Competition, Workplace Safety and Financial Pressures Shape Risk Agenda for Korean Businesses, Aon Survey
- Written by Media Outreach
- Competition rises as the top risk, reflecting intensifying markets, while workplace safety accountability remains high amid a stricter regulatory environment
- Liquidity and natural catastrophe risks point to growing pressure on financial resilience
The survey, which gathered responses from nearly 3,000 organisations across 63 countries and 16 industries, highlights a risk environment shaped by digital transformation, economic uncertainty, geopolitical pressures and climate exposure.
Competition Tops the Risk Agenda in Korea
According to the survey, "Increasing competition" is the number one risk for organisations in Korea, compared with fifth globally. It also ranks as the top future risk over the next three years. The findings point to pressures in Korea's market environment, where a relatively concentrated domestic market and high industry density are driving sustained competition.
Half of Korean respondents report financial losses linked to competition, above both the Asia Pacific (APAC) benchmark of 44.1 percent across APAC and global benchmark of 42.8 percent. Despite this impact, only 17.4 percent of Korean organisations report having a formal plan or review in place for competition risk, highlighting an opportunity to strengthen preparedness relative to exposure.
For Korean businesses, competition is no longer just a commercial issue – it is becoming a material driver of financial outcomes, with implications for margin pressure, investment capacity and long-term growth. This dynamic is closely linked to financial resilience, with sustained competition increasing the importance of liquidity and capital allocation decisions as businesses invest to maintain market position.
"Korea's risk profile shows how structural market pressures are translating into tangible business impact," said, Terence Williams, head of Commercial Risk for Aon in APAC. "Competition, regulation and financial volatility are converging, increasing the need for more connected risk strategies that link resilience with capital and growth decisions."
Workplace Safety Accountability Remains a Major Concern
"Workplace accidents" remain among the top risks for Korean organisations, driven by stronger regulatory enforcement and increased accountability for organisations and senior management under the expanded Serious Accidents Punishment Act. Survey responses show that 64.3 percent of Korean organisations have a plan or formal review in place for work injuries, while over half (57.1 percent) are evaluating insurance or risk transfer solutions for this exposure. This suggests that workplace safety is being treated not only as a compliance requirement, but as a material governance and financial priority.
Financial Resilience Is Increasing in Importance
Natural catastrophe and liquidity risks are increasing in importance within Korea's risk profile. "Weather and natural disasters" rank sixth among current risks, while "cash flow and liquidity risk" returns to the top 10 for the first time since 2019.While Korea is less exposed to large-scale catastrophe events than some APAC markets, recent extreme weather has still resulted in significant economic losses, including wildfires and flooding in 2025.
At the same time, cash flow and liquidity pressures are intensifying amid macroeconomic volatility, trade uncertainty and sustained competitive pressure. Survey data show that 78.6 percent of Korean organisations have a plan or formal review in place for liquidity risk - the highest level of preparedness among all top risks. The findings indicate that liquidity is closely linked to competitiveness, with sustained investment in talent, expansion and technology critical to maintaining market position.
2025 Top Ten Business Risks for Korea
The breadth of risks shaping Korea's business environment is reflected in the current top ten rankings:
- Increasing Competition
- Economic Slowdown/Slow Recovery
- Business Interruption
- Work Injuries
- Property Damage
- Weather/Natural Disasters
- Regulatory/Legislative Changes
- Exchange Rate Fluctuation
- Cash Flow/Liquidity Risk
- Cyber Attacks/Data Breach
The findings suggest that Korean businesses are navigating an increasingly complex risk landscape shaped by both domestic pressures and global disruptions. "Increasing competition" remains the top future risk, while "cyber attacks and data breaches" continue to rise as organisations adapt to evolving operating environments.
Looking ahead, the survey highlights how these risks are expected to evolve as businesses position for growth:
- Increasing Competition
- Economic Slowdown/Slow Recovery
- Work Injuries
- Regulatory/Legislative Changes
- Cyber Attacks/Data Breach
The findings highlight a clear opportunity for Korean organisations to strengthen how risk is measured, managed and linked to strategic decision making. Compared with global peers, adoption of enterprise-wide risk management frameworks and quantitative analysis remains relatively limited. For example, only 22.2 percent of Korean organisations report that they have assessed increasing competition risk, and the same proportion report having developed continuity or risk management plans for it.
Cyber risk appears more mature, with 33.3 percent of organisations having developed continuity plans for cyber exposures.
More broadly, only 25 percent of Korean organisations report using a structured, enterprise-wide process to identify major risks, and just 2.9 percent use quantitative analytics tools to model risk scenarios and insurance strategies.
"The survey highlights a clear opportunity for Korean organisations to strengthen enterprise risk management and analytics capabilities," said Kevin Kim, CEO of Korea for Aon. "By building stronger internal data, processes and expertise, businesses can move from reacting to risk toward making more confident, forward-looking decisions that support growth and capital efficiency."
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