Austria-Korea Trade Relations
Where Europe Meets Asia: A Glimpse into Austria’s Economic Diplomacy
As part of our university course on
European Trade Practice, we had the privilege of attending a guest lecture by
Mr. David Jaritsch from ADVANTAGE AUSTRIA SEOUL. Far from a typical business
presentation, the session offered an engaging and informative look into
Austria’s global trade strategies and its growing partnership with Korea.
From iconic brands like Red Bull and Swarovski to industry leaders such as Doppelmayr, AVL, and KTM, Austria has firmly established itself as an economic hub despite its modest size. In fact, it is home to over 300 international companies and serves as headquarters to 28 Fortune 500 corporations—a surprising fact for many students and a testament to Austria’s strategic position in Europe.
Austria: A Bridge to New Markets
With a population of approximately 9.1
million and an area of 83,870 km², Austria is geographically and economically
positioned as a bridge between Western Europe and Central and Eastern Europe
(CEE). According to Mr. Jaritsch, this advantageous location has made Austria a
preferred destination for multinational corporations looking to expand into the
European market.
Key industries that leverage this strategic positioning include mechanical
engineering, automotive technology, and environmental innovation. The country’s
political and economic stability further strengthens its appeal to foreign
investors.
The Role of Exports in Austria’s Economy
Austria is an export-driven economy, with
exports accounting for over 50% of its GDP and supporting more than 1.2 million
jobs. In 2023 alone, the country exported goods worth EUR 191 billion to over
200 countries.
Despite a 4.9% decline in export volume—mainly due to inflationary pressures
and global economic uncertainties—Austria maintains its status as the world’s
10th largest exporter on a per capita basis.
Its main export destinations include Germany (accounting for 67% of EU-bound
exports), the United States, Canada, and Mexico. This highlights not only
Austria’s deep integration in the EU market but also its global reach.
Austria-Korea Bilateral Trade: Strong and Growing
The session also explored Austria’s trade
relationship with South Korea. In 2023:
- Austrian exports to Korea amounted to USD 1.39 billion, with machines (USD
301 million), automotive products (USD 291 million), electronics (USD 118
million), and pork (USD 75 million) being the key categories.
- Korean exports to Austria totaled USD 1.07 billion, primarily electronics
(USD 318 million), cars (USD 199 million), and organic compounds.
South Korea is Austria’s fourth-largest trading partner in Asia, following
China, Japan, and India. Today, approximately 60 Austrian companies operate
subsidiaries in Korea, underscoring the depth of the bilateral economic
connection.
Traces of Austria in Korea can also be seen in cultural and consumer spaces
such as Seoul Fashion Week, the Busan Cinema Center, and even products like
Twist & Drink.
Creating a well-structured CV that highlights real-world experience, rather than just academic performance, is crucial. He also noted that internships in Europe, particularly in Austria or Germany, are among the most valuable experiences for students pursuing global career paths.
Website text: Jeong Inhyeok, Song Minyeong, Kim Geumeun
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Exploring Austria’s Global Trade Presence: Insights from Advantage Austria
On May 7, we had the opportunity to attend a special lecture by David Jaritsch, the Deputy Commercial Counsellor at Advantage Austria Seoul, part of the Austrian Embassy. His talk offered us an in-depth look at Austria’s trade landscape, its global partnerships, and the role of Austrian companies in the international market — especially in relation to South Korea.
Austria is often overlooked due to its relatively small size and population. However, it is a powerhouse in trade and exports, consistently ranking among the top 10 countries in exports per capita. This success is driven by a strong network of small and medium-sized enterprises (SMEs), often referred to as “hidden champions.” These companies are highly specialized and globally competitive despite being lesser known to the public.
Well-known brands like Red Bull or cableway manufacturer Doppelmayr are just surface examples of Austria’s industrial success. The real strength lies in its diverse manufacturing base, innovation in engineering, and global integration of niche industries such as mechanical parts, environmental technology, and high-quality materials.
Although Austria is a small country in terms of size and overall GDP, it boasts a high GDP per capita and a strategic location in the heart of Europe. This makes Austria a favorable hub for trade, especially within the European Union, where there are no internal trade barriers. In fact, over 300 multinational companies, including 28 Fortune 500 firms, have established their Central and Eastern European (CEE) headquarters in Austria.
Austria ranks among the top 10 countries in export volume per capita, with major export products including machinery (25%), chemical goods (17%), and steel. Germany’s influence is also significant; since German is Austria’s official language, it facilitates easier trade with Germany — Europe’s economic powerhouse.
Austria’s main trading partners in Asia include China, Japan, India, and South Korea. As of 2021, 60 Austrian companies had subsidiaries in South Korea, with USD 1.4 billion in investment. Austria’s exports to Korea primarily include machinery, automotive parts, electronics, and pork products such as schnitzel. Meanwhile, South Korea exports electronics, cars, organic compounds, and machinery to Austria.
Despite lacking massive global conglomerates like Samsung or LG, Austria’s strength lies in its network of innovative small and medium-sized enterprises (SMEs) that successfully compete in the global market.
None of this international trade happens in isolation. Advantage Austria, with offices in over 70 countries, plays a critical role in facilitating connections between Austrian businesses and international markets. It provides:
- Early access to valuable market data
- Expert export consulting
- Support for knowledge transfer and international partnerships
By doing so, Advantage Austria helps position Austria as an attractive business location and drives global economic cooperation.
In a time where
global trade is challenged by uncertainty and protectionism, Austria’s consistent and strategic engagement
with countries like South Korea stands out.
With the help of organizations like Advantage
Austria, businesses from both nations are finding
opportunities to collaborate, grow, and innovate together.
If you're interested in international trade, business development, or Austria’s global role, consider exploring internships or partnerships with Advantage Austria Seoul — a hub where Europe meets Asia in business.
Eunsoo Lee, Ji-seung Song, Yejin Do
