South Korea E-commerce Market Insights Forecasts to 2032

• The South Korean E-commerce Market Size was valued at USD XX Million in 2022.
• The Market Size is growing at a CAGR of 21.3% from 2022 to 2032.
• The South Korean E-commerce Market Size is expected to reach USD XX Million by 2032.

The South Korean E-commerce Market Size is expected to reach USD XX Million by 2032, at a CAGR of 21.3% during the forecast period 2022 to 2032.

 The E-Commerce market is projected to expand strongly during the forecasted period, owing to increased internet penetration and an increase in the smartphone-using population.

Market Overview

E-commerce, also known as electronic commerce or internet commerce, is the buying and selling of goods and services over the internet, as well as the transfer of monetary funds and data to carry out these transactions. It can be done on computers, tablets, smartphones, and other devices. E-commerce provides a wide range of products such as books, furniture, gadgets, clothing, shoes, and many other items. It assists businesses in establishing a larger market presence by providing cheaper and more efficient distribution channels for their products or services. One of the most significant benefits of E-commerce is that it can occur 24 hours a day, seven days a week, which helps to increase customer retention and provides convenience to customers who engage in E-commerce activities.

Report Coverage

This research report categorizes the market for the South Korea e-commerce market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea e-commerce market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korean e-commerce market.

Driving Factors

The primary driver in the South Korean fashion industry is economic expansion, with several local names accounting for a significant portion of total fashion sales. Aside from that, Seoul has an enormous impact on street style, especially among younger people. Furthermore, the growing demand for online grocery shopping has benefited food and beverage e-commerce. Foreign food companies looking to capitalize on South Korea's e-commerce growth may encourage localization to maximize reach, as the country has significant per-individual online sales globally.

Restraining Factors

Since the exchange of sensitive personal and financial information in e-commerce transactions, the risk of cyberattacks, data breaches, and identity theft is a major concern.

Market Segment

• In 2022, the B2C segment accounted for the largest revenue share over the forecast period.

Based on the type, the South Korea e-commerce market is segmented into B2B and B2C. Among these, the B2C segment has the largest revenue share over the forecast period. Online purchases have surpassed hypermarket sales, making e-commerce Korea's largest retail channel. South Korea's B2C e-commerce industry, covering various segments and highlighting areas of interest across industry verticals. Furthermore, it provides a thorough understanding of market dynamics and future projections.

• In 2022, the food and beverages segment accounted for the largest revenue share over the forecast period.

Based on application, the South Korea e-commerce market is segmented into beauty and personal care, consumer electronics, fashion and apparel, food and beverage, furniture, and home. Among these, the food and beverages segment has the largest revenue share over the forecast period. The growing demand for online grocery shopping has benefited food and beverage e-commerce. Foreign food companies looking to capitalize on South Korea's e-commerce growth may encourage localization to maximize reach, as the country has significant per-individual online sales globally.

• In 2022, the credit card segment accounted for the largest revenue share over the forecast period.

Based on payment mode, the South Korean e-commerce market is segmented into bank transfers, credit cards, cash on delivery, and debit cards. Among these, the credit card segment has the largest revenue share over the forecast period. Popular South Korean Digital Wallets for Storing and Spending Money Digital wallets, also known as e-wallets, enable consumers to purchase goods and services quickly and easily. Popular e-wallet payment services include KakaoPay, Toss, and Naver Pay. Money is placed into a user’s account using a variety of methods, such as by credit card. furthermore, this makes purchases safe and accessible. Online spending is more secure, bypassing the need to give out credit card information or bank numbers, and in-store spending is touchless and accessible.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea e-commerce market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Naver Shopping (Naver Corporation)
• SSG.com (Shinsegae Group)
• Coupang, Inc.
• Lotte ON (Lotte Shopping Co., Ltd.)
• Gmarket (Gmarket Global LLC)
• 11 Street Co., Ltd
• Ticket Monster (TMON Inc.)
• We Make Price Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In April 2023, TMON announced that it would open a 'Sports & Leisure Special Hall' and introduce popular sports and outdoor items at discounted prices. When using Kakao Pay, you will receive an additional 8% discount. This will assist athletes in stretching in the warm spring weather.

Market Segment

This study forecasts revenue at regional, and country levels from 2021 to 2032. Spherical Insights has segmented the South Korean E-commerce Market based on the below-mentioned segments:

South Korean E-commerce Market, By Type

• B2B
• B2C

South Korea E-commerce Market, By Application

• Beauty and Personal Care
• Consumer Electronics
• Fashion and Apparel
• Food and Beverage
• Furniture
• Home

South Korea E-commerce Market, By Payment Mode

• Bank Transfer
• Credit Cards
• Cash on Delivery
• Debit card