The Top Preferred Country for Startup Expansion is Vietnam

Seoul Business Agency Announces Research Results on the Status of Startups Planning Overseas Expansion

Vietnam was found to be the most preferred target country for expansion among domestic startups. The Seoul Business Agency (SBA) announced the results of the "Study on the Status of Seoul Startups Planning Overseas Expansion" on the 1st, which included this information.

From July to September, the Seoul Business Agency surveyed 313 small and medium-sized enterprises (SMEs) and startups located in Seoul, focusing mainly on their preferred overseas expansion regions and methods. The respondents were CEOs and managers or higher of companies planning to expand overseas.

The survey results showed that Asia was the most preferred continent for overseas expansion, with 57.8% of respondents favoring it. This was followed by the Americas (30.0%) and Europe (8.3%). By country, Vietnam was the most preferred, followed by the United States, Japan, and China. By city, preferred locations in Asia included Tokyo, Hanoi, and Hong Kong; in the U.S., New York, LA, and San Francisco; and in Europe, London, Paris, and Berlin.

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By industry, Vietnam was mainly preferred by B2C companies in energy, mobility, and food and beverage sectors, while startups in IT and bio fields showed a preference for Japan. China attracted high interest from startups in information and communication technology, electronics, education, and healthcare sectors.

The biggest reason SMEs and startups want to expand overseas was found to be "pioneering new sales channels" (33.5%). The next most important reason was "to secure a growing market" (17.3%). There was also a response that "to receive higher corporate value in overseas markets" accounted for 11.5%. However, only about 23% of respondents were satisfied with their own level of preparation for overseas expansion.

Regarding methods of overseas expansion, local distributors or agencies (43.8%) were the most preferred, followed by establishing local corporations (24.1%) and joint ventures (21.7%). Regarding those responsible for overseas expansion, the CEO’s role was found to be the most significant. Respondents believed the CEO’s role was crucial due to the need for swift decision-making.

Kim Jin-hwan, senior manager of the Startup Policy Team who oversaw the survey, said, "From the perspective of each company that needs individualized and detailed information, general strategies such as targeting specific regions have little meaning. More attention and investment are needed in tacit knowledge held by reliable information providers and vivid market information that cannot be discovered through internet searches."