The South Korean Drone Market

With a population of 51.97 million in an area of roughly 100,000 km², South Korea is among the more densely populated countries in the world. And despite its smaller size, it has a real GDP ranking in the global top 15 countries, which translates into high purchasing power. In other words, the country certainly has the financial capacity to be a leader in drone technology.

 But what can drones be used for in South Korea? In addition to already-popular drone shows, South Korea also has plenty of forests and approximately 70% of the country is considered mountainous. This bodes well for the aforementioned drone deliveries since drones are capable of traversing these terrains faster and more efficiently than other services (think medical emergencies).

Additionally, the urbanization rate of 81.5% is not only another good sign for deliveries, but it also suggests that the areas outside of cities are not so densely populated, which means that there is plenty of space for drones to operate in Energy, Agriculture, and Construction operations (the top three global industries). Finally, with an aging population and plenty of infrastructure that needs to be sustained, there is a lot of potential for automation, and this is something drones can excel at.

* All country data from the CIA World Factbook

Perhaps the most interesting observation here is that the two segments which are usually at the top of drone activities fall into fifth and sixth place within the Korean drone market. Drone Service Providers (DSPs), which are usually the most common type of drone company, represent only (10%) of drone companies in South Korea, while Training & Education companies also represent 10% (despite often being the second most common business focus).

And yet it is equally interesting to note that South Korea has a lot more mid-size drone companies than in the rest of the world. Although it is still the case that a majority of drone companies in South Korea have 50 employees or less (75%), there is a relatively high amount of companies with 50-200 employees (17%). In North America, this figure was only 9%, while the DACH Region only had about 6%. Essentially, medium-sized drone companies in South Korea are 2-3 times more common than in other wealthy economies, which is certainly a unique feature of the South Korean drone market.

What do drone companies in South Korea prioritize within this competitive landscape? Not surprisingly, the top priority in this market is also Marketing & Sales. After all, when competition is fierce, companies need to spend a lot of time and resources to stand out and increase their sales to solidify or expand their market position. Other top priorities are Software Development and Hardware Development, which once again suggests that the South Korean drone market is a bit more focused on producing drones themselves rather than selling them as a service.

Finally, two important points regarding proprieties and go beyond the results of the annual survey. The first is the importance of securing financial resources to continue growing. Many drone companies in South Korea find it difficult to acquire long-term contract funding, while others such as Pablo Air have chosen to prepare for an eventual IPO to expand their financial resources. Either way, increasing the amount of investment will be an important issue for South Korea. The second important issue for the South Korean drone market as a whole regards international growth. Although exports reached a level of US$11.1 million in 2023 and this was almost 5 times higher than the initial plan, it is nevertheless a sum that needs to continue to rise in order to realize the country’s full drone market potential.

KIAST and the Ministry of Land, Transport and Infrastructure of Korea have invited my organization, Best Events Productions and my association, Malaysian Autonomous Intelligence & Robotics Association (MyAIRA) to be co-organising partners of the Korea Drone Expo 9-11 May 2024.

Korea is offering a few complimentary exhibition booths for drone companies in ASEAN with a minimal admin fee to MyAIRA.

Contact hanniz@bestevents-asia.com to get the application forms. Applications close on 31st March 2024.

Interested in the South Korea Commercial Drone Market? Read more HERE

Note: The above information about drone companies in South Korea is based exclusively on data from DRONEII’s latest drone industry survey and is not a comprehensive drone market study. Therefore, it should be interpreted as a glimpse into the South Korean drone market rather than in-depth authoritative research. For a more thorough study, please contact info@droneii.com