Big deal! South Korea will invest 300 billion won to promote the development of online retail

According to Yonhap News Agency , in 2020 , the total transaction value completed through online platforms in South Korea reached 130 trillion won, an increase of about six times from 21.7 trillion won ten years ago .

Transactions on online platforms also accounted for 30% of South Korea's total retail sales in 2020 , a significant increase from 24% in 2019 , affected by the new coronavirus and social distancing rules .

Therefore, South Korea recently announced plans to invest 300 billion won ( about US$267 million) over the next three years to accelerate the growth of domestic digital retail business .

Under the plan, South Korea will not only pave the way for online retailers to penetrate deeper overseas markets, but will also help them adopt cutting-edge logistics technologies including drones, according to the Ministry of Trade, Industry and Energy.

By 2023, about 4,000 logistics robots will be distributed to pave the way for full-scale unmanned delivery services. And this year, South Korea will plan to allow delivery robots to work on sidewalks . By 2022 , South Korea will also conduct about 1,000 tests for drone delivery services.

Image source: Yonhap News Agency

The South Korean government also plans to establish a standardized database covering about 3 million products in 2022 , which can provide consumers with a large amount of commodity information , including allergy information. It also plans to train about 1,200 experts and open new graduate and learning courses by 2026 to meet the growing demand for online retail services.

In addition, the funds will be used to provide idle public spaces for small and medium-sized enterprises and establish shared logistics centers.

The South Korean government said it will actively participate in the World Trade Organization ( WTO) negotiations on international rules in the field of e-commerce and help local companies establish deeper links with global retailers. But at the same time, as South Korean e-commerce companies maintain close ties with overseas, government departments will also strictly regulate online transactions of dangerous goods.

South Korea

Online Retail

300 billion won