channel is a business tool created by KakaoTalk. It is used by both small and large companies as a tool to communicate and promote their services or products in South Korea. If used effectively, KakaoTalk Channel can act as a PR and sales channel for your brand in the South Korean market.
We talked in-depth about marketing on KakaoTalk in a LinkedIn Live – you can watch the recording of it here, if you want to learn more. Or, if you would prefer to read about KakaoTalk in a written format, we have a full-length guide here.
Another quirk of the South Korean social media space you should be aware of is that the search engine Naver has various "social" features, including Naver Blog (a blogging platform), Naver Post (like a slimmed-down version of Naver Blog, with less text and more imagery) and Naver Cafe (a forum platform). These have significant popularity in South Korea – and rank well in the Naver search engine – so they should definitely be taken into account. You can learn more about how to use these features in our guide: Social media on Naver: The Blog, the Post, or the Cafe?
Of course, you do not need to be on every social media platform; you only need to be where your audience is. Research your industry and your audience before entering the market, see what platforms they prefer and prioritize them. Bear in mind that your audience will most likely be present on multiple platforms and interact with you across all of them, but they will not want to see the same things from you on all of them. Your content strategy should take into consideration both who your audience is and where they are interacting with you.
The Local Culture and Language in South Korea
Culture
When entering any new market, it is very important to be aware of the local culture and to adapt your marketing collateral appropriately. One way you can examine the South Korean culture is through the lens of Hofstede's cultural dimensions.
South Korea has a fairly high score of 60 for power distance. This means that:
- Authority is respected and hierarchies are adhered to.
- When doing B2B marketing, focus on targeting the senior decision-makers. There is little point in targeting personas in more junior roles, as they do not have much input into purchasing decisions.
- It is important to highlight your own authority on your website – for example, by prominently featuring your senior management team.
South Korea has a score of 58 for individualism, placing it around the middle of the spectrum. This means that:
- South Korean culture shares some features with both individualist and collectivist societies. People see themselves as individuals, but also place value on being a member of a social in-group. They value both their own personal wellbeing, and the wellbeing of their in-group.
- Use a mix of marketing messaging, to appeal to both individualist and collectivist values. Talk about how your product or service can personally benefit the customer as an individual, as well as how it can benefit wider society.
South Korea has a fairly low score of 39 for motivation towards achievement and success. This means that:
- People are primarily driven by a desire to have a good quality of life and to care for others. Modesty and cooperation are valued, while standing out from the crowd is not.
- Emphasize how your product or service can help the customer achieve a better quality of life.
South Korea has a very high score of 85 for uncertainty avoidance. This means that:
- People are extremely uncomfortable with uncertainty.
- They want to see specific statements about products and services, rather than vague generalizations. Explain your offerings in terms of their detailed processes, not their vague potential results.
- They want to know in-depth about your product features, and for this reason product demos are popular.
- It is crucial to build brand trust in such a culture, and therefore brand awareness is important.
- Related to this, brand loyalty is also strong – so once a customer has decided they like a brand, they are less likely to switch to competitors.
- Featuring quality assurance information and awards on your website will generate good results, as this will build brand trust.
South Korea has a very high score of 86 for long-term orientation. This means that:
- People are more focused on the future than on the present or the past. Change is viewed as a good thing, and traditions are easily altered to fit with modern circumstances. People tend to be pragmatic, and saving and investing for the future is important, as the future is their focus.
- Focus on how your product or service can help them in the long-term. Do not focus on getting quick, instant results, as that is not relatable. Instead, focus on long-term benefits.
South Korea has a fairly low score of 29 for indulgence. This means that:
- South Korea is quite a restrained society.
- People are good at controlling their impulses and desires – and may in fact see indulgence as a negative thing.
- When coming up with your marketing messaging, make sure not to come across as promoting something overly extravagant or gaudy, as this may be seen as distasteful.
If you are a B2B brand, be aware that South Korean B2B business culture has its own quirks – this blog post goes more in-depth into this topic.
Language
When targeting South Korea, make sure to create content in the local language, rather than trying to target them using English. The EF English Proficiency Index ranks South Korea as having only moderate English proficiency, so any attempt to use English to reach South Koreans will be quite hit and miss. Furthermore, using English will give the impression that you do not really care about the market, since you cannot be bothered to communicate with them in their language, which would give a poor impression of your brand.
The language you should use when targeting South Korea is Korean. Korean is a Koreanic language. It uses the Hangul alphabet, which has 24 letters (14 consonants and 10 vowels). It is written from left to right, with letters being arranged into blocks that represent syllables. Unlike many other languages, it does not have grammatical genders.
Keep in mind that culture affects language. The hierarchical structure of South Korean society means that there is an incredible amount of emphasis on politeness and formality. Indeed, Korean has various levels of speech between informal and formal versions. Depending on the occasion and listener, verbs and particles can be diversified. So, it is important to understand how you should address your audience and communicate with them, especially for customer service.
