As the e-commerce trends continue to improve worldwide ahead of the pandemic. The Global Data reports stated that South Korea’s e-commerce market ranked among the top e-commerce marketplace. The report also stated that the country will reach KRW/263.5 trillion ($242.2Billion) in 2025. The major reason behind this is that the country is backed by the robust technology infrastructure that enables high-speed internet, which is backed by the tech-savvy customers.
The GlobalData’s E-Commerce Analytics also reported that due to the Covid-19 and curbs put up by the government, the e-commerce in South Korea grew by 22.2% in 2020 and estimated to register a similar growth of 25.4% to reach KRW131.0 trillion (USD $120.3bn) in 2021.
Shivani Gupta, Banking and Payments Senior Analyst at GlobalData, commented on this matter, “The pandemic has transformed the way consumers shop as they are increasingly switching online channels for purchases due to social distancing rules and closure of brick-and-mortar stores. Wary consumers prefer to stay home to avoid social contact, making online purchasing even more appealing.”
Apart from digital payment strategies, the country’s own e-commerce platforms such as Coupang and Naver are offering different payment methods such as Buy Now Pay Later, making e-commerce a viable shopping option for consumers.
The South Korean e-commerce marketplace is mainly driven by domestic companies,and it is also encouraging a growth opportunity for international companies. For Instance, Shopify launched an ecommerce platform in June 2020 and in the same year Facebook also opened up its marketplace that allows merchants to set up shops online and sell digitally.