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.