South Korea’s e-commerce sector is on a rapid growth trajectory, projected to exceed KRW222.1 trillion ($170.1 billion) by 2028, according to a forecast by GlobalData. The market is anticipated to experience a compound annual growth rate (CAGR) of 7.8% from 2024 to 2028. This growth follows a strong CAGR of 12.6% between 2020 and 2023, which saw the market reach KRW149.1 trillion ($114.2 billion) by 2023. For 2024, e-commerce sales are expected to increase by 10.2%, hitting KRW164.3 trillion ($125.8 billion).
GlobalData’s E-Commerce Analytics highlights that South Korea ranks as the fourth-largest e-commerce market in the Asia-Pacific region, behind China, Japan, and India. The country benefits from advanced digital infrastructure, including high-speed internet and secure payment systems, as well as innovations in retail such as drone deliveries, AI-driven personalization, and live stream shopping.
International brands are tapping into South Korea’s burgeoning market. Chinese online fashion retailer Shein launched a dedicated Korean platform in June 2024. In a similar vein, YouTube debuted its first online shopping channel in South Korea in June 2023, featuring live-streamed product showcases in Korean. Additionally, YouTube partnered with Coupang to introduce a shopping affiliate program in June 2024, allowing content creators to earn commissions through tagged products in their videos.
Payment methods in South Korea are dominated by payment cards, which held a 54.3% market share in 2023. Credit and charge cards were particularly favored, comprising 48.5% of the market due to their value-added features such as installment payment options, rewards, and discounts. Alternative payment methods are also gaining traction, with a 32.9% market share, driven by their convenience and security. Prominent alternative payment options include Samsung Pay, Naver Pay, and China UnionPay. Cash transactions made up only 2% of e-commerce payments, underscoring the prevalence of electronic payment methods.
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