Why Is Everyone Expanding Overseas to Make Money?

■ The Limits of Domestic Markets: Why “Staying Put” No Longer Works

As domestic markets reach structural saturation, companies are increasingly turning their attention overseas in search of growth. According to McKinsey’s analysis of Asia’s economic transformation, emerging markets are experiencing rapid expansion driven by a growing middle class and rising consumer purchasing power. Southeast Asia and India, in particular, are identified as regions where market growth potential remains significantly higher than in mature economies, making global expansion a rational response to domestic stagnation rather than an aggressive gamble.

Source: McKinsey – Asia’s Emerging Business Corridors
https://www.mckinsey.com/featured-insights/future-of-asia/asias-emerging-business-corridors-new-highways-to-growth

■ Why the “Domestic First, Global Later” Formula Is Breaking Down

The long-standing belief that companies must first succeed domestically before expanding overseas is rapidly losing relevance. A McKinsey report on Vietnamese consumer trends highlights how Vietnam’s middle class is expanding at an accelerated pace, with projections suggesting that by 2035, a significant share of the population will enter global middle-income brackets. This rapid shift in consumption power is encouraging companies to prioritize overseas markets early, positioning global expansion not as a secondary step, but as a core growth strategy from the outset.

Source: McKinsey – Vietnamese Consumers Are Coming of Age
https://www.mckinsey.com/featured-insights/asia-pacific/vietnamese-consumers-are-coming-of-age-in-2023-how-businesses-can-stay-ahead

■ The K-Beauty Case and the K-Industry Paradox

The global rise of K-Beauty clearly illustrates Korea’s evolving role in international markets. Industry analysis shows that Korean beauty products have gained strong traction across Asia, Europe, and North America, often positioned as premium or trend-setting offerings rather than mass-market goods. Interestingly, K-Beauty’s strongest growth has frequently occurred not in Korea itself, but in regions where Korean brands were previously underrepresented, reinforcing the idea that lower market saturation can translate into higher returns.

Source: Wikipedia – K-Beauty
https://en.wikipedia.org/wiki/K-beauty

■ How Scarcity Creates Value in Global Markets

Cultural influence plays a critical role in shaping global demand. The spread of the Korean Wave (Hallyu) has significantly increased international interest in Korean products, content, and brands. As Korean pop culture, entertainment, and lifestyle trends gain global visibility, Korean products are often consumed not only for their functional value, but also for their symbolic and cultural appeal. This dynamic helps explain why Korean brands may command greater attention overseas than in their highly competitive domestic market.

Source: Wikipedia – Korean Wave (Hallyu)
https://en.wikipedia.org/wiki/Korean_Wave

■ Why Vietnam Has Become a Strategic Focus

Vietnam stands out as one of Southeast Asia’s most compelling growth markets, driven by rising foreign direct investment, industrial expansion, and a rapidly growing consumer class. According to Vietnam Briefing, the country’s middle class is expected to account for approximately 26% of the population by 2026, leading to increased discretionary spending across sectors such as beauty, education, and digital services. For many Korean companies, Vietnam now serves as a strategic test market where consumer response can be evaluated efficiently before broader regional expansion.

Source: Vietnam Briefing – Understanding Vietnam’s Middle Class
https://www.vietnam-briefing.com/news/understanding-vietnams-middle-class-size-spending-patterns-and-opportunities-for-businesses.html

■ Overseas Expansion: Less Romance, More Reality

While overseas expansion is often portrayed as an exciting adventure, the reality is far more complex. International business studies consistently show that many global ventures fail not because of weak products, but due to insufficient understanding of local institutions, regulations, and cultural norms. Entering foreign markets without adequate preparation or local insight can significantly slow execution and amplify operational risk.

Source: Challenges and Opportunities in International Business (Open Textbook PDF)
https://2012books.lardbucket.org/pdfs/challenges-and-opportunities-in-international-business/s12-international-expansion-and-gl.pdf

■ Community and Local Partnerships as Strategic Infrastructure

In this context, community and local partnerships have become critical strategic assets. McKinsey’s regional analyses emphasize that companies with strong local networks tend to enter markets faster and face lower failure rates. In emerging economies, local partners often function not merely as facilitators, but as key decision-makers who bridge regulatory, political, and cultural gaps. Global communities provide the foundation upon which such partnerships are built.

Source: McKinsey – Asia’s Emerging Business Corridors
https://www.mckinsey.com/featured-insights/future-of-asia/asias-emerging-business-corridors-new-highways-to-growth

■ Opportunity and Risk: The Importance of Due Diligence

Global networking also carries inherent risks. International law enforcement agencies have repeatedly warned about the rise of cross-border fraud, including long-term romance scams that build trust over weeks or months before exploiting victims. These cases highlight the necessity of due diligence and verification when forming overseas relationships. Risk management, therefore, must be viewed as an integral component of any global expansion strategy.

■ Choosing the Wider Ocean

Today’s global market is defined by both uncertainty and opportunity. Companies and individuals face a clear choice between the relative stability of domestic markets and the broader possibilities offered by international expansion. What remains evident is that global markets continue to reward those who are willing to build wider networks, adapt to local realities, and pursue long-term opportunity beyond familiar borders.

— Peter Kim, Korea-based journalist