Nina Jobst
Research expert covering South Korea
Cross-border e-commerc in South Korea - statistics & facts
South Korea’s e-commerce market has become a battlefield of online retailers. The fight does not only happen between domestic competitors but also among foreign companies that have entered the high potential market to secure their spot. The fast-paced South Korean e-commerce market is expected to grow even further, prompting foreign entrants to face the challenge of adapting to specific consumer demands. At the same time, South Korean companies have expanded to other markets to capitalize off the popularity of Korean cultural content, such as K-beauty and K-pop.
Inbound vs. outbound cross-border e-commerce
South Korea is an export-oriented country, which has helped it achieve economic growth. Korean products have enjoyed great popularity overseas, thanks to the Korean wave. However, the picture has looked different for cross-border e-commerce, as inbound commerce was more favored than outbound.The trend-aware and price-sensitive South Korean consumer base likes to shop online. The same has been true for international purchases, leading to continuously increasing direct overseas purchase revenue.Chinese cross-border e-commerce in South Korea
Many of the direct overseas purchases from South Korea happen on Chinese platforms. Chinese cross-border e-retailing is occasionally called C-commerce. In South Korea, Chinese shopping apps, especially AliExpress and Temu, have made a place for themselves among the leading online shopping platforms. Despite growing user numbers, Korean consumers have held concerns about Chinese online shopping services. They were most worried about product quality and the handling of personal information.Domestic challenges, global opportunities
While online retailers have fought over South Korean e-commerce market leadership, foreign companies have created their own space. To combat consumer concerns and appeal to the Korean consumer base, foreign companies have started to adopt Korean return policies, hire more domestic personnel, and use warehouses located in South Korea. As this is happening in the South Korean market, Korean companies have not remained inactive. Multiple businesses have expanded their activities online to a global scale, such as the operation of the worldwide shopping platform Olive Young global by drug store and beauty retailer Olive Young.
