What: For the first time, online shopping has accounted for over half of Korea's total retail sales in a year, marking a significant shift in consumer behaviour towards digital platforms.

Why it is important: This milestone underscores the growing influence of technology in retail, highlighting the convenience of faster deliveries and advanced payment tools that have been further popularised by the Covid-19 pandemic. It signals a pivotal change in shopping habits, with implications for both online and offline retailers.

In a landmark shift within the retail sector, online shopping has eclipsed in-store sales in Korea for the first time, capturing 50.5 percent of the market in 2023. This change comes as the combined sales of 25 major retailers, both online and offline, increased by 6.3 percent to reach 177.4 trillion won (USD 133.35 billion). The rise in online sales, which saw a 9 percent increase, contrasts with the more modest 3 percent growth experienced by offline retailers. This trend is attributed to the widespread adoption of internet shopping for daily necessities and services, driven by the pandemic and the introduction of early morning delivery services and seamless payment methods. Among offline retailers, convenience stores saw the most significant growth at 8.1 percent, indicating a preference for purchasing everyday items locally. Department stores and discount chain stores also experienced growth, though to a lesser extent. This shift towards online shopping reflects a broader change in consumer preferences and the retail landscape, emphasising the need for traditional retailers to adapt to the digital age.

Online shopping surpasses in-store sales in Korea for the first time