Alibaba Group to invest $1.1b in South Korea for business expansion

It intends to invest $200m for the logistics hub and $100m to support South Korean SMEs.

Alibaba Group has announced its plans to invest $1.1b in South Korea over the next three years.

The investment will focus on constructing a logistics centre and expanding business operations, according to a report by Yonhap News Agency.

This year, Alibaba plans to spend $200m on building the logistics hub and allocate $100m to support small and medium-sized South Korean firms in selling their products internationally.

The company will also invest around $74.67m (100 billion won) to enhance consumer protection measures in South Korea.

The move comes amid scrutiny of Alibaba's subsidiary, AliExpress, by South Korean authorities.

ALSO READ: 'Buy online, pick up anywhere' gains traction from retailers, consumers

The surge in complaints against AliExpress, including issues like misdeliveries, order cancellations, and inadequate delivery information, has prompted regulatory action. Complaints reported to the Consumers Union of Korea surged from 93 cases in the previous year to 465 cases last year.

Meanwhile, the number of AliExpress users in South Korea reached 7.18 million in February from 3.36 million in 2022.

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