Why Australian brands should (seriously) be looking at South Korea in 2025

Why Australian Brands Should Be Looking to South Korea in 2025

With global trade winds shifting and new tariffs from the US putting pressure on exporters, Australian brands are rethinking where their next wave of growth will come from. Amid this uncertainty, one market keeps standing out: South Korea.

At first glance, South Korea might not seem like the obvious choice. It’s across the globe, has a unique language, and very different consumer preferences. But once you look closer, it’s clear that South Korea is one of the most strategic, dynamic and valuable markets in the Asia-Pacific region -- especially for Australian brands. Here’s why:
 
1. South Korea is already one of Australia’s biggest trading partners

South Korea is Australia’s third-largest export market, valued at AUD $43.6 billion in 2023, and the fourth-largest two-way trading partner, with total trade reaching AUD $70.9 billion (DFAT, 2024). That’s more than our trade volume with the UK or Germany.

Despite its relatively small landmass, South Korea punches well above its weight economically. With a population of over 51 million -- double that of Australia -- and a GDP exceeding USD $1.7 trillion, South Korea is the world’s 10th largest economy (IMF, 2024).

What does this mean? Korea isn’t just a “nice-to-have” market. It’s one of Australia’s most important economic partners, and for good reason. It’s rich, urbanised, and consistently ranks as a global trendsetter -- particularly in tech, pop culture, and consumer innovation.

 
2. A digitally native, mobile-first consumer base

South Korea has one of the fastest internet infrastructures in the world, with over 99% internet penetration. Nearly all online transactions happen via mobile phone -- around 80% of e-commerce purchases are made on smartphones (Statista, 2023). Social media engagement is exceptionally high, with platforms like Instagram, YouTube, and KakaoTalk playing critical roles in influencing purchasing decisions.

For Australian brands, this means you can test and grow your presence digitally -- without needing to invest heavily in physical retail or on-the-ground operations. With a strong localisation strategy and culturally attuned brand voice, Korean consumers will engage deeply.

Korean consumers also love storytelling. They’re highly brand-aware and research-driven. They don’t just buy a product: they buy the story, the values, and the identity behind it. This opens opportunities for brands who know how to translate their origin stories, sustainability commitments, and product value into meaningful content.

 
3. Clean, green, premium: Australia’s natural brand perception

One of Australia’s greatest strengths is its global brand. To Korean consumers, Australia equals “clean”, “natural”, “safe”, and “high quality”.

According to the 2025 South Korea Market Report by Export Incite, “Australian food brands are seen as fresh, natural, and of high quality… beef, wine, and organic snacks add to the appeal.” South Korean consumers have long had a strong preference for imported food products from Australia, especially those with transparent sourcing and health benefits.

Australian beef exports to Korea jumped by 4% in 2024 alone, with chilled grass-fed beef growing by 22%. This is no accident. It reflects Korea’s appetite for premium food and health-conscious goods, and their trust in the Australian label.

But it’s not just beef. Functional beverages, dairy products, plant-based snacks, and clean-label supplements are all gaining traction. The premiumisation of everyday categories -- like water, snacks, or even hand soap -- reflects a shift in consumer habits.

 
4. Korean consumers are hungry for health, sustainability and design

Health and sustainability aren’t just marketing buzzwords in Korea. They’re consumer expectations. Over 35% of Korean consumers say they are willing to pay more for eco-conscious products (Korea Consumer Agency, 2023). That number is even higher among the influential 20s–40s demographic in urban areas.

According to Ipsos (2024), the most popular imported product categories include:

🌿 Plant-based foods (meat-free meals, soy/oat milks, tofu snacks)
🧴 Functional beverages (collagen, probiotics, vitamin blends)
🍫 Health-conscious snacks (low-carb, gluten-free, organic)
🧀 Premium dairy (grass-fed, small-batch, A2 milk)
♻️ Sustainable packaging (minimalist, recyclable, biodegradable)

Australian brands are already producing these. But many don’t realise how competitive they could be in Korea, especially if they localise packaging, adjust claims to comply with Korean regulations, and translate marketing materials thoughtfully.

