PESTLE Analysis of South Korea

Pestle analysis of South Korea. ROK (Republic of Korea) is an East Asian country situated south of the Korean Peninsula. She shares the land border with North Korea. South Korea’s capital is Seoul, and it’s the 5th world’s largest city comprising more than 25 million people.  

Korea has a long history that dates back to the Lower Paleolithic period. The Chinese records confirmed the first Korean Kingdom in the 7th century. The Goryeo dynasty and Joseon dynasty ruled Korea from 918-1392 to 1392-1897. Japanese Empire overpowered the country in 1910. WWII separated the country into two regions the allies Soviet and American. The area under US control became the Republic of Korea.

The total area of South Korea comprises 38,750 square miles, and it’s the 107th largest country in the world in terms of area and size. Approximately more than 51,709,098 people live in the country, and it’s the 27th most populated country in the world.

Today, we’ll study the pestle analysis of South Korea. It would focus on the macro-environmental factors that impact the East Asian developed country. Here’s the pestle analysis of South Korea as follows;

Political factors affecting South Korea

Government System

South Korea follows the presidential system of government where the President is the state’s head. She’s one of those countries that is successfully functioning a democratic government. Her constitution allows the establishment of political parties, but their activities and objectives should be democratic.

It’s worth mentioning here that ever since South Korea started following democracy in the 80s, the country has achieved tremendous economic and technological growth.

Political Stability

South Korea is enjoying the stable political environment of the country. She has established very fruitful relations with the USA, and she’s even one of the main allies of the superpower. She has developed friendly relations with Russia and China. However, she has conflicted ties with North Korea over her ridiculous claim of the whole Korean peninsula.


Abuse of power, bribery, and corruption are some severe issues that South Korea is facing. Some of the politicians and corporate personnel have admitted corruption as a severe problem. For instance, the Korean Supreme Court has sentenced former President Lee to prison for 17 years on corruption charges of receiving millions of dollars of bribes from Samsung.

The political corruption poses a risk of pushing away potential businesses that want to set up their manufacturing units in South Korea.

Economical factors impacting South Korea

Consistent Growth

South Korea has achieved remarkable growth and progress over the past four decades. Nowadays, it’s one of the world’s most developed and advanced countries. She’s a prominent partner of the World Bank lends monetary support to the world’s poor countries.

According to an estimate, the annual nominal GDP (gross domestic product) of South Korea in 2020 was 1.586 trillion dollars, and it’s 10th world’s highest. Out of which, the country’s per capita earnings were 30,644 dollars, and it’s 26th world’s highest. The economic crisis has dropped her annual GDP by approximately 1.4%.

Imports & Exports

Exports are the primary source of earnings of South Korea. Her main exports are mobile phones, vehicle spare parts, cars, refined petroleum, and integrated circuits. She exports these products to countries like Japan, Hong Kong, Vietnam, the USA, and China.

South Korea’s top imports are coal briquettes, refined petroleum, petroleum gas, integrated circuits, and crud petroleum. She imports these products from Germany, Saudi Arabia, Japan, the USA, China, and others.

Trade Alliance

South Korea has established various trade alliances with countries, regions, and blocks. Some of the trade alliance countries and areas are Turkey, Vietnam, USA, EU, SingaporeNew ZealandIndia, Colombia, China, CanadaAustralia, and ASEAN. Such trade agreements and alliances have helped the country to expand its market with limited restrictions.

Right Decisions

South Korean leaders have made quick and timely decisions in recent history, and they have helped the country minimize the loss. For instance, the economic crisis has impacted the global economy. The government provided support of 12.2 billion dollars to the businesses and ordinary. She also plans to give loans of 230 billion dollars to her people. Such quick and timely decisions have decreased her GDP by only 1.4%.

Social factors affecting South Korea


South Korea is one of the most prosperous and developed countries in Asia and worldwide. Approximately more than 51 million people are populating the country. Daegu, Incheon, and Busan are some of the main cities. Roundabout 56.1% of people don’t believe in any religion. The remaining people believe in Christianity and Buddhism.

Cultural Influences

Seniority, age, and ancestors are some of the factors that influence South Korean culture and society. They used to have a significant influence. However, social hierarchy, economic, and marital status are some of the other impacting social factors.


South Korean people love classic architecture, sports, art, and food. However, the country is also facing some challenges increasing the aging population, expanding the gap between rich & poor, housing crisis, and low fertility. People are converting their offices and hotels into rental houses to address the shortage of houses in Seoul.

Technological factors impacting South Korea

Highly Advanced

South Korea is the world’s leading technologically and digitally developed country. She has the world’s largest Incheon Airport; it has features like facial recognition, AI, and walk walk-through security tunnel. However, the government has made significant progress in robotic technology. Such robots are playing the role of teachers in kindergartens and preschools.

Tech Industries

Robotics, aerospace engineering, and biotechnology are some of the main fields in which South Korea has made tremendous progress. The country perceives AI (artificial intelligence) as a solution to the world’s challenges.

According to an estimate, approximately 85% of South Korean people are highly active on social media. Many people, government departments, businesses, and media see cybersecurity attacks as a serious threat.

Legal factors affecting South Korea


South Korean legal system is a mixture of Japanese, Anglo-American, and European judiciary systems. Many people argue that the South Korean judicial system isn’t free and independent of political pressure. For instance, public prosecutors are usually corrupt, and they’ve political biases. It needs to be independent and free from external influences because it protects ordinary people’s interests and rights.

Environmental factors impacting South Korea


South Korea is a very clean country because its people don’t carelessly dispose of things. Delicious food, future architecture, theme parks, world heritage sites, mountains, beautiful historical sites, mountains, and seasons attract tourists’ attention from across the world.

Environmental Challenges

South Korea has achieved significant economic and tech growth. However, the country is facing environmental challenges like over-packaging, water pollution, carbon emission, energy sources and supply, global warming, and waste management. According to a study, approximately 70% of people think that air pollution is a severe problem.

Conclusion: South Korea PESTLE Analysis Example Country

After a careful study of the pestle analysis of South Korea, we’ve concluded that South Korea is the world’s leading developed country. Political corruption, cybersecurity attacks, and low fertility are some of the severe threats. South Korea should address these issues that are impacting its growth and causing a bad reputation.

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