South Korea Corporate Wellness Market Forecasts from 2023 to 2028

The South Korean corporate wellness market is estimated to grow at a CAGR of 6.89% to reach US$2, 614.164 million in 2028 from US$1, 639.423 million in 2021.

The effectiveness of an organization is considered to be contingent on the productivity and performance of its workforce. Health and wellness initiatives, which historically emphasized employees' overallwell-beinghelp employees operate and perform at a high level continuously. Therefore, employers are actively enhancing their wellness initiatives to lower stress among workers and stimulate productivity. For instance, to enable their employees to take distance learning courses in 1, 000 or more areas, namely arts, physical activity, crafts, software development, and investment, 92 organizations, notably Nike Korea, SK Telecom, and Samsung Card, use the services of Class101 Business, a virtual classroom platform for businesses.

Increasing Business Organizations

In the country, the emergence of workplace wellness initiatives and campaignstends to coincide with the growth of multinational corporations, globalization, and industrialization. According to KOSME, Small and medium-sized businesses (SMEs) account for around 3.5 million businesses or 99.9% of all businesses in the country. The estimated 14 million SMEs in Korea that employ people make up around 88% of the laborforce. Moreover, to enable their employees to take distance learning courses in 1, 000 or more areas, namely arts, physical activity, crafts, software development, and investment, 92 organizations, notably Nike Korea, SK Telecom, and Samsung Card use the services of Class101 Business, a virtual classroom platform for businesses.

Growing Awareness

Corporate wellness initiatives and productivity are projected to benefit from the increased awareness of employees' overall well-being in the nation. Companies are likely to invest in increasingly substantial and all-encompassing wellness programsas businesses become more aware of the value of the well-being and health of their staff. In 2020, seven out of ten respondents in research by JoongAng Ilbo and Teamblind claimed to have experienced burnout. Over fifty percent of those surveyed claimed to have considered changing employment.

Advantages of Corporate Wellness Programs

This may result in decreased absenteeism, better work output, and increased productivity. For instance, in collaboration with Humart Company, the founder of the counseling app Trost, LG Chem, Jeju Air, and 60 or more other businesses offer free counseling services to improve the emotional well-being of their employees. In addition, employees who are experiencing stress can receive services from counseling centers at Samsung Semiconductor. Anytime within regular business hours, workers are encouraged to drop by a psychological clinic or counseling center. These facilities offer a variety of both digital and physical programs that allow staff to unwind and refresh their minds, including breathing, physical scan, and meditation.

Higher Physical Inactivity and Obesity

The high physical inactivity coupled with growing obesity in South Korea is one of the primary drivers in pushing the overall growth of the weight management and fitness segment of corporate wellness in South Korea. In addition, developments by industry players are also expected to boost the growth of the segment. For instance, as per October 2021 released Wellness for a Healthy Asia Report by the Asia Development Bank (ADB), the Republic of Korea was one of the top high-income countries in the Asia Pacific with around 35.4% of the population having insufficient physical activity. In addition, as per the March 2022 released World Obesity Atlas 2022 Report by the World Obesity Federation, the number of adults with obesity is expected to rise from approximately 2.5 million in 2025 to 2.75 million by 2030, thereby raising the need for corporate fitness as well.

Major Market Player

• Technogym S.p.Ais one of the renowned market players present in over 100 countries worldwide including South Korea and has over 14 branches. The company provides a range of fitness equipment in addition to corporate club offerings to companies and organizations looking for the well-being of their employees and has been active in the market for about 40 years.

Key Market Developments

• Hanwha Life Insurance's open innovation label Dream Plus Gangnam revealed in January2023 that it had launched a wellness programto assist in managing the health of CEOs and staff members of start-ups.Administering the health management programfor the personnel of the resident company is the responsibility of Dallam, an organizational wellness service.

Segmentation:

By Type

• Weight Management & Fitness
• Smoking Cessation
• Stress Management
• Others

By Enterprise Size

• Small
• Medium
• Large

By Region

• Seoul
• Busan
• Daegu
• Incheon
• Others