South Korea’s e-commerce market is expected to grow by 10.2% to reach 164.3 trillion won ( US$125.8 billion ) in 2024.

Between 2020 and 2023, the market registered a strong compound annual growth rate ( CAGR ) of 12.6% to reach 149.1 trillion won in 2023. This upward trajectory is forecast to continue in 2024, according to data and analytics provider GlobalData.

“South Korea boasts a robust e-commerce market supported by high-speed internet infrastructure, secure online payment options, and a growing trust among the consumers in the realm of online shopping,” says Ravi Sharma, lead banking and payments analyst at GlobalData.

“Events such as Black Friday and Cyber Monday have supported the growth of e-commerce. The availability of alternative payment solutions that offer security and convenience is also boosting online purchases.”

The country’s growing e-commerce market has attracted a host of international brands. Chinese fashion online fashion retailer Shein, for example, launched its Korea-dedicated online platform in June 2024.

Similarly, in June 2023, YouTube launched its inaugural online shopping channel, where products are live-streamed in the Korean language. YouTube also partnered with e-commerce platform Coupang to introduce the Shopping affiliate programme in June 2024. This new feature allows YouTube content creators to tag products from affiliated brands or shopping sites in their videos. If viewers click on these tags and make a purchase, the creators will receive a commission.

The frequency of shopping online is high among South Korean consumers with 79% indicating buying something online in the past month and only 6% never shopped online, according to a recent GlobalData survey.

Food and drinks rank first in online transactions, highlighting the high level of comfort consumers have buying everyday essentials online. In the survey, 92% of respondents indicated buying food and drinks ( including groceries and other supermarket products ) online in the past month. Also, 78% of respondents paid for food and drinks online for restaurant orders and takeaways.

To cater to the rising demand for online grocery deliveries, food delivery app Coupang Eats launched free delivery for Coupang WOW members in March 2024.

“South Korea’s e-commerce market looks promising, supported by the growing consumer preference for online channels, improving payment infrastructure, and proliferation of alternative payment solutions,” says Sharma. “The market is expected to register a healthy CAGR of 7.8% between 2024 and 2028 to reach 222.1 trillion won in 2028.”