South Korea Co-Working Space Market

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South Korea Co-Working Space Market by Business Type (Conventional Co-working, Professional Co-working, and Others), by Business Model (Sub-Lease Model, Revenue Sharing Model, and Owner-Operator Model), and by End User (Independent Professionals, Startup Teams, and Small and Medium Sized Enterprises) –Opportunity Analysis and Industry Forecast, 2024–2030

Industry: ICT & Media | Publish Date: 26-Apr-2024 | No of Pages: 169 | No. of Tables: 132 | No. of Figures: 57 | Format: PDF | Report Code : N/A

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Market Definition

South Korea Co-Working Space Market size was valued at USD 229.2 million in 2023, and is predicted to reach USD 953.8 million by 2030, at a CAGR of 22.5% from 2024 to 2030. Co-working space represents a dynamic and adaptable solution to the evolving needs of businesses. These shared work environments offer flexibility in lease terms and space requirements, appealing particularly to startups and small enterprises seeking to avoid the upfront costs associated with traditional offices. The communal atmosphere encourages networking and collaboration among professionals from diverse fields, fostering innovation and creativity.

Equipped with modern amenities and strategically located, co-working spaces provide cost-effective, scalable, and accessible alternatives for companies seeking a central presence without the constraints of long-term leases. The industry has experienced significant growth as businesses recognize the benefits of this model, embracing the collaborative opportunities and resource-sharing inherent in co-working spaces.

Rise of Popular Coworking Companies and Government Initiatives Fuel Market Growth

The proliferation of coworking spaces in South Korea is propelled by the emergence of renowned coworking companies such as WeWork, Fastfive, and Sparkplus, underscoring a burgeoning demand for flexible workspaces nationwide. Concurrently, South Korea's commitment to fostering entrepreneurship, exemplified by initiatives like the Seoul Startup Hub, fosters collaboration between startups and larger enterprises, spurring demand for shared workspaces conducive to innovation. These government-driven efforts, aimed at connecting over 1,000 startups with established companies by 2024, reinforce the appeal of coworking spaces as cost-effective solutions with flexible lease terms, appealing to both budding entrepreneurs and established firms.

Government Investment and Foreign Attraction Initiatives Propel Market Expansion

South Korea's active cultivation of its startup ecosystem, coupled with initiatives like the Vision 2030 Fund and Invest Seoul, bolsters its appeal as a global business hub. The establishment of funds like the Vision 2030 Fund, with a USD 3.9 billion investment plan for startups over the next four years, demonstrates the government's commitment to fostering startup growth. Additionally, efforts such as Invest Seoul, aimed at attracting foreign investment and overseas companies, elevate South Korea's status as a competitive business destination. The city's recognition as the 10th most competitive financial center worldwide further cements its allure for business and innovation, driving demand for modern workspaces conducive to creativity, collaboration, and productivity.

The substantial increase in the number of unicorns in South Korea, alongside a burgeoning entrepreneurial ecosystem with over 15,000 startups and significant funding, underscores the continued rise in demand for coworking spaces to accommodate the growing startup landscape.

The Growing Worries Related to Cybersecurity Delays the Market Growth 

The cybersecurity threat presents a substantial obstacle to the widespread adoption of coworking spaces, particularly for businesses managing sensitive data. These collaborative work environments, reliant on shared technological infrastructure, are susceptible to potential security breaches that may result in unauthorized access and data leakage. This issue is especially relevant for firms entrusted with safeguarding client confidentiality and proprietary information. The communal aspect of coworking spaces amplifies risks associated with network security, physical access, and device vulnerabilities, prompting concerns among businesses regarding the protection of sensitive information.

The Incorporation of Augmented Reality (AR) and Virtual Reality (VR) Paves the Way for Future Market Prospects

The introduction of Augmented Reality (AR) and Virtual Reality (VR) into coworking is positioned to foster numerous opportunities for the growth of the coworking space market. These immersive technologies are expected to redefine the experience of remote collaboration, enabling individuals to actively participate in virtual meetings, collaborative projects, and training sessions with a heightened sense of physical presence. By transcending geographical barriers and enriching the interactive aspect of remote work, AR and VR are predicted to increase the attractiveness of coworking spaces equipped with these technologies.

For instance, in May 2023, Sightful, a company based in Tel Aviv, unveiled Spacetop, the world's premier Augmented Reality (AR) laptop, securing USD 61 million in funding from investors such as Aleph and Corner Ventures. Spacetop seamlessly integrates reality with AR, delivering an advanced personal computing experience that surpasses the limitations of traditional laptops, thus revolutionizing the landscape of coworking and remote collaboration. This integration is poised to attract a broader audience seeking innovative and technologically advanced solutions, thereby making a significant contribution to the expansion and progression of the coworking space market.

Competitive Landscape

The South Korea co-working space market comprises of various companies including Regus Group Companies, TechSpace Inc, Knotel Inc, SimplyWork, Talent Garden S P A, Premier Workspaces, KR Space, Convene, Servcorp Limited, WeWork Management LLC, The Office Group Ltd., Industrious LLC, Ucommune (Beijing) Venture Capital Co., Ltd., LiquidSpace Inc., Awfis Space Solutions Pvt Ltd., Impact Hub GmbH, Newmark Group, Inc., Soho China Ltd., Serendipity Labs, India Accelerator, and others.

The South Korea Co-Working Space Market Key Segments

By Business Type

  • Conventional Co-working

  • Professional Co-working

  • Others

By Business Model 

  • Sub-Lease Model

  • Revenue Sharing Model

  • Owner-Operator Model 

By End User 

  • Independent Professionals

  • Startup Teams

  • Small and Medium Sized Enterprises

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2023

USD 229.2 Million

Revenue Forecast in 2030

USD 953.8 Million

Growth Rate

CAGR of 22.5% from 2024 to 2030

Analysis Period

2023–2030

Base Year Considered

2023

Forecast Period

2024–2030

Market Size Estimation

Million (USD)

Growth Factors

  • Rise of Popular Coworking Companies and Government Initiatives Fuel Market Growth

  • Government Investment and Foreign Attraction Initiatives Propel Market Expansion

Companies Profiled

20

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

  • Regus Group Companies

  • TechSpace Inc

  • Knotel Inc

  • SimplyWork

  • Talent Garden S P A

  • Premier Workspaces

  • KR Space

  • Convene

  • Servcorp Limited

  • WeWork Management LLC

  • The Office Group Ltd.

  • Industrious LLC

  • Ucommune (Beijing) Venture Capital Co., Ltd.

  • LiquidSpace Inc.

  • Awfis Space Solutions Pvt Ltd.

  • Impact Hub GmbH

  • Newmark Group, Inc.

  • Soho China Ltd.

  • Serendipity Labs

  • India Accelerator

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Frequently Asked Questions

The key market players operating in the South Korea co-working space market is Regus Group Companies, TechSpace Inc, Knotel Inc, SimplyWork, Talent Garden S P A, Premier Workspaces, KR Space, Convene, Servcorp Limited, WeWork Management LLC, and others.

According to the Next Move Strategy Consulting, the size of the South Korea co-working space market is estimated to be at USD 953.8 million in 2030.

The rising cybersecurity threats poses as a major challenge to the growth of the market especially business handling sensitive information and documents.

According to the Next Move Strategy Consulting, the size of the South Korea co-working space market is estimated at USD 229.2 million in 2023.

The integration of AI and VR in co-working space will create future opportunities for the market to redefine the remote collaboration experience, allowing individuals to actively engage in virtual meeting.

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