According to a GlobalData forecast, South Korea, a primary e-commerce market, expects an annual growth rate (CAGR) of almost eight percent between 2023 and 2027, reaching almost $160.4 billion.
The country’s e-commerce market registered a CAGR of around 17.4 percent between 2018 and 2022, and this trend is expected to continue in the current year, with sales expected to grow by ten percent.
“South Korea has a well-developed e-commerce market supported by high-speed internet, rising smartphone penetration, availability of secure online payment systems and increasing consumer confidence in online shopping,” said Shivani Gupta, Sr. Analyst Banking and Payments at Global Data.
With a large population using online shopping services, it was found that only ten percent have never shopped online.
Naver, the country’s e-commerce giant, has been encouraging online shopping through their Naver Shopping Live platform, which allows customers to view the product details, interact with the seller and buy from the platform in real time.
Other international brands are venturing into this space, as this June, YouTube launched its first official online shopping channel in South Korea, live-streaming products in Korean.
GlobalData’s survey also revealed that everyday essentials such as food and drinks account for nearly one-fourth of the e-commerce purchases by value in 2023, while clothing and footwear account for 12.2. percent.
“South Korea’s sustainable uptrend in e-commerce sales is likely to continue over the next few years supported by the growing consumer preference, improving payment infrastructure, and growing popularity of innovative online shopping modes.”
This GlobalData 2023 Financial Services Consumer Survey was carried out in Q2 2023.