Market Monitor Property market – South Korea IT spending – Grassroots commissioned interviews Meanwhile, the reduction of real Global with representatives of real estate estate taxes, lower interest rates, agencies in Seoul, South Korea, to and an increase in loan variety and examine the underlying demand supply reportedly could trigger a rise for housing, understand the drivers in housing transactions by lowering and check the current availability of tax burdens and increasing financial financing. For the rest of 2022, 100% support for consumers interested in of sources expect housing prices to buying and selling houses. increase due to economic factors and At the same time, 87% of sources cited sociopolitical changes, such as the minimal impact on property demand post-pandemic situation and incoming as a result of recently rising interest Yoon administration. One commented, rates, as a single factor is not enough To assess the current spending “I expect to see more demand and to deter most consumers, while 13% environment for IT and the pace of AI sales due to the Yoon administration’s cited significant impact, as many young adoption, Grassroots commissioned housing policies. I think that housing consumers do not have much dispos- interviews with IT decision makers prices will increase.” able income. One source said, “As long at companies in the US, Europe and In addition, 100% of sources said as people continue to see the future Asia. Forty-six percent of sources demand both for buying and selling potential of the real estate market, expect their 2022 IT budget to homes is up in 2022 vs. 2021 due people will continue to buy houses increase 6% or more vs. their 2021 to changes brought on by the Yoon despite the high interest rates.” IT budget, while 34% expect a administration as well as the reduction 1%–5% increase, 5% expect a 1%–10% in pandemic-related restrictions. decrease, and 15% expect it to remain flat. In addition, 48% expect their 2023 IT budget to increase 6% or more vs. their 2022 IT budget, while 32% expect a 1%–5% increase, 4% Frozen food market – China expect a 1%–10% decrease, and 15% expect it to remain flat. To assess the sales growth potential of all segments due to widespread COVID- Meanwhile, 30% of sources said frozen food products in China, Grassroots related lockdowns and logistics issues, macro uncertainties have increased commissioned interviews with distributors although sales of hotpot ingredients and their company’s willingness to spend as well as store managers at large-scale traditional rice- and flour-based products on IT projects for 2022 in the past supermarkets. Sources’ overall sales of decreased less than sales of other prod- 90 days, while 28% have lowered frozen food increased slightly in 1Q 2022 ucts due to greater popularity. Indeed, their IT budget. Indeed, 34% said the vs. 1Q 2021, led by hotpot ingredients due sales of hotpot ingredients, traditional Russia-Ukraine war has increased to popular flavors and the winter weather. rice- and flour-based products, and other their company’s budget for 2022 Indeed, sales of hotpot ingredients, frozen food products reportedly are down IT spending, while 14% said it has traditional rice- and flour-based products, an average 4%, 8% and 11%, respectively. decreased their budget. In addition, and other frozen products reportedly Looking ahead, sources expect sales of 36% of sources said higher interest increased an average 6%, 2% and 0%, hotpot ingredients and traditional rice- rates have increased their company’s respectively. One source commented, and flour-based products to increase budget for 2022 IT spending, while “Overall sales of frozen food increased an average 11% and 5%, respectively, in 18% said they have decreased their slightly in 1Q 2022 vs. 1Q 2021. Hotpot 2H 2022 overall vs. 2H 2021 due to the budget. Among those who said ingredients have been leading sales easing of COVID restrictions and the macro events have affected willing- growth … mainly due to the popularity of popularity of the products, while sales of ness to spend on IT projects, 35% said hotpots as well as colder-than-normal other frozen food products are expected their overall IT budget increased 6% winter weather.” to remain flat due to lower popularity or more in the past 90 days, while At the same time, sources’ sales of frozen and the recessive economy. 35% said it increased 1%–5%, 11% food are down in 2Q 2022 vs. 2Q 2021 in said it decreased 1% or more, and 18% said it remained flat. (Cont. on page 3) 2