So major spoiler, BE WARNED, but it appears there will indeed be a season 2 (I haven't seen an official announcement) but Lee Do Hyun (Eun Hyuk) posted this on his Instagram. https://www.instagram.com/p/CJH9ZwKJyaT/ This also means he will indeed be in season 2 in some capacity uwu I'm so excited!!! 

Translated caption on Instagram post: "I'm going to catch a monster"

Plus it seems to have done well in a lot of countries. So the likely-hood that it will be renewed for a second season seems quite high.

Sweet Home Season 2 Netflix Renewal Status

Official Netflix Renewal Status: Pending (Last Updated: 21/12/2020)

At the time of writing Sweet Home has only been available to stream on Netflix for three days, which means it’s still too early for Netflix to announce the future of the series.

The popularity of an Original can greatly impact the time it takes Netflix to announce the renewal of a series. It can often take Netflix several weeks, or even several months before renewal is announced.

Sweet Home is already performing well across the globe on Netflix and has already made it into 32 different top t0 lists. In particular Sweet Home has already made it to number one on Netflix in South Korea, Malaysia, Philippines, Qatar, Singapore, Taiwan, Thailand, and Vietnam.

The series has also made it into the US top ten, and at the time of writing is ranked eighth. With Sweet Home in the US top ten, it will greatly increase the series chances of being renewed.
https://www.whats-on-netflix.com/news/netflix-k-drama-sweet-home-season-2-netflix-renewal-status-release-date/

Sweet Home season 2 Netflix release date

Fans could be waiting an extensive amount of time for Sweet Home to make a return to Netflix.

The filming for season 1 took eight months, lasting from June 2019 to February 2020. Assuming production hasn’t already begun on the second season of Sweet Home, then the earliest fans could hope to expect to see the series return in Summer 2022.
https://www.whats-on-netflix.com/news/netflix-k-drama-sweet-home-season-2-netflix-renewal-status-release-date/