Direct Purchases from China Surged by 121%
Last year, South Korea’s online shopping transactions nearly reached 230 trillion won (US$172.67 billion), setting a new all-time record. The surge was attributed to a sharp increase in travel demand and the unprecedented milestone of overseas direct purchases surpassing 6 trillion won for the first time in history.
According to “2023 December and Annual Online Shopping Trend” data released by Statistics Korea on Feb. 1, the total online shopping transactions in 2023 amounted to 227.35 trillion won (US$171.89 billion).
This marks the highest figure since the related statistics began in 2001. Compared to 2022, which recorded 209.88 trillion won, the figure represents an 8.3 percent increase. Breaking down the transactions by product category, the transaction volume for “travel and transportation services” surged by a remarkable 44.0 percent compared to the previous year, reaching 24.09 trillion won.
The rise in overseas travel and other activities after the easing of social distancing measures is attributed to this trend. Last year saw significant increases in transaction volumes in e-coupon services at 34.9 percent and food and groceries at 12.1 percent. In contrast, there were decreases in transactions for computers and peripherals at -4.6 percent, books at -5.3 percent, and sports and leisure goods at -2.1 percent.
The composition ratio of online shopping transactions by product category showed that food and groceries accounted for the highest share at 13.1 percent, followed by food services at 11.6 percent, and travel and transportation services at 10.6 percent.
The total amount of overseas direct purchases through online channels last year stood at 6.76 trillion won, marking the first time it surpassed 6 trillion won since the statistics were first compiled in 2014. Compared to 2022, this represents a 26.9 percent increase.
By country, the volume of direct purchases from China surged to 3.29 trillion won, showing a substantial increase of 121.2 percent compared to the previous year. This accounts for approximately half of the total overseas direct purchases.
The results are analyzed as an outcome of China targeting domestic consumers with low-cost products through platforms like AliExpress and Temu. On the contrary, the United States, which has maintained its position as the top country for overseas direct purchases, recorded a decrease of 7.3 percent compared to the previous year, amounting to 1.86 trillion won.