Thousands of Koreans disappear from Hungary in months – but there may be an explanation
The number of South Koreans living and working in Hungary saw a steady increase throughout the 2010s and into the early 2020s, according to data from the Hungarian Central Statistical Office. However, at the beginning of 2024, a sudden and dramatic shift occurred: approximately three-quarters of them left the country. This exodus has placed considerable strain on Korean businesses operating in Hungary, and there are concerns that further departures may follow.
The decline is thought to be linked to struggles within Hungary’s battery manufacturing industry, alongside a broader relocation of production to the United States.
The heyday of the Korean community in Hungary
According to Telex, several hotel owners in Hungary were planning expansions in 2023 due to a significant influx of South Korean workers, who required increasing accommodation. One proprietor even undertook the construction of a new wing to meet demand. Yet, in a matter of months, contracts were abruptly terminated and thousands of Koreans left the country.
According to the Hungarian Central Statistical Office, by the end of 2023, the Korean community in Hungary had grown to an estimated 12,000 to 15,000 people. This boom fuelled the opening of Korean hair salons, restaurants, legal firms, and other specialised services. Korean investment announcements continued unabated, with the Hungarian government promoting such ventures.
Levente Pallos, an economic expert at the Hungarian embassy in Seoul, noted that Korean companies operating in Hungary preferred to rely on Korean subcontractors rather than hiring local Hungarian staff. Consequently, a single investment often led to a wave of Korean nationals arriving – some staying for only a short period (Korean citizens can remain in Hungary for up to three months without a residence permit, though they are not legally permitted to work during this time), while others established a more permanent presence.
Mr Pallos also highlighted that the arrival of Samsung and SK in the 2010s brought with it at least 20 other Korean firms. As battery production is considered a matter of national security in South Korea, Korean companies are reluctant to involve foreign entities in their supply chains. Even the construction of new facilities was handled almost exclusively by Korean contractors, with fire protection being the only notable exception due to specific Hungarian regulations.
Downturn in the battery sector
Mr Pallos further explained that many South Koreans struggle to establish stable lives at home, making opportunities abroad – particularly in European countries such as Hungary – attractive.
However, at the beginning of 2024, Hungary’s battery industry saw a significant slowdown amid falling global demand. In response, both Samsung and SK reduced production volumes, initiated layoffs, and repatriated a substantial number of Koreans.
These developments were not publicly announced in Hungary, though SK did release a statement in South Korea acknowledging the changes.
Additionally, following the United States’ decision to ban Chinese battery products, South Korean firms recognised a new opportunity in the American market. It is possible that many of the Koreans who left Hungary have simply relocated to the United States, continuing to work for the same companies at newly established facilities.
The disappearance of Koreans from Hungary
According to remaining South Koreans in Hungary, the community has now dwindled to between 3,000 and 5,000 people – suggesting that around 10,000 individuals have returned home in recent months.
As previously reported HERE, LOT Polish Airlines is set to suspend its direct flights between Seoul and Budapest with the introduction of the summer timetable. Whether this development is directly connected remains unclear, but the timing is noteworthy.
Meanwhile, Telex reports that SK has resumed recruitment efforts, and Samsung may follow suit, hinting at possible future reversals in this rapidly evolving situation.
For more news on Hungary’s economy, click HERE.
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