New rules for foreign companies in South Korea's digital market

The old stereotype of ‘South Korea’s closed internet’ is now a thing of the past. Today, the Korean digital landscape is about more than just Naver and KakaoTalk. It is a hybrid ecosystem that encompasses both global and local platforms, with artificial intelligence now a commonplace search tool. The logic behind users’ digital behaviour has changed, and yesterday’s favourite platforms have lost ground, according to experts at HLTS dropshipping company.

And whether you are just entering the South Korean market, or indeed if you are already operating there, it is important to bear in mind that changes in the digital landscape also alter marketing approaches. Marketing strategies used in the US, Europe or South-East Asia will most likely need to be adapted, tailoring them not only to cultural norms but also to the requirements of the platforms.
According to Wiseapp Retail, the average monthly audience for the most-used apps in South Korea in 2025 is as follows: KakaoTalk - 48.2 million users, YouTube - 46.8 million, Google - 45.1 million, Naver - 44.1 million. This is not a case of platforms competing for an audience, but rather four tools that a Korean user employs in the course of a single day for various tasks, according to experts at HLTS Co Ltd.

For a South Korean user, it is perfectly normal to discuss work matters on KakaoTalk, look up a product review on YouTube, check reviews on Naver Blog and place an order via Coupang - all in the space of a single evening. This is what everyday digital behaviour in South Korea looks like today.

KakaoTalk is not a messaging app in the traditional sense: 97 per cent of South Korean internet users open it every day. It is used to conduct business negotiations, send documents and arrange gifts. YouTube is the country’s leading video platform, reaching 91 per cent of the online audience. The average Korean spends 43 hours a month watching videos. Naver is both a search engine and an e-commerce platform. It is here that Korean shoppers research products before buying, read reviews on blogs and compare offers.

HLTS Co. Ltd points out that foreign companies often underestimate the complexity of entering the Korean market: a global presence on Instagram or Google is not enough here. If your business is not represented on Kakao, Naver, YouTube or Coupang, you simply do not exist for a significant proportion of the Korean audience. And, as far as Korean consumers are concerned, you do not physically exist.

Four apps - one user

The South Korean market is diverse. Rather than simply having a presence everywhere, businesses have to choose the platform where their target audience is definitely present. But making this choice is not easy. Among Korean teenagers, according to Wiseapp Retail data for December 2025, Instagram leads the way with 4.1 million users, followed by TikTok with 2 million, Pinterest with 1.7 million, and X with 1.6 million. Naver Café ranks ninth in this segment with 540,000 users.

The platforms and interests of the adult audience differ fundamentally, according to experts at HLTS Company. According to Korea Press: 98.9 per cent of respondents use KakaoTalk, 84.9 per cent use YouTube, and 38.6 per cent use Instagram. Naver Band and Naver Blog rank fourth and fifth respectively.

In the corporate environment, decisions are made by people aged 30–50 - the audience for KakaoTalk and Naver. It is precisely for this audience that communication is currently structured, content is created and the primary channel of contact is selected. However, if you are entering the market with a long-term strategy and a product aimed at young people, your primary channels are Instagram and TikTok. Generation Alpha and late Zoomers in Korea prefer global visual content rather than the traditional text-based blogs on Naver.

The market is segmented by age

Between 2025 and 2026, Naver and Kakao are progressively transitioning to agent-based artificial intelligence. Naver’s personalised AI agent understands the user’s intent and carries out tasks without explicit commands, selecting the relevant content, products or services.

In February 2026, Naver launched the AI Shopping Agent within the Naver Plus Store app. The agent accepts queries in natural language and returns contextually ranked suggestions with explanations. By March 2026, Naver Plus Store already had 7.77 million monthly active users.

Kakao is following a similar path, according to experts at HLTS dropshipping company. The KakaoTalk app features the built-in AI agent Kanana, which analyses the context of conversations and proactively offers recommendations: if a friend’s birthday is mentioned in a group chat, the agent will suggest gifts from the built-in marketplace.

For a foreign company entering the Korean market, this signifies a significant shift in conditions: content optimised for keywords is losing its effectiveness. The agent assesses intent, context and relevance - rather than keyword density. It is therefore important to start adapting all information and advertising to the logic of AI search as early as possible.

Search is no longer just search

South Korea was the first country in the world to introduce comprehensive AI regulation: mandatory labelling of content created using generative AI. The law also clearly sets out specific requirements regarding algorithm transparency. For foreign businesses, this represents both a barrier to entry and a sign of market maturity. Any company operating in the South Korean market and using AI tools - in marketing, customer service or data analysis - automatically falls under the scope of the AI Basic Act.

Today, South Korea’s digital environment is one of the most complex in Asia. For a foreign company to enter this market, it is no longer enough simply to translate its website into Korean and launch an advertising campaign. First and foremost, it is necessary to understand how users and potential customers behave within this Korean ecosystem. And, of course, they must adapt their content not only to the requirements of local platforms but also to users’ interests, whilst adjusting their marketing strategy to suit Korean AI search.

It is precisely this that will determine, in the coming years, which companies will be able to establish a foothold in Korea and which will remain just another foreign brand.

HLTS Co. Ltd supports companies by helping Korean suppliers enter overseas markets and assisting foreign companies in entering the South Korean market.

Entering a market begins with understanding the environment

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