- Industries and Sites
- Service Industries
Optimized Market for E-commerce CloseOptimized Market for E-commerceKorea, with its strong IT infrastructure and consumer base which excels in accepting new technologies, is an optimized market for e-commerce.
The market share of e-commerce compared to the overall retail distribution market is one of the highest in the world.
Thanks to the purchase and payment system based on advanced IT infrastructure, Korea’s e-commerce market is expected to continue its growth."Proportion of E-commerce Compared to Retail (2019)"※ Source : Euromornitor International (2019)
Distribution Market, Continued Growth Based on Online Shopping, and Convenience Stores OpenDistribution Market, Continued Growth Based on Online Shopping, and Convenience StoresAccording to the Ministry of Trade, Industry and Energy, the sales of major distribution companies continued its growth pace in 2019, up 4.8% YoY.
Online shopping and convenience stores, in particular, showed 14.2% and 4.1% YoY growth rates respectively, driving the overall growth of the distribution industry.According to the Statistics Korea, the amount in online shopping transactions in 2019 was USD 116 billion (KRW 134.58 trillion), up 18.3% YoY.
Mobile shopping accounted for 25.5% at USD 75 billion (KRW 86.70 trillion), showing a noticeable growth trend."Proportion of Mobile Market in Korea "
Proportion of Mobile Market in Korea Internet(PC), Mobile Category 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Internet(PC) 29 28 26 26 36 40 41 34 32 31 29 Mobile 6 14 22 31 47 63 75 90 110 134 155※ Source: Statistics, Hyundai Motors Securities"Major Items Transacted via E-commerce in Korea"※ Source: Statistics Korea (January 2020) “Annual online shopping trends and trends in December 2019”
International Companies Located in Korea Posted Highest Sales OpenInternational Companies Located in Korea Posted Highest SalesIn the Korean distribution industry, 95% of foreign direct investment was made in the greenfield type.
By country, the biggest investor was the US, which was followed by Japan, China, Hong Kong, and Germany.IKEA has shown a steady sales growth and has been increasing the number of stores since entering the Korean market.
Costco Korea located in Yangjae, Seoul recorded the highest sales among all Costco stores around the world.
Likewise, many international distribution companies have been successfully leading their businesses in Korea."Major International Distribution Companies Located in Korea"
Major International Distribution Companies Located in Korea Origin, Name of parent company, Name of company in Korea, Business conditions, Main items, (Number of stores/employees) in Korea Origin Name of parent company Name of company in Korea Business conditions Main items(Number of stores/employees) in Korea Origin Sweden IKEA IKEA Korea Category Killer Home Improvement 6(‘20.07) / 900(‘16) Spain ZARA 아이티엑스코리아 Fashion Specialty Store Apparel, Clothing 39(‘19) / 1,461 (‘19) US Costco Costco Korea Wholesale Club Grocery 16 (‘19) / 5,649(‘19) (based on KISVALUE) US Amway Amway Korea Non-store retailing Vitamins, Cosmetics Not relevant/400 (based on the website)※ Source: Soongsil University, IT Distribution and Logistics Department
Ghang Nam Hoon Service Industry Promotion Team