Published on: November 8, 2023
South Korea has long been at the forefront of the digital revolution, and it’s not a surprise that’s e-commerce landscape is undergoing a massive transformation.
Our latest infographic series provides an illuminating snapshot of South Korea’s e-commerce landscape in 2023, presenting a wealth of insights for businesses looking to tap into this bustling market.
Let’s set the scene with some basic facts about South Korea.
Despite its compact size, South Korea has a dense population of over 51.7 million, predominantly ethnic Koreans, with Korean as the prevailing language.
In South Korea, with a 97% internet penetration rate, online shopping is widespread, with 76.9% of the population purchasing online — a figure that jumps to over 97% among 20 to 39-year-olds.
Boasting a whopping US$160.4 billion in e-commerce market revenue and a compound annual growth rate (CAGR) of 7.7% from 2023 to 2027, the figures speak for themselves. South Koreans aren’t just browsing — they’re spending, with an impressive average monthly spend per shopper.
Projected to surpass US$5.7 trillion by 2028, South Korea’s e-commerce market is set to double, signalling a major transformation in consumer shopping patterns and market opportunities.
What’s in the cart?
The top online shopping categories reveal the pulse of consumer preferences in South Korea. Food delivery service, fashion, and home appliances are amongst the top categories that dominate the virtual cart.
Who’s leading the charge in the digital revolution?
Coupang and Nave are neck and neck, with market shares of 24.5% and 23.3% respectively, followed by other key players like SSG, 11st, and Kakao. It’s a competitive marketplace where innovation is the currency of success.
Lastly, how are South Koreans choosing to pay for their online purchases?
Credit cards reign supreme, capturing 66% of the payment method share. Digital wallets are not far behind, signalling a shift towards more modern payment solutions.
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