160 billion US dollars! This East Asian market is targeted by cross-border sellers

According to analysis firm GlobalData, South Korea will soon develop into the next mainstream e-commerce market , with a compound annual growth rate of 7.7% expected between 2023 and 2027 , and its e- commerce scale expected to reach 202.6 trillion won ( about US$160.4 billion) by 2027 .

GlobalData's analysis shows that South Korea 's e-commerce market has maintained a growth trend , with a compound annual growth rate of 17.4% from 2018 to 2022 .

Data shows that South Korea's e-commerce market reached 136.6 trillion won (US$108.2 billion) by the end of 2022 , and the trend will continue this year .

Shivani Gupta, senior analyst at GlobalData , said: "South Korea has a very developed e-commerce market, with growing penetration of the Internet and smartphones , a well-developed online payment system , and growing consumer confidence in online shopping . "

According to GlobalData ’s 2023 Consumer Survey, many South Koreans are frequent online shoppers , with more than 80% of respondents reportedly buying something online in the past six months , with only 10% saying they had never shopped online .

In addition, the emergence of new online shopping models such as live video streaming is also encouraging Korean consumers to go online shopping . Korean e-commerce giant Naver is a leader in this area, enabling merchants to live stream their products on its "Naver Shopping Live" platform , where consumers can interact with sellers and place orders in real time .

On the other hand, international brands are also entering this field, contributing to the growth of e-commerce in South Korea. In June 2023, YouTube launched its first official online shopping channel in South Korea - Korean live streaming.

Gupta added: "South Koreans are now increasingly fond of shopping online, even for daily necessities." GlobalData's survey shows that in 2023, daily necessities such as food and beverages will account for nearly a quarter of South Korea's e-commerce consumption by value, while clothing and footwear will account for 12.2%.

Gupta concluded: “South Korea’s e-commerce market has witnessed consistent growth over the past five years. And its upward trend is likely to continue in the coming years, driven by consumers’ growing preference for online shopping, improved payment infrastructure, and the growing popularity of new online shopping models.

As the Korean e-commerce market continues to develop, more and more cross-border sellers have set their sights on the East Asian market. Due to the similar geographical location and cultural customs, South Korea may become the next gold mine for sellers.

South Korea

E-commerce

Cross-border