Why South Korea Sees India as the Ultimate GCC Destination for the Next Decade?

South Korea has emerged as a pivotal player in global business. It is the 10th largest economy in the world and 4th largest in Asia driven by advanced industries like automobiles, technology, and semiconductors. The nation has increasingly focused on clean energy, AI, and next-gen smart infrastructure pushing itself as a thought leader in sustainability. However, there are several roadblocks that South Korea struggles with. Here’s a look:

• Rising competition from Chinese manufacturers and producers. 
• 1.7% increase in minimum wage adding financial burden.
• High operational expenses and regulatory challenges. 
• Geopolitical tensions and trade dependencies.
• 2% higher inflation rates in 2025
• Increased pressure due to rise of domestic Chaebols. 
• Demographic dividend with an ageing population. 

Therefore, most South Korean companies are forced to rethink their strategies like focusing on new markets to mitigate losses. For instance, Lotte Chemical and LG Chem are striving to adapt after facing significant blows due to competitive pressure. Other constant frictions are declining market share, operational downsizing, financial losses, and a constant urgency to innovate. 

The one-stop solution to all of these are South Korean GCCs in India. Keep reading.

India has strong advantages when it comes to global capability centers that South Korean companies can leverage to witness unparalleled growth in their operations. Read on. 

• Tech Infrastructure: India’s tech infrastructure has grown into a formidable digital backbone unpinning of the fastest evolving innovation ecosystems in the world. This is particularly true for GCC with thriving innovation corridors in Bengaluru, Hyderabad, and Gurugram. India offers world-class data centers, cloud readiness, and cybersecurity frameworks that are tailored to meet the changing demands of global businesses. Government-powered schemes like Digital India, Startup India, and Smart Cities Mission have further boosted advanced operations. 
• Sustainable Energy: India is aggressively pursuing renewable energy goals and it has turned into a critical pillar of the GCC environment. Leading organizations are embedding green energy frameworks in their Indian centers with solar, wind, and hybrid solutions to run operations while adhering to global ESG mandates. These are a strategic move to lower carbon footprints and increasing brand-credibility and long-term cost goals. In fact, Indian GCCs have a unique opportunity to champion energy responsibility on behalf of their Korean entity to drive digital transformation to create an image of a climate-conscious brand. 
• IT and Finance: India is a global leader in IT services with 5 million skilled workforce in this field. This can be leveraged by South Korean companies for their operations at a fraction of a cost.  On the other hand, the introduction of policies like Goods and Services Tax (GST) has eased taxation to help businesses operate with hiccups.

• Startup Environment: India is the 3rd largest startup ecosystem in the world. More than 1.57 lakh certificates issued by the Department for Promotion of Industry and Internal Trade (DPIIT) for recognition of startups as of December 31, 2024. Such a thriving startup environment is a strategic catalyst for the growth of GCCs ensuring innovation, agility, and digital rise. It is more like an ideal innovation playground where GCCs infuse cutting-edge solutions in their operations like healthtech, deeptech, and fintech. 
• Cost Optimization: Labor costs are 30-40% lower than Western countries. Further, COPO Model and COPO Digital Twin Integrated Model further lower operational expenses by 60% along with reduced CAPEX. However, costs expand beyond these into real estate and utilities which are notably affordable in India. Therefore, South Korean countries can allocate resources elsewhere more efficiently to maximize output. 
• Workforce Optimization: India has a young, talented, and dynamic workforce with 65% of them below the age of 35. South Korean companies can thus tap into a vibrant community of professionals who are experts in AI, cybersecurity, data analytics, and STEM fields. Further, GCCs also make strategic efforts into talent retention with better pay structure, flexibility, and training sessions. 

Overall, GCCs in India are unlocking new paradigms of co-creation and competitive edge for South Korean Companies. Building innovation centers in India could also be a great way to dodge economic stagnation which is increasing due to trade tensions. 

The world is rapidly pivoting towards a digital-first future and the alliance between South Korea and India in terms of GCCs is a visionary leap towards global innovation. The next decade is therefore not a competition but a mutual ideation where both nations will boldly architect the future. To get started with your global capability center, partner with India’s leading GCC enabler Inductus GCC. We build a seamless and future-ready operational framework while allowing South Korean companies to retain full ownership and strategic control.

Our deep network of industry partnerships and policy-level advisory help us drive digital transformational outcomes. Altogether, at Inductus GCC, we are experts in helping to establish a global standard GCC mechanism for both large and mid-sector companies.