South Korean firms Japan expansion 2025 hits record high amid global tension
South Korean companies expanded into Japan at a record pace in 2025. Driven by K-culture and the need to hedge against US-China tensions, Japan has become a key strategic hub.
While US-China tensions freeze global trade flows, South Korean companies are finding a record-breaking warm welcome in their neighboring market. In 2025, the number of South Korean firms establishing Japanese subsidiaries reached a record high. This surge reflects a strategic pivot toward markets that offer both geographic proximity and relative immunity to superpower friction.
South Korean firms Japan expansion 2025: Beyond the K-Pop Wave
It's not just about entertainment anymore; it's about physical presence. According to Nikkei, industry giants and trendy startups alike are planting flags in Tokyo. For instance, Nongshim opened a flagship ramen restaurant in Harajuku in June 2025, while the coffee franchise Mammoth Coffee has rapidly expanded its footprint. These companies aren't just exporting products; they're building local ecosystems to capture the growing Japanese appetite for Korean lifestyle brands.
Geopolitics as a Growth Driver
The shift is deeply rooted in risk management. As the US and China decouple, Japan has emerged as a reliable partner with a stable legal environment. Businesses that once viewed Japan with caution due to historical political friction now see it as a haven. The alignment of economic interests between Seoul and Tokyo has created a fertile ground for this cross-border momentum.
Investors should monitor the yen's volatility and Japan's domestic consumption trends, as these factors could impact the long-term profitability of these new subsidiaries.
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