[Sponsored Report] Industry growing by leaps and boundsThe franchise industry in Korea is booming, raking in roughly 84 trillion won in sales last year - a 9 percent increase from 77 trillion won in 2008. It’s outpacing many other industries in terms of growth, and its total sales now account for 7 percent of Korea’s gross domestic product.
At this pace, the franchise industry will account for 10 percent of the nation’s GDP in 2010 and rank as one of Korea’s key business sectors. Aside from its sheer size, the industry has also become a huge job generator in the country, employing 1.5 million workers. Companies involved in the sector are increasingly setting their sights on markets abroad, where they have proved to be very successful.
When looking at the broader picture, Korea is quickly becoming one of the world’s top franchise nations. As of September 2008, the country boasted 2,426 franchise headquarters. That marks a 9.72 percent increase from July 2005. The total number of franchise locations decreased 9.5 percent compared with 2005, with retail outlets dropping 30 percent while branches in the service industry rose 18 percent. Sales, however, rose 26.1 percent despite global economic turmoil.
Although the franchise industry in most advanced countries is slowing down, the sector is still relatively new in Korea and therefore continues to grow at eye-popping rates. Observers expect further expansion of about 6 percent annually.
The industry is expected to hit 87 trillion won in sales this year, 103 trillion won in 2013 and 123 trillion won in 2016. The number of franchise headquarters is also expected to increase to 2,726 in 2010 and up to 3,867 in 2016.