What: Chinese e-commerce leaders are increasing their presence in Korea

Why it is important: As they face increasing scrutiny in Western markets, Chinese operators are now sweeping through South East Asia, creating a competition for both local ecommerce players but also department stores which remained relatively protected so far from this new breed of competition

Chinese e-commerce entities are making significant inroads into the South Korean market, with AliExpress leading the charge by amassing 8.18 million users as of last month—a 130% increase from the previous year. This growth is not isolated to AliExpress alone; other platforms like Temu and Shein are also setting user records, signaling a broader appeal of Chinese e-commerce in South Korea. This surge places AliExpress just behind Coupang, South Korea's top shopping portal, in terms of usage, underscoring a potential shift in market dynamics. According to WiseApp's analysis, only AliExpress, Temu, and Coupang have witnessed a year-over-year user increase among the evaluated shopping portals. This development points to changing consumer behaviors and the increasing influence of Chinese online retailers in South Korea, fueled by competitive pricing and an expansive product range.

Chinese e-commerce giants ramp up expansion in South Korea