Translation and copywriting should always be done by a professional native speaker. Only a native will have a proper grasp of the local linguistic and cultural nuances and be able to create content that will truly resonate with your local South Korean audience.
Be aware that people in South Korea will think poorly of you if you have mistakes in your written Korean content. If your content contains linguistic errors or if a translation does not make sense, your brand image could be damaged, with the poor-quality content gaining you a reputation as an unprofessional company.
If you are translating any content, be aware that your content may end up being a different length. Therefore, be prepared to provide guidance on character limits and the space available for content on your webpage, and be conscious of how this can have an impact on things like your calls-to-action and product descriptions.
Speaking of calls-to-action, do not directly translate your calls-to-action from another market, as a direct translation is unlikely to resonate and work well in South Korea. Instead, do some research to find out which calls-to-action are commonly used online in South Korea in your sector.
It is also important to think about your keywords. Keywords should never be translated; instead, you should always conduct local keyword research. This is because a translation will probably not produce keywords that have the most impact in the target market. Only fresh keyword research conducted by a native speaker will reveal the best keywords to target. The video below explains in six minutes why you should never translate keywords:
E-Commerce in South Korea
E-commerce is popular in South Korea. 78% of South Koreans have made a purchase using a mobile phone or the internet in the past year. The B2C e-commerce market in South Korea is worth the equivalent of USD 80.4 billion annually. The average South Korean B2C shopper spends the equivalent of USD 2,510 online per year.
So, what are people in South Korea buying online? The consumer goods categories with the highest annual spend are fashion, food and electronics.
The main drivers of online purchases are key indicators as to what South Korean users value most when making their online purchasing decisions, giving you an opportunity to understand what is best to highlight in your marketing collateral and calls-to-action, so that you can convert leads into customers. Free delivery is the top driver of online purchasing behavior in South Korea, with 58% saying this would encourage them to buy. This is followed by coupons and discounts with 55% and customer reviews with 37%.
Looking at e-commerce payment methods, credit card is the most popular option, accounting for 51% of online purchases. Digital wallets come in second place, accounting for 32% of online purchases, followed by account-to-account payments (8%) and debit and prepaid cards (7%), with buy now pay later and cash-on-delivery making up the remaining 2%. It is therefore essential to offer credit cards and digital wallets as payment options when targeting the South Korean market, since both payment methods have significant popularity. The most popular digital wallets in South Korea are Naver Pay, Kakao Pay and Samsung Pay.
Another important thing to remember is to ensure you are selling in the correct currency: Korean won (₩ or KRW). This may sound obvious, but you would be surprised how many businesses see poor results simply because they have neglected to localize the currency on their website.
Alternatively, you could sell your products on an e-commerce marketplace. Like everything else in this market, South Korea's e-commerce landscape is unique. Amazon does not reign supreme the way it does in many other countries. Instead, a plethora of homegrown e-commerce platforms flourish in its place. The most popular e-commerce marketplace in South Korea is Coupang, followed by Naver Shopping, AliExpress, Gmarket and SSG. If you want to sell your items on an online marketplace, these platforms should therefore be your focus.
Once you have sold a product, you still need to get it to the customer. Be aware that e-commerce delivery in South Korea is extremely well-developed. When a customer orders something online, it will usually be delivered that very same day, right to their house. Make sure you have the logistics in place to be able to fulfil deliveries in a speedy and efficient manner.
Be aware that there are seasonal fluctuations in the South Korean e-commerce calendar, when people are more likely to buy, such as:
- January: New Year's Day (1st), Lunar New Year (21st to 24th)
- February: Valentine's Day (14th)
- March: Independence Movement Day (1st)
- May: Labor Day (1st), Children's Day (5th), Parents' Day (8th), Buddha's birthday (27th), Coming-of-Age Day (15th)
- June: Memorial Day (6th)
- August: National Liberation Day of Korea (15th)
- September: Chuseok (28th to 30th)
- October: National Foundation Day (3rd), Hangul Day (9th), Halloween (31st)
- November: Pepero Day (11th), Black Friday (24th)
- December: Christmas (25th)
Make sure you tap into this seasonality when selling your products and coming up with your marketing materials.
Conclusion
South Korea is one of the most digitally mature markets in the world, with almost the whole population being online for over five hours a day. It is full of opportunities for businesses who want to invest and grow their audience and presence in the country. But the South Korean digital landscape is unique, with people using local platforms for search, social and e-commerce. Therefore, it is imperative that your marketing efforts are focused on these local channels, as that is where your local audience spends their time. Research the market before you enter, and make sure you understand your audience, your competitors and the platforms you will need to leverage in the country. If you localize your strategy effectively, your digital marketing and business expansion efforts in the country have the potential to go far. Good luck!
To learn more about digital marketing in South Korea, click here.