 
5. KAFTA gives Australia a competitive edge

The Korea-Australia Free Trade Agreement (KAFTA), signed in 2014, has significantly lowered trade barriers. By 2032, virtually all tariffs on Australian exports to Korea will be eliminated -- including services.

This means Australian exporters have a strategic advantage over many of their competitors in the US, Europe or even New Zealand. Lower costs, fewer trade restrictions, and faster customs clearance make market entry smoother.

Here’s what KAFTA offers:

📉 Progressive elimination of tariffs on most goods;
📦 Simplified customs and faster logistics;
🧾 Greater access for Australian professional services (e.g. legal, engineering, architecture);
🤝 Enhanced protection for trademarks and IP.

 The KAFTA agreement has made it easier for small to mid-sized Australian businesses to compete in the Korean market. But many are still underutilising it due to lack of knowledge or market readiness.

6. Korea is an ideal testbed for Asia-Pacific growth

South Korea is considered a cultural and trend hub across Asia. What works in Seoul today can easily gain traction in Japan, Singapore, Taiwan, and Hong Kong tomorrow. Many global brands use Korea as a test market for product launches, consumer feedback, and influencer campaigns.

Korea also has sophisticated retail infrastructure. Platforms like Coupang (a Korean version of Amazon), SSG.com and GMarket make e-commerce seamless. Social commerce and livestream selling are booming. Consumers are ready to try new things, and when they love something -- they become fiercely loyal.

For Australian SMEs, Korea is a powerful launchpad into Northeast Asia. It offers the infrastructure, spending power, and trend-driven consumers needed for sustained success.

 
But there are barriers and this is where your market entry strategy matters. As promising as Korea sounds, entering the market without local insight can be risky.

Here are a few things that trip up even experienced exporters:

• Complex retail and distribution channels
• Strict regulatory requirements around ingredients, labelling, and health claims
• Need for certified Korean translations and product registration
• Cultural nuances in branding, packaging, and consumer expectations
  
  For example, while Australia has a growing organic industry, Korea does not currently recognise Australia’s organic certification. Australian organic products can be imported, but cannot be labelled as “organic” in Korean unless they meet Korean certification standards. This regulatory misalignment creates confusion and hinders full marketing potential.

Navigating these challenges without local insight or support often leads to delays, wasted marketing spend, or failed distributor relationships.

 
How The K Factor Can Help:

The K Factor is a bilingual market consultancy helping Australian brands enter and thrive in South Korea. From market readiness assessments and competitor research to distributor matchmaking and culturally tailored brand strategies, we help businesses bridge the gap.

Based in Tasmania, we work remotely with clients across Australia -- helping them:

• Evaluate if they’re market-ready
• Map their ideal partner/distributor ecosystem
• Localise content and packaging
• Gather buyer and consumer feedback
• Navigate product certification and registration
• Build a clear roadmap for Korean expansion
  

 
Final Thoughts

South Korea is not just a fast-growing economy -- it’s a highly influential market full of discerning, connected, and value-driven consumers. For Australian brands committed to quality, ethics and innovation, the timing has never been better.

If your brand stands for:

• Sustainability
• Transparency
• Quality craftsmanship
• Clean ingredients
• Digital savviness
• Then South Korea is ready for you.

With lower tariffs, rising demand, and digital-first buying behaviours, Australian businesses have a real chance to grow in this part of the world. But you need the right strategy, cultural understanding, and connections to succeed.

Data Sources:
Department of Foreign Affairs and Trade (DFAT), 2024
Export Incite, 2025: “Why Brands Should Consider Entering the South Korean Market”
Korea Consumer Agency Report, 2023
Korean Statistical Information Service (KOSIS), 2023
Statista South Korea Digital Commerce Report, 2023
International Monetary Fund (IMF), 2024