Consumption in the first half of the year exceeded 1 trillion, and Koreans fell in love with Chinese e-commerce platforms

Now more South Koreans are buying goods directly from Chinese e-commerce platforms, with the total amount exceeding 1 trillion won ($747.94 million) for the first time in the first half of this year , according to Statistics Korea.

According to Statistics Korea, Koreans purchased 1.4 trillion won from China through online platforms and other channels in the first half of this year , up 106% from 680.8 billion won in the same period last year and almost the same as the 1.49 trillion won for the whole of last year.

The agency predicts that South Korea 's direct imports from China this year may exceed the 2 trillion won mark.

In March this year , data released by AliExpress showed that the categories most popular among Koreans this year were women's clothing, art toys, camping equipment, game accessories, coffee machines, vacuum cleaners and other compact household appliances.

On the other hand, Chinese consumers seem to be unimpressed by Korean e-commerce platforms, with total consumption in the first half of the year reaching 451 billion won, a figure that only accounts for 32% of China's total direct imports from Korea. In addition, this figure fell 40% from the same period last year, the lowest in eight years.

In recent years, China has become one of the leading players in the global direct purchasing sector. According to data from the General Administration of Customs, global direct purchasing spending has jumped from US$2.75 billion in 2018 to US$4.73 billion in 2022, with China accounting for 36% of the share.

South Korea also faces a series of challenges in exporting to China. Due to factors such as slowing economic growth, trade tensions between the United States and China, and uncertainty about Korean corporate regulation, large retailers such as Lotte Shopping and E-Mart have been forced to exit or reduce their business in the Chinese market.

In contrast, China's major e-commerce giants are increasing their investment in South Korea. Since its launch in 2018, AliExpress has vigorously attracted Korean consumers through an aggressive marketing strategy, including hiring Korean action movie stars as brand ambassadors and providing attractive services.

The strategy has paid off, with AliExpress ranking fifth among the fastest-growing apps in the first half of this year, according to industry tracker WiseApp. Its monthly active user base reached 5.52 million in August, climbing to fourth place in the shopping app rankings.

In addition, Pinduoduo, a Chinese e-commerce giant, has recently entered the Korean market. It can be foreseen that as Chinese e-commerce giants continue to seize market share in Korea, more Koreans will become loyal users of Chinese e-commerce in the future.

South Korea

E-commerce

Cross-border